⬱ Return to the Concurrent Session 3 Agenda

Moderator

Bill Robert, Spy Pond Partners

Agenda

1. National Cooperative Highway Research Program (NCHRP) Project 20-44(46) Overview – Implementation of Asset Valuation Guidance to Support Transportation Asset Management: Bill Robert, Spy Pond Partners
2. Valuing Assets Using an Economic Perspective: Chris Williges, HDR
3. Asset Valuation Pilot for the District Department of Transportation: Blake Holub, District Department of Transportation (DDOT)
4. Asset Valuation Pilot for the Illinois Department of Transportation: Laura Heckel, Illinois Department of Transportation (DOT)

Abstract

In its requirements for National Highway System (NHS) Transportation Asset Management Plans (TAMPs), the Federal Highway Administration (FHWA) required that state DOTs include a calculation of the value of NHS pavement and bridge assets in their TAMPs, and that they calculate the cost of maintaining asset value. These requirements appear in 23 Code of Federal Regulations (CFR) § 515.7(d)(4).

Calculating asset value is important not simply because doing so is required – it is also consistent with best practice in TAM. Once an agency has calculated the value of its assets, the agency can use the resulting value as a measure to help describe its asset management program, demonstrate the impact of its investments, and answer key questions related to TAM. Asset values serve to help summarize the quantity of assets an agency owns or maintains. Changes in value show the direction of asset conditions and whether an agency’s inventory is improving or deteriorating. Further, depending on how it is calculated, asset value can support decisions about how best to invest in assets, or even if an investment is justified.

Recently the NCHRP published NCHRP Web-Only Document 335 providing guidance for performing asset valuation to support TAM. A key feature of the NCHRP guidance is that it recognizes different perspectives regarding what asset value represents. The value of an asset can be viewed based on the cost of the asset, on its market value (in cases where a market exists, such as for used vehicles), or on the economic benefits the asset yields. Further, the guidance includes different approaches for establishing the initial value of an asset and calculating depreciation, as well approaches for calculating a variety of supporting measures related to asset value.

Currently, NCHRP Project 20-44(46) is underway to implement the asset valuation guidance. This project includes a set of six agency pilots testing different asset valuation approaches for a variety of asset classes and applications. This session is proposed as a forum for presentations on the asset valuation pilots and/or other agency presentations detailing approaches to asset valuation.

Presentations

Transportation Asset Management in Illinois –Asset Valuation

Valuing Assets Using an Economic Perspective

Case Studies in Asset Valuation(NCHRP 20-44(46) Overview)

PaveDC Initiative & Asset Valuation