HD88 - Asset Management Methodology and Asset Management Systematic Mechanisms
The 2006 General Assembly included in the Appropriation Act Item 444A and B1 directing VDOT to report on its Asset Management Methodology for review by the General Assembly. VDOT was directed to use an asset management approach to develop and include performance targets to monitor and evaluate the effectiveness of maintenance activities, identify and prioritize state and district maintenance and operations needs, including but not limited to pavement, structures and bridges, pipes and drainage, roadside operations and statewide programs such as snow removal and equipment replacement. The Commonwealth Transportation Board is directed to review the methodology before its submission to the General Assembly by December 31, 2006. Progress made and future plans to incorporate principles of asset management into maintenance and operations practices are to be included.
Asset Management has been defined in the Code of Virginia in Section 33.1-23.02 as “a systematic process of operating and maintaining the state system of highways by combining engineering practices and analysis with sound business practices and economic theory to achieve cost-effective outcomes.”
The Joint Legislative Audit Commission (JLARC) in 2002 issued a report recommending several actions for VDOT to continue to pursue the implementation of an asset management approach as a priority. Many aspects of VDOT’s maintenance program were commended by JLARC. JLARC made a number of recommendations that have guided the development of the asset management approach implementation in VDOT.
The Asset Management approach to maintenance of the highway network assets reflects a comprehensive view of the highway network assets’ performance. Resource allocation decisions are based on the desired system condition, level of service, and safety provided to customers.
VDOT’s Asset Management Approach is based on the following three goals:
• Manage VDOT’s assets based on a life-cycle analysis approach
• Use a Needs Based Budgeting approach to identify and prioritize statewide maintenance and operations needs based on the inventory and condition assessments
• Employ processes to plan, budget, implement, monitor and measure performance
VDOT Asset Management Methodology is consistent with the American Association of State Highway Transportation Official’s (AASHTO) model for Transportation Asset Management, which includes systematic processes for Asset Inventory, Condition Assessment and Performance, and Performance Monitoring.
VDOT’s Asset Management Methodology follows the AASHTO model for asset management. It includes a Needs-Based Budgeting (NBB) process, which systematically identifies asset maintenance needs based on quantifiable, measurable asset inventory and condition data. This process is used to develop the annual budget request, and to guide the allocation of available resources across maintenance activities and districts. The methodology provides a means of assessing the total statewide maintenance needs for major assets and measures progress in improving asset conditions over time.
[The entire executive summary can be viewed in the full report.]