Asset Management Scott Matthews January 22, 2004
Recap: Infrastructure/ Mgmt Infrastructure The underlying, often hidden foundation of a society’s wealth and quality of life. its system of public facilities, both publicly and privately funded, which provide for the delivery of essential services and a sustained standard of living Infras. Mgmt. Administrative process of creating, planning, and maintaining our infrastructures An integrated, inter-disciplinary process that ensures infrastructure performance over its life cycle Life cycle is entire time from design through decommissioning
Asset Management More specific than Infras. Mgmt. Focused on transport. Assets Assets = $ + people + physical resources! Guided by: performance goals, time horizons, engineering / economics High-level assessment of trade-offs between alternatives Quantitative and qualitative data Source: ‘Asset Mgmt Primer’, DOT 1999
Why? 1960s-80s: Focus on building HIS Since then: preserving/maintaining More important: efficient govt (business) System, Budget & Personnel Demands Doing more with less
Government Acct Standards Board (GASB) Asset approach for state financial reporting Just like private companies do Costs, revenues of providing services Historical cost estimate or current replacement cost Depreciation allowed (SL, condition) Exempt if subject to Asset Mgmt AND in better than planned condition Asset Mgmt system should contain: Inventory Updated condition assessment Expected annual maintenance costs
Investment Decision Making Use Pavement and Bridge Management Systems
Asset Mgmt is strategic rather than tactical
Bridge Management Systems Inventory and condition ratings Deteriorating prediction features How and when to spend money on bridges to maintain/preserve condition PONTIS Demo Even though features exist, most states use it only for inventory/database Economic prediction parts ignored - worst first mentality
For Next Time Lemer (96) paper - obsolescence and service life “Theory” of obsolescence, maintenance, etc.