TRANSPORTATION SYSTEMS MANAGEMENT AND OPERATIONS

The transportation industry is rapidly evolving with advanced 

technology and a new emphasis on management and 

operations. Roadways are becoming increasingly complex, 

with communications and security technology, sensors 

and cameras, and other technologies, as well as supporting 

infrastructure. Travelers and commercial vehicle operators rely 

on the software, hardware, and people necessary to dynamically 

manage and operate the system in real-time from virtual and 

physical transportation management centers. The reliance on 

transportation assets for TSMO is expected to rise steeply as 

transportation becomes increasingly automated. 

Historically, agencies have prioritized technology deployment in 

support of TSMO, while maintenance has been an afterthought. 

With their significant investment in and focus on deploying 

technology, many agencies have been struggling to keep these 

assets maintained. 

The industry needs a comprehensive approach to asset 

management that can support these emerging needs and lead 

transportation agencies into the future. 

Enhancing Transportation:

Connecting TSMO anD 

ASSET MANAGEMENT

WHAT IS TSMO?

Transportation systems management 

and operations (TSMO) is the 

use of strategies, technologies, 

mobility services, and programs to 

optimize the safety, mobility, and 

reliability of the existing and planned 

transportation system. A significant 

cause of congestion and unreliable 

travel is non-recurring events, such as 

crashes, and transportation network 

disruptions, such as bad weather, and 

special events. TSMO enables agencies 

to target the underlying operational 

causes of congestion and unreliable 

travel through innovative solutions 

that typically cost less and are quicker 

to implement than adding capacity. 

TSMO expands the range of mobility 

choices available to system users, 

including shared mobility and nonmotorized options. 

This Fact Sheet is part of a series 

that explains how TSMO relates to 

other State and local transportation 

agency functions and offices. Other 

Fact Sheets focus on how TSMO 

relates to: performance management, 

maintenance, design, safety, 

environment, planning, human 

resources, and construction.

ASSET 

MANAGEMENT

Asset Management is a strategic and systematic process 

of operating, maintaining, and improving physical assets, 

with a focus on engineering and economic analysis based 

upon quality information, to identify a structured sequence 

of maintenance, preservation, repair, rehabilitation, and 

replacement actions that will achieve and sustain a desired 

state of good repair over the lifecycle of the assets at 

minimum practicable cost. 

Source: 23 U.S.C. 101(a)(2), MAP-21 § 1103.

Photo Source: Getty Images
ENHANCING TRANSPORTATION: CONNECTING TMSO AND ASSET MANAGEMENT

TSMO and asset management work toward enhancing system performance with similar processes, but they 

have different focuses. While asset management is concerned with preserving or improving the condition 

of assets, TSMO is focused on preserving and maximizing mobility. However, TSMO and asset management 

programs share a strategic, performance-based approach to monitoring performance and applying actions to 

reach targets. 

Lifecycle planning and risk-based management are two concepts from asset management that hold promise for 

advancing TSMO programs. TSMO strategies often suffer from a lack of funding to maintain the technology and 

equipment required to operate the system after the initial deployment. Asset management uses a network-level 

lifecycle approach for managing assets over their whole life with a focus on minimizing cost while preserving 

or improving the asset condition. By adopting this approach for the assets supporting TSMO strategies, 

agencies would estimate the useful life of the technology and the need for upgrades and maintenance during 

the planning stages of the TSMO strategy, ensuring that there is an ongoing funding source for maintenance 

activities. Risk-based management as applied to TSMO would lead agencies to plan for, assess, and mitigate, 

avoid, or accept risks to mobility. For example, agencies could pre-position tow trucks to mitigate the risk of 

severe congestion caused by an incident in a work zone on a significant arterial in the region. 

Inclusion of TSMO in Transportation 

Asset Management Plans

The Federal transportation legislation, the Fixing America’s 

Surface Transportation (FAST) Act, requires all State DOTs 

to develop risk-based Transportation Asset Management 

Plans (TAMPs) for the pavement and bridge assets on 

the National Highway System to improve or preserve the 

condition of the assets and the performance of the system.1 

States are encouraged to add assets beyond pavement and 

bridges, such as ITS, traffic signals, and other infrastructure 

that support TSMO, to have a more comprehensive asset 

management system. States that choose to do so should 

include risk analyses, life-cycle planning, and condition 

targets and develop investment strategies based on 

funding available over a period of at least 10 years. 

Including details such as field equipment make, model, 

serial numbers, purchase and installation dates, and routine device maintenance frequency allows for life-cycle 

costs to be analyzed and future device replacements to be planned and programmed. This would support 

agencies in replacing these assets on a more consistent and timely basis. 

Many State DOTs are now developing TSMO plans. Given the links between TAMPs and TSMO plans, agencies 

may benefit from connecting both plans on a long-term basis. 

How Has this Worked in Practice? 

Caltrans incorporates its ITS assets into an annual Asset Management Performance Report. The report tracks 

the performance or health of the agency’s ITS assets and shows the projected performance or health of the ITS 

elements for the next 5 years. Caltrans sets a threshold to gauge the performance of its ITS assets and provides 

explanations and solutions to resolve potential ITS health issues.

1 23 U.S.C. 119(e). For more information, see the Federal Highway Administration’s Web page on Transportation Asset Management 

Plans at: https://www.fhwa.dot.gov/asset/plans.cfm. Also see the AASHTO Transportation Asset Management Portal at: http://www.

tam-portal.com/.

FOR MORE INFORMATION

Joseph Gregory, Federal Highway Administration

(202) 366-0610 | Joseph.Gregory@dot.gov

FHWA-HOP-18-094

December 2018

Five Core Questions for Transportation 

Asset Management that Apply to TSMO

What is the current state of physical assets?

What are the required levels of service and 

performance delivery?

Which assets are critical to sustained 

performance?

What are the best investment strategies for 

operations, maintenance, replacement, and 

improvement?

What is the best long-term funding strategy?

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