EXECUTIVE SUMMARY 

Table of Contents 

A. Transportation Asset Management Guide—A Focus on Implementation .........................................1
 

B. Setting the Direction for Asset Management.....................................................................................4
 

C. Aligning the Organization..................................................................................................................8
 

D. Preparing an Asset Management Plan ...........................................................................................11
 

E. Processes, Tools, and Data to Support Asset Management...........................................................15
 

F. Additional Information ......................................................................................................................37
 

Acknowledgements 

The Executive Summary of the AASHTO Transportation Asset Management Guide—A Focus on Implementation was 

developed in partnership between the Federal Highway Administration (FHWA) and AASHTO. The FHWA Transportation Asset Management Expert Task Group oversaw the preparation of the content of the Executive Summary. 

The first edition of the AASHTO Transportation Asset Management Guide—A Focus on Implementation is a copyrighted publication through the American Association of State Highway and Transportation Officials dated January 

2011. To purchase a copy, order it online from AASHTO’s bookstore at https://bookstore.transportation.org. 

AASHTO Transportation Asset Management Guide—Executive Summary 1 

A. Transportation Asset Management Guide—A Focus on Implementation 

Infrastructure supports the nation’s economy and lifestyle, enabling mobility while providing an acceptable level of 

speed, safety, security, comfort, and reliability. Transportation agencies in the United States have a long history of 

building roads, bridges, transit systems, and other infrastructure and managing an expanding asset base. However, 

over the past decade there has been a growing awareness that current methods of transportation infrastructure management are inadequate to meet the demands of American citizens and industry. With the published reports of two 

presidential and congressional commissions (U.S. General Accounting Office), it is clear that the general public and 

elected federal, state, and local officials will be demanding from transportation agencies and providers: 

•	 greater accountability in the effective use of federal funds, 

•	 an increased relationship between performance and funding, and 

•	 more sustainable transportation solutions. 

Transportation Asset Management (TAM) is therefore needed to meet the new demands of a rapidly changing transportation business environment. Traditional management methods will no longer be sufficient to meet 21st century 

business and political demands. Implementing TAM represents good public policy and service [Section 1.1.1]. 

There is no “one-size-fits-all” TAM solution for an agency. There are many reasons why the appropriate level of 

asset management practice varies among organizations, or within an organization, as TAM practices consolidate. 

These reasons may include: 

•	 Agencies vary in their level of asset management maturity, knowledge, experience, political and physical 

environment, and resources.
 

•	 Some aspects of TAM, such as consultation with customers over levels of service, may be totally new to the 

agency. 

•	 Agencies may wish to integrate other aspects, such as demand forecasting, risk management, asset criticality, 

asset valuation, and cost optimization. 

•	 The characteristics of different transport networks vary considerably. For example, the needs of a sparsely 

populated county may differ significantly from those of a major metropolitan area or of an interstate system 

[Section 1.1.2]. 

Executive Summary 

This AASHTO Transportation Asset Management Executive Summary serves as a companion to the AASHTO Transportation Asset Management Guide—A Focus on Implementation, which takes as a starting point the Transportation 

Asset Management Guide published by AASHTO in November 2002. The AASHTO Transportation Asset Management Guide—A Focus on Implementation is focused on implementing TAM. All three documents should be read and 

used together—they are complementary. 

The AASHTO Transportation Asset Management Guide provides considerable background information about 

Transportation Asset Management, the advantages of using TAM, and an approach that agencies can use to identify 

where they are now and where they should focus their asset management efforts. 

The AASHTO Transportation Asset Management Guide—A Focus on Implementation is presented in three key parts: 

•	 Part 1, which is focused on organizing and leading TAM. Part 1 is of most interest to executive management. 

•	 Part 2, which is focused on processes, tools, systems, and data. Part 2 is of most interest to practitioners, 

•	 Appendices, which include examples of asset management plans and four in-depth case studies of local and 

international agencies’ experiences in implementing TAM. 
2 AASHTO Transportation Asset Management Guide—Executive Summary

The guide is a “step-by-step” presentation of the tasks to implement asset management in a transportation agency 

[Section 1.2.1]. It is structured so that a reader can use a particular section or topic as a source of advice (typically 

a practitioner) or use the whole in order to drive a systematic agency-wide implementation (typically the executive) 

[Section 1.2.2]. 

Chapters 1 through 4 provide the context and preparatory steps that any agency will need to undertake as it prepares 

for asset management implementation. The material in these chapters is broadly applicable to agencies at any level 

of maturity. In Chapter 4, differences emerge among agencies at varying levels of maturity, as the more advanced 

agencies will typically have more formalized and extensive TAMPs in place. Chapters 5 to 8 are designed to be used 

selectively, depending on the priority areas of 

improvement identified by the gap analysis in Chapter 2. These later chapters are focused on the specific tools, 

methods, and information technology resources required in order to reach the more mature stages. The most mature 

agencies use all the tools described here. However, it is important not to be overwhelmed by their breadth and depth. 

Agencies climbing the maturity scale which might not use many of these tools today can set their own priorities for 

near-term implementation activities. Figure 1 illustrates the guide structure through the TAM implementation steps 

[Section 1.3]. 

Chapter 2: 

Set the direction 

Set agency goals 

and objectives 

Chapter 3: 

Align the organization 

Chapter 4: 

Develop the TAMP 

Chapters 5–8: 

Processes, 

tools, systems 

1

Self-assessment 2 and gap analysis

Define scope of 3 TAM in the agency Integrate TAM into 6 business process

Develop the 4 change strategyTAMP: 

Transportation 

Asset Management 

Plan 

9

Integrate TAM into 5 agency culture

Establish asset 7 management roles

Performance mgmt 8 standards

Data collection 14 and management

Service 10 Planning

Life cycle 11 management

12 TAM integration 

Information 13 systems

Figure 1. TAM Implementation Steps 

“Transportation Asset Management is a strategic and systematic process of operating, maintaining, upgrading, and expanding physical assets effectively throughout their life cycle. It focuses on business and engineering practices for resource 

allocation and utilization, with the objective of better decision making based upon 

quality information and well defined objectives.” 

NCHRP Report 632 (National Cooperative Highway Research Program, 2009) 
AASHTO Transportation Asset Management Guide—Executive Summary 3 

The Total TAM Process 

TAM needs to be embedded in the business planning processes of an agency, from strategic through tactical to operational planning. TAM includes the development of asset management policy, an organizational statement that can 

establish the framework for securing alignment and providing direction for asset management planning. It extends 

through producing and using the Transportation Asset Management Plan (TAMP) to daily operation of facilities and 

reporting on the achievement of programs and outcomes [Section 1.4.1]. 

TAM yields many important benefits to the agency, including: 

•	 Long-term view. 

•	 Clear relationships, transparency, and accountability. 

•	 Provides the desired levels of service. 

•	 Plans for growth. 

•	 Maximizes the benefits of infrastructure. 

•	 Better use of existing funds. [Section 1.4.2] 

•	 Improves agency competitiveness for limited funds. 

•	 Helps build constructive political relationships. [Section 1.4.3] 

There are three key principles that underpin TAM: 

•	 Recognizing the economic value of assets. 

•	 Achieving economic efficiency and the optimization of expenditure over the asset’s life cycle. 

•	 Understanding the role of the agency as “steward” of the assets. [Section 1.4.4] 

There are many features that characterize TAM effectiveness in an agency, such as: 

•	 Takes a network view. 

•	 Aligns with strategic directions. 

•	 Aligns leadership within the agency. 

•	 Communicates with stakeholders. 

•	 Makes data-driven, informed decisions. 

•	 Integrates agency programs and budgets. 

•	 Monitors outcomes. 

•	 Focuses on continuous improvement. [Section 1.4.5] 
4 AASHTO Transportation Asset Management Guide—Executive Summary

B. Setting the Direction for Asset Management 

Step 1. Set Agency Goals and Objectives for TAM 

The starting point for any agency is having a clearly defined mission and organization-wide strategic goals and 

objectives. Quantitative, proactive decision making is a powerful tool to improve the agency’s ability to achieve its 

mission under a variety of policy scenarios. 

High-level goals may also be referred to as vision or outcomes, and they provide the agency with a sense of purpose, 

direction, and a high-level picture of what it wishes to achieve as an organization. This should be clearly understood 

by management, staff, and external stakeholders. Many organizations also prepare a strategic plan, with high-level 

indicators or performance measures to provide information on what is being achieved. 

Setting goals and objectives for TAM or a vision of what TAM means to the agency, and growing internal commitment to achieving the vision, is an essential leadership role. The agency’s goals and objectives need to give a 

clear signal that asset management is a means to help it accomplish its mission more efficiently and effectively with 

limited funds. [Section 2.1] 

Various approaches are described below that can assist the executive in establishing clear goals and objectives to be 

cascaded to the practitioner level, such as: 

•	 Review enterprise strategy—ensure that the agency has a well-defined mission and goals. A key component of successful asset management is the establishment of TAM goals and objectives, which are quantified by performance measures. Measures need to have targets with a set timeframe and available resources. 

[Section 2.1.1] 

•	 Define the context for setting TAM objectives—identify the factors that drive the objectives. In its 

generic sense, the purpose of TAM is “to meet a required level of service, in the most cost effective manner, 

through the management of assets for present and future customers.” To do this, TAM focuses on business 

and engineering practices for resource allocation and utilization, with the objective of better decision making 

based on quality information and well-defined objectives. The objectives and service levels are quantitative 

and are related directly to the agency mission. [Section 2.1.2] 

•	 Determine the preferred enterprise management framework—how the agency will manage organizational performance. Once enterprise objectives are understood, asset management policy, strategy, and goals 

should be specified to support the agency’s overall objectives. An agency can consider multiple frameworks 

for applying performance measurement to management processes, including those provided by Baldrige, Six 

Sigma, the Balanced Scorecard, and Publicly Available Specification PAS55. [Section 2.1.3] 

•	 Link TAM to organizational planning, strategy, and policy—integrate TAM with the agency’s business 

processes. TAM interacts with every aspect of an agency’s business, from strategy development, through 

planning and policy making to the individual member of the work crew fixing a pothole on a local road. All 

of these business processes share a common understanding of levels of service, both current and future, the 

quantitative performance objectives of the agency. A set of universally-understood performance expectations 

for the agency as a whole permeates all business processes that carry out the agency’s mission, as depicted in 

Figure 2. [Section 2.1.4] 
AASHTO Transportation Asset Management Guide—Executive Summary

 

 

5 

Strategic plan 

Tactical plans 

Operational plans 

Levels of service 

Policy 

Customer 

service 

Human 

resources 

Asset 

Management Financial Marketing 

Satisfying planned 

growth and change 

in infrastructure needs 

Meeting financial 

responsibilities and 

reporting requirements 

Delivering effective 

and efficient 

services 

Outcomes 

Figure 2. Integrate Levels of Service with Decision Making 

•	 Obtain organizational commitment—ensure buy-in. Critical to ensuring actual implementation of TAM and 

its integration into the agency is the process of obtaining organizational commitment. The following steps can 

be applied to ensure buy-in throughout the agency, particularly in the early stages of TAM implementation: 

–	 Raise awareness within the agency management team of benefits of asset management, including related 

policy and financial implications. 

–	 Involve key players. 

–	 Include practical, concrete examples with tangible, short-term goals that can be measured when communicating asset management objectives to staff. 

–	 Ensure proper resources and training are made available. 

–	 Establish a continual review process and keep staff fully informed of targets and progress. [Section 2.1.5] 

Step 2: Perform an Agency Self Assessment and TAM Gap Analysis 

The next step is to assess the current status or maturity level of TAM and determine the actions that need to be taken 

to achieve TAM improvements. The four key parts of this assessment include: [Section 2.2] 

•	 Strategic self assessment—using the tool that is described in the AASHTO Transportation Asset Management Guide to obtain a high-level picture of where the agency is at present. The Self Assessment Tool 

in the AASHTO Transportation Asset Management Guide allows an agency to benchmark characteristics for 

establishing its level of strategic support for sound asset management within the organization. It provides 

agencies with a structured series of questions that they can ask of themselves. This provides a useful approach 

in helping to organize thinking and to develop a consensus among top-level managers as to where the agency’s strengths and needs for improvement lie, and to then structure an agenda for improvements and change. 

An agency’s responses to the self assessment will guide the actions that need to be undertaken in developing 

TAM. [Section 2.2.1] 

•	 TAM maturity model—a concept used to specify the relative position of the agency for each TAM 

process. A Maturity Scale is used in this guide to describe levels of TAM achievement in a way that allows 
6 AASHTO Transportation Asset Management Guide—Executive Summary

an agency to reliably locate its current position and to help it determine the next steps it should take. Table 1 

describes a generalized five- level maturity scale, which can be used in understanding the agency’s position 

on a wide range of TAM practices and is used throughout this guide. It is not intended to replace the AASHTO Transportation Asset Management Guide self-assessment methodology, but rather to be used in the next 

stage of tactical and operational improvement of TAM practices. The following section describes a TAM Gap 

Analysis Tool, how the TAM maturity scale applies to it, and how the reader can then use the more detailed 

topic areas within Section E of this Executive Summary to focus efforts on particular weaknesses that may be 

identified. [Section 2.2.2] 

•	 TAM gap analysis—a tool for drilling down into the detail of TAM processes which uses the maturity 

model as its scale. While the self-assessment process has a valuable framework and identifies a range of 

useful processes, tools, and approaches for an agency to pursue, it does not provide a step-by-step method of 

moving from a general action plan to hands-on implementation. That is addressed by the TAM Gap Analysis 

process. The gap analysis helps to pinpoint the most important areas of deviation between the current and desired states, which form the basis of a list of tasks to be accomplished in order to achieve the desired advancement in maturity. The purpose of the gap analysis is to determine the areas of TAM that require improvement 

and to allow these to be prioritized. The TAM self-assessment tool and gap analysis tool are illustrated in 

Figure 3. Once the target levels of maturity have been established, practices in each area are reviewed by 

considering the questions listed in the tool at the element level. The answer to each question is scored against 

its level of TAM maturity on a 1 to 10 scale, and any required improvements or shortcomings of the current 

performance or procedure are noted. The next steps are to determine what needs to be done to close the gap 

between each individual performance level and its target and to prioritize its closure based on risk and the 

gaps’ relevance to achieving agency performance objectives. Then, analyze and present an improvement plan 

that addresses the worst of these first. 

The output of this part of the process should be a prioritized list of TAM practice improvements that includes 

a time for each improvement to be completed, responsibility for carrying out the improvement, and the 

resources required to do it. The resources include people, time, and money. If there are insufficient resources 

available, there are two principal options that should be investigated: allocation of more resources and adjustment of the target or extension of the time permitted to reach it. [Section 2.2.3] 

•	 Identify appropriate TAM practice—suggestions to consider when deciding what TAM practices to 

focus on. Determining the set of practices that the TAM program embraces is important in the degree of 

success the agency is able to achieve. Appropriate practice takes into account an agency’s strategic goals and 

regulatory requirements, customer expectations, nature of the asset, exposure to risk, availability of resources, 

and benefit-cost analysis. An agency should weigh these factors in determining the practices to be supported 

by the TAM program. [Section 2.2.4] 

Table 1. TAM Maturity Scale 

TAM Maturity 

Scale Level Generalized Description 

Initial No effective support from strategy, processes, or tools. There can be lack of motivation to improve. 

Awakening Recognition of a need and basic data collection. There is often reliance on heroic effort of individuals. 

Structured Shared understanding, motivation, and coordination. Development of processes and tools. 

Proficient Expectations and accountability drawn from asset management strategy, processes, and tools. 

Best Practice Asset management strategies, processes, and tools are routinely evaluated and improved. 
AASHTO Transportation Asset Management Guide—Executive Summary

 

 

 

 

 

 

 

 

 

 

 

 

7 

TAM 1 Self 

Assessment 

Asset 

management 

implementation 

plan 

Review: 

•Policy guidance 

•Planning and 

programming 

•Program 

delivery 

•Information and 

analysis 

•Lifecycle 

management 

and TAM 

•Legislative 

compliance 

Review: 

•Policy 

guidance 

•Planning and 

programming 

•Pro gram 

delivery 

•Information 

and analysis 

TAM Plan

Delivery of 

Agency Mission 

TAM practices 

improvement 

tasks 

TAM Plan 

TAM 2 Gap 

Analysis 

TAM Improvement Plan 

TAM Business 

Strategy 

Figure 3. TAM Self Assessment and Gap Analysis 

Step 3: Define the Scope of TAM in the Agency 

Depending on the management styles of asset management champions in the agency, it is often useful to consider 

the implementation of asset management as a change process project and manage it using the techniques of project 

management. Defining the scope of the effort comes first. The following questions are vital to consider when defining the scope: 

•	 Which assets? 

•	 Which actions or decisions? 

•	 Which business processes, including methods and forms of delivery? 

•	 What asset management capabilities? 

•	 What data? 

Finding the answers to these questions is part of the implementation process and can be assisted by the self-assessment and gap analysis process. [Section 2.3] 

Asset Types 

The scope of TAM should include the needs of all assets managed by the agency in delivering services to users and 

customers. Each of the asset groups will have differing service issues, component lives, risk profiles, and life-cycle 

management needs. Agencies will very commonly start with just a few asset classes and then build incrementally as 

their maturity level grows. [Section 2.3.1] 

TAM Decision Making 

TAM decision making needs to be seen in the context of the agency’s mission and the services that it delivers to 

its customers and road users. Infrastructure assets are employed for a purpose, but it is of equal importance that 

the assets are managed in an economically efficient manner and in a way which makes best use of available funds. 

[Section 2.3.2] 
8 AASHTO Transportation Asset Management Guide—Executive Summary

C. Aligning the Organization 

Step 4: Develop the Change Strategy 

Step 4 picks up on the outcomes of the previous step’s evaluation of an agency’s TAM practices. Depending on the 

extent of the changes required (e.g., to business processes, roles, or activities), an agency may need to develop a 

comprehensive change strategy. This should clearly identify what needs to be done and how the agency’s executives 

will involve and motivate staff in achieving the benefits of change. [Section 3.1] 

Successful organizational change requires the following activities: 

•	 Convince people of the need for and benefit of change. 

•	 Create a change leadership coalition. 

•	 Develop a vision of changes and strategy. 

•	 Communicate that vision regularly. 

•	 Make actions consistent with the vision. 

•	 Make sure people are involved and empowered to make changes consistent with the vision. 

•	 Reinforce the change effort with short-term successes. 

•	 Keep the focus on the change effort. 

•	 Anchor new approaches into the culture. [Section 3.1.2] 

Agencies committed to positive change do not rely on crises as a rationale for change. Rather, they challenge the 

day-to-day process of the organization through a systematic analysis of what is working well, what needs improvement, and how these areas relate to the agency’s mission and goals. 

This analysis relies on a willingness to investigate all aspects of “business as usual” with an open mind to determine 

if new processes, competencies, people, systems, behavior, attitude, communications, and leadership practices are 

required. The process should be creative, objective, and thorough, involving feedback from all business units and inviting participation from all levels of staff so that information includes the viewpoint of individuals interacting with 

systems, processes, and customers as well as those with a more strategic overview. Additionally, it should encompass a review of best practices in peer agencies. [Section 3.1.3] 

An effective plan for change management must provide guidance on how changes are incorporated and integrated 

into daily practices, how they are sustained for the long term, and how present changes provide lessons for developing and implementing lasting change at all levels and in all processes of the agency. [Section 3.1.4] 

Step 5: Integrate TAM into the Organizational Culture 

Continual, honest communication is required for successful collaboration and to build enthusiasm for change. Important considerations when communicating change include: 

•	 The message must be created clearly and with sufficient detail and must convey integrity and commitment. 

•	 The message recipient must be willing to listen, ask questions, and trust the sender. 

•	 The message must be delivered in a format that is accessible and acceptable for both sender and recipient. 

•	 The message content has to be relevant to the recipient and must connect with the recipient’s emotions or 

beliefs in order to have lasting value. [Section 3.2.1]
 

Speaking positively about the possibilities inherent in change, demonstrating that everyone’s opinion is welcome, 

and providing early, tangible evidence of the value of change are equal to regular communication in their value to 

gaining commitment to change. [Section 3.2.2] 
AASHTO Transportation Asset Management Guide—Executive Summary

 

9 

Agencies need to develop performance-tracking systems that measure the impact of employee efforts on agency 

performance. These results should be made transparent to everyone so that there is no secrecy about progress toward 

objectives. Performance measures can even be incorporated into individual employee annual performance reviews. 

Clear accountability is important, but failing to achieve performance targets should be handled in a way that motivates, as opposed to assigning guilt or blame. [Section 3.2.3] 

Step 6: Integrate TAM into Business Processes 

TAM implementation typically involves the establishment of linkages and data flows that may not have existed before to existing and new business processes and providing information to support performance measurement across 

strategic, tactical, and operational levels. [Section 3.3] 

Step 7: Establish Asset Management Roles 

Asset management is a team effort, requiring a variety of specialized skills and capabilities. In the early stages of 

implementation, an agency in the Awakening stage might rely on 

just one person, or a few scattered people, who have multi-disciplinary training and experience. Once asset management becomes the coordinated effort of multiple individuals, the agency has satisfied a major criterion in moving 

from the Awakening stage to the Structured stage of asset management maturity. 

Establishing new roles and managing the transition from the small “nurturing group” to a formal, mature asset 

management team is an important leadership task. It requires consideration of individual, team, and organization 

expectations and how dynamics will change as the formal TAM team is established and developed. [Section 3.4] 

Figure 4 shows an example of a successful leadership structure for asset management. Every asset management 

implementation effort needs a project manager, the leader of the effort, who devotes a significant part of his/her time 

to the project. [Section 3.4.2] Implementation of asset management is most easily launched by the chief executive 

officer of an agency or by a senior manager with the CEO’s blessing. As previously discussed, team-building skills 

are perhaps one of the most important attribute of this individual, as is motivation and persistence in overcoming the 

inevitable barriers that appear whenever organizational change is attempted. The Asset Management Leader may 

come from an engineering, economics, or planning background, preferably a combination of more than one of these. 

Top Management Support 

Maintenance 

District 

Reps 

Modal Reps 

Asset 

Management 

Leader 

Design Planning Bridge 

Division 

Steering Committee (examples) 

Pavement 

Division Finance 

Public 

Information 

Information 

Technology 

Staff support from stakeholder units and roles 

Figure 4. Example Leadership Structure 

A Steering Committee of relatively senior managers, overseeing the work of the Asset Management Leader, is also 

essential. [Section 3.4.2] A major function of the steering committee is to ensure that all parts of the asset management process are functioning together as a unit. [Section 3.4.5.1] 

Adequate resources are vital to a successful implementation of an asset management improvement plan. The agency 

must provide the TAM improvement effort with resources for the management and implementation of the TAM program, including adequate training for agency staff to ensure sufficient skills and understanding to implement TAM. 

Clear role descriptions that describe TAM tasks and requirements should be developed. There is likely to be a need 
10 AASHTO Transportation Asset Management Guide—Executive Summary

for new skills and qualifications within the agency and training programs in TAM to increase the level of knowledge 

and skill. [Section 3.4.5.2] 

Step 8: Establish Performance Management Standards 

Performance-based decision making is one of the core principles of TAM. An agency must be able to demonstrate that 

they are making progress on established goals and objectives and set goals and objectives tied to measurable metrics; 

make resource allocation decisions based on these goals and objectives and the funding available using the metrics to 

guide the decision making; and then demonstrate to its customers the results of the investments. [Section 3.5] 

Asset and performance managers have recently focused considerable attention on the difference between output and 

outcome measures or targets. An output is the quantity of work performed by the agency, such as the number of lane 

miles paved. Outcomes are the resulting improvements in performance or condition, in areas directly relevant to the 

public, such as condition, cost, mobility, access, safety, reliability, comfort, convenience, externalities, and risk. Including output measures with outcome measures may provide the best support to the TAM program. [Section 3.5.2] 

Benchmarking, the practice of using quantitative measures to compare performance with peers, can be a powerful 

tool to improve agency performance. It provides a means of sharing best practices and a method of self-evaluation. 

Comparing important performance measures across agencies can motivate an organization; such a comparison 

demonstrates what is possible by presenting what an agency’s peers have been able to achieve and, to some degree, 

how. [Section 3.5.5.1] 
AASHTO Transportation Asset Management Guide—Executive Summary 11 

D. Preparing an Asset Management Plan 

A TAMP is now required under MAP-21 for the pavements and bridges on the National Highway System. It formalizes and documents key information, including: 

•	 The strategic outcomes or objectives that it supports. 

•	 The services that the agency delivers now and in the future and why they are delivered. 

•	 The nature of the assets required to deliver the services and their current condition and performance in a form 

relevant to assessing the achievement of the agency mission. 

•	 Planned asset improvements and capacity expansion in response to future demand, risk, and other trends. 

•	 How the assets will be cost-effectively managed throughout their life cycles. 

•	 Long-term financial forecasts, thus informing program development and budget cycles. 

•	 Planned improvements in asset management business processes, goals, and requirements for resource availability and productivity, and desired future performance resulting from implementation of the plan. 

A TAMP can be conceptualized as a “business plan” for an organization which has stewardship responsibilities for 

an infrastructure network. [Section 4 Introduction] 

When thinking about whether or not to develop a TAMP, it may be useful to consider questions such as the following: 

•	 Have we documented the levels of service or performance of the assets that we are providing and researched 

what our customers’ value? 

•	 How do we know whether the agency’s mission is being accomplished with maximum effectiveness and 

efficiency? Do we have the evidence to convince stakeholders of this? 

•	 Do we have an accurate picture of the scope of ALL assets that we manage, their financial value, their position in their life cycle, and the risks associated with the assets? 

•	 Have we considered all the options in developing upgrade and preservation programs? How have we optimized our planned expenditure in asset preservation? 

•	 Do we understand growth and demand for the services provided through transportation infrastructure? 

The TAMP is a document which brings all of these together into a single plan (perhaps with multiple references to 

supporting documents and plans) which tells the story of the agency in relation to its mission. [Section 4.1] 

Options for TAMP Structure 

There is no “one right document” structure for a TAMP as it will depend on how an agency plans to utilize the document. However, there are real benefits to having a standard TAMP structure, which enables a repeatable and standard 

TAMP audit and review process and the benchmarking of TAMP sections with other agencies or industry bodies. 

Table 2 presents a structure for an initial TAMP that is consistent with the International Infrastructure Management 

Manual (IIMM) recommendations. [Section 4.2.2] 

Who Needs to Be Involved? 

As Figure 5 shows, the audience for the TAMP can be arranged into concentric rings of involvement. If the asset 

management leader and steering committee are already in place, then many of those individuals will naturally serve 

on the core team that does most of the writing of the TAMP. The remainder of the steering committee members 

would serve as reviewers. If the steering committee and leader are not yet appointed, then it will make sense to 

appoint TAMP authors who can eventually serve in the implementation roles. [Section 4.2.3] 

The Iterative Process of TAMP Development, Review, and Improvement 

Practitioners describe the TAMP as a “living” document. As the TAM planning process is repeated on an agreed cy-
12 AASHTO Transportation Asset Management Guide—Executive Summary

cle, the output of that process (the TAMP) will develop, morph, and change to accommodate the agency’s increased 

knowledge and understanding of service levels and performance measures, and how agency policies and programs 

affect them. 

A best practice TAMP should demonstrate: 

•	 Full support and commitment of the agency to TAM and seamless integration of TAM principles into all levels of decision making including, for example, Human Resources, Information Technology, and procurement. 

•	 Well-reasoned service levels that have been debated and agreed with tax payers and service users. 

•	 Evidence that agreed levels of service and performance levels are being achieved consistently. 

•	 Demonstrated knowledge of growth and demand. 

•	 Integration of risk management at all levels of decision making and in all works and financial programs, 

including maintenance programs. 

•	 Integration of sustainability principles with all decision-making processes and the inclusion of appropriate 

sustainability projects in the TAMP’s program outputs. 

•	 An optimized resource allocation process. 

•	 Coordination of all work programs with those of other utility operators sharing the same corridor to ensure 

that waste and disruption to customers are both minimized. 

•	 TAMP Improvement programs that are appropriate, resourced, monitored, delivered, and reported on and the 

results of which are used and incorporated into the TAMP as appropriate. [Section 4.2.5] 

Table 2. Recommended TAMP Outline 

Section Name Description of Contents 

Executive Summary •	 Typically a stand-alone high-level overview of the TAMP, used to communicate the content of the TAMP to 

elected officials and external stakeholders.

Introduction 

•	 Sets the scene, provides a high-level description of the agency’s mission and goals, its role and the roles of 

other parties, and the purpose of the TAMP. Addresses stewardship and life-cycle management requirements. Has a high-level description of the assets—what they consist of, quantities, financial worth, or value.

Levels of Service 

•	 The agency’s mission is broken out into key drivers, transportation services, and levels of service (LOS) or 

performance measures. 

•	 These define the agency’s high-level values and priorities, such as safety, preservation, and growth.

•	 The LOS are the yardsticks by which the agency’s performance is to be measured and monitored. Identifies 

relevant stakeholders and key user groups, describes consultation and stakeholder expectations of the 

services. 

•	 Identifies any laws and regulations that impose mandates or constraints on performance or the implementation of asset management. May present strategies to overcome regulatory barriers. 

•	 May also identify program needs to close identified LOS performance gaps.

•	 This section also describes the agency’s current and desired capabilities to deliver the required services 

and quantify the measures, and reports current performance quantitatively as a demonstration of existing 

capability. 
AASHTO Transportation Asset Management Guide—Executive Summary 13 

Section Name Description of Contents 

Life-Cycle Management 

•	 More detailed information about the assets, including condition and performance summaries, asset life 

cycles, useful lives, and remaining lives; identifies critical assets.

•	 Life-cycle strategies and management methods for all activities relating to the assets, including operations, 

maintenance, asset renewals, and new asset development work activities, condition and performance monitoring, risk management practices, procurement, and how the program will be delivered. This will be drawn 

from the results of life-cycle and risk-based analyses and interpretation and lead into program development 

and program needs. 

•	 An overview of current and desired capabilities in pavement and bridge management and other applicable 

areas of asset management systems for life-cycle management. 

•	 Descriptions of the drivers for each type of work undertaken. 

Growth and Demand 

•	 Identifies the drivers and influences of change on the network. Assesses how the anticipated future growth 

and demand for transportation services will impact the demand for new or better assets and asset maintenance and renewal needs in the future. 

•	 May identify program needs to cater to future demand. 

•	 Describes demand management strategies as a means of reducing the impact of demand growth on 

assets. 

•	 Also describes the agency’s current and desired capabilities to measure demand and growth as they affect 

asset management processes and investment needs. 

Financial Summary 

•	 Brings together all program needs identified in the TAMP into medium- and longer-term financial cash-flow 

forecasts—to support the more detailed annual budget process. 

•	 Financial management policies: GASB34 financial reporting requirements, including projected asset valuation and depreciation, could also be included here. 

•	 An overview of funding sources, constraints on the use of funding, long-term funding needs, and other 

aspects of the budgeting and funding processes that impact asset management. 

TAM Practices 

•	 Describes current organizational processes supporting asset management decision making and reports 

current status of TAM practice in the form of the self assessment. 

•	 Describes the information systems and tools used to support TAM. 

•	 Describes data needs and quality expectations. 

Improvement Plan •	 A work plan for improvements to asset management processes in order to move from the current state to 

the desired state in the agreed time frame, includes a description of risk factors and anticipated problems. 

Appendices •	 Tables and documentation in support of the preceding sections. 
14 AASHTO Transportation Asset Management Guide—Executive Summary

Customers 

External stakeholders 

Legislators, commissioners, FHWA, interest groups 

Internal stakeholders 

Steering committee, senior management 

Core TAMP team 

Asset management leader 

Bridge and Pavement Management Engineers 

Engineering and research staff 

Maintenance staff 

Planning/finance staff 

Public information 

Information technology 

Figure 5. Participation in TAMP Development 

The TAMP plays a key role in connecting the agency’s corporate strategic direction with implementation tools, ensuring that the agency can achieve its mission in the most cost-effective manner while delivering the required levels 

of service. [Section 4.3] 
AASHTO Transportation Asset Management Guide—Executive Summary 15 

E. Processes, Tools, and Data to Support Asset Management 

Agency-Wide Strategic Performance Measurement 

Good asset management requires that the right information be available to the right levels of the agency at the right 

time. For each decision maker, the goal of performance measurement is to present that person with information specific to his or her job role and objectives to tell about current performance and the effects of prospective decisions on 

future performance. 

Effective asset management naturally requires knowledge of the assets being managed. The quality of project selection, trade-off analysis, and resource allocation decisions are directly related to the quality of the information upon 

which they are based. Quality asset data are also a key input to a quality TAMP. Since data collection is a significant 

asset management cost, it is only prudent to cast a critical eye on the cost and value of data gathering processes. 

[Section 5.1] 

Management Systems and Performance Measures 

Agencies typically procure pavement and bridge inventory and management systems as part of the Awakening stage 

of the maturity scale. Initially, the systems may be used only for inventory collection, data management, and special 

investigations. From a long-term perspective, if the agency wishes to continue to advance in maturity, it should 

select a management system able to continue to support agency business processes as it grows. [Section 5.1.2] 

Mission performance measures, also called outcome measures, are determined by the agency’s strategic goals and 

objectives, and generated by the agency’s monitoring processes. They quantify how well the agency is accomplishing its mission. Generally, these measures respond directly to the concerns of road users, taxpayers, and other stakeholders outside the agency. Because agency performance, asset performance, and condition measures are commonly 

called “performance measures,” it is easy to confuse them in conversation and reports. There is no simple way to 

avoid this, so care must be taken to ensure that meanings and subjects are clearly understood. 

Performance measures describing aspects of agency mission are rarely reported from raw data, but instead are aggregated and otherwise transformed to make them most useful for their intended purposes. Common applications of 

these data are 

•	 Snapshot reporting of current performance. 

•	 Comparisons among parts of the network, identifying the strongest and weakest parts. 

•	 Trend analysis, showing how performance has recently changed in different parts of the network. 

•	 Predictive analysis, showing how condition and performance might change in the future. 

All of the above are often published on a website for public information. This is often done to build confidence 

that the department knows what is going on, and it also helps members of the public and stakeholders build some 

context on how weather, special events, economic conditions, and incidents that they may have experienced relate to 

network-level performance. 

Internally, these types of reports are useful to management, usually at a greater level of detail, to spot current problems and build an intuitive feel for causal factors to help diagnose problems. The information is often used for resource allocation. Analysts may mine the data in order to discover and diagnose performance issues. [Section 5.1.3] 

On July 6, 2012, President Obama signed into law P.L. 112-141, the Moving Ahead for Progress in the 21st Century 

Act (MAP-21). This act established national performance goals for Federal highway programs, including: 

•	 Safety 

•	 Infrastructure 

•	 Congestion reduction 
16 AASHTO Transportation Asset Management Guide—Executive Summary

•	 System reliability 

•	 Freight movement and economic vitality 

•	 Environmental sustainability 

•	 Reduced project delivery delays 

The AASHTO Transportation Asset Management Guide—A Focus on Implementation includes the following performance measures: 

•	 Condition 

•	 Life-cycle cost 

•	 Safety 

•	 Mobility 

•	 Reliability 

•	 Customer measures 

•	 Externalities 

•	 Risk 

Table 3 provides a reference comparing these newly created MAP-21 performance measures with those included in 

the AASHTO TAM Implementation Guide. 

Table 3. MAP-21 Measures Compared to TAM Guide Measures 

MAP-21 Measure TAM Guide Measure 

Safety Safety 

Infrastructure Condition 

Congestion Reduction Mobility 

System Reliability Reliability 

Freight Movement and Economic Vitality Mobility and Reliability 

Environmental Sustainability Externalities 

Reduced Project Delivery Delays Mobility and Reliability 

Life-Cycle Cost 

Customer Measures 

Condition 

ondition relates to the structural integrity of an asset. Condition can be measured visually or with instruments and 

ver time condition will almost always deteriorate without agency intervention. 

t the agency mission level, condition information should be expressed using uniform definitions across all assets. 

s condition information at this level is primarily for use by customers and external stakeholders, it should be exressed in non-technical terms using words that are meaningful to them. [Section 5.1.3.1] 

ife-Cycle Cost 

n a pure asset management context, the term “life-cycle costs” includes all of the costs that an agency incurs in 

anaging assets from the creation of the asset to its ultimate disposal. Life-cycle costs are currently not often used 

C

o

A

A

p

L

I

m
AASHTO Transportation Asset Management Guide—Executive Summary 17 

for public information purposes because of the difficulty of explaining how they work. However, because they represent the agency’s long-term responsibility to keep costs minimal and are the primary justification for state-funded 

preventive maintenance programs, they can be important to legislators and certain interest groups. They are very important as mission indicators for internal management purposes, especially for planning of preventive maintenance 

programs. [Section 5.1.3.1] 

Safety 

Safety is an important aspect of an agency’s mission and asset management decisions have a major impact on safety. 

These are important, but certainly not comprehensive, measures of safety. Every transportation network contains 

safety features specifically meant to reduce the frequency or severity, or both, of crashes. Measuring and tracking 

their effectiveness is a need that is unevenly met in the current state of the practice. [Section 5.3.3] 

Mobility 

Mobility is considered to be one of the primary justifications for having a transportation network. A common way of 

measuring mobility, using a broad definition of it, is origin-destination (O-D) travel time. 

Transportation planners compute O-D travel times by link, trip purpose, time of day, and season as a part of facility planning. This usually provides sufficient detail for asset management purposes. As a means of tracking agency 

performance for public consumption, a single network average trip time on a particular class of road is usually 

sufficient. Senior management will typically want more detail, such as peak hour trip times by corridor, as a way of 

identifying emerging needs for new capacity. [Section 5.1.3.4] 

Reliability 

In an asset management context, reliability is closely related to mobility and is defined as the standard deviation of 

origin-destination travel time. This definition is used because it is compatible with all types of modes and system 

components. Reliability can be improved by adding capacity, by responding more effectively to incidents, and by 

improving system operations management. [Section 5.1.3.5] 

Customer Measures 

When asset management is placed in a framework of political accountability, as it must be for successful implementation, then it must consider aspects of performance that are important to the public but may have no discernable impact on agency operations. Comfort/convenience is a collective term for the subjective impressions of transportation 

system users, that affect their satisfaction with the system separately from the other performance measures described 

here. [Section 5.1.3.6] 

Externalities 

Externalities are the effects of transportation facilities and operations on non-users of the system. The issues in this 

category typically include: 

•	 Air pollution, 

•	 Water pollution, 

•	 Noise pollution, 

•	 Community severance, 

•	 Effect on community image and property values, and 

•	 Economic impact of land use. [Section 5.1.3.7] 

Risk 

Risk management is an important part of asset management, especially at the Proficient and Best Practice stages of 

maturity, although it should also be present in the Structured stage. However, there are few practical tools yet available in the marketplace, with many practitioners managing this aspect with the aid of spreadsheets or custom built 

databases. Risk is the threat to transportation operations caused by extreme events, other external hazards, and from 

asset failure arising from any cause. Some examples of causes of asset failure are poor condition, unexpected load-
18 AASHTO Transportation Asset Management Guide—Executive Summary

ing, or poor work practices. Asset criticality is a key concept, relating to the importance of the asset and the level of 

risk that it may be exposed to. Criticality can be a driver of data collection efforts. [Section 5.1.3.8] 

Combining Dissimilar Performance Measures 

In many asset management applications, there is a need to combine dissimilar performance measures, including any 

or all of those listed earlier in this section, in order to develop a scale that can be used for comparing and prioritizing 

alternative investments. Two methods are very commonly used: 

•	 User cost, which converts each performance measure into equivalent quantities of money and then combines 

them; 

•	 Utility, which establishes a unit-less common scale for each performance measure and then combines them. 

[Section 5.1.3.9] 

Management Metrics 

Agencies that are more mature in their asset management processes have procedures to monitor the quality of their 

collection and updating processes and to use this information in planning data and process improvements. This is 

very important at all levels of asset management maturity and essential at the Best Practice level of maturity. Examples of evaluation metrics include: 

•	 Data quality measures such as statistical variance and consistency checks; 

•	 Missing value checks of required data items; 

•	 Manual spot checks of data; 

•	 Planning, status, and history of quality assurance reviews; 

•	 Requests for additional functionality; 

•	 Measures of response time from support staff; and 

•	 Trends of agency mission performance outcomes compared to resource inputs. [Section 5.1.6] 

Inventory 

The inventory of transportation assets provides a data infrastructure to tie together the various data sets required for 

a comprehensive, mature asset management process. In addition to the performance information described above, 

asset management requires the following types of data for every type of asset: 

•	 Geographic location, including route/milepost, a linear referencing system if separate from route/milepost, 

latitude/longitude, and corridor definitions. 

•	 Jurisdiction data, such as district and administrative subdivisions of the department, county, municipality, 

political districts, ownership, and maintenance responsibility. 

•	 Functional and utilization data such as functional class, number of lanes, speed, and tolling; presence of 

curbs, sidewalks, and other user features; special-purpose networks such as the National Highway System, the 

Strategic Highway Network, and freight networks; presence of school bus and transit routes; and presence of 

utility lines. 

•	 Performance characteristics such as access restrictions, roadway geometry, obstructions, medians, and safety 

features. 

•	 Construction history and historical significance. 

•	 An archive of valuable documents, often a multi-media file repository. [Section 5.1.7] 
AASHTO Transportation Asset Management Guide—Executive Summary 19 

Linking Strategic Performance Measures to Levels of Service 

Many aspects of asset management are bottom-up activities in that they involve collecting substantial amounts of 

data and processing them into smaller but more useful quantities of information that are communicated upward and 

further condensed through the organization. Most of the sections of this chapter are concerned with implementation 

of this upward data flow and information processing. 

However, the various data collection and processing activities must be guided by a coherent strategic vision that 

specifies what goals and objectives are to be served and what measures will quantify the objectives. Asset management requires a common agency-wide system of standards and definitions that guide the various business processes. 

This guidance is top-down. [Section 5.2] 

Using Strategic Plans to Develop Agency Goals 

The strategic importance of the delivery of transportation services by the agency means that the direction for the 

levels of service must be set at corporate level and applied throughout the agency’s processes, procedures, and service delivery mechanisms. These strategic statements are less detailed than the tactical requirements of the TAMP, 

and less detailed than the contracts and standard operating procedures and processes that flow from it. Nevertheless, there must be a continuum of intent, and of service or purpose, which can be traced upwards and downwards 

through the hierarchy of level of service statements. 

Although the mission of many state DOTs is set out in state law, the process of strategic plan development will normally include development of vision, mission, and corporate values statements that establish the long-term desired 

position of the agency and how the agency wishes to conduct its affairs to achieve its objectives. It produces a clear 

statement of strategic direction, policies, risk management, and desired outcomes. 

Strategic plans typically have a 10- to 25-year planning horizon, which is often based on practical financial management considerations. 

Because the service lives of the assets are often much longer than the strategic plan’s horizon, the implied longer-term visions are important. Without them, the asset managers would not be incorrect in designing and maintaining the assets with a desired end of life at the end of the strategic planning period. 

Strategies produce very-summarized visions and goals. They are therefore supported by more specific objectives that 

are used to ensure that the goals can be achieved and by targets that measure progress towards that achievement. 

The relationships among the various drivers, processes, documents, and achievements are represented in Figure 1-2 

in the AASHTO Transportation Asset Management Guide—A Focus on Implementation. It shows the position of 

the TAMP as the key in linking the strategic outcomes desired by the agency with the establishment of achievable, 

shorter-term plans and delivery of transportation services. It also illustrates, through the inclusion of the Annual Report and its inputs, the importance that the TAMP and its associated processes have in achievement of the corporate 

objectives. 

An agency is likely to have a number of related strategies, such as growth management, improving operational 

efficiency, increasing roadway safety, addressing mobility, and implementing walking and bicycling enhancement 

projects to support its overall strategic plan. The linkages between these strategies and the TAMP are essentially no 

different from those for the main strategic direction, and the TAMP has a major role in coordinating and managing 

the conflicting needs and timings and bringing them together. [Section 5.2.1] 
20 AASHTO Transportation Asset Management Guide—Executive Summary

requirements 

Human resources 

plan 

Customer 

service plan 

Long-term plans 

and programs 

TIP/STIP 

Annual plans and 

programs 

Annual 

achievements 

Annual report 

Asset 

management 

policy 

Supporting 

strategies 

Marketing 

plan 

Performance 

measurement 

Financial 

plan 

Data and systems 

Contracts and 

specifications 

requirements and expectations 

Agency strategic planning 

Transportation Asset Management Plan 

Legal Stakeholders/customer 

Figure 5. Participation in TAMP Development 

Understanding Customers and Users 

“Customers” is sometimes used to refer to consumers of the services provided by an agency and “users” to those 

who use the network assets. However, there is in effect no significant difference between these two groups of people, 

especially when discussing transportation networks. The term “customer” is used here to refer to both groups. 

Developing agreeable levels of service will be assisted and simplified by understanding customer needs and wants. 

Understanding how customers define and think of the levels of service delivered by transportation networks can 

provide a useful indication of the levels of service that should be developed. It is very easy for transportation system 

agencies, managers, and engineers to concentrate on delivering levels of service that they think the customers want, 

rather than those that are important to them. This can be measured using the conventional techniques of marketing 

research. [Section 5.2.2] 

All those who use the transportation network can be considered customers, but within this broad grouping of people 

and organizations, there are a range of different needs, values, and expectations. In some contexts, customers and 

stakeholders are the same—everyone—but in other contexts they are different, and customers can be stakeholders 

but stakeholders may not be customers. There are three broad categories into which users and customers are usually 

segmented, because of their different needs, expectations, and relationships with the agency, namely: 

•	 Customers—Anyone who uses any part of the transportation network, who is affected by the activities 

associated with providing the service, or who has a legitimate interest in it. 

•	 Stakeholders—Tend to have a greater interest in what happens on the network than the average customer 

does, they can also differ from customers in that their interest in the transportation system is institutional 

rather than merely personal. 

•	 Partners—A type of stakeholder which shares strategic objectives with the transportation agency. Partners 

may assist in the delivery or funding of projects. [Section 5.2.2.1] 

Understanding what customers value is key to developing a practical and useful system. Value has been defined as 

the difference between benefits and costs. For example, 

Value = benefits – costs 
AASHTO Transportation Asset Management Guide—Executive Summary 21 

In this context, benefits can be thought of as any feature provided by the asset or service that the customer believes 

will solve a need or problem they have. In broad terms, if the perceived benefits (of an asset) exceed the costs of that 

asset to the customer, then it will be perceived to have value, and the customer is likely to be happy. However, if the 

perceived benefits are less than the perceived costs, then the customer will usually be unhappy. [Section 5.2.2.2] 

Developing Levels of Service 

Levels of service (LOS) are classifications or standards that describe the quality of service offered to road users, 

usually by specific facilities or services against which service performance can be measured. All services delivered 

by the network should be covered by agreed LOS, although it may take some time to achieve this goal. Achievement 

of LOS is determined by performance measures. At the early stages of TAM maturity, some agencies use their performance measures as LOS statements. LOS achievement is typically measured at a more detailed level than agency 

mission, although the more important LOS measures may also be reported at the higher level. At the Proficient level 

of TAM Maturity, LOS are normally split into two distinct categories: customer and technical. 

Customer LOS relate to how the customer receives the service in terms of tangible and intangible measures or criteria. They are expressed in terms that customers can understand and comprehend. Tangibles include the appearance of 

facilities, frequency of service disruptions, availability of service, frequency of crashes, etc. Examples of intangibles 

include speed of service, staff attitude, and ease of dealing with the agency. 

Technical LOS support both the customer’s and the agency’s strategic objectives. They are usually expressed in 

technical terms used by agency personnel or contractors. 

LOS should be based on specific service criteria, e.g., quality, capacity, accessibility, mobility, reliability, comfort, 

safety, etc. Targets can be set for each measure. 

Because levels of service are developed from the mission and goals of an agency, they should cover all of the asset 

groups that contribute to the delivery of the service. These include the visible assets, such as pavements, bridges, 

lighting, and signs as well as those which might be less visible or less apparent in terms of being important to users, 

but are vital in providing service. For example, effective drainage minimizes the risk of flooding and guardrails 

provide an important safety function. 

In the way the level of service term is being used here, it can include any aspect of asset performance affecting any 

stakeholder. It can be used very broadly to include service to stakeholders in their roles as users, taxpayers, partners, 

elected officials, and community residents. 

Levels of service should be developed in a hierarchy that reflects the increasing level of detail of planning activities as they progress from strategic to tactical and operational. Figure 6 illustrates some of the strategic and tactical 

points where levels of service help guide decision making. [Section 5.2.3] 

Public Involvement Approaches to Level of Service Development 

Developing appropriate and meaningful levels of service that link to the agency’s strategic objectives is a process 

which requires technical, financial, and market research inputs. 

The first step involves market research thinking—finding out what customers and users think about the service and 

what their service preferences are. 

Gaining feedback from customers and users can be achieved using different methods, some of which provide 

quantitative statistical information, while others are more qualitative and subjective and can result in skewed results. 

Obtaining an accurate cross-section of views requires a carefully considered approach representative of the “population” which uses or is affected by the service. 
AASHTO Transportation Asset Management Guide—Executive Summary

 

Strategic 

plan 

Asset 

Need 

Match 

Asset 

capacity 

Identify, evaluate, 

select options 

Maintenance 

Rehabilitation 

New 

construction 

Non-asset 

solutions 

Monitor 

performance 

Strategic levels of service Decision tools Tactical levels of service Demand forecasts Management Systems 

22 

Figure 6. Levels of Service 

Techniques for gathering input from customers and users include: 

•	 Community forums and public meetings. 

•	 Meetings with key interest groups. 

•	 Self-completion surveys and questionnaires. 

•	 Market survey research. 

•	 Focus group research. 

In establishing a consultation process around levels of service, it is important to consider what method to use in 

relation to the audience as well as the cost of the research. It is also important to consider how the information will 

be presented and used in making decisions about particular levels of service. [Section 5.2.3.3] 

Integrated Levels of Service 

With information about customer expectations and preferences, the next step is to develop linking statements which 

relate the agency’s high-level objectives to the specific outcomes that customers seek. Measures relating to “customer” and “technical” levels of service can then be developed. The “technical” measures should be in a form that 

is suitable for inclusion in maintenance delivery contracts or internal service agreements. An example of linking 

strategic objectives to levels of service is provided in Figure 7. [Section 5.2.3.4] 

Levels of Service and Performance Measures 

The levels of service established using the procedures outlined previously can be considered to be a set of standards, 

and like any standards, their achievement should be measured and tracked. As achievement of a standard is often 

called performance, it is relevant to distinguish between the condition and performance of an asset: 

•	 An asset’s performance is directly related to its ability to provide the required level of service. 

•	 Its condition is an indication of its physical state, which may or may not affect its performance. 

An asset can fail through either inability to perform adequately or inadequate condition. Performance of an asset 

can usually be measured in terms of availability, reliability, capacity, and delivery of other agreed levels of service, 

whereas condition is measured by factors such as cracking, scabbing, potholes, loss of friction, and roughness. 
AASHTO Transportation Asset Management Guide—Executive Summary

 

23 

Safe design 

Safe separation 

Health benefits 

Smooth alignment 

Comfort 

Quality surface 

Quality crossings 

Efficient linkages 

Direct access 

Cleanliness 

Safe 

transportation 

network 

(social outcome) 

People and 

businesses 

efficiently linked 

(economic and 

social outcome) 

“I arrive safe” 

“It is easy to 

walk on” 

“It is always 

clean” 

Feel safe when 

walking 

Well lit, able 

to see clearly at 

night 

Lighting 

helps protect my 

property 

Satisfied with 

the walking 

experience 

Sidewalks are 

clean, tidy, free 

of litter 

Standards for 

sidewalk width 

and separation 

Minimum 

illumination 

levels 

Surface 

discontinuities 

<’x’ inch 

Wheelchair 

ramps at all 

intersections 

Maximum slope 

and crossfall 

standards 

Street cleaning 

frequencies 

Customer LOS Technical LOS 

Strategic 

objectives 

Examples of 

customer values 

Vision/Strategic 

Outcomes 

Level of service examples 

Figure 7. Linking Strategic Objectives to LOS 

Performance measures and levels of service should be linked: level of service supported by a performance measure, 

and a performance measure derived from a level of service, as outlined in Table 4. The process for developing levels 

of service is discussed in Section 5.2.3 of the AASHTO Transportation Asset Management Guide—A Focus on Implementation. [Section 5.2.4] 

The following points will help in developing useful and affordable performance measures: 

•	 Every measurement costs money. Minimize the amount of new data required and maximize the use of data 

already collected. 

•	 Some measures that appear useful may be impractical because of the cost of data collection. 

•	 Performance measures, like levels of service, must be SMART (i.e., specific, measurable, achievable, results-oriented, and timely).
 

•	 Performance measures must be meaningful to the target audience. 

•	 It is often easier to define a performance measure and track it over time if it is tied to a level of service standard, provided the level of service definition remains constant. 

•	 When possible, a level of service standard should be expressed in terms that describe the user experience 

when using the facility. [Section 5.2.4.1]
 

NCHRP report 632 (National Cooperative Highway Research Program, 2009) describes a framework for applying 

asset management principles and practices to managing Interstate Highway System (IHS) investments. [Section 

5.2.4.2] 

Growth and Demand Forecasting 

Having established what the agreed levels of service are, providing them for current customers is a matter of gap 

analysis, prioritization, and resource allocation. However, providing the agreed levels of service for future customers 

requires knowledge of who they may be and their needs. This requires consideration of the likely effects of changes 
Customer Level 

of Service Technical Level of Service Performance Measure 

•	 Extent and size of potholes •	 Maximum size and time to •	 Number of complaints about 

•	 Clarity of signage repair potholes 

Tangibles 

•	

•	

Night-time visibility 

Ride comfort at 55 mph 

•	

•	

MUTCD standards 

Minimum illumination levels 

on roads—by hierarchy 

•	

•	

Road users and pedestrians 

satisfied with signage (%)

Residents satisfied with 

•	 Roughness (IRI) street-lighting (%)

•	 Smooth Travel Exposure 

Reliability 

•	

•	

Levels of congestion 

Number of signal breakdowns 

•	

•	

Level of service A to F 

Number of signal breakdowns and time to repair 

•	

•	

Average duration of rush 

hour trip from A to B 

Outages/year. Maximum and 

average duration 

Responsiveness •	 Response time to breakdown 

or incident 

•	 Response time to breakdown 

or incident 

•	 Maximum and average times 

24 AASHTO Transportation Asset Management Guide—Executive Summary

in population (growth or decline), land use (e.g., agricultural to residential), and consumption patterns (e.g., changes 

in auto occupancy). The end results are changes in the number or size, or both, of the agency’s assets and facilities or 

the levels of service it delivers. 

Long-range transportation planning is a key input not only into the agency’s forecasts but also into the growth and 

economic forecasts of the state, counties, and municipalities. [Section 5.3] 

Table 4. Examples of Level of Service and Performance Measures 

State DOTs carry out their long-term network planning and prioritization in accordance with legislated requirements, 

producing Long-Range Transportation Plans (LRTP) and Statewide Transportation Improvement Plans (STIP). Asset 

management processes can contribute to long-range planning by identifying mobility and capacity needs, and (when 

asset management is used to its full capability) identifying new preservation needs that are generated by the delivery 

of new infrastructure. 

An agency’s procedures for developing its LRTP and STIP are not replaced by asset management; rather, TAM 

ideas, data, and tools can help shape the LRTP and STIP by: 

•	 Linking agency resource allocation to policy objectives, 

•	 Defining the levels of service to be achieved, 

•	 Identifying strategic investment choices and evaluating and analyzing trade-offs among them at the appropriate stages, and 

•	 Providing the information and analyses to facilitate the appropriate resource allocation decisions that follow 

good TAM practice. [Section 5.3.1] 

Transportation growth forecasts always have considerable uncertainty due to unknown variations in economic climate, economic development patterns, success of local employers, and land owner decision making. These uncertainties carry down into asset management in the form of uncertainties in utilization, deterioration, cost, and expansion. [Section 5.3.2] 

Generally, a TAMP should not ignore uncertainties, but instead should describe the contingencies surrounding significant causes of uncertainty. The TAMP should also recognize and discuss the implications of associated risks. In some 

cases, the future direction will be totally unknown and no legitimate assumption can be made. If there are potential 

risks associated with the assumptions, then these should be stated and the implications identified. [Section 5.3.2.2] 
AASHTO Transportation Asset Management Guide—Executive Summary 25 

Asset Planning and Improvement Strategies 

With an understanding of growth and future demand trends, and the impacts on levels of service, an agency can 

make more informed decisions on how to address future deficiencies or shortfalls in service. This may require capital investment in new works involving newly created or expanded assets, or consideration of a range of “non-asset 

solutions” (demand management). [Section 5.3.3] 

Often, the level of service and performance requirements of a transportation system can be met by solutions other 

than new construction. In situations where management and operational activities or treatments are legitimate alternatives to new construction, it is desirable to include these actions in an agency’s broad “toolbox” of asset management solutions. [Section 5.3.4] 

For example, options for reducing congestion in the central business district of a city might include building new arterials or building a bypass to take through traffic away from the area. But lower-impact solutions are also possible, 

such as improving public transit service, imposing parking restrictions, or collecting a toll for access to the area. 

The non-asset based solutions provide for the possibility of meeting a level of service demand more cost-effectively 

by: improving a competing or complementary facility or mode, reducing demand to a level that can be served by the 

existing infrastructure, modifying the level of service to one that can be satisfied by the existing infrastructure, or a 

combination of these. [Section 5.3.4.1] 

Risk Assessment and Management 

Risk management is a process of identifying sources of risk, evaluating them, and integrating mitigation actions and 

strategies into routine business functions of the agency. Risk is associated with uncertainty. Risk management should 

be viewed as a core business driver influencing all activity and not as an isolated, add-on process. Integration of risk 

management into asset management is relatively new, and has focused thus far on bridges and tunnels. However, 

all types of transportation assets have uncertainty and risk factors associated with them. It must be remembered that 

the risks associated with individual assets translate immediately into risks for the agency, and the consequences and 

effects of all risk events must therefore be considered at the agency level, too. 

In common practice today, risk in asset management is assessed as vulnerability to natural and manmade hazards, as 

discussed in Section 5.4.1 of theAASHTO Transportation Asset Management Guide—A Focus on Implementation. 

The assessment is typically conducted in three steps: 

1. Likelihood of an extreme event, expressed as a probability, or range of probability, of an event such as a 

flood, earthquake, asset failure, or other risk driver. 

2.	 Consequences to the asset, a categorization of the damage or loss of function of the asset, conditional on 

occurrence of an event.
 

3.	 Effect on mission, life, property, and the environment, a categorization of the effect on the agency, the public, 

users, and non-users, of the asset damage or loss of function caused by the extreme event. [Section 5.4] 

Sources and Types of Risk 

There are many potential sources of risk to a transportation agency. These can be grouped into four major areas: 

•	 Natural events and hazards: These include floods, snow storms, extreme wind, wildfire, landslide, tsunami, and earthquake. While probabilities and return periods of these events may be understood, it cannot be 

predicted when exactly the next event will occur. These events cannot be controlled, although an agency can 

prepare and mitigate against the effects in advance. 

•	 External impacts on the agency: These include the failure of other parties or organizations to provide a service or product upon which the transportation agency depends. Examples can include the supply of power for 

traffic signals, lighting, or other automated highway controls, or the supply of materials which are deficient in 

some way. 
26 AASHTO Transportation Asset Management Guide—Executive Summary

•	 Physical asset failures: These events are caused by poor or deteriorating condition or performance of an 

asset or asset component, leading to disruption to users or adverse effects on the environment and the need 

to undertake remedial work. Certain types of failures may occur suddenly, such as fracture of structural steel. 

Other events can be better predicted through the use of condition and performance monitoring programs and 

predictive modeling tools. 

•	 Operational risk events: These events include vehicle operator errors such as impact of a vehicle with a 

structure; vehicle equipment failures that cause fires or collisions; failure of safety features of the transportation system, such as lighting, traffic signals, or railroad crossing gates; or intentional damage. It may also 

include errors made within an organization, such as management decisions or design errors. [Section 5.4.1] 

How to Apply Risk Management as a Core Part of TAM 

Risks can be described in monetary (quantitative) or descriptive (qualitative) terms and used as performance measures and levels of service in much the same way as other performance concerns. Risk can be used in a variety of 

tasks, such as priority setting and resource allocation decisions, as well as in routine tasks such as setting intervals 

for asset inspection. A typical risk management framework is illustrated in Figure 8. This systematic process can be 

used for a wide variety of activities within an organization, ranging from specific projects to corporate management. 

Establish 

context 

Objectives 

Stakeholders 

Criteria 

Key elements 

Identify 

vulnerabilities 

What can

 happen? 

How can it

 happen? 

To what facilities? 

Analyze 

the risks 

Likelihoods 

Consequences

to facility

Impacts on

mission, life, and

 property 

Assess 

the risks 

Quantify 

Classify 

Evaluate

 mitigation warrants 

Plan for 

mitigation 

Identify options 

Estimate costs 

Estimate effects 

Mitigate 

the risks 

Prioritize 

Allocate resources 

Program 

Deliver mitigation 

Monitor and review 

Figure 8. Typical Risk Management Framework 

Agencies can differ in how they define risk. Most agencies would consider catastrophic natural hazards to be a part 

of the framework. Some might include vehicular crashes and loss of function due to deterioration, while other agencies might exclude these. Sabotage and terrorism are part of the risk framework for some agencies but not others. So 

the first step is to define the objectives of the risk management program and decide what hazards and facilities are 

within its scope. 

A useful way to categorize risk is according to the extreme event, or hazard, that causes the risk. In most cases, 

agencies will consider risk to be a result of hazards that are somewhat predictable on a large scale, such as the return 

period of heavy storm events; but not predictable at the facility level. Facilities are classified according to their vulnerability to these hazards. For example, a bridge over a waterway might be vulnerable to scour, while a bridge in an 

upland area would not. 

Each facility is rated according to the likelihoods of the extreme events to which it is vulnerable, the consequences 

of the event to the asset, and the impact of asset damage on the public. The ratings may be scalar (for example, probabilities between 0 and 100 percent) or categorical. Figure 9 shows how a set of categories might be presented. 

It is typical to calculate a risk assessment score based on likelihood, consequence, and impact. This score is used for 

several purposes: to compare with risk mitigation warrants (e.g., “perform a seismic mitigation action if the seismic 

security score is less than 50”); to prioritize mitigation actions; and to express the forecast outcomes of the actions. 

It is not uncommon to express the risk score in categories, such as low, moderate, high, and extreme as in Figure 9. 

It is also not uncommon to define levels of service to represent a combination of risk classification and warrant (e.g., 

a set of bridge characteristics in which a longitudinal restrainer is required). Agencies can apply mitigation actions to 

modify the likelihood, consequence, or impact of the risk. [Section 5.4.2] 
Consequence 

Likelihood Insignificant Minor Significant Major Catastrophic 

Very Rare Low Low Low Moderate High 

Rare Low Low Moderate High High 

Seldom Low Moderate Moderate High Extreme 

Common Moderate Moderate High Extreme Extreme 

Frequent Moderate High High Extreme Extreme 

AASHTO Transportation Asset Management Guide—Executive Summary 27 

Risk Identification and Treatment 

Identification of risks may be through internal workshops or by individual contributions from staff members, stakeholders, or other parties. It is important to make sure that there is an ongoing review process to detect changes in 

hazards and vulnerabilities. 

Risk assessment factors should be stored in the asset inventory and categorized as to their source and the type of 

risk exposure to the organization. How risks are categorized and managed within this framework will depend on the 

scale of the organization and the potential seriousness of each risk. 

Figure 9. Risk Likelihood and Consequence Categories 

A systematically completed risk assessment process can be expected to provide an agency with a range of vulnerabilities or risk exposures and relative priority ratings, as well as a comprehensive risk management plan, which 

describes how the risks will be managed. The priority ratings should be influenced by “asset criticality,” a measure 

of how important an asset is in delivering service to the agency’s customers. 

All organizations manage some assets that are more critical than others. This may be because an asset is a unique 

link, or because the performance of many other assets (perhaps including other networks such as water supply or 

telecommunications) are dependent on it, or because of the safety benefits the asset delivers, or because so many 

users depend on it, and so on. Therefore, the risk identification process should also identify the critical assets, those 

where the consequences of possible failure are high. 

Planning for risk reduction is an important asset life-cycle activity. Section 6.3.4 of the AASHTO Transportation Asset Management Guide—A Focus on Implementation describes how the assessment of risk exposure can be included 

in the analysis of project or asset treatment options. It is also important to identify the most important risks in the 

TAMP, and how the agency intends to address them. This may be through its operational program, asset preservation 

program, or new investments which must compete for funding with other priorities. [Section 5.4.3] 

Asset Inventory, Condition Assessment, and Performance Monitoring 

Asset management requires the following types of data for each type of asset: 

•	 Geographic location, including route or milepost, linear referencing system, latitude and longitude, and corridor definitions. 

•	 Jurisdiction data, such as district and administrative subdivisions of the department, county, municipality, 

political districts, ownership, and maintenance responsibility. 

•	 Functional and utilization data such as functional class, number of lanes, speed, and tolling; presence of 

curbs, sidewalks, and other user features; special-purpose networks such as the National Highway System, the 

Strategic Highway Network, and freight networks; presence of school bus and transit routes; and presence of 

utility lines. 

•	 Performance characteristics such as access restrictions, roadway geometry, obstructions, medians, and safety 

features. 
28 AASHTO Transportation Asset Management Guide—Executive Summary

•	 Construction history and historical significance. 

•	 An archive of valuable documents, often a multi-media file repository. 

A core function for TAM information systems is to provide access to this information for needs assessment, prioritization, work planning, and analysis. [Section 6.1] 

TAM inventory systems can be used to record a wide range of relevant data on the network, including the previous 

list. In order to manage data collection and management costs and data quality expectations, attributes for which data 

are collected must be based on asset-specific business needs: such as size, type, material, warranty, descriptive information, etc. For many agencies, another key issue is connecting the different databases that are used. [Section 6.1.1] 

Conditions and Functional Performance 

Functional performance of the asset describes its ability to deliver the required level of service and can be measured 

in terms of criteria such as reliability, availability, capacity, and meeting customer demands and needs. Condition 

describes the physical state of the asset, which may or may not affect its performance. [Section 6.1.2.1] 

Asset managers should operate systems to monitor asset condition and performance to: 

•	 Identify those assets which are under-performing. 

•	 Predict when an asset is expected to fail to deliver the required level of service. 

•	 Ascertain the reasons for performance deficiencies. 

•	 Determine what corrective action is required and when (e.g., preservation, rehabilitation, replacement). 

•	 Record asset failures for use in advanced asset management techniques. 

As with other asset data, it is also important to periodically review data collection techniques to determine if they are 

appropriate to current and anticipated business needs. [Section 6.1.2.2] 

Life-Cycle Asset Management 

Good TAM goes well beyond looking after the physical assets in the highway network; it includes the management 

of the often intangible aspects of the network’s operation, such as the safety of users and highway workers, mobility, 

reliability, and increasingly environmental effects of road use including greenhouse gas emissions. 

Life-cycle planning should consider such wider issues at all stages. Questions to ask could include: 

•	 How will decisions about work practices affect the safety performance of the asset? For example, should 

pavement surface texture limits be changed, should road-markings be painted more often? 

•	 What allowance should be made for climate change when designing a new asset or facility with a long life? 

For example, should expanded storm water drainage capacity be provided, should route planning decisions 

consider the risks of sea level changes in coastal areas? [Section 6.2.1] 

The stages of an asset’s life considered in life-cycle management planning and implementation are: 

•	 New construction 

•	 Preservation 

•	 Operations 

•	 Replacement 

•	 Functional improvement 

•	 Disposal 
AASHTO Transportation Asset Management Guide—Executive Summary 29 

Figure 10 presents a typical model of the asset life cycle. [Section 6.2.2] 

Opportunities for life-cycle cost reduction are typically greatest in the planning stage, where approximately 

three-quarters of the factors affecting life-cycle costs are decided. Figure 11 contrasts the total accumulated life-time 

costs of a typical asset with the opportunities for life-cycle cost reduction. 

Needs analysis; Long range planning; 

Project planning; Programming 

Replacement

Partial replacement

In-kind replacement

Upgraded replacement 

Removal 

Closure 

Demolition 

Re-purposing 

Maintain Renew Dispose 

Operations

Freight movement

Traveler information 

Incident response 

Monitoring

Pavement condition 

surveys

Bridge inspection

Feature surveys

Traffic monitoring

Crash reporting 

Preservation 

Repair

Corrective action 

Preventive maintenance 

Routine maintenance New Reactive maintenance

construction 

Preliminary design

Design

Procurement 

Construction 

Functional 

improvement

Capacity expansion

Strength upgrade 

Create 

Planning 

Figure 10. Asset Life-Cycle 

Phase of life 

Percent of life cycle cost

Total cost 

LCC reduction

opportunities 

Planning Design Construction Operations Disposal 

Figure 11. Asset Life-Cycle Cost—Decision-Making Opportunities 

It can be seen that the greatest opportunities for reducing the life-cycle cost are at the beginning of the project— 

scoping, option evaluation and selection, etc.—and these opportunities reduce as the asset moves through its life 

cycle. Once the asset is built, the focus then becomes managing and maintaining it in the most cost-effective manner, 

doing the right work at the right time to get the best value for money in terms of the services that the asset delivers. 

[Section 6.2.8] 
30 AASHTO Transportation Asset Management Guide—Executive Summary

Models 

An agency that is proactive in asset management preservation does not simply anticipates it and finds the best place 

in a facility life cycle to intervene, to minimize costs and maximize mission performance measures over the long 

term. 

Deterioration and life-cycle cost models are typically built into most pavement and bridge management systems. It is 

not enough, however, to have software able to make forecasts. Routine business processes of the agency must make 

use of the models to plan future work, optimizing the timing of work to best accomplish the agency mission. But an 

agency will not rely on deterioration models unless the models reflect the best available understanding of deterioration of the agency’s own assets. It is necessary to continue to monitor actual deterioration in comparison to forecasts, 

and use this information to improve the models. 

Increasingly, long-term programs are needed, not only for effective life-cycle management of assets, but also in 

negotiating funding needs with Federal and state agencies. [Section 6.3] 

The primary value of forecasting models is that they allow decision makers to quantify how their decisions might 

affect mission performance measures. Typically, with computer-based models, the processes and methods involved 

are equally applicable to manual and PC-based analysis. The need for this kind of feedback exists at many levels of 

the organization: 

•	 Funding bodies like to know how a requested funding level will affect performance of the transportation 

system as a whole. Will it require more funding to maintain current performance? Will an improvement in 

one area cause a decline in another area? 

•	 Program managers want to know which projects gain the greatest improvement in performance relative to 

their cost. 

•	 Maintenance planners want to know how much planned and unplanned maintenance to undertake, and on 

which facilities, to have the biggest effects in reducing future costs. [Section 6.3.3] 

“Optimized Decision Making” (ODM). ODM principles can be equally applied to asset preservation and replacement optimization, and optimization of new construction projects and improvements. ODM is a suitable approach to 

making decisions across different funding allocation processes. 

Multiple benefits can accrue to an agency using a decision support methodology for project selection and priority 

setting, such as ODM, including: 

•	 Extension of asset life. 

•	 Reduced operation and maintenance cost. 

•	 Restored or enhanced level of service. 

•	 Risk exposure reduction. [Section 6.3.4] 

Maintenance Processes 

Within the term maintenance, there are two broad categories and a number of subcategories, as shown in Figure 12. 

This diagram excludes activities such as snow and ice control, cleaning, and incident response, which do not directly 

affect the physical condition of the asset. [Section 6.4] 

Establishing a maintenance frequency helps to preserve the inherent levels of service of an asset, including reliability and safety, at minimum cost. At the early stage of asset management maturity, it can be difficult to establish these 

intervals reliably and to establish with certainty that they are the most cost-effective options. [Section 6.4.3] 
AASHTO Transportation Asset Management Guide—Executive Summary 31 

Maintenance

Planned

Condition

Monitoring

Reactive

Periodic

Maintenance

Preventive

Maintenance

Emergency

Repair

Routine

Maintenance

Corrective

Action

Figure 12. Maintenance Tasks 

Bridge 

Management 

System 

Maintenance 

Management 

System 

Pavement 

Management 

System 

Transportation 

Investment 

Candidate 

File 

Tradeoff 

Analysis 

Priority setting 

Resource allocation 

Budgeting 

Programming 

Maximize 

systemwide 

benefits 

Equity and 

distributional 

goals 

Policy and 

political 

goals 

Figure 13. Road Map for Performance Information from Sources to Goals 

Enabling Processes and Tools for TAM Integration 

In its broadest sense, the goal of resource allocation in asset management is to deploy, maintain, and operate assets 

in a manner that maximizes accomplishment of the agency mission. Asset management attempts to quantify the degree of accomplishment of, in the expectation that what gets measured, gets done. Analytical functions of asset management are all geared toward measuring performance and forecasting how decisions might affect performance to 

maximize the agency’s knowledge, control, and accountability over how well it fulfills its mission. Figure 13 shows 

the flows of performance information from their sources in agency management systems to their uses in setting and 

managing goals. [Section 7.1.1] 

The types of analyses described in Chapter 6 and 7 of the AASHTO Transportation Asset Management Guide—A 

Focus on Implementation are not ends in themselves, rather they are the means to the end of providing the desired 

levels of service at the least cost to present and future customers. To achieve this, competing projects must be evaluated, prioritized, and have the necessary resources allocated to them. [Section 7.1.3] 

Analytical Tools and Asset Management Decision Making 

There are various analytical tools available that agencies can use in prioritization and decision making involving 

trade-offs. NCHRP Report 545 (2005) discusses the need for tools that cross the boundaries of asset type (e.g., pavement versus bridge), mode (e.g., highway versus transit), work class (e.g., maintenance, operations, or construction), 

or objective (e.g., safety, preservation, or mobility). 

Figure 14, reproduced from NCHRP Report 545, illustrates a vision for how analytical tools could work with core 

asset information, agency business rules, and national or agency-specific parameters to provide improved decision-support capabilities. [Section 7.1.4.2] 

The typical management cycle for implementing works on a highway network is shown in Figure 15. [Section 

7.1.7.1] 
32 AASHTO Transportation Asset Management Guide—Executive Summary

Geography 

and Standard 

Location 

Referencing 

Inventory 

Life-Cycle Costing Needs Simulation 

GIS Query and 

Analysis Tools 

Database Query and 

Reporting Tools 

Sketch-Planning Impact 

Analysis Tools 

Risk Analysis 

Benefit/Cost Analysis 

Heuristical Decision 

Rules 

Optimization 

Specialized Databases 

• Performance Measures and Standards 

• Deficiency Criteria 

• Design Standards 

• Maintenance Standards 

• Standard Procedures 

• Program Categories 

• Funding Levels 

• Needs and Solutions 

• Evaluation of Options 

• Investment vs. Performance Trade-Offs 

Core Asset Data Business Rules 

• Units Costs 

• Service Life and 

Deterioration Models 

• Discount Rate 

• Value of Time 

• Accident Costs 

• Default Average 

Speeds 

• Default Auto 

Occupancy 

Decision Support 

Analytical Tools Analysis Parameters 

Inspection 

Traffic 

Crash Statistics 

Work History 

Programmed 

Work 

Network Needs 

Figure 14. Context for Analytical Toolbox 

Program Delivery 

Program delivery is the process an agency takes to implement and deliver its plans and programs. It is the period 

where the resources that have been allocated are utilized. Key aspects of asset management during the program 

delivery phase are: 

•	 Selecting a delivery method that yields the best results in terms of cost savings, output, and outcome. 

•	 Maximizing efficiency during delivery so that cost is minimized. 

•	 Maintaining flexibility to adjust delivery mechanisms if the chosen path is not yielding the desired results. 

•	 Minimizing the negative impacts to customers and stakeholders during delivery. 

•	 Monitoring to ensure that the goals and objectives driving the resource allocation decisions are being met. 

[Section 7.2] 

Asset Valuation and Depreciation 

Government agencies in the United States are required to report their financial performance annually, including 

their asset valuation. The details are contained in Government Accounting Standards Board Statement 34 (GASB 

34). Future liabilities of the agency for the deterioration of its assets over time and through use must be understood, 

reported on, and provided for in its financial statements. [Section 7.3] 
 

 

Derive/ 

Review 

Maintenance 

Intervention 

Strategy 

Resolve 

multi-year 

(10 -yr) 

program 

Outputs 

(Asset management 

system) 

Inputs 

(Maintenance Costs) 

Rehabilitate 

or 

Maintain 

COMMUNICATE

Asset managers–Designers– 

Supervisors–Contractors/Works 

staff–Performance Measures 

ACT

Contractors/ 

Works staff 

DECIDE

Asset Owner & Asset 

Manager 

MEASURE

Performance 

Measures 

AASHTO Transportation Asset Management Guide—Executive Summary 33 

Depreciation is an expression of the consumption of the economic value of the asset though use. The value, capacity, 

or capability of the asset that is lost this way is restored though periodic replacement or reconstruction. If we do not 

adequately recognize the loss of service capacity of the assets that occurs through use, the concept of intergenerational equity that is the product of being “cost effective for present and future customers” becomes a difficult target. 

By gathering depreciation as the asset is used, and using these funds to replace the asset component at the end of its 

life, it is possible to match the costs of use and replacement, thus sharing these costs equitably between current and 

future customers. 

In a transportation network that has been built and maintained over a long period, there is, in effect, a continuous 

requirement to replace asset components that have reached the ends of their useful lives. Comparing the cost of these 

renewals with the assessment of the value of the capacity lost through use (annual depreciation) can provide a useful 

indication of the sustainability of the management of the whole network. [Section 7.3.4] 

Figure 15. Typical Management Cycle (TNZ Manual) 

Acting Sustainably 

Transportation agencies have a significant role to play in providing highways and other infrastructure that enables 

communities to interact, to move goods and people, and to achieve economic growth. Transportation networks and 

systems represent a significant capital investment and they require ongoing expenditure and resources to continue 

to provide services. This section describes the different dimensions of sustainability pertaining to transportation 

agencies. [Section 7.4] 

Economic sustainability represents a dynamic equilibrium where the economic activity of an agency attempting to 

improve performance is offset by forces that tend to degrade performance. These forces include deterioration, traffic 

growth, extreme events acting directly on the infrastructure, and external economic forces such as oil prices and 

global competition for materials and services. 

A key sustainability issue for TAM is the ability to understand and quantify the relationship between resources consumed and expected outcomes; and with this knowledge to be able to select a set of performance levels that optimally balances resources and outcomes. [Section 7.4.3] 

Social sustainability follows the same principles of intra-generational equity that have already been discussed from 

environmental and economic perspectives and thus requires the same broad awareness of repercussions of current 

action. [Section 7.4.4] 

The parameters of the “service contract” provided by a transportation agency are the extent and quality of service, 

limitations on resources, and the positive and negative impacts of the economic activity itself (for example jobs, 
Asset 

Inventory 

Programs 

and Budgets Work History Asset Condition 

DATA 

Inventory Mgt Work Planning and 

Tracking Support 

Condition and 

Performance 

Prediction 

Condition, 

Performance and 

Utilization Tracking 

Database Interfaces Field Data 

Collection System 

Application 

Software 

Predicted Future 

Performance 

Investment 

Scenarios 

Work 

Recommendations 

TECHNOLOGY COMPONENTS 

FUNCTIONAL COMPONENTS 

OUTPUTS 

34 AASHTO Transportation Asset Management Guide—Executive Summary

economic stimulus, disruption, and work zone safety). External measures of performance are expressed in terms of 

transportation values as experienced by the public. They directly reflect public expectations of the transportation system. They describe the transportation system as a whole and not necessarily any specific part of it. [Section 7.4.5] 

Integrating an awareness of sustainability issues into an agency’s practice requires recognition of the overall performance of the transportation system and its interface with other systems including land use, economy, equity, and 

accessibility. It begins with an incorporation of sustainability goals into an agency’s mission. Recognition of the 

impact on people, planet, and profit is included in the initial planning stage of projects and cascades throughout all 

activities and management of each asset’s life. 

As with other performance measures or objectives, sustainability must relate strategic goals to individual decision-points and procedures. It must include key performance metrics that ensure accountability and provide a 

mechanism for reporting back on actual implementation. Additionally, sustainability objectives and measures should 

be considered as part of any trade-off analysis. Key sustainability issues are the effects of the aging of transportation 

infrastructure resulting from deferred asset maintenance and deteriorating levels of service resulting from reduced 

network improvements. Limitations on funding to address these issues can, in turn, force transportation agencies to 

look for alternative ways to manage assets. Sustainable asset management is usually a better way of doing business. 

[Section 7.4.6] 

Transportation Asset Management Information Systems 

A Transportation Asset Management Information System (TAMIS) is a collection of hardware, software, data, and 

processes that support asset management business processes. A TAMIS is used to collect, process, store, and analyze 

information about assets; to develop sound maintenance and rehabilitation strategies; and to schedule, track, and 

manage work. TAMIS components and technologies are shown in Figure 16. [Section 8.1.1] 

Figure 16. Data, Functional, and Technology Components of a TAMIS 

Common functional elements of a TAMIS are: 

•	 Asset inventory; 

•	 Asset condition, performance, and utilization tracking; 

•	 Asset condition and performance prediction; 

•	 Treatment selection; 
AASHTO Transportation Asset Management Guide—Executive Summary 35 

•	 Resource allocation; and 

•	 Work planning and tracking support. [Section 8.1.2] 

Information systems supporting asset management may be self-contained or have multiple interfaces to other agency 

data sets. An agency may have separate systems for each asset category, a single system with modules for multiple 

asset categories, or a mix. Systems may be commercial-off-the-shelf, “home grown,” or a hybrid. Integration should 

be a major consideration in TAMIS design—lack of integration can mean duplication of data, manual processes to 

link data outside of the system or keep data in synch, and loss of potentially valuable decision support capabilities. 

[Section 8.2.1] 

Key Principles for TAMIS Implementation 

There is no single best approach to implementing a TAMIS. Each agency should evaluate current options on the 

market and develop an approach that best fits with their specific needs. Choices should be made with careful consideration of the agency’s current application portfolio, technology environment, and staff resources. Continuous 

changes in information technology and commercial product offerings mean that what might have been the best 

choice 12 months ago may not be best today. 

Implementation of advanced analytical capabilities and tight integration across systems can pay off but requires 

considerable commitment. Many agencies who implement sophisticated asset management systems do not make full 

use of their capabilities due to their own business needs, internal resource constraints, and the time, effort, and data 

required to build credible models that can be used for decision support. [Section 8.2.2] 

Organizations undertaking implementation of new management systems or enhancement of existing systems should: 

•	 Support decision-making and business processes. [Section 8.2.2.1] 

•	 Develop an architectural vision. [Section 8.2.2.2] 

•	 Designate a management sponsor and technical champion. [Section 8.2.2.3] 

•	 Not underestimate resource requirements. [Section 8.2.2.4] 

•	 Plan for incremental improvements. [Section 8.2.2.5] 

•	 Ensure complete documentation. [Section 8.2.2.6] 

Asset Management and Enterprise Resource Planning 

Enterprise Resource Planning (ERP) initiatives streamline and centralize core business functions within organizations (or across organizations in a state or local jurisdiction), with a focus on financial and resource management. 

ERP efforts typically involve a combination of business process reengineering and information system consolidation 

and integration. Within a transportation agency, elements of an ERP system might include financial accounting, 

timesheets, payroll, materials management, fleet management, consumables inventory management, construction 

project scheduling and budgeting, grants management, federal aid billing, contract administration, and maintenance 

management. [Section 8.3] 

ERP systems can support the work planning, scheduling, work tracking, and cost modeling functions of TAM. They 

can provide the platform for integration of information and workflow related to asset maintenance and rehabilitation 

activities and their associated resource requirements and costs. From the perspective of TAM, maximizing value 

from ERP systems requires design of account codes that allow for work and expenditure histories to be related to 

specific asset categories, locations, and objectives. 

While ERP initiatives offer the potential to consolidate existing financial, maintenance, and project management 

information, it is generally agreed that successful implementations involve minimal customizations to out-of-the-box 

functionality. Therefore, some agencies find that specialized capabilities within their existing TAM systems cannot 

easily be replaced. For example, core TAM functionality such as snow and ice maintenance and other processes that 

involve beats (multiple, related linear assets) require customization to be incorporated into the ERP. [Section 8.3.1] 
36 AASHTO Transportation Asset Management Guide—Executive Summary

ERP offers the potential for agencies to realize substantial benefits, including reduction in paperwork, smoother and 

more integrated business processes, and reduced duplication of data—all of which can translate to greater efficiencies. In addition, ERPs can greatly improve access to valuable information for managers at all levels. Availability of 

timely information about the organization’s assets, activities, expenditures, and resource utilization allows managers 

to make better decisions about how to utilize scarce resources for maximum payoff. 

However, organizations embarking on ERP projects should be aware of the commitment required for realizing these 

benefits and the risks involved. ERP implementations can be costly, complex, and involve considerable organizational change. In order to achieve integration across business processes and information stores, units that have institutionalized and well-functioning work flow must change—and these changes can be disruptive. 

Introducing change in multiple units across the organization is extremely challenging, even more so when the agency is under economic stress. Considerable up-front planning of an ERP implementation is required in order to avoid 

schedule slippage, cost overruns, and stress to the organization. [Section 8.3.3] 

TAM Data Planning and Management 

A TAM data planning and management function may be implemented as a cross-functional committee or may be 

housed within a single unit of the organization (e.g., within Information Technology, Planning, Maintenance, or 

Engineering units) with participation from the multiple units that produce and consume data relevant to TAM. The 

mission of the data planning and management function is to ensure that the right data are collected in an efficient 

manner to meet the organization’s needs and that the data are managed throughout their life cycle to provide value. 

Ideally, TAM data planning and management will be integral to a general agency-wide data management program. 

Specific data planning and management practices are particularly relevant to TAM: data business planning, data 

governance, and data standards. [Section 8.4.2] 
AASHTO Transportation Asset Management Guide—Executive Summary 37 

F. Additional Information 

Gap Analysis Spreadsheet 

The AASHTO Transportation Asset Management Guide—A Focus on Implementation Section 2.2.3 introduces the 

concept of TAM Gap analysis and provides an outline of a tool that can assist in determining these gaps. The Gap 

Analysis Spreadsheet facilitates gap analysis cross-referenced to the levels of TAM maturity discussed in Section 

2.2.2. It allows the analyst to enter scores and produce charts comparing the agency’s desired TAM performance 

with its current achievements. The tool is based on a series of individual questions, the answers to which are scored 

and aggregate upwards. It compares desired and achieved TAM performance across six assessment areas and across 

the categories that make up these assessment areas. 

The tool can be downloaded from the AASHTO Subcommittee on Asset Management website, www.transportation. 

org/?siteid=95. [Section A.1] 

The processes for using the tool are outlined in Figure 17, which also illustrates how the tool’s outputs are taken 

through the TAM Improvement Plan. 

Future Gap Analysis Tool 

NCHRP 08-90, a study planned for 2013, is developing a TAM gap analysis tool that responds to the MAP-21 

requirements and more closely matches the institutional and technical characteristics of U.S. transportation system 

management practices. The final tool will be spreadsheet-based as well as: 

•	 Scalable in terms of programs and maturity levels. 

•	 Customizable in terms of adding or deleting key assessment areas and individual questions. 

•	 User friendly for practitioners with varying expertise. 

•	 Readily accessible for different levels of analysis. 

•	 Applicable by functional area (e.g., policy guidance, planning and programming, etc.). 

•	 Accompanied by metadata. 

•	 Structured and programmed for agency wide use. 

•	 Tested with a sample of state DOT practitioners for practical usability. 

•	 Accompanied by reporting functions that include appropriate visual and text outputs that could be used as 

inputs by practitioners and decision makers for identifying prioritized areas of improvement to address gaps 

and develop a TAM Improvement plan. 

The final tool will be incorporated into the AASHTO Transportation Asset Management Guide—A Focus on Implementation. 
AASHTO Transportation Asset Management Guide—Executive Summary

 

 

 

 

 

 

 

38 

Review and 

understand all 

questions in the tool 

Note items requiring 

improvement 

Set target 

performance level for 

each element 

Score each question 

and rank each 

element 

Review output charts: 

Assess the gaps between current and 

desired performance at summary and 

detailed level 

Identify priorities 

Implement 

Improvement Plan 

Include in TAM 

Improvement Plan 

Short-list actions 

Figure 17. Gap Analysis Process 

Case Studies 

Colorado 

The Colorado Department of Transportation (CDOT) is responsible for the state’s transportation system including 

roadways, rail corridors, transit services, bicycle and pedestrian ways, and commercial and general aviation. Like 

many DOTs, CDOT is balancing an aged system in need of extensive repair (nearly 70 percent of the interstate system was built before 1970); environmental and geographic challenges, including high elevations and harsh winters; 

system wear from more than 23 billion vehicle miles of travel annually; and the increasing and sometimes conflicting pressures involved in moving passengers, freight, and information on an interregional and interstate level while 

meeting the needs of urban and rural residents. Funding shortfalls have increased the difficulties of meeting all of the 

state’s transportation needs. 

In response to these challenges, CDOT has been on a continuous improvement asset management journey since the 

early 1990s. The agency has one of the nation’s most mature pavement management systems, was an early adopter 

of the Pontis bridge management system, and initiated one of the first maintenance management levels of service 

approaches. These initiatives were driven by a focus on good investment planning that began almost 20 years ago 

and continues into the present with the recent implementation of the SAP ERP system that supports the department’s 

asset management program. 

The highway system comprises 9,161 centerline miles of roadway, more than 3,700 bridges, and 20 state-owned 

tunnels over 104,100 square miles. The agency employs 3,300 staff, of which approximately 1,900 work in maintenance. It supplements employees with limited use of consulting engineers. 

Colorado’s highway system is funded primarily through the Highway Users Trust Fund (HUTF) and Federal HTF, 

supplemented in a strong economy by state general funds using a prescribed formula. This approach leads to highly 

variable funding levels. For example, the 2008 economic downturn resulted in a funding drop from $1.5 billion in 

FY 2008 to ≈$1 billion in FY 2009. [Section B.1] 

CDOT’s commitment to asset management started in the 1990s when the agency began defining investment categories, associated performance measures, and relevant data. These investment categories are: 
AASHTO Transportation Asset Management Guide—Executive Summary 39 

•	 Safety—Services, programs, and projects that reduce fatalities, injuries, and property damage for all users 

and providers of the system. 

•	 System Quality—Activities, programs, and projects that maintain the physical (integrity/condition) function 

and aesthetics of the existing transportation infrastructure. 

•	 Mobility—Programs, services, and projects that enhance the movement of people, goods, and information. 

•	 Program Delivery—Functions that enable the successful delivery of CDOT’s programs, projects, and services. 

These investment categories allowed the agency to develop an asset management framework that relates investments to policy objectives and impacts rather than funding sources. This approach enhanced management’s ability to 

analyze trade-offs among programs and paved the way to future TAM initiatives that included an updated planning 

and prioritization process, integration of levels of service, customer surveys, and guidance for updating technology 

infrastructure. 

Late in the 1990s, the agency fully committed to asset management and, since then, has devoted significant resources to a continuous improvement effort that builds on the success of previous initiatives. They formed an Asset Management Task Force, which was headed by CDOT’s deputy director and included 10 representatives from across the 

department. The group was responsible for overseeing the implementation of an asset management plan, including 

providing high-level leadership and communicating plans and accomplishments to the Transportation Commission. 

During the same time period, the agency implemented stand-alone management systems for pavements, bridges, and 

maintenance. 

In the early 2000s, senior management insisted all new technology purchases and implementation be reviewed by 

a policy group that evaluated whether the proposed systems were commensurate with a vision of enterprise asset 

management practices. This group also became responsible for recommendations regarding business processes and 

technology practices that would support the asset management program. 

In addition, an asset management steering committee was formed to guide the implementation of management systems and gain support inside the agency. A third leadership group, an executive management subcommittee, evaluates 

the strengths and weaknesses of CDOT’s performance measures and compares them to best practices. Unity of vision 

and strategies is accomplished by having members serve on more than one asset management leadership team. 

In 2004, the agency committed to development of an ERP for financial management and to integrate data from 

different systems in a way that would serve the needs of the entire institution and help maximize the value of investment choices. An Enterprise Resource Planning Steering Committee, consisting of high-level management, was 

appointed to guide the ERP implementation. 

CDOT’s current asset management program integrates a mature investment/budgeting process, strong management 

systems, one of the country’s first implementations of performance-based budgeting, and an integrated ERP system. 

The agency will continue to build the capabilities of the ERP to further enhance its usefulness. [Section B.3] 

Missouri 

Defining clear policy and performance goals, monitoring progress toward those goals, and communicating with 

external stakeholders and decision makers as well as employees of the agency are all key aspects of effective asset 

management. Performance measures, and the application of performance measures through performance management, are important tools in carrying out these parts of asset management. The Missouri Department of Transportation (MoDOT) is responsible for the seventh largest state highway system in the country. [Section C.1] 

The agency’s performance is published regularly both on paper and on the web in a document known as Tracker. 

To manage this measurement system and to make it meaningful to the agency, each tangible result is assigned a 

driver. The result driver is a senior manager (the agency director, chief engineer, chief financial officer, or a division 
40 AASHTO Transportation Asset Management Guide—Executive Summary

director). This result driver has overall responsibility for the performance of the result area across the organization. 

Fulfilling this obligation requires a combination of information sharing and advocacy to encourage performance on 

results that cut across the agency. Each tangible result is defined by at least three specific measures. Several have 

a dozen or more measures. In total, MoDOT tracks about 120 specific measures. Each measure is also assigned a 

driver. These measurement drivers are typically middle managers with hands-on responsibility for the area being 

measured and the data being reported. 

Each quarter, the drivers meet with all senior management, typically more than 75 people, to review the progress 

toward each tangible result and each measure. The agency head presides at these meetings, where result drivers are 

challenged to outline the steps they have taken to ensure that the measures indicate progress toward the right result. 

Actions that are planned for the future are not acceptable responses to a tangible result that is falling behind expectations. Managers are expected to have already taken steps to correct unacceptable trends. 

The quarterly review meetings are also the forum in which changes can be made to measures. If the measure does 

not seem to be providing the information desired, the drivers may be asked to find new or modified measures that 

will provide more or better information on the tangible result. When changes are made, they are noted in the Tracker 

report with their impact documented. 

Managers are encouraged to link the annual performance objectives of individual employees to specific measures and 

tangible results. MoDOT management philosophy discourages defining specific performance targets. [Section C.2] 

New Zealand 

The New Zealand Transport Agency (NZTA) is a Crown Entity established by statute in August 2008. Its establishment merged the functions of Land Transport New Zealand (LTNZ) and Transit New Zealand (Transit). 

NZTA is responsible for the New Zealand national state highway system. It is also responsible for managing Crown 

revenue of $NZ 2.8 billion and the allocation of $NZ 2.0 billion annually to the land transport system and has an 

operating budget of approximately $NZ 240 million. Governance is provided by a Chairman and Board whose members are regularly appointed by the government. NZTA currently employs 1,300 staff across eleven offices and six 

regions. The organization is managed centrally. 

Since 1989, there have been various institutional changes in the sector. Prior to 2008, LTNZ had been responsible 

for allocating funds to road-controlling authorities throughout the country, as well as operational issues such as road 

safety. LTNZ had itself been formed from an earlier merger of the Land Transport Safety Authority (a safety focused 

agency) and Transfund New Zealand (the funding agency). The original Transit organization also held the funding 

responsibilities of Transfund, but these were devolved early in its life. Interestingly, they have now been returned to 

the new NZTA. 

Prior to 1989, state highways had been managed by a government department, the Ministry of Works and Development. This organization was also responsible for other government owned assets, and it employed its own work 

force for professional services and construction forces. Transit was formed in 1989 by statute, with one of the most 

significant changes being a requirement to outsource many services to the private sector. [Section D.1.1] 

Key laws include the Transit New Zealand Act, the Land Transport Management Act, and various amendments. Legislation has dictated the institutional changes and the move from in-house delivery of all services to an outsourcing 

model, a change which has had far-reaching implications for TAM development. [Section D.2.2] 

While legislation played a significant role in the change process, the early devolution of the former government 

department-based structure to a much smaller organization which outsourced service delivery to the private sector 

provided a challenge and an impetus for a changed way of thinking and a changed way of working. The new organization needed to become a “smart buyer” of professional engineering services and maintenance and construction 

contracts. This required strong vision-led leadership. [Section D.2.3] 
AASHTO Transportation Asset Management Guide—Executive Summary 41 

For this to succeed, role clarity and involvement at all levels within the organization and the supply chain was needed—including training providers, software development, consultants, and contractors. There were many different 

roles which played out as implementation progressed. Existing organizational management systems now include formalized staff accountabilities related to TAM, such as achieving level of service or performance targets for particular 

aspects of the network. [Section D.2.4] 

Transit also recognized the importance of creating and cultivating a “community of interest” for TAM within the 

roads transportation sector in New Zealand. [Section D.2.5] 

The reorganization of the late 1980s was a catalyst for change, and with that change came a focus on quality asset 

data. This has been a key both to TAM and to how work is procured. While the journey began with data, it now fully 

encompasses management systems and analysis. [Section D.3] 

Wyoming 

The Wyoming Department of Transportation (WYDOT) serves the ninth largest state in the country by providing 

construction and maintenance services, law enforcement, and administrative and regulatory services for Wyoming’s 

transportation system. In addition to the highways, the agency is responsible for the state’s aviation and rail programs and embraces goals for non-motorized transportation (bicycling and walking). 

WYDOT recognized the importance of people, process, and technology in the establishment of their asset management program. A key component of the WYDOT’s asset management journey involved the procurement of an 

Enterprise Resource Planning System (ERP) from PeopleSoft along with the implementation of asset management 

systems (AgileAssets). The current focus of their TAM implementation is the use of information to reach better 

decisions. Another noteworthy aspect of WYDOT’s experience is the integration of the Balanced Scorecard as their 

performance management framework. [Section E.1] 

Wyoming’s focus on asset management has been relatively recent. It evolved in response to the state’s transportation 

needs outstripping their funding to such an extent that a “worst first” approach to budgeting was not going to support 

them in reaching their goals. The state has a significant gap between roadway needs and funding. Pavement condition has been deteriorating over the past decade and is projected to continue declining if funding continues at the 

current rate. State expenditure for capital construction and maintenance in 2007 was approximately $391 million. 

In an effort to address this situation, the state sought to increase funding levels through a proposal to raise Motor 

Fuel Tax (MFT) rates. The proposal was rejected in both the 2007 and 2008 legislative sessions. In 2008, the state 

legislature provided an additional $200 million in general funds for highways. However, only half of this amount 

went into the DOT’s budget; the rest could only be accessed following legislative appropriation in response to an 

agency request. 

Given the funding shortfall and asset needs and the need to acquire new financial management software, WYDOT 

recognized the opportunity to approach budgeting in a new way and began building the components of an asset 

management program. A significant part of this effort has been the implementation of an ERP system to integrate 

financial data. [Section E.1.3]