USA Banner
  U.S. flag
              An official website of the United States government Here's how you knowOfficial US Government Icon
              **Official websites use .gov**A **.gov** website belongs to an official government organization in the United States.
            Secure Site Icon
              **Secure .gov websites use HTTPS**
                  A **lock** ( A locked padlock ) or **https://** means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites. 
 U.S. Department of Transportation Icon United States Department of Transportation
 Search DOT
            Search
                    About FHWAFHWA Organization
                Headquarters Offices
                Field Offices
                Strategic Plan
                Business Opportunities
                Staff Directories
                Careers
                Highway History
                Contact UsProgramsAcquisition Management
                Civil Rights
                Federal Lands Highway
                Infrastructure
                Innovative Program Delivery
                Operations
                Planning, Environment, and Realty
                Policy
                Research, Development, and Technology
                Safety
                Browse by TopicsResourcesCore Highway Topics
                Federal Aid Essentials
                Automation
                Complete Streets
                Laws and Regulations
                Policy & Guidance Center
                Section 508
                Publications and Statistics
                Professional Development
                National Highway Institute
                Resource Center
                Accessibility Resource Library
                FHWA Research LibraryNewsroomPress Releases
                Speeches & Testimony
                Photos
                Videos
                Media ContactsMenu FHWA Highway Safety Programs Home
                        HSIP 2016 National Summary Report


            
            In This Section
        Highway Safety Improvement Program (HSIP)
                                Overview
                About
                Planning
                Implementing
                Evaluating
                Reporting
                Noteworthy Practices
                Legislation and Guidance
                Resources
                HSIP Special Rules
                Strategic Highway Safety Plan (SHSP)
                                Overview
                About
                Develop
                Implement
                Evaluate
                Promote
                Legislation and Guidance
                Resources
                Noteworthy Practices
                Safety Performance Measure
                                Overview
                State Safety Performance Targets
                Policy & Guidance
                Fact Sheets & Informational Webinars
                Target-Setting Resources
                Safety Data Resources
                State Safety Reports
                Safety Contacts
                Technical Assistance & Training
                Railway Highway Crossing Program
                                Overview
                Policy and Guidance
                Resources
                
                Benefit-Cost Analysis of the HSIP
FHWA also conducted a national evaluation of the HSIP to estimate expected program results using the project information from the 2016 HSIP reports. The purpose of the evaluation was to estimate a national benefit cost ratio for the HSIP. The HSIP national benefit cost ratio provides an indication of the programs national impact and the benefits the public can expect from investments in the HSIP.

The evaluation methodology makes use of the full project listing information from 50 States plus the District of Columbia (2016 HSIP Database) and associated crash modification factors (CMFs) from the CMF Clearinghouse, the Fatality Analysis Reporting System (FARS), the Highway Performance Monitoring System (HPMS), the Highway Safety Information System (HSIS), FHWA, and various reports. The following steps indicate how to apply the selected methodology for projects in the 2016 HSIP Database with complete data:

Calculate the estimated crash reduction for each project group
	Estimate a "before" crash rate using data from FARS, HPMS, and HSIS.
		Identify appropriate CMFs from the CMF Clearinghouse.
	Calculate the monetary benefit for each project category by converting crash savings to dollar amounts.
	Update crash severity costs (K, KA, KABC, ABC, KABCO) to 2015 dollars using information from Council et al[5] and an internal FHWA memo[6].
	Divide annual monetary benefit by the annualized project cost to calculate the benefit-cost ratio.
	Assume a service life per treatment type using information from the Service Life and Crash Cost User Guide available on the CMF Clearinghouse.
	Calculate a program wide benefit-cost ratio by averaging the ratios from all project groups.
	Weight the average based on HSIP funds spent for a project to account for project groups which were more prevalent in the data.For this reporting cycle, it was possible to calculate the expected project level benefit cost ratios for 1,077 segment and intersection based projects, which is approximately 24 percent of the projects listed in the 2016 HSIP Database. Table 4 presents the weighted results (based on amount of HSIP funds that were spent for that project). Many projects had a range of years for the assumed service life, so the table presents the BC ratio according to the minimum and maximum service lives.

The values in Table 4 (4.355 to 6.511) represent the range of *BC ratios for the HSIP program for segment and intersection based improvement projects*, depending on the minimum or maximum service life of the treatment and discount rate. Comparatively, the range for the 2015 HSIP project listing was 4.523 to 7.123.



**Table 4. Weighted BC Ratio for Segment and Intersection Based Projects (weight based on total project cost)**

Weighted BC Ratio (min Service Life, 3% discount rate)
			Weighted BC Ratio (max Service Life, 3% discount rate)
			Weighted BC Ratio (min Service Life, 7% discount rate)
			Weighted BC Ratio (max Service Life, 7% discount rate)*1,042 Segment Based HSIP Projects (weighted on segment project cost)
			35 Intersection Based HSIP Projects (weighted on intersection project cost)**1,077 Segment & Intersection Based HSIP Projects (weighted on segment & intersection  project cost)***
			5.257
			6.482
			4.366
			5.0899.601
			11.021
			7.381
			8.1815.284
			6.511
			4.355
			5.109Many projects could not be included in analysis because they were either missing key data elements (e.g., number of miles or intersections treated, CMF, project cost, etc.) or were non-infrastructure projects. The calculated benefit-cost ratio for each of the 1,077 projects relied heavily on assumptions for each project regarding the applicable CMF, service life, crash rate, and injury severity cost.
      
  Book traversal links for Benefit-Cost Analysis of the HSIP
      ‹ Comparison to Previous Years
                    Up
                    Summary ›
                
                Book:HSIP 2016 National Summary Report
              Executive Summary
                Background
                HSIP Funding Approach
                HSIP Funding Approach
                Data-Driven Safety Decision Making.
                HSIP Projects Overview
                Project Cost
                Functional Class and Ownership
                Improvement Categories and Subcategories.
                SHSP Emphasis Areas
                2013-2016 Comparison
                Comparison to Previous Years
                Benefit-Cost Analysis of the HSIP
                Summary
                References
                Appendix A: Full Description of HSIP Improvement Categories and Sub Categories for 2013 HSIP Reporting Guidance
                Appendix B. Detailed Tables of Project Costs Summaries
                References U.S. DEPARTMENT OF TRANSPORTATION

**Federal Highway Administration**

1200 NEW JERSEY AVENUE, SE

WASHINGTON, DC 20590

202-366-4000Subscribe to email updates
                    About
  

        
              About FHWA
                Careers
                Org Chart
                Staff Directories
                Work with UsPrograms
  

        
              Acquisition Management
                Civil Rights
                Federal Lands Highway
                Infrastructure
                Innovative Program Delivery
                Operations
                Planning, Environment, and Realty
                Policy
                Research, Development, and Technology
                SafetyPolicies, Rights, Legal
  

        
              About DOT
                Accessibility
                Budget and Performance
                Civil Rights
                FOIA
                Information Quality
                No FEAR Act
                Office of Inspector General
                Privacy Policy
                USA.gov
                Web Policies and Notices
                Web StandardsNews & Events
  

        
              Newsroom
                Press Releases
                Speeches & Testimony
                Media Contacts
                Connect with Us