Status: Active
Timeframe:
Potential Funding: NCHRP Full Program
Background:
The Fix America's Surface Transportation (FAST) Act calls for States to implement programmatic Life Cycle Cost Analysis (LCCA) as part of their asset management plan implementation and at the same time calls for certain performance targets to be achieved. States are struggling with how to achieve both objectives and there is a need for software tools and training on how to do this. Research is needed to develop a methodology and the tools to allow States to comply with the programmatic LCCA requirements.
Objectives:Research is needed addressing the following questions:
• What is the objective of this analysis? Is it to minimize cost, achieve a target condition, other objective?
• What happens if a least present value solution does not result in the performance target desired?
• Is the intent to set the minimal level of performance and then solving for LCCA solutions that achieve that performance?
• How is risk included in a life cycle cost analysis?
• Are there recommended or standardized discount rates, evaluation period or other constraining parameters?
The research plan will focus on:
• Developing guidance on how to structure a programmatic life cycle cost analysis.
• Develop a software tool to help agencies perform this kind of analysis.
Duration: 9-12 months
Project Budget:
Topics: Guidance/Lessons Learned
Subjects: Life Cycle Costing/Economic Analysis, Performance Measurement and Management
