Asset Management Guide Focusing on the Management of Our Transit Investments OCTOBER 2012 FTA Report No. 0027 Federal Transit Administration PREPARED BY Dr. David Rose Lauren Isaac Keyur Shah Tagan Blake Parsons Brinckerhoff, Inc. COVER PHOTO Courtesy of David Sailors DISCLAIMER This document is intended as a technical assistance product. It is disseminated under the sponsorship of the U.S. Department of Transportation in the interest of information exchange. The United States Government assumes no liability for its contents or use thereof. The United States Government does not endorse products of manufacturers. Trade or manufacturers’ names appear herein solely because they are considered essential to the objective of this report. Asset Management Guide Focusing on the Management of Our Transit Investments OCTOBER 2012 FTA Report No. 0027 PREPARED BY Dr. David Rose Lauren Isaac Keyur Shah Tagan Blake Parsons Brinckerhoff, Inc. One Penn Plaza New York, NY 11019 SPONSORED BY Federal Transit Administration Office of Research, Demonstration and Innovation U.S. Department of Transportation 1200 New Jersey Avenue, SE Washington, DC 20590 AVAILABLE ONLINE http://www.fta.dot.gov/research FEDERAL TRANSIT ADMINISTRATION i Metric Conversion Table Metric Conversion Table SYMBOL WHEN YOU KNOW MULTIPLY BY TO FIND SYMBOL LENGTH in inches 25.4 millimeters mm ft feet 0.305 meters m yd yards 0.914 meters m mi miles 1.61 kilometers km VOLUME fl oz fluid ounces 29.57 milliliters mL gal gallons 3.785 liters L 3 3 ft cubic feet 0.028 cubic meters m 3 3 yd cubic yards 0.765 cubic meters m 3 NOTE: volumes greater than 1000 L shall be shown in m MASS oz ounces 28.35 grams g lb pounds 0.454 kilograms kg megagrams T short tons (2000 lb) 0.907 Mg (or "t") (or "metric ton") TEMPERATURE (exact degrees) o 5 (F-32)/9 o F Fahrenheit Celsius C or (F-32)/1.8 FEDERAL TRANSIT ADMINISTRATION ii FEDERAL TRANSIT ADMINISTRATION ii REPORT1. DOCUMENTATION PAGE Form Approved OMB No. 0704-0188 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instruc­ tions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington Headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of Management and Budget, Paperwork Reduction Project (0704-0188), Washington, DC 20503. 1. AGENCY USE ONLY 2. REPORT DATE 3. REPORT TYPE AND DATES COVERED October 2012 June 2011 - September 2012 4. TITLE AND SUBTITLE 5. FUNDING NUMBERS Asset Management Guide: Focusing on the Management of Our Transit Investments FTA-2011-002-TRI 6. AUTHOR(S) Dr. David Rose, Lauren Isaac, Keyur Shah, Tagan Blake 7. PERFORMING ORGANIZATION NAME(S) AND ADDRESSE(ES) 8. PERFORMING ORGANIZATION REPORT NUMBER Parsons Brinckerhoff, Inc. One Penn Plaza FTA Report No. 0027 New York, NY 11019 9. SPONSORING/MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSORING/MONITORING AGENCY REPORT U.S. Department of Transportation NUMBER Federal Transit Administration East Building FTA Report No. 0027 1200 New Jersey Avenue, SE Washington, DC 20590 11. SUPPLEMENTARY NOTES http://www.fta.dot.gov/research 12A. DISTRIBUTION/AVAILABILITY STATEMENT 12B. DISTRIBUTION CODE Available from: National Technical Information Service (NTIS), Springfield, VA 22161 TRI-20 Phone 703.605.6000, Fax 703.605.6900, email [[email protected]] 13. ABSTRACT To advance transit asset management, this guide provides a transit-specific asset management framework for managing assets indi­ vidually and as a portfolio of assets that comprise an integrated system. The guide provides flexible, yet targeted guidance to advance the practice and implementation of transit asset management. Objectives: • Explain what transit asset management is and what the business benefits to an agency are. • Provide an enterprise asset management framework and business model that agencies can refer to as “best practice.” • Describe the elements of transit asset management plan. • Detail, for each major asset class, the major enabling components of asset management: inventory, condition assessment, performance analysis and modeling, risk management, and lifecycle cost management. • Guide organizations through the migration from their current baseline to high-performance asset management. 14. SUBJECT TERMS 15. NUMBER OF PAGES Transit Asset Management, Asset Management Guide 268 16. PRICE CODE 17. SECURITY CLASSIFICATION 18. SECURITY CLASSIFICATION 19. SECURITY CLASSIFICATION 20. LIMITATION OF ABSTRACT OF REPORT OF THIS PAGE OF ABSTRACT None Unclassified Unclassified Unclassified FEDERAL TRANSIT ADMINISTRATION iii TABLE OF CONTENTS 1 Preface 3 Section 1: Introduction 4 Objectives of this Guide 4 A Guide Developed for the Transit Industry 5 Transit Agency Collaboration 6 Sections Overview 7 How to Use this Guide 9 Section 2: Introducing Transit Asset Management 11 Asset Management Benefits 12 The Transit Asset Management Challenge 12 The Overall State of Transit Assets 13 Asset Management is Critical for the Nation’s Growing Transit Asset Inventory 13 Light Rail Vehicle Fleets are Growing; Agencies are Now Managing Fleets of Different Ages 14 Heavy Rail Transit Assets are Being Used Longer Without Replacement 14 Commuter Rail Systems and Assets Have Grown, yet Conditions Have Remained Constant 14 Quantity of Bus Assets is Growing and Average Retirement Age is Later than Intended 14 Vanpool and Demand Response Operators and Assets have more than Doubled 15 Transit Assets Defined 16 Asset Management in Context 17 Transit Asset Management Framework 17 Asset Management Business Processes 19 Vision and Direction 20 Lifecycle Management 21 Cross-Asset Planning and Management 21 Information Technology Systems 22 Other Enablers 22 Asset Management and Sustainability 23 Strengthening Asset Management Practice – Implementation Principles 30 Section 3: Asset Management Framework Business Processes 31 Asset Management Vision and Direction 34 Role of Asset Management Policy 35 Role of Asset Management Strategy 40 Role of Asset Management Planning FEDERAL TRANSIT ADMINISTRATION iv 44 Lifecycle Management 45 Role of Asset Inventorying 54 Role of Condition Assessment and Performance Monitoring 62 Role of Lifecycle Management Planning Process 66 Cross-Asset Planning and Management 67 Role of Capital Planning and Programming 74 Role of Operations and Maintenance Budgeting 80 Role of Performance Modeling 87 Section 4: Asset Management Information Systems 88 Transit Agencies and Asset Management Information Systems 90 Asset Management Information System Components 90 Asset Inventory 90 Asset Condition 91 Active Condition Monitoring, Detection, and Tracking 92 Maintenance Management 93 Fleet Management 93 Parts Management/Inventory Control 93 Facilities Management 93 Scenario Analysis and Decision Making 94 Financial, Accounting Management, Engineering, and Other Systems 94 Technical Solutions to Integrating Asset Management System Components 96 Implementation Principles 99 Section 5: Implementation Guidance 100 Implementation Approach 102 Prepare for Implementation 102 Assess Asset Management Awareness 103 Consider Asset Management Enablers 105 Establish Leadership and Accountability 107 Assess Agency Maturity 109 Determine an Agency’s Asset Management Baseline 110 Communicate the Asset Management Baseline 111 Determine an Agency’s Asset Management Target 111 Develop the Plan 111 Develop an Asset Management Business Case 113 Decide on Implementation Path 115 Implementation Path #1: Enterprise-Driven 120 Implementation Path #2: Asset Class-Driven 126 Implementation Path #3: Capital Planning-Driven 131 Outline Key Asset Management Activities and Roles and Responsibilities 132 Implement the Asset Management Improvement Program 132 Develop a Communications Strategy 133 Determine Information Systems Strategy FEDERAL TRANSIT ADMINISTRATION v 138 Key Implementation Planning Considerations/Lessons Learned 141 GLOSSARY 146 REFERENCES 149 Appendix A: Asset Management Guidance Supplement Appendix B: Transit Asset Management Maturity Agency Self-Assessment FEDERAL TRANSIT ADMINISTRATION vi LIST OF FIGURES 4 Figure 1-1: Guide Building Blocks 10 Figure 2-1: Asset Management Defined 12 Figure 2-2: 2010 Transit Asset Conditions 13 Figure 2-3: Growth in umber of Vehicles in Transit Fleet 13 Figure 2-4: Current (2010) Backlog of State of Good Repair Needs (shown in billions of 2009 $) 16 Figure 2-5: Transit Asset Categories and Classes 17 Figure 2-6: Components of Agency Strategic Management 18 Figure 2-7: Asset Management Framework 19 Figure 2-8: Transit Asset Management Business Processes 31 Figure 3-1: Transit Asset Management Framework Business Processes 32 Figure 3-2: Asset Management Vision and Direction Business Processes 45 Figure 3-3: Lifecycle Management Business Processes 46 Figure 3-4: Asset Inventory Information 48 Figure 3-5: High-Level Asset Class Hierarchy 49 Figure 3-6: Long Island Rail Road Sample Asset Hierarchy (Structures) 50 Figure 3-7: Snapshot of MTC’s Asset Inventory 55 Figure 3-8: Condition Data Requirements of Different Business Processes 55 Figure 3-9: Condition Assessment and Performance Monitoring Process 62 Figure 3-10: Lifecycle Management (Using Asset Data to Improve Asset