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How TPM and Asset Management Work Together
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Transportation Performance Management, or TPM,
is an approach to managing transportation system performance outcomes.
As defined in 23 CFR 515.5,
asset management means a strategic and systematic process of operating,
maintaining, and improving physical assets,
with a focus on both engineering and economic analysis
based upon quality information,
to identify a structured sequence of maintenance, preservation, repair,
rehabilitation, and replacement actions
that will achieve and sustain a desired state of good repair
over the life cycle of the assets at a minimum practicable cost.
In sum, asset management is the application of TPM to manage
the condition of the transportation infrastructure assets –
assets like pavement and bridges.
This infrastructure provides for mobility
and safety on the nation's transportation system.
In short, asset management is the engine that drives infrastructure performance.
Statewide, metropolitan, and local transportation agencies
apply TPM principles in making decisions about where to invest resources.
Those processes and investment strategies are documented in management plans
the agencies develop for the various program areas.
All management plans, including the Transportation Asset Management Plan,
or TAMP for short, are then integrated in the performance-based planning
and programming process to make investment trade-off decisions.
To help explain asset management’s relationship to TPM,
this video covers: The role of the TAMP in implementing TPM;
and the requirements for State DOTs to develop a TAMP
and have it determined consistent
with asset management requirements by FHWA.
Let’s talk about the role
of Transportation Asset Management Plans in TPM.
The TAMP provides the framework for developing the investment strategies
to address infrastructure condition targets,
performance of the National Highway System, or NHS,
and the progress toward national goals
that have been identified
in the Transportation Performance Management process.
TAMPs must also address risks that affect the condition
and performance of transportation infrastructure
while managing assets for their whole life at the lowest practicable cost.
It’s important to consider analyses done during the development of a TAMP,
and to fully utilize bridge and pavement management systems.
That information can help State DOTs
better understand the full scope of their needs, resources,
and investment strategy outcomes.
Now let’s talk about the requirements for State DOTs with respect to the TAMPs.
Under new TPM related regulations, States are required to develop TAMPs.
Statutes and regulations require FHWA to take two actions.
First, at least every four years,
FHWA must certify that the State DOT’s TAMP development processes
meet applicable requirements.
Under the regulations, State DOTs must meet
the seven requirements for their TAMP process.
State DOTs must have processes to:
1. Conduct a performance gap analysis that identifies deficiencies
hindering the improvement or preservation of NHS
and achieving and sustaining the desired state of good repair.
At a minimum, this analysis must include:
the State DOT targets for asset condition of NHS pavements and bridges;
gaps, if any, in the performance of the NHS
that affect NHS pavements and bridges;
and strategies to address the gaps.
2. Conduct life-cycle planning to estimate the cost of managing an asset class
or asset sub-group at the network level,
as defined by the State DOT, over its whole life.
This estimate must include consideration for minimizing cost
while preserving or improving the asset condition.
A life-cycle-planning process must, at a minimum, include the following:
the State DOT targets for asset condition;
deterioration models;
work types that should be undertaken to preserve
or improve assets along with their relative unit cost;
and strategies to manage assets
while minimizing costs during the whole life of assets.
3. Complete a risk analysis
and develop a risk management plan for NHS condition and performance.
These risks include those associated
with current and future environmental conditions,
such as extreme weather events, climate change, seismic activity,
and risks related to recurring damage from emergency events
as identified by the evaluation carried out under 23 CFR Part 667.
The process must produce a summary that discusses, at a minimum,
the results related to the State’s NHS existing pavements and bridges.
If the State elects, it can include optional results
for other NHS infrastructure assets
or other public roads assets in the transportation asset management.
4. Develop a financial plan that identifies annual costs,
covering at least a 10-year period.
This plan must identify the estimated cost of work
to implement investment strategies in the TAMP,
anticipated funding sources,
and present a State DOT’s estimates
of projected available financial resources.
This financial plan must also include an estimate of the value of these assets
and the needed annual investments to maintain the value.
A financial plan highlights how resources are expected
to be allocated based on asset strategies, needs,
shortfalls, and agency policies.
5. Develop investment strategies to meet the requirements in the regulations.
The TAMP investment strategies must be influenced by:
performance gap analysis;
life-cycle planning;
risk management analysis;
available funding;
and estimated cost of expected future work.
6. Obtain necessary data from other NHS owners
in a collaborative and coordinated effort.
7. And, finally, a process that ensures the TAMP is developed
with the best available data and that the State DOT used compliant bridge
and pavement management systems to analyze NHS bridge and pavement condition data.
The second required FHWA action related to TAMPs
is an annual consistency determination.
That action evaluates whether the State DOT has developed
and implemented a TAMP consistent with the Federal requirements.
Beginning October 1, 2019, and in each subsequent fiscal year,
FHWA determines if a State DOT has developed and implemented a State TAMP
consistent with the requirements established
by the statute and regulations.
Not later than July 31,
FHWA will notify the State DOT in writing
whether the State DOT has developed and implemented
a TAMP consistent with statutory and regulatory requirements.
FHWA will consider the most recent TAMP submitted by the State DOT,
as well as any documentation submitted by the State DOT
to demonstrate implementation of the plan.
The State DOT must submit its implementation documentation
not fewer than 30 days before the deadline for the FHWA consistency determination.
In the case of a negative determination,
FHWA will specify the deficiencies the State DOT needs to address.
The State DOT will have 30 days to correct such deficiencies
or submit additional information
showing that the FHWA negative determination was in error.
The FHWA determination is not an approval
of the State DOT’s investment strategies or other decisions contained in the TAMP.
FHWA continues to work
with our stakeholders to advance TPM principles
and asset management best practices through training,
webinars, and guidance.
If you would like assistance,
please contact your local FHWA Division office and visit:
Working together, we can provide strategies
to improve our nation and people’s lives through effective transportation planning.
Download the Companion Resource
with helpful citations and other information at:
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