Moving Toward a Performance-based Federal-aid Highway Program

Integrating Maintenance

AASHTO Subcommittee on MaintenanceJuly 18, 2011

Peter StephanosFederal Highway Administration

AASHTO Subcommittee on MaintenanceJuly 18, 2011

Presentation Outline

• Why Manage Performance?

• Managing Performance at a National Level

Concepts

FY 2012 Budget Request

Integrating Maintenance

• Ongoing Efforts to Manage Performance

What is Performance Management?

3

Performance Management of the Federal Highway Program is a systematic approach to making investment and strategic decisions using information about the condition and performance of the system and developing an approach to achieve a desired set of national goals

Performance Management In Action

4

2007 Annual Attainment ReportMaryland DOT

State of the System 2005Bay Area Transportation

Good to GreatStrategic Plan and Annual ReportNew Mexico DOT

Business Plan 2004 & 2005Ohio Department of

Transportation

Measures, Markers and MilepostsWashington State Department of Transportation

DashboardVirginia Department of Transportation

TrackerMissouri Department of Transportation

USDOT Performance Report

Condition Reporting

Report to Congress• System Conditions• Operational

Performance• Safety• Revenue and

Expenditures• Investment Analysis

Difficult to associate performance with federal

investments

ARRA Reporting Outcomes

National Commission Recommendations for a New Federal Compact for Surface Transportation

• Strong Federal role focused on national goals

• Consolidated program structure

• Performance management

• Many groups issued reports supporting many of the Commission’s recommendations, all embraced a performance-based program (U.S. DOT, AASHTO, AMPO, APTA, GAO, and more)

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Fatality Trends

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 201020,000

25,000

30,000

35,000

40,000

45,000

1.00

1.10

1.20

1.30

1.40

1.50

1.60

1.70

1.80

Fatalities

Rate

To

tal

Fa

tali

tie

s

Fa

tali

ty R

ate

pe

r 1

00

mil

lio

n V

MT

NHS Bridge Condition Trends

2000 2001 2002 2003 2004 2005 2006 2007 2008 200920%

22%

24%

26%

28%

30%

7.00%

7.20%

7.40%

7.60%

7.80%

8.00%

8.20%

8.40%

8.60%

Structurally Deficient Bridges Deficient Bridges

Def

icie

nt

Are

a

Str

uct

ura

lly

Def

icie

nt

Are

at

Pavement Condition Trends

1999 2000 2001 2002 2003 2004 2005 2006 2007 20080%

10%

20%

30%

40%

50%

60%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

Poor Pavements

Good Pavements

Go

od

Co

nd

itio

n

Po

or

Co

nd

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FHWA Budget Highlights ­ Simplify the highway program structure by

consolidating over 55 programs to 5 core programs

­ Focus investment on safety, state of good repair, and livability

­ Increase attention to highways of national interest through the enhanced National Highway System

­ Establish a performance-based highway program

FY 2012 Budget Programs

Core Federal-aid Highway Programs­Safety­National Highway Program­Livable Communities­Federal Allocation­Research, Technology, & Education

FY 2012 Budget: Outlines Performance Management Process• Secretary, with input, establishes quantifiable

performance measures and national performance goals

• States work in partnership with FHWA to set state targets

• Envisions planning process as vehicle to implement performance management

• Calls on States to report annually on progress in meeting targets

• Provides additional flexibility when targets are met

• Requires performance improvement plan when targets not met

Performance Management Framework

1. National Goal Areas

2. Performance Definitions & Metrics

3. National & State Targets

4. Investment Plans & Strategies

5. Program Delivery

6. Monitoring, Evaluation, & Reporting

Framework

Elements

National Goal Areas

• Want relatively few performance areas that broadly reflect national interests Safety Pavement and bridge condition Reliability Freight/economic competitiveness Environment/climate change Livability

Performance Definition and Metrics

Performance Metric Criteria1) General consensus on the definition of a measure

2) Common or centralized approach to data collection in place

3) Availability of consistent data across states established through a national comparative analysis or other research effort

Tier 3No criteria met

Tier 2Meet 1 or 2

Tier 1Meet all 3

Implementation Ready

Further Work Needed

Proposal/Research Stage

Performance Definition and Metrics

VA DE

Consistent Use of Metric• Example:

•Good•Fair•Poor

National and State Targets• Target Setting Concepts

National targets• Address national goal• Constrained (Fiscal + other)• Optimal Outcome• Focus on federal interest

State and MPO targets• Support national target• Constrained (Fiscal + other)• Multiple owners• All revenue sources

National and State Targets

Base 6 yr 12 yr 18 yr20%

30%

40%

50%

60%

70%

80%

90%

100%

IS in Good Condition

IS Target

State B Target

State A Target

Investment Plans and Strategies

Performance Outcome/sTargets

Investment Plan•Asset Management Plan•HSIP Implementation Plan

Single Goal Area

•Funding Plan•Program of

Projects•Strategies•Initiatives

Planning Doc•STIP•TIP

All Goal Areas

Federal Funding for Maintenance• 23 USC 116 (d) …if the State demonstrates that the activity

is a cost-effective means of extending the useful life of a Federal-aid highway

• 10/2004 Action from King Gee – activities such as:

Pavements• joint repair,• seal coats• pavement patching

• thin overlays• shoulder repair• restoration of drainage systems

Bridges• crack sealing• joint repair• seismic retrofit• scour countermeasures

• painting

Regionwide Projects• Periodic sign cleaning

• Drainage facility maintenance

• Corrosion protection

• Spray-applied sealant

Linking Maintenance to Performance

Reduce Fatalities

High Accident Intersections

Signal Replacement

Sign Maintenance

Runoffs

Rumble Strips

Shoulder Grading

Head on Collisions

Pavement Marking

Delineation

Linking Maintenance to Performance

Increase Good Pavements

Good Condition Pavements

Micro Surfacing

Drainage Preservation

Fair Condition Pavements

Thin Overlays

Shoulder Grading

Poor Condition Pavements

Minor Rehabilitation

Program Delivery

• Deliver a program in support of the investment plan

• Track during the year to evaluate potential to achieve targets

• Indicator Areas Deliver Program as Planned On Time – On Budget Delivery Quality Construction

Monitor, Evaluate and Report

• Routinely monitor outcome performance

• Analyze data at a State and national level

• Identify best practices

• Report findings and outcomes

• States report on a regular basis

• Accountability on performance

FY 2012 Budget: Pavement and Bridges

• Performance requirements limited to enhanced NHS

• Requires risk-based asset management plan

• Provides Accountability:

• If State meets targets for 3 consecutive years, it may use apportionments on non-NHS roads

• States that do not meet targets for 2 consecutive years will be required to develop performance improvement plan

FY 2012 Budget: Safety• Builds off of Strategic Highway Safety Plans

• Identifies need to invest in data – Highway Safety Data Improvement Program

• Provides Accountability:

• If target is met in previous year, State may transfer up to 50% of HSIP funds to other safety programs

• If target is not met in previous year, State must use obligation authority equal to prior year HSIP apportionment only for highway safety improvement projects

• States that do not meet targets for two consecutive years to develop performance improvement plan

Ongoing FHWA Efforts

• Establish Office of Program Performance Management

• Build internal capacity to support performance-based program

• Develop analysis tools and training to assist States/Locals in advancing performance management

• Facilitate collaboration between highway and transit communities

Ongoing FHWA Efforts

• Continue to work in partnership with AASHTO to advance all elements of performance management

• More fully develop measures/data/systems in Safety, Pavement and Bridge areas

• Invest in research in other goal areas

• Develop methodology to integrate performance management into the planning process

FHWA’s Commitment to Performance Management

• Natural evolution to improve decision making and resource allocation

• Improves transparency and accountability for federal funds

• Opportunity to advance performance management practices prior to legislation