CE 561 Lecture Notes

Set 13

Cost Allocation

z User vs. Non-User

z Equity vs. Efficiency
z Cost Occasional Approach

Incremental Approach
Traditional Incremental Approach

Damage
Successively
heavier loads

all Minm.

Axle Load
Pvt
Thickness

Axle Load
Economy-of-scale problem in
traditional incremental approach.

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Thickness Incremental Approach

1. Thickness increment as opposed to traffic

increment
2. Minimum thickness – allocated on the basis of VMT
3. Divide the pvt thickness in excess of a practical
min. into N equal increments
4. Calculate the incremental thickness cost
5. Add an increment to the minimum thickness and
compute ESAL for all vehicle classes using
AASHTO equations

 1 1  L +L A B

 2 
Log ESAL x = G t  −  + Log  x  L2 
 b18 b x   19  
 
ESALx = eq. single axle load of axle type x
Gt = a function of the ratio of loss in serviceability to the potential
loss taken to a point where terminal serviceability index (Pt)
is 1.5
bx = a function related to axle weight of vehicle type x,
pavement strength and pavement thickness
b18 = a function related to a single axle weight of 18 kips,
pavement strength and pavement thickness
Lx = axle load in kips
L2 = 1 for single axles / 2 for tandem axles
A= 4.79 for flexible pavement / 4.62 for rigid pavement
B= 4.33 for flexible pavement / 3.28 for rigid pavement

z In Indiana, the terminal serviceability index Pt

is 2.5 or 2.0 for flexible pavement and 2.5 for
rigid pavement

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6. Compute the cost responsibility factor of
each vehicle class as the following ratio:

M
F(i, j) = P(i) × ESAL (i, j) / Σ P(r ) × ESAL (r, j)
r =1

F(i, j) = cost responsibility factor of vehicle class, i for

thickness increment j
P(i) = proportion of vehicle class i in traffic stream
ESAL(i, j) = ESAL of vehicle class i for thickness
increment j
M= total number of vehicle classes

7. Allocate incremental thickness cost to each

vehicle class as follows:

c(i, j) = F(i, j) x cd(j)

c(i,j) = cost allocated to vehicle class i for thickness j

cd(j) = incremental cost for thickness increment j

8. Repeat steps 5 and 6 for each new thickness increment

until the full pavement thickness is reached.

9. Calculate the total allocated cost for vehicle class

j by summing up for all increments:

N
c (i) = c m (i) + Σ c (i, j)
j=1

c(i) = total cost responsibility of class i

cm(i) = cost responsibility of vehicle class i for the
minimum thickness
N= total number of thickness increments

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Allocation Procedure for Pavement
Rehabilitation and Maintenance Costs

Rehabilitation Costs
Purpose of rehabilitation is to give the pavement another
service life span to serve the traffic. The vehicle classes that
use the rehabilitated pavement must pay for the rehab cost.
PSI
No-loss line
A
Performance B Design Equ. (AASHTO)
curve 1 2

a Σ ESAL

Area A represents a measure of the pavement wear or damage

due to traffic and other design factors and area B represents the
further wear due to non-traffic and interaction of traffic and non-
traffic factors.
(A/A+B) = proportion of design related rehab cost
(B/A+B) = non-traffic plus interaction effects at stage “a”

a Load-Related Effects
b Load-Related Effects Interaction
c Non-Load Related Effects Effects
d Non-Load Related Effects

Proportionality Assumption
b a
=
b+c +d a+b+c +d
c d
=
a+b+c a+b+c +d
Knowing “a”, the rest of the portions d = 1 − 1 − (1 − a )
2

can be computed:

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 Load related portion is allocated by applying the
Thickness Incremental Method used for new pavements. In this
instance, the original existing pavement thickness is taken as
the basic minimum thickness with zero cost and the incremental
analysis is carried out for the added overlay thickness.
The non-load related portion is considered to be
common cost and it is allocated on the basis of VMT.

Maintenance Cost
PSI
3 No-loss curve

Area (A+B)0 between 3 and 4

2

design equ. curve

4 1
zero-maint. curve field perf. curve

Σ ESAL

(A+B)0 total pavement damage

PSI (3)

L3, S3 S1> S2>S3

L2, S2 (2) L1>L2>L3
(4)
L1, S1
Li = Routine Maint. Level
Σ ESAL
Si = Rm cost at Li

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 For a given pavement, knowing a PSI value and the
corresponding cumulative ESAL, a point on the actual
performance curve of the pavement is obtained. This procedure
can be repeated for other points of time at which data are
available. Field performance of the pavement can then be
plotted, and the area between this curve and the no-loss line
(Area A+B) can be computed.
PSI = a + b(RN)
Knowing Roughness Information (RN), PSI can be
obtained. Corresponding year’s traffic will give ESAL.

(A+B) • 1 east square line

• •
•
• •
•
(A+B)0

Avg. Ann. Rm. Cost/Lane-Mile

(A+B)0 of the
zero-maint. curve

The next step is the computation of load related and

non-load related responsibility factors using proportionality
assumption:
A
a=
(A + B)0

d = 1 − 1 − (1 − a )
2

b and c can be determined using the proportionality

equations.

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Transportation Programming

z Matching of available projects with available

funds
z NCHRP 48 – 15-step process
– Technical
z Sufficiency Ratings
z Priority Ratings
z Option-Evaluation
z Input from Other Agencies

– Non-Technical
z Political Commitments
z Legislative Mandate
z Emergency
z Special Emphasis
z Commitment to other Agencies
z System Continuity-Connectivity
z Position in Pipeline

– Financial Analysis
z Categorical Grants
z Geographical Distribution
z FY Projections
z Manpower Analysis
z Financial Modifications
– Priority Setting
z Relative Importance
z Marginal Cost
z B/C
z CE
z System Analysis
z Policy Planning

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z Technical Criteria – Performance
z Non-Technical – Commitments, Emergency,
etc.
z Multi-Year

Purdue Highway System Analysis and

Programming Package (Purdue HSAPP)

z Optimization Program
– Goal Programming
z Minimizes deviation from stated goals
z Simultaneous consideration of all goals
z Improvement and maintenance activities also
considered simultaneously

z Physical and Traffic Inventory

– Design and Maintenance Standards

z Identify Deficient Miles and Needed

Improvements by:
– Type of activity
– Highway class
– location

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z Identify System Objectives and Set Priorities
– Condition, Safety, Service, E & E

z Set Targets/Goals by:

– System objective
– Highway class
– Location

z List Budget Levels

– Federal Source and Matching Reqs. by:
z Category of projects
z Highway class

z Estimate Available Funds at State Level

(Revenue Forecasting)

z Identify Required Geo. Dist. of Funds, if any

z Identify Other Constraints

z Identify Relative Impacts of Activity Types on

System Objectives

z Information on Tradeoff Between Condition

and Other Objectives

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z Effects of Design and Maintenance
Standards
z Effects of Budget Levels
– Matching Requirements
z Effects of Policy Decisions
– Geo. Dist.
– Priorities/Goals
z Information that can be used to justify Budget
Requests

z Allocate the Available Funds to Optimize System

Objectives within the Identified Constraints
– Goal Programming approach to minimize the deviation from
stated goals

z Optimal Mix of Projects in terms of Miles of

Improvements and Dollars Allocated by:
– Highway Class
– Type of Activity
– Location (including the degree of achievement of stated
goals)

Objective Function
Min Z = Σ Σ w kh dkh−
kεK hεH

System Constraints
Σ fi Σ c ih x ih ≤ B f
iεMF hεH

Σ (1 − fi ) Σ c ih x ih + Σ Σ c ih x ih ≤ B s
iεMF hεH iεMs hεH

lih ≤ a ih lh

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Targets for Objectives
Σ Pkih x ih + dkh− − dkh+ = Tkh
iεM

Notation
h = 1, …, H highway classes
i = 1, …, M highway activities
k = 1, …, K system objectives
aih = fraction of class “h” that needs activity “i”
Bf = total federal funds for major improvement activities
Bs = total state funds available
cih = unit cost of “i” for class “h”

dkh− = underachievement in objective “K” for class “h”

dkh+ = overachievement in “K” for “h”
fi = federal matching grant fraction
lh = length of highway class “h”
Pkih = impact on objective “K” due to “i” for class “h”
Tkh = standard (target) for “i” in class “h”

Issues and Challenges

z Vague and conflicting policies

z Lack of integration with planning
z Lack of emphasis on systematic evaluation
z Uncertainty
z Institutional factors
z Increased importance of preservation and
maintenance
z Increased emphasis on management,
operational and multimodal solutions

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z Need for a new definition of mission
z Interagency, interjurisdictional, and
intermodal coordination
z Integration of managements systems in
programming

Developing an Effective Programming

Process

Policy Direction Needs Analysis Target Funding Levels

Tradeoffs
System Planning
Process Project Identification
service objectives
state, regional plans Project Evaluation &
problem identification
Ranking
proposed solutions

Program Development
Final Allocations
maintenance Program Evaluation
preservation Tradeoffs
consistency with policy goals
improvement program benefits and costs
Budget
Program and
performance monitoring

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