ACPA and PCA sent a letter to all House T&I Committee leaders and members last week during T&I committee markup of the INVEST in America act, expressing support for a life-cycle cost analysis amendment introduced by Rep. Peter Stauber (R-MN).
Known as amendment number 48, the measure underscores the benefits of LCCA as a means of providing states with a greater understanding of the full cost of highway projects, while also enabling more accurate planning and improved asset management.
“The highways and bridges built today must last for generations to come,” the associations wrote. “For that to happen, the full cost of a project—taking into account its entire life cycle—must be factored into the decision-making process. While initial project costs are significant drivers of decisions, future costs are equally important to understand when making project decisions. In fact, future costs, including maintenance, can often amount to more than fifty percent of a project’s total cost.”
The Portland Cement Association and the American Concrete Pavement Association supports the view that “all possible and proper measures be taken to ensure the tax payers of this country that they are receiving full value of every highway dollar spent.” This view was expressed clearly by the American Association of State Highway Officials (AASHO), the forerunner of AASHTO, in the context of the early years of Interstate highway construction and full-value return on the investment remains a fundamental principle advocated by the cement and concrete industry to this day.
The associations continue that LCCA is a proven economic analysis technique, based on well‐founded economic principles that are taught in Economics and Civil Engineering programs at the University level throughout the United States. It is a tool for evaluating the long‐term economic efficiency between competing alternate options.
When performed thoroughly and correctly, LCCA, which has been used in highway decision-making for over half a century, will identify the best value solution with the desired performance at the lowest cost over the long-term. Click here to see the complete letter.
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