Life cycle cost analysis is a critical part of the pavement type selection process of many agencies. A documented process that clearly identifies the key elements and issues to be considered for airport pavement life cycle cost analysis is needed. A comprehensive life cycle cost analysis process will ensure cost effective pavements are properly evaluated and selected in the design or bid stage of an airport improvement project. The Federal Highway Administration (FHWA) has developed a comprehensive, easy-to-use life cycle cost analysis manual (FHWA- SA-98-079), computer program and documentation that provides a good starting point and example of what is needed for the airport community. The FHWA document is only intended to address pavement selection at the design stage. Recently, the need has developed to evaluate pavement types using life cycle cost analysis (LCCA) in the alternative bid process. A comprehensive, easy to use product for practicing airport engineers that provides guidance on inputs and LCCA principals that are to be used to evaluate alternative bids for airport pavements is desired from this project.

Objectives

The objective of this study is to provide a comprehensive document that describes life cycle cost analysis for airport pavements. This document shall be applicable to both flexible and rigid airport pavements and shall address all aspects of life cycle cost analysis. The final product will provide engineers and airport management with a fair, unbiased, defensible procedure to evaluate alternative pavement types during the design and/or bid process with all information required to successfully conduct a pavement life cycle cost analysis. The results of this project will provide airport consultants and management with information to meet FAA Order 5100.38C, AIP Handbook, paragraph 910, Life Cycle Costs in Competitive Sealed Bids.

The following items are expected to be addressed in this project:

1. Airport pavement construction, maintenance and rehabilitation activities that are to be used in airport pavement LCCA procedures
2. Typical costs and sources of data for costs of all elements used in LCCA
3. Use of airport pavement management data and systems in LCCA procedures
4. LCCA methodology:
   1. Existing LCCA methodologies and their applicability to airport pavements
   2. Applicability of different types of cost comparisons such as present worth and equivalent uniform annual cost
   3. Processes that will fairly compare remaining service life of rigid and flexible pavement systems
   4. Guidance and data sources to determine appropriate discount rates
   5. Guidance for analysis period and difference to pavement system design life
   6. Guidance for evaluating delay costs, both user and operator
   7. Techniques to assess risk in airport pavement LCCA procedures
   8. Techniques to evaluate strategies with different service life
5. Case studies and examples to demonstrate a variety of scenarios using airport pavement LCCA

Product

The products for this project shall consist of: (1) a comprehensive report outlining all aspects of pavement life cycle cost analysis and appropriate reference materials; (2) an abbreviated pavement life cycle cost analysis users manual; (3) a spreadsheet program that provides LCCA calculations; and (4) annotated training materials for LCCA. These products shall be developed by addressing the following tasks:

Task 1 -- Review of existing pavement LCCA procedures and programs and assessment of their applicability to airport pavements. This review will include the highway LCCA processes such as the FHWA materials, National Asphalt Pavement Association (NAPA) and American Concrete Pavement Association (ACPA) procedures and other applicable procedures found in the literature.

Task 2 -- Review LCCA procedures used to evaluate alternative bid documents and identify all elements needed to be considered for LCCA in airports and appropriate data references for these elements.

Task 3 -- Provide an interim report presenting work to date and future elements and processes that are proposed to complete the project. The report is expected to be presented to the technical panel at a mutually agreed upon location 4-6 months after award.

Task 4 -- Development of a draft spreadsheet computer program that contains the appropriate data input elements with help menus for inputs and provisions for deterministic and risk analysis calculations.

Task 5 -- Development of a draft comprehensive report on all aspects of the LCCA for airport pavements and submittal for the technical panel review. This report is expected to be provided within 12 months from award. The technical panel will provide comments within one (1) month after receiving drafts.

Task 6 -- Revise the draft comprehensive report considering the technical panel comments and concerns and provide a forum for public review of the report. This forum shall consist of website and comment solicitation from industry and airport professional groups such as ASCE, ACC, ACI and AAAE. The posting shall be at least 60 days and the contractor shall address all comments in a report to the technical panel within 45 days of closing of the solicitation.

Task 7 -- Provide a draft LCCA Users Manual and fully operational version of the airport pavement LCCA sheet spread program for panel review and comments. The technical panel will provide comments within one (1) month after receiving drafts.

Task 8 -- Develop LCCA training materials with an instructors guide. The training materials shall include example problems that evaluate typical scenarios of airport rehabilitation and construction alternatives. The number and type of examples will be presented in the interim report required in Task 5.

Task 9 -- Revise the comprehensive report, LCCA manual and LCCA airport pavement spread sheet program per panel comments and provide final products. Camera ready copies of the final documents and an electronic copy in press quality PDF format shall be submitted under this task.

All written documentation will be prepared using Microsoft Word unless otherwise stated. All reports will be the property of the AAPTP and Auburn University and will be supplied in a format that complies with the FAA's Section 508 requirements for electronic documents.

References

1. Federal Aviation Administration Advisory Circular 150/5320-6D Appendix 1 Economic Analysis.
2. Federal Aviation Administration Order 1500.38C, Chapter 9, Section 910.
3. DOT/FAA/RD-81/78, Economic Analysis of Airport Pavement rehabilitation Alternatives, J.A. Epps, C.V. Wootan, October 1981.
4. Federal Highway Administration, FHWA-SA-98-079, Life Cycle Cost Analysis in Pavement Design, September 1998.

Proposal Evaluation Criteria

The proposal will be evaluated on the following criteria:

1. Experience of the staff and organization developing LCCA procedures and manuals;
2. Understanding of the problem statement and the proposed approach to accomplish the task outlined in the request for proposal;
3. Adequacy of time allocation and diverse experience of staff to cover the economic and airport engineering aspects of the project;
4. Proven experience in developing high quality implementation, training materials and sophisticated spread sheets that uses graphic presentations and allows user input but restricts access to core program equations.

Reporting Requirements

Progress Reports

Quarterly progress reports (1 hard copy and an electronic copy in Microsoft Word format) are required from the research agency and are to be prepared on the basis of calendar quarters. The research agency will mail the report directly to the AAPTP and will e-mail each of the members of the technical review panel a copy of the progress report. Each report will include a cover letter and the following:

1. a clear and complete description of the work performed on each task during that quarter;
2. an outline of the work to be accomplished during the next quarter;
3. a description of any problem(s) encountered or anticipated that might affect the completion of the project within the time and fiscal constraints recommended;
4. potential solutions to problems identified in (c) if any exist.

Report Format

The formats for the Interim and Final reports are provided under "Research Process."

Contractual Information

Funds Available: $100,000

Contract Time: 24 months (includes 1 month for AAPTP to review and for the contractor to revise the final report.)

Staff Responsibility: Monte Symons, 334-844-4964, symonmg@auburn.edu

Proposals Due: August 1, 2007

Submit Proposals To: AAPTP, 277 Technology Parkway, Auburn, AL, 36830

Authorization to Begin Work: September 1, 2007 -- estimated