A key member of the Senate Environment and Public Works Committee has introduced legislation that would mandate a life-cycle cost analysis (LCCA) procedure on all infrastructure projects with a federal share estimated to cost more than $5 million. The legislation also forces states to adopt the Mechanistic Empirical Pavement Design Guide (MEPDG) within one year of enactment.
S. 615, the Fiscal Accountability and Transparency in Infrastructure Spending Act of 2011, was introduced by Senator David Vitter (R-LA) on March 14. Senator Vitter serves as the ranking member of the Subcommittee on Transportation and Infrastructure Committee and is one of the "Big 4" who will draft the Senate highway reauthorization bill. As a result, the legislation must be taken very seriously by state transportation departments and the transportation construction industry.
Under the legislation, the Office of Management and Budget (OMB) is tasked with developing LCCA standards that states would be required to follow. It is not clear from the legislation what the standard would be except that the analysis period must cover at least 50 years and use "actual material life and maintenance cost data." The final LCCA would be posted on the Internet within 72 hours after it is received. The legislation does not limit challenges to the final LCCA.
It is not clear from the legislation what model or inputs the OMB would use in developing the LCCA standard; however the standard would apply to all infrastructure including highway, transit, rail airports, seaports, energy, water, public housing and military construction. Under the legislation, OMB would consult with AASHTO in developing the LCCA standard.
In addition, the bill mandates states to adopt a single pavement design method by requiring the MEPDG and encourages states to use "alternate bidding" procedures on infrastructure projects.
NAPA members should also expect a House version of the legislation to be introduced shortly.
Given the current budget climate on Capitol Hill, the committees authorizing the next highway bill are interested in drafting provisions that ensure highway funds are not wasted. Thus there is interest by Congress in looking at LCCA even though agencies have historically used this tool in evaluating infrastructure projects.
NAPA's Government Affairs Team has already met with the staff of key members in the Senate and House and will be meeting shortly with Senator Vitter's staff. A NAPA white paper has been prepared and is available upon request.