PRIVATIZED HIGHWAY ASSET MANAGEMENT: A RISKY FUTURE

This article is the second of two viewpoints presented by this journal on privatized highway asset management. In 1996, the Commonwealth of Virginia entered a negotiated fixed price asset management contract with VMS, Inc. for the maintenance of 20% of the state's Interstate system. The author warns that if other state Departments of Transportation (DOTs) follow Virginia's lead (as Mississippi, Texas, and the District of Columbia already have), the future of the transportation construction industry as we know it may be destroyed. According to an August 1999 analysis by the American Road and Transportation Builders Association, the competitive bid system has saved taxpayers an average half-billion dollars per year for the last 4 decades. However, the asset management contract in Virginia abandons all of the principles we have come to know and trust under the competitive bid system. The author maintains that privatizing various DOT functions, eliminating the competitive bid system, and obligating valuable state resources to long term obligations could have catastrophic consequences for taxpayers.

  • Availability:
  • Corporate Authors:

    American Road & Transportation Builders Association

    ARTBA Building, 1219 28th Street, NW
    Washington, DC  United States  20007-3389
  • Authors:
    • Roark, W B
  • Publication Date: 2000-4

Language

  • English

Media Info

  • Pagination: p. 21
  • Serial:
    • Transportation Builder
    • Volume: 12
    • Issue Number: 4
    • Publisher: American Road & Transportation Builders Association
    • ISSN: 1043-4054

Subject/Index Terms

Filing Info

  • Accession Number: 00792450
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 30 2000 12:00AM