SUFFICIENCY RATING BY INVESTMENT OPPORTUNITY

LIMITATIONS TO THE SUFFICIENCY RATING TECHNIQUE ORIGINALLY PROPOSED BY THE U.S. BUREAU OF PUBLIC ROADS IN 1948, AND ITS MANY MODIFICATIONS BY STATE HIGHWAY DEPARTMENTS IN THE ENSUING DECADE LED TO THE FORMULATION IN 1958 OF RATING SUFFICIENCIES BY THE MORE OBJECTIVE METHOD OF OBSOLESCENCE BY CALENDAR DATES AS CONTRACTED TO SUBJECTIVE OBSOLESCENCE POINTS, AND FURTHER PROPOSED PRIORITY WITHIN A CALENDAR YEAR AS A RATIO OF THE TIME VALUE OF CONGESTION WHICH COULD BE ALLEVIATED BY THE COST OF MAKING THE IMPROVEMENT WHICH WOULD REMOVE THAT AMOUNT OF CONGESTION. EVOLUTION OF THAT PHILOSOPHY SINCE THE ORIGINAL PAPER RECOGNIZES THAT MULTIPLE ALTERNATIVES ARE ALWAYS AVAILABLE FOR IMPROVEMENT OF ANY HIGHWAY, AND THAT EACH ALTERNATIVE IS AN INVESTMENT OPPORTUNITY YIELDING ITS PECULIAR RATE OF RETURN IN CONGESTION DOLLARS SAVED TO THE USER FOR HIS DOLLARS SPENT IN THE INVESTMENT. THE ALTERNATIVE YIELDING THE GREATEST ACCEPTABLE INCREMENTAL RATE OF RETURN IS THE BEST INVESTMENT OPPORTUNITY FOR THAT INDIVIDUAL ROAD SECTION , AND THE RATE OF RETURN ON THIS OPTIMUM IMPROVEMENT IS THE MEASURE OF INSUFFICIENCY OF THE HIGHWAY, WITH ZERO PERCENT BEING TOTALLY SUFFICIENT /RESURFACING AND RECONSTRUCTION IN KIND BEING CONSIDERED MAINTENANCE/ AND LARGER RATES OF RETURN BEING PROPORTIONAL DEGREES OF INSUFFICIENCY. REFERENCES' THE CONGESTION APPROACH TO RATIONAL PROGRAMMING, EVAN H. GARDNER, HRB BULL. 249, PP. 1-22, 1960. CONDUCTING LONG RANGE HIGHWAY NEEDS STUDIES, FRED B. FARRELL, PUBLIC ROADS, VOL. 25, NO. 6, DEC. 1948. HIGHWAY SUFFICIENCY RATINGS, HRB BULL. 53, 1952.

Media Info

  • Media Type: Print
  • Features: Figures; References; Tables;
  • Pagination: pp 1-28
  • Monograph Title: Programing and needs 1963 and 1964
  • Serial:

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Filing Info

  • Accession Number: 00200023
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Apr 1 1994 12:00AM