Frameworks for Systemic and Structural Analysis of Financial Innovations in Infrastructure

Financial innovations have emerged globally to close the gap between the rising global demand for infrastructures and the availability of financing sources offered by traditional financing mechanisms such as fuel taxation, tax-exempt bonds, and federal and state funds. The key to sustainable innovative financing mechanisms is effective policymaking. This paper discusses the theoretical framework of a research study whose objective is to structurally and systemically assess financial innovations in global infrastructures. The research aims to create analysis frameworks, taxonomies and constructs, and simulation models pertaining to the dynamics of the innovation process to be used in policy analysis. Structural assessment of innovative financing focuses on the typologies and loci of innovations and evaluates the performance of different types of innovative financing mechanisms. Systemic analysis of innovative financing explores the determinants of the innovation process using the System of Innovation approach. The final deliverables of the research include propositions pertaining to the constituents of System of Innovation for infrastructure finance which include the players, institutions, activities, and networks. These static constructs are used to develop a hybrid Agent-Based/System Dynamics simulation model to derive propositions regarding the emergent dynamics of the system. The initial outcomes of the research study are presented in this paper and include: (a) an archetype for mapping innovative financing mechanisms, (b) a System of Systems-based analysis framework to identify the dimensions of Systems of Innovation analyses, and (c) initial observations regarding the players, institutions, activities, and networks of the System of Innovation in the context of the U.S. transportation infrastructure financing

Installation and Maintenance of Raised Pavement Markers at State Transportation Agencies: Synthesis of Current Practices

Although raised pavement markers (RPMs) have been widely applied by the Indiana Department of Transportation (INDOT), there have been multiple cases where snowplowing activities have damaged pavements as well as the raised pavement markers on INDOT’s roadway assets. Dislodged raised pavement markers could reduce the design life of pavements because they leave openings for water and debris to infiltrate through pavement section. Interviews with INDOT personnel indicated that the proper installation of the markers and careful attention to the tooling of the center line of the concrete pavements could alleviate this problem. To explore issues related to the proper installation of RPMs, this study (INDOT/JTRP SPR 4318) was launched by the Indiana Department of Transportation (INDOT)/Joint Transportation Program (JTRP) to develop a synthesis of current practices on installation and maintenance of raised pavement markers at State Transportation Agencies (STAs) in the U.S. The study was conducted using a qualitative exploratory approach focusing on the review of current practices in installation and maintenance of raised pavement markers among STAs. Survey analysis and focused interviews with personnel from STAs, along with reviews of documents provided by STAs were the avenues used for data collection in this project

Using Simulation To Evaluate Web-Based Bidding in Construction

The Internet is changing the whole business model by allowing companies to communicate instantly with suppliers, partners, and customers on a worldwide scale. To enjoy realtime data exchange and higher transaction efficiencies, companies need to use information technology (IT) solutions and change how they distribute goods and how they collaborate within the company with contractors and suppliers. While the Internet is the channel that allows instant interaction between all components of a company, IT provides the ability to streamline the structure and to influence and control the flow of information. In this paper, we evaluate the impact that using the Internet can have on the procurement aspect of the construction industry. Specifically, we describe how the traditional service procurement process in construction is affected by the use of a web-based bidding tool (WBBT). We use a simulation model on a case study to evaluate how the WBBT affected service procurement in a large pharmaceutical company. The paper describes the potential impact of IT solutions in the Construction Industry and on the procurement aspect in particular, before discussing the case study in detail

Evaluating the Appropriateness of Project Delivery Systems for Different Trenchless Methods

Trenchless methods have been considered to be a viable solution for pipeline projects in urban areas. Their applicability in pipeline projects is expected to increase with the rapid advancements in technology and emerging concerns regarding social costs related to trenching methods. Selecting appropriate project delivery system (PDS) is a key to the success of trenchless projects. To ensure success of the project, the selected project delivery should be tailored to trenchless project specific characteristics and owner needs, since the effectiveness of project delivery systems differs based on different project characteristics and owners requirements. Since different trenchless methods have specific characteristics such rate of installation, lengths of installation, and accuracy, the same project delivery systems may not be equally effective for different methods. The intent of this paper is to evaluate the appropriateness of different PDS for different trenchless methods. PDS are examined through a structured decision-making process called Fuzzy Delivery System Selection Model (FDSSM). The process of incorporating the impacts of: (a) the characteristics of trenchless projects and (b) owners’ needs in the FDSSM is performed by collecting data using questionnaires deployed to professionals involved in the trenchless industry in order to determine the importance of delivery systems selection attributes for different trenchless methods, and then analyzing this data. The sensitivity of PDS rankings with respect to trenchless methods is considered in order to evaluate whether similar project delivery systems are equally effective in different trenchless methods. The effectiveness of PDS with respect to attributes is defined as follows: a project delivery system is most effective with respect to an attribute (e.g., ability to control growth in costs ) if there is no project delivery system that is more effective than that PDS. The results of this study may assist trenchless project owners to select the appropriate PDS for the trenchless method selected

Drivers of Innovation In Financing Transportation Infrastructure: A Systemic Investigation

Traditional methods of financing infrastructure, which include gas taxation, tax-exempt bonds, and reserve funds, have not been able to meet the growing demand for infrastructure. Innovative financing systems have emerged to close the gap that exists between the available and needed financing sources. The objective of the study presented in this paper is to assess determinants of innovative financing in the U.S. transportation infrastructure using a systemic approach. Innovation System of Systems approach is adopted for systemic assessment and a case-based research approach is utilized to explore the constituents of innovative financing for U.S. transportation infrastructure. The findings, which include constructs regarding the players, practices, and activities are used to create a model to enable understanding the dynamics of the drivers and inhibitors of innovation and, thus, to derive implications for practice. The model along with the constructs provides an analytical tool for practitioners in the U.S. transportation infrastructure

Research-to-Practice (R2P) Tools for Improving Safety in Nighttime Highway Construction Work Zones

The safety of workers in nighttime roadway work zones has become a major concern for state transportation agencies due to the increase in the number of work zone fatalities. During the last decade, several studies have focused on the improvement of safety in nighttime roadway work zones; but the element that is still missing is a set of tools for translating the research results into practice. This paper discusses: 1) the importance of translating the research results related to the safety of workers and safety planning of nighttime work zones into practice, and 2) examples of tools that can be used for translating the results of such studies into practice. A tool that can propose safety recommendations in nighttime work zones and a web-based safety training tool for workers are presented in this paper. The tools were created as a component of a five-year research study on the assessment of the safety of nighttime roadway construction. The objectives of both tools are explained as well as their functionalities (i.e., what the tools can do for the users); their components (e.g., knowledge base, database, and interfaces); and their structures (i.e., how the components of the tools are organized to meet the objectives). Evaluations by the proposed users of each tool are also presented

Pre-Contract Project Scoping Processes: Synthesis of Practices

Scoping is the process of developing a project’s objectives, need, preliminary cost estimate, and preliminary schedule based on a recognized need that the project is intended to address. This study (INDOT/JTRP SPR-3944) was launched by the Indiana Department of Transportation (INDOT)/Joint Transportation Program (JTRP) to develop a synthesis of scoping processes in different State Highway Agencies (SHA). The study was conducted using a qualitative exploratory approach focusing on the review of project scoping practices across different SHAs. Focused interviews with personnel from State Highway Agencies (SHA) along with the review of documents gathered during the literature search and resources provided by SHAs were the avenues used for data collection in the study. The study focused on eleven themes for the assessment of project scoping procedures: (1) primary entity with responsibility for scoping projects, (2) timeline for scoping activities, (3) functional groups within the State Highway Agency involved in scoping, (4) cost estimation procedures, (5) application of Context Sensitive Solutions (CSS), (6) addressing maintenance needs, (7) methods of assessing scope creep, (8) tracking the quality and effectiveness of scoping processes, (9) environmental consideration in scoping processes, (10) data collection and data sharing, and (11) scoping practices which have evolved/benefited the State Highway Agency. The report presents key findings of the study and provides suggestions for further investigation by INDOT

Assessment of policies for innovative financing in infrastructure systems

Infrastructure systems are drivers of the economy in the nation. A dollar spent on infrastructure development yields roughly double the initial spending in ultimate economic output in the short term; and over a twenty-year period, and generalized ‘public investment’ produces an aggregated $3.21 of economic activity per$1.00 spent [1]. Thus, formulation of policies pertaining to infrastructure investment and development is of significance affecting the social and economic wellbeing of the nation. The aim of this policy brief is to evaluate innovative financing in infrastructure systems from two different perspectives: (1) through consideration of the current condition of infrastructure in the U.S., the current trends in public spending, and the emerging innovative financing tools; (2) through evaluation of the roles and interactions of different agencies in the creation and the diffusion of innovative financing tools. Then using the example of transportation financing, the policy brief provides an assessment of policy landscapes which could lead to the closure of infrastructure financing gap in the U.S and proposes strategies for citizen involvement to gain public support of innovative financing

Outsourcing of Laboratory Testing and Inspection Activities at State Transportation Agencies: Synthesis of Current Practices

Outsourcing of project activities at State Transportation Agencies (STA) to the private sector has become ubiquitous over the last several decades. This trend of increased outsourcing is primarily driven by the continued demand for public transportation infrastructure coupled with static or declining levels of in-house STA employees. Many prior studies have reported on the trends, impacts, challenges and costs of outsourcing functions, such as design, but few have focused on the use of consultants specifically for testing and inspection. This paper synthesizes the current state of practice of outsourcing testing and inspection activities across STAs within the United States. Specifically the study used a qualitative approach which included a literature review, surveys of STAs on their current state of practice for outsourcing testing and inspection, questionnaires of consultants that provide inspection services to the Indiana Department of Transportation (INDOT), follow-on interviews with key STAs, and interviews with five Indiana DOT district construction directors to determine the following: Factors/criteria for determining the basis for outsourcing inspections and testing Factors influencing the motivation and decision to outsource testing and inspection Documents and guidelines used for ensuring quality in outsourced tests and inspections Benefits and advantages realized through outsourcing testing and inspection In addition to a synthesis of the current state of outsourcing across the STAs, five key strategies were identified to guide STAs with outsourcing testing and inspection activities. The key strategies include: (1) conducting strategic level planning, (2) developing a system of record to track in-house versus consultant cost, (3) maintaining a strong prequalification program, (4) consistently evaluating consultant performance, and (5) providing training to in-house staff and consultants. Application of these strategies can assist STAs in developing, sustaining, and guiding a quality testing and inspection outsourcing program