INDOT Research Program Benefit Cost Analysis – Return on Investment for Projects Completed in FY 2019

McCullouch, Bob

doi:10.5703/1288284317279

i

INDOT Research Program Benefit Cost Analysis – Return on Investment for Projects Completed in FY 2019

2020-12-01
By McCullouch, Bob

File Language:

English

Details

Creators:

McCullouch, Bob
Corporate Creators:

Purdue University. Joint Transportation Research Program ; Indiana. Dept. of Transportation
Corporate Contributors:

United States. Department of Transportation. Federal Highway Administration
Subject/TRT Terms:
DOI:

https://doi.org/10.5703/1288284317279
Resource Type:

Tech Report
Geographical Coverage:

United States
Corporate Publisher:

Purdue University. Joint Transportation Research Program
Abstract:

To demonstrate the value of research and its implementation, the Governor’s Office requested an annual financial analysis of the Indiana Department of Transportation (INDOT) Research Program to determine the return on the research investment (ROI). This report is for the 35 research projects that completed in FY 2019. The ROI analysis will supplement the annual IMPACT report by adding a more rigorous quantitative benefit cost analysis (BCA) to the Research Program. Previous financial analyses used the approach of calculating net present values of cash flows to determine a benefit cost ratio and this report uses the same approach. Additionally, an overall program rate of return (ROI) is reported and will be accumulated over time into a rolling 5-year average. The ROI is expressed as a BCA ratio, which is commonly used by State DOTs and national transportation research agencies when expressing the return on the research investment. By using total program costs in the analysis, rather than just the individual project cost, a very conservative BCA ratio is obtained. Interestingly, the quantified cost savings from a single project frequently underwrites the cost of the entire research program in a fiscal year.
Format:

PDF
Funding:

SPR-4225
Download URL:

https://rosap.ntl.bts.gov/view/dot/58444/dot_58444_DS1.pdf
File Type:

[PDF - 3.48 MB]
Collection(s):

US Transportation Collection
Main Document Checksum:

urn:sha256:31edc3f6a1235778a4052412c7afa04d10fd35218a5a2e84e12ab1528780bc76

File Language:

English

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