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21 Step 1 Line activity. An activity that involves the actual perform- Gather and Classify Maintenance ance of work on, or inspection of (if required by law), one or Program Activities and Expenditures more transportation infrastructure assets, as well as work responding to an unpredictable event. Examples of line activ- Step 2 ities include pothole patching, mowing, snow and ice control, Allocate Maintenance Support bridge inspection, and accident and disaster recovery. Expenditures to Line Activities Support activity. An activity that is done in support of one or more line activities. Examples of support activities include Step 3 administrative support, training, inspection and patrol activi- Gather and Classify Enterprise Programs and Expenditures ties that identify locations where line activities must be per- formed, radio operations, maintenance program management, Step 4 and stores operations. Allocate a Portion of Enterprise Support In most cases, the classification of a particular activity is Expenditures to the Maintenance Program obvious from its name; however, activity descriptions provided in agency maintenance and procedure manuals can guide the Step 5 classification where there is any question. Combine Cost Categories to Derive Full Cost Figure 3.1. Full cost Illustrative Example determination process. Table 3.1 identifies the set of maintenance activities, total expenditures and associated accomplishment, and the classifi- cation of expenditures as either line or support for the example. Labor expenditures must include regular and overtime, as For this example, the total line activity expenditure is well as being fully burdened--that is, salary plus fringe $17,800,000 and the total support activity expenditure is benefits. $2,200,000. Agency rental rates must account for all equipment charges. Any excluded charges must be identified and included in either program or enterprise support. 3.2 Step 2: Allocate Maintenance Sign installation and maintenance costs must be calculated Support Expenditures to based on all sign shop expenditures. Line Activities Any excluded charges must be identified and included in Objective either program or enterprise support. Material charges must be based on material consumption. The objective of Step 2 is to establish the relationship between All expenditures associated with maintenance and operation support and line activities in order to allocate an appropriate of maintenance facilities, including utilities, stores operation, portion of maintenance program support expenditures to each and others, must be identified. line activity. Any missing expenditures must be included in enter- prise support. Sources of Information All maintenance program management expenditures must and Key Considerations be identified, including the costs associated with state and regional maintenance engineers and managers, which The best source of information regarding the relationships are sometimes excluded from maintenance management between maintenance support and line activities is the agency's systems. maintenance personnel. This can be supplemented by doc- Any missing management expenditures must be obtained umentation about agency maintenance procedures and def- from another source, for example, the financial manage- initions, which can often be found in agency maintenance ment system, and included in program support. manuals, maintenance management system documentation, and training materials. The effort required to establish the relationships between activities depends on both the number Classification of Maintenance Expenditures of activities and the clarity of definition. Once all of the maintenance program activities and expen- A key consideration for this step in the process is the objec- ditures have been gathered, they must be classified as either line tive that the full cost determination process be as practical as or support activities according to the following definitions. possible. To satisfy this objective it is recommended that unless

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22 Table 3.1. Example classification of maintenance activities and expenditures. Activity Name Type Total Expenditure Accomplishment Units Crack sealing Line $500,000 75,000 Pounds Deicing Line $10,000,000 9,000,000 Pounds Sign washing Line $300,000 20,000 Each Striping Line $7,000,000 18,000 Linear feet Subtotal $17,800,000 Mix deicer Support $250,000 N/A None Training Support $200,000 N/A None Management Support $1,500,000 N/A None Stores Support $250,000 N/A None Subtotal $2,200,000 Total $20,000,000 a particular maintenance support expenditure is unambigu- Contract solicitation and administration support activities, ously associated with only a subset of the line activities, it which should only be allocated to contractor line activities should be associated with all line activities. Examples of when separate line activities exist for in-house and contrac- support activities that are only associated with a subset of line tor performance of a particular activity. activities (drawn from Appendix A of the attachment) include The other key consideration for this step is selecting the Inspection and patrol support activities that result in the basis by which each support activity expenditure is allocated initiation of one or more line activities (e.g., a fence inspec- to the line activities. The benchmark approach allocates sup- tion support activity and fence repair, maintenance, and port activity expenditures to all supported line activities on installation line activities). the basis of the line activity costs identified in Step 1. Sign shop support activities in cases where material-related line activity sign charges do not capture all sign shop expen- Illustrative Example ditures. Sign shop support activities should be allocated to sign repair, maintenance, and installation line activities. Table 3.2 presents a crosswalk between maintenance line Nonspecific, other activities that are a catchall for adminis- and support activities for the example. Line activities are rep- trative and/or other activities that cannot be classified as one resented by the rows, and support activities are represented by of the specific line activities within a particular group of the columns. In the event that a particular line activity is sup- related activities (e.g., the Other Paved Surface Maintenance ported by a particular support activity, an X is displayed in the activity that supports 14 specific line activities) (Arizona corresponding cell. In this case, three of the four support activ- DOT, 2002). ities provide support to all four line activities. However, as Support activities that are exclusively in support of its Snow might reasonably be interpreted from its name, the mix-deicer and Ice Control Operations line activities (e.g., Winter Field support activity is only related to the deicing line activity. Maintenance and Dining Room and Dormitory Operations) Table 3.3 illustrates the results of applying the benchmark (Washington State DOT, 2007). approach to allocate support activity expenditures to the line Table 3.2. Example line and support activity crosswalk. Support Activities Line Activities Mix Deicer Training Management Stores Crack sealing X X X Deicing X X X X Sign washing X X X Striping X X X