scholarly journals INDOT Research Program Benefit Cost Analysis—Return on Investment for Projects Completed in FY 2020

2021 ◽  
Author(s):  
Bob McCulloch
Keyword(s):  
Cost Analysis ◽  
Research Program ◽  
Financial Analysis ◽  
Strategic Plan ◽  
Research Needs ◽  
Research Projects ◽  
Strategic Objectives ◽  
Benefit Cost Analysis ◽  
New Research ◽  
Benefit Cost

To demonstrate the value of research and its implementation, the Governor’s Office requested an annual financial analysis of the INDOT Research Program to determine the return on the research investment (ROI). The current financial analysis is for research projects that completed in FY 2020. Analyses on previous year’s projects is necessary primarily due to the time it takes some project outcomes to be implemented, extending into the following year. Therefore, the FY 2020 analysis is completed in calendar 2021. 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. While the quantitative benefit cost analysis (BCA) was rigorous, results are limited to projects where benefits and costs could be quantified, where data is available to perform a quantitative analysis. Qualitative benefits are highlighted in the companion annual IMPACT report (https://www.in.gov/indot/files/Research-Program-Impact-Report.pdf ). In 2018, INDOT unveiled its new Strategic Plan. The Strategic Plan guides the priority research needs of the Research Program and in turn the research results support accomplishing the INDOT Strategic Plan, Strategic Objectives. A new Strategic Objective has been added to the INDOT Strategic Plan addressing Innovation & Technology. Additionally, INDOT created a new Office of Innovation. While the Research Program supports all of INDOT’s Strategic Objectives, these new initiatives have further highlighted the importance of research and its role in achieving the Strategic Objectives outlined in the new INDOT Strategic Plan. There has been more emphasis of new research needs related to new technology changes and transformational technologies. This will help position INDOT for future growth, adoption of new technologies and partnering opportunities. These new research projects will provide large qualitative ROI, however are difficult to quantify due to their complexity and newness.

scholarly journals Evaluating Privately Funded Public Research: An Example With Poultry And Eggs

1986 ◽  
Vol 18 (1) ◽  
pp. 129-140 ◽  
Author(s):  
Stephen Martinez ◽  
George W. Norton
Keyword(s):  
Cost Analysis ◽  
Peer Review ◽  
Production Cost ◽  
Econometric Model ◽  
Public Research ◽  
Research Projects ◽  
Economic Surplus ◽  
Benefit Cost Analysis ◽  
Producer Surplus ◽  
Benefit Cost

AbstractA procedure is described for evaluating poultry and egg research projects. A peer review questionnaire and benefit-cost analysis are utilized incorporating elasticities from an econometric model for poultry and eggs. Production, cost, and price changes are used to calculate changes in producer surplus and net economic surplus for a set of privately funded publicly conducted research projects.

scholarly journals Development of Benefit Cost Analysis Tools for Evaluating Transportation Research Projects

2019 ◽  
Vol 2673 (1) ◽  
pp. 123-135 ◽  
Author(s):  
Nikolai Greer ◽  
Khaled Ksaibati
Keyword(s):  
Cost Analysis ◽  
Case Studies ◽  
Cost Ratio ◽  
Research Projects ◽  
Benefit Cost Analysis ◽  
Benefit Cost Ratio ◽  
Transportation Research ◽  
Benefit Cost ◽  
Transportation Agencies

Transportation research projects are a vital element for transportation agencies to accumulate new technology and knowledge to improve the efficiency and safety of transportation infrastructure. The purpose of this paper is to develop benefit cost analysis (BCA) tools to assist transportation agencies in evaluating transportation research projects. The BCA tools provide analysis methods for estimating the benefits for changes in the level of service (LOS) of a roadway, reductions in the vehicle travel time, changes in vehicle operating costs and reductions in the number of crashes. Three case studies were investigated to illustrate the usage of the BCA tools. The first case study evaluated the effectiveness of variable speed limit systems implemented along I-80 in southern Wyoming. The BCA tools estimated a benefit cost ratio of 6.64 indicating that the implementation of the project was economically justifiable. The second case study was a recent study investigating and developing mitigation strategies for the effects of truck traffic along the I-80 in southern Wyoming resulting in a benefit cost ratio of a 9.23 indicating that the project had the potential to be economically viable upon implementation. The final case study evaluated the effect of wildlife overpass and underpass crossings on the migrations of pronghorn and mule deer. The benefit cost ratio for the research project was 0.42 indicating that the project was not economically beneficial after the first year of implementation. The case studies indicated that the BCA tools are a beneficial tool for quantifying the economic benefits of a transportation research project.

scholarly journals INDOT Research Program Beneft Cost Analysis—Return on Investment for Projects Completed in FY 2019

2020 ◽  
Author(s):  
Bob McCullouch
Keyword(s):  
Cost Analysis ◽  
Research Program ◽  
Financial Analysis ◽  
Cost Savings ◽  
Cash Flows ◽  
Fiscal Year ◽  
Cost Ratio ◽  
Research Investment ◽  
Program Costs ◽  
Benefit Cost

To demonstrate the value of research and its implementation, the Governor’s Office requested an annual financial analysis of the 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.

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