Cost

Average per state start-up costs for electronic credentialing (EC) was estimated at $1.35 million; average annual O&M was estimated at $250,000 per state.

Evaluation of CVISN technologies in the United States


03/02/2009
Nationwide; United States


Summary Information

This source report evaluated the deployment Commercial Vehicle Information Systems and Networks (CVISN) used to support commercial vehicle operations. A motor carrier survey, cost analysis, safety analysis, and benefit-to-cost analysis were conducted to evaluate the safety, efficiency, and economic impacts of core CVISN technologies. At the time of the evaluation (October 2008) core CVISN technologies including electronic credentialing (EC), safety information exchange (SIE), and electronic screening (ES) were operational or being implemented in 45 states.

Data for the CVISN cost analysis were collected primarily from two sources:
  • Self-evaluation templates completed by state officials in 28 states (as of April 2006).
  • Site visits and interviews with state officials in four states (Montana, New Jersey, New York, South Dakota).

SYSTEM COSTS

Electronic Credentialing (EC):
  • The cost of electronic credentials was paid by the states to provide systems that enable motor carriers to apply, pay for, and receive various operating credentials using transportation data management information systems, such as central IRP and IFTA credentials systems.

Initial Costs (One-time Start-Up Costs)

The average per state start-up cost for electronic credentialing was estimated at $1.35 million and included the following:
  • Purchase costs for computer network servers for EC, personal computers (desktop or laptop) for state employees to use in electronic credentials administration, consumable supplies and materials for outreach, internal and external publicity, training or supporting the initial CVISN deployment of electronic credentials (only cost items related to one time start-up), network infrastructure, and other central office or branch office network hardware and peripherals for EC.
  • Purchase costs for software packages for back-end database management and data processing or reporting, and front-end user interface and data entry.
  • State employee labor for new EC software development and new hardware configuration. Includes cost of contractor or third party labor for new software development and hardware configuration.
The following data excerpted from the source report (Table 6-7) detailed a distribution of start-up costs across participating states (2006 dollars).
Anonymous
State ID
Deployment
Stratum
Number of
IRP Accounts
Number of
FTA Accounts
Total Non-Labor Costs
Total Labor
Costs
1
HI
2,001-3,000
1,000-2,000
$55,991
$439,283
2
HI
>10,001
>7,001
$102,926
$6,549,398
4
HI
8,001-10,000
4,001-5,000
$153,194
$40,076
5
HI
>10,001
>7,001
-
$781,699
7
HI
2,001-3,000
2,001-3,000
$23,316
$1,051,478
9
MED
>10,001
4,001-5,000
$255,569
10
MED
2,001-3,000
3,001-4,000
$59,309
11
MED
6,001-8,000
5,001-7,000
$1,671,440
$1,671,440
12
MED
8,001-10,000
5,001-7,000
$362,864
$217,595
16
MED
2,001-3,000
1,000-2,000
$241,373
17
MED
8,001-10,000
>7,001
$160,135
$1,397,701
18
MED
6,001-8,000
5,001-7,000
$123,471
$268,509
20
MED
4,001-6,000
4,001-5,000
$342,629
$186,813
21
MED
3,001-4,000
2,001-3,000
$513,996
$75,097
22
MED
1,000-2,000
1,000-2,000
$44,283
-
23
MED
2,001-3,000
2,001-3,000
$19,922
$1,361,520
24
MED
2,001-3,000
2,001-3,000
$492,518
-
26
MED
>10,001
>7,001
-
$782,258
27
LO
-
-
$28,037
-
28
LO
1,000-2,000
1,000-2,000
$188,201
$184,658
29
LO
6,001-8,000
5,001-7,000
$714,233
-
30
LO
2,001-3,000
$76,400
$3,603,500
31
LO
3,001-4,000
4,001-5,000
-
-
32
LO
>10,001
>7,001
$226,948
$1,218
34
LO
2,001-3,000
2,001-3,000
$5,535
$714,742
35
LO
6,001-8,000
5,001-7,000
$794,595
$7,778,530
Statistical Summary
State Mean
-
6,395
5,030
$289,430
$1,505,862
State Median
-
5,025
4,200
$160,135
$748,221
Maximum
-
16,000
13,000
$1,671,440
$7,778,530
Minimum
-
1100
1200
$5,535
$1,218
Range
(Max -Min)
-
14,900
11,800
$1,665,905
$7,777,312
Standard Deviation
-
4,456
3,347
373,315
2,241,288

Operations and Maintenance Costs

In terms of total annual cost to operate and maintain these systems for IRP and IFTA credentials, states reported an average cost per state of about $250,000 per year, with the range extending from a low of $22,645 to a high of $1,091,968 per year.

Annual recurring costs included both labor and non-labor costs.
  • Non-labor costs included IRP and IFTA clearinghouse membership fees and fees paid to third-party IRP and IFTA credential administrators (e.g., VISTA or Polk) for operating both back-end database management and data processing system, and front-end user interface data entry system. Other non-labor costs included lease payments for computer equipment, and recurring costs for marketing, outreach, and publicity.
  • Labor costs included the costs of state employees, contractors, and third party labor costs (pre-deployment and post-deployment) used for both IRP and IFTA credentialing. Annual credentialing labor costs included a comparison between existing (legacy) labor costs (pre-deployment) and the CVISN labor after deployment of the system.
The following data excerpted from the source report (Table 6-8) detailed a distribution of operating and maintenance costs across participating states (2006 dollars). Note that incremental costs (costs before and after deployment ) for both labor and non-labor costs were included to account for the costs of legacy systems.

Anonymous
State ID
Deployment
Stratum
IRP Legacy
Annual Costs
IRP CVISN
Annual Costs
Legacy Annual
Costs
IFTA CVISN
Costs
Total Legacy
Annual Costs
(IRP+IFTA)
1
HI
$26,570
$18,599
$26,570
$18,599
$53,139
2
HI
$2,562,635
$4,118,283
-
$6,680,917
5
HI
-
$100,079
-
-
-
7
HI
$253,114
-
$285,574
-
$538,688
9
MED
$64,701
-
$64,701
-
$129,402
10
MED
$600,209
-
$26,167
$22,645
$626,376
12
MED
$537,544
-
-
$537,544
15
MED
$1,186,183
-
$625,442
-
$1,811,625
17
MED
-
$147,195
$147,195
$147,195
20
MED
$240,935
-
$160,624
-
$401,559
23
MED
$625,806
-
-
-
$625,806
28
LO
$13,838
-
$13,838
-
$27,677
31
LO
$545,984
$545,984
$545,984
$545,984
$1,091,968
32
LO
$132,848
$132,848
-
-
$132,848
34
LO
$221,413
-
$110,707
-
$332,120
Statistical Summary
State Mean
-
$539,368
$199,377
$556,826
$183,606
$938,347
State Median
-
$253,114
$116,463
$147,195
$84,920
$469,551
Maximum
-
$2,562,635
$545,984
$4,118,283
$545,984
$6,680,917
Minimum
-
$13,838
$18,599
$13,838
$18,599
$27,677
Range
(Max- Min)
-
$2,548,796
$527,385
$4,104,444
$527,385
$6,653,241
Standard Deviation
-
690,713
236,011
1,199,415
248,850
1,720,385




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Source

Evaluation of the National CVISN Deployment Program: Volume 1 Final Report

Author: Brown, V.J.; M.S. Anderson; P.J. Balducci; J.E. Orban; M.A. Kiefer; A. Desautels

Published By: U.S. DOT Federal Motor Carrier Safety Administration

Source Date: 03/02/2009

EDL Number: 14459


System Cost

Start-up costs: $1.35 million (2006 dollars). Annual O&M: $250,000 (2006 dollars)

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Cost ID: 2011-00229