The broad intention of the fixed rate is to allow equipment management to recover the fixed costs associated with a vehicle (such as depreciation, overhead, insurance, etc.). The fixed rate takes the total costs of the vehicle, including insurance and the overhead rate, and divides it by the expected life to arrive at a monthly fixed cost that will be charged to the owner of that piece of equipment.

The standard usage rate applies when a vehicle is used--regardless of whether or not it's permanently assigned to you. The standard rate is meant to allow equipment management to recover the variable costs associated with the usage of a vehicle, such as repairs, replacement parts, etc. The usage cost  total is the usage rate plus any repair costs.

The fixed and usage rates are intended to correspond to fixed and variable costs respectively and are approved by FHWA. But in practice, the main concern is keeping equipment management's total revenue equal to their total costs.

Equipment Usage Reporting:

Purpose

Adherence to these guidelines ensures accurate tracking of equipment utilization, equitable cost distribution, and informed decision-making regarding equipment allocation and replacement. If equipment usage isn’t reported accurately, it causes two problems; (1) Equipment rental rates increase because there are less hours to spread over operating costs and, (2) It makes it difficult to justify having equipment if there is no or little reported usage. 

Scope

This guideline applies to all employees and stations within UDOT who are responsible for operating and reporting the usage of UDOT equipment.

Guideline

Reporting Equipment Time

All UDOT equipment usage must be reported using the committed time method. Committed time refers to the duration that a piece of equipment is assigned to a specific activity and unavailable for other uses. This generally aligns with the labor hours charged to that activity.

Examples of Committed Time Reporting:

• Lane Leveling: If labor is reported for eight hours, all equipment used during that activity, even intermittently, is reported for eight hours.

• Snow Removal: If labor is reported for twelve hours, all equipment assigned to the activity, such as the truck, plow,sander and loader, is reported for twelve hours.

• Pre-Treating: If labor is reported for six hours, all equipment components assigned to the truck (wing, sander, head plow) is reported for six hours. 

• Chip Sealing: If labor is reported for ten hours, all equipment assigned to the activity, including standby trucks, is reported for ten hours.

• Betterment Projects: If labor is charged for ten hours, all equipment assigned to the project, even if used only for a portion of the day, is reported for ten hours.

Rationale

Equipment Management

Accurate reporting of committed time ensures that equipment costs are distributed fairly across all stations.It also allows for accurate tracking of equipment usage, which is crucial for making informed decisions about equipment replacement and future needs.

Cost Accounting

Committed time reporting is essential for maintaining accurate activity standards and cost accounting. It ensures consistency in reporting across all stations and allows for meaningful comparisons of productivity and costs. This information is vital for budget allocation and resource management.

Implications of Inaccurate Reporting

Failure to report committed time accurately can result in:

• Increased equipment fixed rates due to underreported usage.

• Difficulty justifying equipment needs due to lack of equipment usage data.

• Inequitable cost distribution across stations.

• Inaccurate activity standards and cost accounting.

• Misinformed decision-making regarding equipment replacement and allocation.

Exception: Crash Attenuators

In the case of damaged crash attenuators where a TMA (truck mounted attenuator) truck and/or other protective equipment are placed at a location for an extended duration (two days or more), usage will be reported for that equipment as 1 hour for every 12 hours that the equipment is present at the site protecting the damage.

Enforcement

Adherence to this guideline is mandatory for all UDOT employees and stations. Supervisors and District Maintenance Engineers are responsible for ensuring compliance within their respective areas. Regular audits and reviews will be conducted to monitor reporting accuracy.