Independent Review of Transit Economic Requirements Model (TERM)

This independent technical review of the assumptions and application of the Transit Economic Requirements Model (TERM) should promote confidence in the reasonableness of its assumptions and the estimates it produces of backlog in the State of Good Repair of the nation's transit assets. This review is to consider if the TERM methodology is (1) the best approach to assessing future transit agency capital needs and (2) implemented with appropriate analytical methods and assumptions. The Federal Transit Administration (FTA) has used TERM as the basis for calculating the national State of Good Repair (SGR) backlog and normal replacement needs in the Rail Modernization Study and in the National State of Good Repair Assessment and for transit projections in the Conditions and Performance report to Congress. The results of TERM calculations are used in developing policies, budgets, and legislative proposals affecting federal financial assistance for purchasing and maintaining transit assets. The project will produce a letter report summarizing the independent assessment of the TERM model and how it is applied in characterizing the condition of transit assets.