1. AASHTO RESEARCH ADVISORY COMMITTEE PROVIDENCE, RI JULY 27, 2016
ISSUES ENCOUNTERED BY INDUSTRY IN THE RESEARCH DEVELOPMENT AND MARKETING OF INNOVATIVE TRANSPORTATION PRODUCTS
AASHTO RESEARCH ADVISORY COMMITTEE
PROVIDENCE, RI
JULY 27, 2016

2. fhwa assembled a review team to examine their patented and proprietary products program
FHWA Review team met with ARTBA Task Force members (below) on May 16, 2016
John Hillman, HCB
Mike Stenko, Transpo Industries
Mark Henderson, LJB
Lester Hensley, EMSEAL
Len Toenjes, AGC of Missouri
Eric Hedman, 3M
Kevin Groeneweg, Mobile Barriers

3. Driving force for private industry to develop new products:
Full fill a current transportation industry need
Develop a unique product to meet the need
Patent new product for protection
Gain acceptance by agencies for product use

4. First obstacle in the acceptance of a new product:
Federal Legislation 23 CFR – Material or Product selection
(a) Federal funds shall not participate, directly or indirectly, in payment for any premium or royalty on any patented or proprietary material, specification or process specifically set forth in the plans and specifications for a project, unless:
(1) Such patented or proprietary item is purchased or obtained through competitive bidding with equally suitable unpatented items; or
(2) The State transportation department certifies either that such patented or proprietary item is essential for synchronization with existing highway facilities, or that no equally suitable alternate exists; or
(3) Such patented or proprietary item is used for research or for a distinctive type of construction on relatively short sections of road for experimental purposes.
(cont.)

5. First obstacle in the acceptance of a new product
Federal Legislation 23 CFR – Material or Product selection
(c) A State transportation department may require a specific material or product when there are other acceptable materials and products, when such specific choice is approved by the Division Administrator as being in the public interest. When the Division Administrator’s approval is not obtained, the item will be non participating unless bidding procedures are used that establish the unit price of each acceptable alternative. In this case Federal-aid participation will be based on the lowest price so established.

6. The task force noted these different impediments stemming from 23 CFR 635.411:
Inconsistent applications among the States
State Resistance to Initiate Public Interest Findings
A Fallacy of Competition
Benefits of Patented Products aren’t recognized

7. The task force had the following recommendations:
Include Proprietary Products as part of Every Day Counts(EDC) Program
Publicize a Proprietary Products Best Practices
Link APEL and National Public Interest Finding
Reform/Repeal 23 CFR

8. AASHTO – TSP2 (Transportation System Preservation Technical Services Program)
Conducted surveys of private industry and state departments of transportation:
25 Industry Responses
24 State DOT Responses

9. INDUSTRY PERSPECTIVE
98% of manufacturers surveyed introduced less than 5 new products in last 5 years
68% Marketed new product to 1-5 State DOT’s
No consistency between states (Specs & QPL process)
Lack of State DOT Specs
Limited field test opportunities
Unknown Return on investment Research/Development/Acceptance
Some DOT’s not open to innovation
Risk Adverse DOT

10. DOT PERSPECTIVE Service Life Extension Ease of Use
Speed of Application
Lower Costs
Environmental Benefit
Enhance Safety

11. What can be done to encourage research and development by Industry:
Establish Regional/National evaluation and acceptance protocols
Expand DOT usage of data from the NTPEP (National Transportation Product Evaluation Program) and APEL (AASHTO Product Evaluation List)
Data for State DOT Product approval
Data Base of Product usage and approved product from State DOTs
Simplify approval process
Standardize procedures for evaluation/approval
Increase Communications between industry and DOT
Use of Public Interest Findings

13. Michael S. Stenko, CEO Transpo Industries, Inc mstenko@transpo.com
THANK YOU
Michael S. Stenko, CEO
Transpo Industries, Inc