Final Report
Economic Analysis and
Business Case for Motor Carrier
Industry Support of CVISN

This material is based upon work supported by the Federal Highway Administration under contract number DTFH61-02-C-00134.

Any opinions, findings, and conclusions or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the views of the Federal Highway Administration.

Contents

Executive Summary

Abbreviations

Acknowledgments

1.  Introduction

1.1  Objectives and Strategy

1.2  Task Organization and Hypotheses

 

2.  Purpose and Current Status of CVISN Deployment

2.1  CVISN Functional Areas

2.2  Related Research

3.  Data Sources and Analysis Methods

3.1  Review Information and Collect Existing Data

3.2  Establish Contacts with Motor Carriers

3.3  Develop Economic Parameters and Model

4.  Prior Studies and Anecdotal Evidence

5.  Quantitative Results

5.1  Characteristics of Population Responding

5.2  Return on Investment Analysis

6.  Qualitative Results

6.1  Qualitative Responses for Electronic Credentialing

6.2  Qualitative Responses for Electronic Screening

7.  Conclusions and Implications

7.1  Summary of Findings

7.2  Implications for Future Research

8.  References

Appendix A.  Interview Guide

Appendix B.  Calling List Development and Interview Methods

Appendix C.  Detailed Results from Review of Prior Literature

Appendix D.  Return on Investment Worksheets and Instructions

Tables

Table 1.  Calls attempted and interviews completed

Table 2.  Initial contact methods and survey response methods

Table 3.  Summary of responses and nonresponses

Table 4.  Economic parameters used to conduct return on investment analysis.

Table 5.  Benefit and cost elements

Table 6.  Reasons cited by motor carriers for using electronic credentialing (N=29)

Table 7.  Electronic credentialing costs to motor carriers

Table 8.  Assumptions governing electronic credentialing benefits estimates

Table 9.  Mean values for CVISN business case survey respondents

Table 10.  Results of electronic credentialing ROI analysis, mean value scenario ($2007)

Table 11.  Reasons cited for participating in electronic screening programs (N=21)

Table 12.  Electronic screening programs and partnerships (N=20)

Table 13.  Monthly PrePass rate schedule ($ per transponder)

Table 14.  Assumptions governing electronic screening benefits estimates

Table 15.  Results of electronic screening ROI analysis

Table B-1.  Selection process for calling motor carriers located in highly active CVISN states.  (Carriers from the eight shaded states were chosen from MCMIS census file.)

Table C-1. Total in-house staff time expended on credentials administration per year per powered unit (FTE days)

Table C-2. Motor carrier credentialing costs and savings

Table C-3. Time, fuel, and operational cost savings for motor carriers from PrePass system

Figures

Figure 1.  Characteristics of surveyed motor carriers

Figure 2.  Core CVISN deployment status

Figure 3.  Characteristics of surveyed motor carriers

Figure 4.  Relationship between the number of power units and ROI ratio

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