The Federal Highway Policy has many policies within its framework, but few take the time to even take a look. The only major policy that has increased engagement is the National Highway Construction Cost Index. This policy is a complex issue because of all the communication needed between state, national, and federal governments. The Federal Highway Administration is an agency of the United States Department of Transportation that supports state and local government in various areas. The goal is for roads and highways to be among the safest and most advanced in the world today. It was created to help improve FHWA's indexing efforts. Keeps an eye on up-to-date data regarding future development and overall performance of major maintenance and improvements. The National Highway Construction Cost Index (NHCCI) is intended as a price index that can be used both to track pure price changes associated with highway construction costs and to convert expenditures into current construction dollars of highways in real or constant dollar expenditures. The NHCCI is intended to replace the Federal Highway Administration's (FHWA) Bid-Price Index (BPI) in the future, but also to be compared to the BPI for historical purposes. This report presents a description of the research to develop a new price index using Bid-Tabs data from Oman Systems, Inc. (OSI) and the methodology used to produce the NHCCI on a quarterly basis. A companion document describes the indexing mathematics used in NHCCI. The conclusion is that a Fisher index based on OSI Bid-Tabs data provides results that are both representative of construction costs as a whole and consistent with related price indices, such as the PPI for Hig...... middle of paper ......proposals based on the PS&E package. In these proposals, the price associated with each item includes the material itself and all other associated costs for moving, positioning and installing the material. The price also includes a profit component and overhead associated with each item. Clearly in this usage, the items offered include more than just the direct price of the item. The National Highway Policy is quite complicated due to all the jargon and terminology that accompanies each policy. After taking the time to read a little about this issue and shining a spotlight on the National Highway Construction Index, I see that the three groups federal, state and local tend not to always have the same numbers or ideas. This communication needs to improve especially as the federal aid pool shrinks and with everyone needing to drive somewhere, we need all our roads.