This report (in two volumes) and its accompanying computer program should serve as a valuable new tool for project level pavement management. Through a carefully derived analytical scheme, alternative pavement structure designs can be compared and ranked according to relative life cycle costs. Design evaluation methods were developed through the contracted services of Woodward-Clyde Consultants. The project was, however, very much a cooperative effort which reflects considerable technical advice and data supplied by the Alaska Department of Transportation and Public Facilities. Pavement life cycle cost comparisons are accomplished with the computer program PDES which resides on the Boeing Computer System (EKS subsystem). PDES can be accessed by means of a telephone/terminal connection from many locations within Alaska. This computer program is principally intended for use by engineers and planners who must make project design decisions based on long-term economics. Report Volume I provides an in-depth discussion of the research process leading to development of PDES. Volume II is a computer users manual for PDES which describes the program and its operation.