Light Detection and Ranging (LiDAR) is becoming increasingly popular across the United States, and state transportation agencies are adopting practical use of the technology for transportation related applications. This is quite evident by the growing number of agencies acquiring LiDAR scanners and contracting LiDAR services. The primary factors behind this trend are that (1) surveyors, engineers, and technicians are becoming more educated and increasingly open to LiDAR and its applications, and (2) LiDAR is potentially more cost-effective than traditional surveying technologies. LiDAR can provide transportation agencies with the benefits of safety, data collection productivity, cost effectiveness, applicability, high levels of detail, and technologic advancement. Many of the more practical uses and benefits of LiDAR have come to fruition in recent years, and transportation agencies have been more open to its utilization. However, there is little more than anecdotal evidence to support when a specific LiDAR platform should be applied over a traditional surveying method for various applications. Decision makers within geomatic and surveying departments who use LiDAR must regularly weigh the options of which surveying method to utilize for specific projects and base decisions on performance tradeoffs. The methodology presented in this paper aims to provide guidance on how agencies may determine whether or not LiDAR can be practically utilized within their organizations. It is recommended that interested parties systematically consider the aspects and performance measures outlined for effective deployment of LiDAR equipment or contracted services.