An integrated Infrastructure Management System (IMS) plays an important role in optimizing and justifying budget spending. Generally, the main objectives of an IMS are to: 1) provide access to infrastructure information through an integrated data repository and 2) prioritize maintenance, rehabilitation and construction needs and optimize spending to ensure life-cycle maximum value. This paper discusses the functional requirements of such Infrastructure Management Systems. It also describes the required data flow and process models. It further identifies the system's main components and modules including an interface with a Geographic Information System (GIS). The second part of the paper discusses the issue of life cycle cost analysis and its application in infrastructure management. This includes the evaluation of infrastructure construction and rehabilitation alternatives, taking into considerations the uncertainty involved in determining the useful life of an infrastructure.