A Benefit Cost Analysis (BCA) provides a quantitative method for assessing the potential benefits a project or action offers as it relates to the potential associated costs. The primary objective of a BCA is to determine whether a proposed project provides a net benefit to the aviation public.
On October 21, 2011, the FAA issued Federal Register notice 76 FR 65769 Modifications to Benefit Cost Analysis (BCA) Threshold (PDF). Under this notice, the FAA modified the threshold requirement for when a Sponsor must conduct a Benefit Cost Analysis for capacity projects requiring discretionary funding. The current threshold is now $ 10 million of discretionary funds. The FAA Office of Airports subsequently published Program Guidance Letter 12-01 (PDF), which provides additional information regarding this policy change. This revision does not restrict the FAA���s authority to require a BCA on any project requesting Federal funds.
We encourage Sponsors to incorporate the BCA task within their master planning efforts. If this is not feasible, the Sponsor can prepare a project specific BCA as part of project formulation
The information included in a Sponsor's benefit-cost analyses should allow the FAA to determine whether:
The BCA process typically consists of the following steps:
Page Last Modified: 10/17/12 17:37 EDT
This page can be viewed online at: http://www.faa.gov/airports/central/aip/benefit_cost/