FAA AIRPORT BENEFIT-COST ANALYSIS GUIDANCE Office of

128 Pages·1999·0.29 MB·English

by  Will Gorman

FAA AIRPORT BENEFIT-COST ANALYSIS GUIDANCE
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December 15, 1999
TABLE OF CONTENTS
Section 1: INTRODUCTION ................................................................................................. 1
1.1 ecnade sop ruPifuoG ............................................................................................. 1
1.2 dnuorgkcaB .......................................................................................................... 1
1.3 noitacilppA ........................................................................................................... 1
1.4 s neoc inftaoadtiiumGiL ....................................................................................... 2
Section 2: ROLE OF BCA...................................................................................................... 3
2.1 se vf ioAt CclBeajrbeOneG .................................................................................. 3
2.2 s in s el yneaAlowiCai tcBntdenAcnBananiitFsiD ................................................ 3
2.3 cds eitttmacnioaeocnpmsomts cIaAfEeo-roTr chatiMw tropriA stcejorP ............ 4
Section 3: OVERVIEW OF BCA PROCESS ........................................................................ 6
3.1 sevit ctec jeebjnOoirfPeD ..................................................................................... 6
3.2 s nyofiitcpempuSssA ............................................................................................ 6
3.3 e eysesfahaiCtBtnedI .......................................................................................... 6
3.4 yfit nse edd vIn tia entnleaebmneatrrnsecoetSsvlanAeIR ...................................... 6
3.5 ednim roetenDiorietPa ueltaavriEporppA ............................................................ 6
3.6 ehlsbia lnlboeasvtaeseLER fotroffE .................................................................... 7
3.7 , y ,f syi etftdtiinnaf taauednulnn eQaeasdvBtIEsoC ............................................. 7
3.8 s eetv rci t uatnresp aoogamfnpaeIorrsMeiUtAlA ................................................ 7
3.9 sev is t tsadit nn fserafeoreonCateplBmAoC ......................................................... 8
3.10 s iystyilvam irntoAfirsenPeS ................................................................................ 8
3.11 snoitadnem meokcaeMR ...................................................................................... 8
Section 4: OBJECTIVES........................................................................................................ 9
4.1 sevitcejb Of otnemetatS ........................................................................................ 9
4.2 sevit cee ljebbg iOnfsaosRoP ................................................................................ 9
4.3 sevitc eejl bptOi ntfelomutMaerT ......................................................................... 9
4.4 n oei vtlia atnfpcgoieicjsnbeiODrP ...................................................................... 10
Section 5: ASSUMPTIONS ................................................................................................... 11
5.1 Future Airport Environment ................................................................................ 11
5.2 y t h idttvew ritonotcripceGrAjioArP ................................................................... 11
5.3 yste iidc tnas iap etlaeg riCrnnocuaipathrFuCiFA ............................................... 13
5.4 sytt nit icrna aoorgpptnarsiCindAonCiB ............................................................. 14
5.5 la nto ni regcimeiAeRfgfaanraTM ....................................................................... 14
iii
5.6 latnemnroisnoitaredvisnoCnE ............................................................................. 14
5.7 snoit pd merd ueoewsNftes sNAruojdA .............................................................. 15
5.8 s. ecuilma.oVnocE................................................................................................ 15
Section 6: IDENTIFICATION OF THE BASE CASE......................................................... 16
6.1 noitaci fd iet tecrnNeoerfdrIoC ............................................................................ 16
6.2 stn enemoseiartBi auecqsieafRCicepS ................................................................ 16
Section 7: SPECIFICATION OF ALTERNATIVES ........................................................... 17
7.1 noit aecc inefa titfecroleopppmSmoIC ................................................................. 17
7.2 sevit adnerneitaltAnoc-fleS .................................................................................. 17
7.3 sev ietgan nafrRoetlA .......................................................................................... 17
7.3.1 stne mntsiseei vtwnieIlNicaF ................................................................... 17
7.3.2 nos.iet ic gtufniroilttissc.niaoxFcEeR....................................................... 18
7.3.3 seiget dnaameDt nermeganaMtS ............................................................... 18
7.3.4 y.til inb.oiis tnfuoobpis.retRsid.eR............................................................ 19
7.4 sevi tgannirneetelrAcS ......................................................................................... 19
Section 8: SELECTION OF EVALUATION PERIOD........................................................ 20
8.1 sd onio risetePa pufyloTavE ................................................................................ 20
8.1.1 tenfeimLeriuqeR ...................................................................................... 20
8.1.2 elfaicLisyhP ............................................................................................ 20
8.1.3 e fciiLmonocE .......................................................................................... 20
8.1.4 neoti atei cdmrfeoipoliToerrSepPpA ....................................................... 20
8.2 s se e dlevorbmiaioirrTetFaP pamlnolCrAetlA ................................................... 20
8.3 n ondiootii atr f ateoOtn.unPTsoleiia m stv tggsaEncnuAuIeilA.jmaoivrTEP..... 21
Section 9: LEVEL OF EFFORT ........................................................................................... 22
9.1 etairporppA leveL fotroffE ................................................................................. 22
9.2 noitacifitsuJ ......................................................................................................... 22
Section 10: MEASUREMENT OF BENEFITS .................................................................... 24
10.1 sst tiycf teefijnocoearBpPaC ............................................................................... 24
10.2 sttni effmeo ennre ouBdisntaaaecMifitnedI ......................................................... 24
s tnio fifetonaecBi f3i.t0n1 e dpIe-t-S1 ......................................................................... 24
1 .s3 t.y c0tewe1idejciNoasrprPaiCA .................................................................. 24
stife nyea1 Bl1.0e1.D3. .................................................................................... 27
ytilibat ceild ueddreeP2 vh.oc1rS.p3m.I01 .................................................. 27
3.1.3.01 scwi oftlfnFaer i TceirfofME ......................................................... 28
iv
tf atrnc4 er. r ii1 ,oecA.e r/ri3s,edof.U rgnMf0feraE1otasLaF ..................... 28
10.3.1.5 Compliance with FAA Safety, Security, and Design
Standards ............................................................... 28
sst t 6 cyiy.et ft1jifee.oconf3raea.PpBS0a1C .............................................. 29
lsattinf7 ee.mn1 n e .foyBs3ortt.iic0vce1najEpoarCP ................................. 29
s ne2oi.i t3t ei.afdl0toii1 isclraiiFbAaheR ........................................................ 30
y tg in3ci.a t3pntr.aono0Ci ep1 t empifdpusoiiSisuurqqiEcAA ........................ 30
4.3.0 1, yd,t slyi stetrd dcieunnreffcagajraeidoiSSsnrAeaPDtS ....................... 30
st cl5ea.jt3on.re0Pm 1norivnE ......................................................................... 31
st c6ye.tj3 io.gcr0n aP 1ipldaalC niriuimBAreT ............................................... 31
7s.t3c .e y0jt1oi rrBPuTcAeS .......................................................................... 31
noitatr o lp8as.nn3ia.mr0rT1 eT-retnI ............................................................... 31
10.3.9 e sdstiscs eedcjncoaArLP ...................................................................... 32
10.4 stif e tnfneoeBmerusaeM -p-e2tS ......................................................................... 32
s nso i1 i ds.tyl y4caefl.ulioa0defn1eDrARiA ................................................... 34
nos il1 dte.lad1elo.iuM4fm.ri0iS1A ......................................................... 35
nos il2 dte.lad1elo.iuM4fm.ri0iS1A ......................................................... 35
nno oi3 sc it.liftc 1efoaer.vfllo4eauef.LrmS0Ti1S ................................... 36
10 .4n.o1i. 4 tfltcoeueadpltonlaMIoDC ................................................... 40
yn aoflioetDpir5 c.s1e.D4.01 ................................................................... 42
r e sgdoy nngaeearl6 dsae.isCD1sa.rP4i.A01 ........................................... 42
s2 i.s4sy .n lf0oga o1innylti AaacdrlnulieidiADmeurRBeT ............................. 42
1 .d 2nB.aT4mA.e0D1 .............................................................................. 43
yt2 i. c2Ba.Tp4Aa.C01 ............................................................................. 43
e ndfiosoid nytaanLloaeicDtciudfe3 .4iR.01tanuQ .......................................... 43
ytilibat ceil dudeder4 evP.ho4cr.Sp0m1I ........................................................... 44
cs. iwtfon5 fle..a Fi4rec.Tri0o.f1MfE............................................................... 44
6 .4.0 1esU f,o rre egrtro sta/ta fLdnFeanerraioccMriifAfE .............................. 45
s w sehr1 it e.vi ed6rwrci.eiiv4tAvo.nrr0IeP1S ......................................... 45
sy ervergun2 Se.s6s.a4P.10 ....................................................................... 46
3 s.i6s.y4l. a0fn1oA reicAi vsertl erbtSoaaprraipAmoC .......................... 46
4 .6.4.01 rehtO sdohteM ............................................................................ 47
d eh tt7a i.is W4ct ,.oidy0sfr t 1seandi,AndgnryeniautBasceteefSDSaS
ytsitccaepjaoCrP ...................................................................................... 47
s d,ry atne ddicg1 ,nnn .riyaaa7husi.tttlce4epS.ieDmf0WSo1aCS ........... 47
sde ehd n2 tce yo.aashti7ioates.creifi4oprwac.spcSe0sAnr1AIP .............. 48
8.4.01 l dase tttniaefi mech nnotyo esitrsBsWiitAcvcanepEjaoCrP .................. 48
s1 t .ie8fs.ei4no.eN0B1 ............................................................................. 48
2 s.n8o .ir4si.sA0i1mE ............................................................................. 48
9.4.01 rewo Lt rsonporiitAare pdeOncanane t)nMi&aOM( stsoC ................... 48
10.5 sntoi iffteoanuel BapVe-t-S3 ............................................................................... 49
s rtanl1 al.to5sD.n0o1C .................................................................................... 49
lsat tinnnoeUi 2 m tf.elao5rau.cul0nqa1IEV .................................................... 49
ts itl fianennonUoie 3 itBf.tao5cu.al0ra1FV ..................................................... 49
v
y rs 4 aef.rtmuo5 soitmifnel.fnuea0USBV1 .................................................... 50
s. nnooii t5 tfyc..aoau5uld.lee0aDR1V............................................................. 50
s.nno 1 oit .it .fy5tafaa.cuorl5ulce..darD0eVi1RA.................................... 50
sn o ni rotyei2 cag t.ulnfa5deeou.eDsl5Rsa.aV0P1 ................................... 54
n osi 3 ntf.oao5 iu .rtloy5icaga.AuVrl0dae1eCDR ................................... 54
rete e r nyGso a/nlifroeetoiDtt4 aec.ueu5lMde.aR5V.01 ........................... 55
ytilibat ceil dudeder6 evP.ho5cr.Sp0m1I ........................................................... 55
cs. iwtfon7 fle..a Fi5rec.Tri0o.f1MfE............................................................... 56
8 .5. 0e1ts fU t,ar ,nrrof reec/oeeitrdrgcsinoriaAaMafFLfE ............................. 56
e leiuM1 .8.n5.01 reewoL v tsroCeeRP ..................................................... 56
t diee2 mcs.i u8nTdn.ae5IRr.0T1 ............................................................. 56
9 . 5,,.yy0tt1ierf uadcSne haS nd dgesritttasaideifnDceaiontseSsBWA
ytsitccaepjaoCrP ...................................................................................... 56
0 s 1ty.is.t 5ftey. ecft0fneai1oejScBoarp.PaC................................................... 56
la 1 ts1nt.ei5mf.ne0on1reiB vfno Eyt isctacpeajCorP ....................................... 56
ecna Bengne netdifnnti iaattars.r2 Meo1pp.Or5i..A01...................................... 57
se it ri y oftfdgecinenatatepnaBmaCIuQ-o6 T.-0d1raH ................................................. 57
ya leedDiwmet10.6.1 syS ................................................................................. 57
rte ercdgon2 enf e.semdi6asonn.esCae0rav1cPnnoIC ...................................... 58
3 .n6o.i0t1aisvtAc-anpomNI ............................................................................ 59
c ismnoinaoG1 c.e3o.r6c.a0M1 ................................................................ 59
ystniivaiGt2 c.u3d.o6r.P01 ...................................................................... 60
7 .0 1laice peSsaC fo wesNtropriA ............................................................................... 61
1 .7.01 lanoigeR stropriA .................................................................................. 61
2 .7.01 tnemecal psetRropriA ............................................................................ 62
3 .7. 0l1atneme lsptpruoSpriA ........................................................................... 62
se4 i.t7n.i0a1t rfeocn Uc isftfsaarcTero Fta weNs.tropriA................................ 63
Section 11: COST ESTIMATION......................................................................................... 65
f os tsy o1 Ct.s11itccaepjaoCrP .................................................................................... 65
2 .11 tsoCstpecnoC ....................................................................................................... 65
1 .2.11 ytinutroppO tsoC ................................................................................... 65
2 .2.11 latnemercnItsoC .................................................................................... 66
3 .2.11 knuS tsoC .............................................................................................. 66
noit4 a.i2c.e1r1peD .......................................................................................... 66
e s tnlsea eppdr5 xine.Ecat2nn.iI1r1P ............................................................... 66
no6 i.t2a.l1f1nI ................................................................................................. 67
l3 ete.elsd1fcoo1iyCMLC .......................................................................................... 67
1 .3.11 gninnalP dna hcraeseR dna tnempoleveDtsoC ....................................... 67
11.3.2 Investment Cost ..................................................................................... 68
11.3.2.1 Land Cost ................................................................................... 68
2 .2.3.11 noitcurtsnoC tsoC ....................................................................... 68
3 .,2t .n,3ee.ml1pc1ii uhgqe nEVdinnaoisstisvooCrP ............................... 68
vi
4 .2.3.11 laitinI gniniarTtsoC .................................................................... 70
11.3.2. 5 no ittsiosCTran ........................................................................... 70
e ct)nsM ao&snCOn e(odtinn3 tai.aa3rM.e1p1O ............................................. 70
1 .3.3.11 lennosreP tsoC ............................................................................ 70
slair2 e.t3a.M3.11 ..................................................................................... 70
sei3 t.i3l.i3t.U11 ....................................................................................... 70
noi tglan4 eti.vrr 3aord.rpun3Tsca.ne1aR1rT ........................................... 72
11.3.4 Termination Cost ................................................................................... 72
g nilt1 n.Ca4m.s3io.D11st ........................................................................ 72
no2 i.t4 a.er3to.it1Ss1eR ........................................................................... 72
ee5 gu.al3va.lV1a1S ........................................................................................ 72
p isht snfne oo6 nti.ost3poa.mCl1oe1CR .......................................................... 72
sno itsnie cmg ee nenDcyiloat tciliosy tpltoCfa4 eiC-oc.Rcei1afl1FipLpA .................. 72
n oni 1 ots.iat4tcc .cier1ufjo1riofttrssPnuoJceR ................................................ 72
n o ni2ot.i c 4teuf.aero1rrt 1egsfdenoiDoscneoRC ........................................... 73
1 n. o2gi.nt4ic.mu1i r1TftosnoceR ............................................................ 73
noitcur tes2 e n.rfo2goc.ee4DR.11 ............................................................ 73
nto sisot3 nCc.a-u2etr. Mst4fas.oen1Lo1ceR ........................................... 73
n sontioctieat4 jrc.foeu3 ordr.dPit4ess.knn1noo1iCcLeR ........................ 74
Section 12: MULTI-PERIOD ECONOMIC DECISION CRITERIA................................. 75
s.i sdyolia r.nteAnP e-rmioet1 f.rl.iu2uM1qeR.............................................................. 75
s etii rfdeeoSnier BenPo- i2 ift.toa2le1urMC ................................................................ 75
d soteisi rorneCeoPS3 i -.tfi2aot1elruCM .................................................................... 76
e tu snl t e eanidtiosVo fnsrteifeaoersonCSPre4 eB.v2n1oC ........................................ 76
y e t nfsyoootMCinutro1 p.p4O.21 ................................................................... 76
no2 i.t4a.l2f1nI ................................................................................................. 76
k3 s.i4R.21 ....................................................................................................... 77
5 .21 tnuocsi DetaR ....................................................................................................... 77
ygol ogdnoih6 tt. ne2cuM1ioscasBiD ........................................................................... 77
7 .21 evit annoriettaslueAlrauvdEecorP ........................................................................ 78
1 .7 . t 2tne1eeu)NslVeaPrVNP( ....................................................................... 78
2 .t7s.o2C1-ti foeinteaBR ................................................................................. 81
l3 a. n7er.te2at1Rn IfnoruteR ........................................................................... 82
4 .7. 2k1cab ydaoPireP ...................................................................................... 83
g. tnn ciolemi ajitfmoT.8 aoir.utP2lp1aOv.E................................................................ 83
evitanre tt nlsfo Aeoi9Bt.c 2e1leS ................................................................................ 84
Section 13: UNCERTAINTY................................................................................................ 85
ytniatr es 1 csd.ne e3Uroe1dtNdA ................................................................................ 85
ytn igantirzeicr2 ne.Ut3c1arahC ................................................................................... 85
s iystyilv3 ai.nt3Ai1sneS .............................................................................................. 85
vii
snoitu byitritls1 ii.bD3a.b3o1rP ........................................................................ 85
sis yyltai nvsAid2 t o.ifh3sot.ne3eM1S ............................................................. 85
1 .2.3.31 enO elbaira VtseT ....................................................................... 86
el2 b. a2oiT.wr3Tae.V3s1t ...................................................................... 86
s oeivri3 at.na2en.cr3Se.t3l1A ................................................................... 89
Section 14: SELECTION OF OPTIMAL PROJECT .......................................................... 90
n oniot ia1ftm. oar4lro1le fAdniIsnoC .......................................................................... 90
eu ltanV e2s. e4tr1ePN ................................................................................................. 90
3.4 1y fsittinf aeun Qed-BnoaT-sdtrsaoHC ................................................................... 90
ytniatrec n4U.41 ........................................................................................................... 90
Appendix A: TREATMENT OF INFLATION ...................................................................A-1
no i1t.cAu dortnI ......................................................................................................... 1-A
se g2n .ae AhcCirP ...................................................................................................... 1-A
n o1i. t2ga.nlA ifrnuIsaeM ............................................................................... 1-A
2. 2 s .gecess.Angi c deinf ifocraidrooiuhcnPGvsCearap.eeSSM................... 3-A
sexe den c Isif3ero.cP AruoS ...................................................................................... 5-A
le veec Lil1ra.Pr 3e.nAeG ............................................................................... 6-A
s l ee rcv2 oie.ctrL3icP. meAoSnocE ............................................................... 7-A
n.oit .c3u.r3 .t.sAno.C...................................................................................... 7-A
y4g. r3e.nAE .................................................................................................. 8-A
sc i5n.o3r .tAcelE ............................................................................................ 8-A
6.3.A tfa rdcnrsaitAraP .................................................................................. 9-A
4. A si stysl oatnCnno-Aeit mtifntafoialeefnrneTIB ............................................... 9-A
sra lllao nD t i1nrm.aoo4 tN.sAnoC ................................................................. 9-A
2.4.A do in reseeiPwstyel BaentAaD dn atcej otrrPatS etaD ......................... 01-A
tecf eigjL no3nir.orP4iu. tDAalfnI ............................................................... 01-A
Appendix B: OFFICIAL GUIDANCE ON ECONOMIC ANALYSIS............................... B-1
y r ).,a1 4 6u.3r9e2nB9e9va8d1i J2rt(1OucexE.......................................................... B-1
2.B r e b) ,odR)9te A 22cs4LB9Oi9UM9(v-CO1eARRI(C ........................................ B-1
secn e3r. eB rfeehRtO .................................................................................................. B-1
lacigolodoht e1M.3.B ..................................................................................... B-1
B.3.2 Data Sources ......................................................................................... B-2
Appendix C: ADJUSTMENTS OF BENEFITS AND COSTS FOR INDUCED
DEMAND ................................................................................................................ C-1
1.C d ndnaeom ciefutDodanrIed isnoC ....................................................................... C-1
st igf nekinrt eoa rBwmcoeiif2 mtm.asoCrEnFocE ..................................................... C-1
viii
dd neyeacgtmuoae dllDonou3 tIdc.olChatCeM ......................................................... C-5
1 .3.C latoT pirT stsoC .................................................................................... C-5
e mp siingTronTi ve tamfcSioaC2 T.p3.mI ................................................... C-7
e rp saingFronTi ve tamfcSioa3 Tp.m3I.C .................................................... C-7
t4 c.e a3gf p .n olmn CapaIithitsdCr o onTlTnCaaomneiDF .......................... C-8
yti d.cfn1 ioa.ltm4ase.taD.3ol.TeC........................................................ C-8
yt incoi itlftsaoaatc2 loi.eTl4p.p3A.C .................................................... C-9
stlse av decednleLea pr4 .cmtioCueatFndDlIuM ..................................................... C-10
d ndaem ce tuDs scd tdt ensinsolIt faotfnfeCeeonRmetB5 s.uCjdA .......................... C-10
stif1 e.n5e.BC ............................................................................................... C-11
1 . ts.1r ct.esei5gujf.nsoeCerrnsePesVBaP ........................................... C-11
ci f dfge ancdriunTtda snsiItx iE2 of-.Tee1nr.eP5B.C ........................... C-12
C.5.2 Costs ................................................................................................... C-13
ix
LIST OF TABLES
snoitpmTAuB LsEh stAw ocri 5G.f1:f arT ............................................................................... 12
sE ts.L:i tB1f tcA.efreT0nooj.1epoBrriPA.............................................................................. 25
st itsf cee t ern Er:juefLo2osBoBp.raAr0PeTi1MA ................................................................. 33
s tdi n f danetemon c cee :afuDBE3podL.mnB0IIA1T ............................................................. 41
sti ftecn eetnjBroo oirfptPo ra :iuE4AlL.aB0VA1T ................................................................. 51
nso titnts ecoEm uCLe:rBl1tAE.sT1n1oC ............................................................................... 69
st i s tfgtdcens neniofajetCooBnru Po :cE1sL.iB2DA1T .......................................................... 78
s.evit ann. ort ienftt eoalVmcA Pt i :NsE.elo2eLept.vBrp2nAhA1ITT..................................... 80
ELBA T n:o3i.t2a1c itl spfopoCA- toiifteanRe BtseT .............................................................. 82
s e Ev: Li4sB t.tAA a2l TCrn1ueBorsefeertRhlTA ................................................................... 84
ELB A:T1 . csAttisicto cusrreideGoclomtiproarmPDlPIfeD ................................................ 2-A
s s rn rtaota nli nlo al sfelt4toE roro9sDL:erD9nB2vu1oA.nCCTAoC ................................... 4-A
n dodni eatfcm aoueE ldDL:unB1cIA.lTCaC ........................................................................ C-6
d ny atfmioecDit sla al :teE2oL.TBCAT ................................................................................. C-9
st idf ne nandome eeBtc Dcu f ad:oEpn3LmI.BICAT ........................................................... C-12
ELBA T:4 .tCcapmI f ode cdundanmIeD nostsoC ............................................................... C-12
x
LIST OF FIGURES
lyeaa vilnrteounDiC etfnaoompi x xEE:oR1rU.pG0pI1AF ..................................................... 37
stn e E mfR:toU 2s Ge.utIs0 j sFa1eddaBsAncaaeCmreoDF .................................................... 39
yra mte msle: uocf1ESCyi.RCL1U1GIF ................................................................................ 71
E R yU:tG1n I. itF3 eas1eltenbrTOaeicrnaUV ......................................................................... 87
ERUGIF :2.31 owT e lybtaniiraatVrectnsUeT .......................................................................... 88
ds nudd ealnerlmp aceoerfumRD uo duES:nsR1InU.oGCCIF ............................................. C-2
y allaec D ihsdtuailR wprreumSu s:En2Ro.UCCGIF ............................................................. C-4
xi