Benefit-Cost Analysis (BCA) for the Airport Improvement Program (AIP)

Airports

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Benefit-Cost Analyses (BCAs) help identify proposed projects that will provide a net benefit to the aviation community. We require BCAs for all capacity projects that require more than $10 million in AIP discretionary funds but can request them for less costly projects, as well.

Airport Benefit-Cost Analysis Guidance

• Federal Register Notice: Modifications to Benefit Cost Analysis (BCA) Threshold (PDF) - (October 24, 2011)
• Program Guidance Letter 12-01: Revised Guidance on BCA Threshold (PDF) - (October 28, 2011)
  Discusses threshold change raising the point at which a BCA is required from $5 million to $10 million in requested AIP Discretionary funds over the life of the project.
• FAA Policy and Final Guidance Regarding Benefit-Cost Analysis on Airport Capacity Projects for FAA Decisions on AIP Discretionary Grants and Letters of Intent (PDF) - (December 15, 1999)

Additional BCA Guidance

• Airport Benefit-Cost Analysis Guidance (PDF)
  • Addendum to FAA Airport Benefit-Cost Analysis Guidance, June 14, 2010 (PDF)
  • Calculating Delay Propagation Multipliers for Cost-Benefit Analysis, Mitre, February 2010 (PDF)
• Airway Planning Standard Number One, Order 7031.2c (PDF)
• Economic Analysis of Investment and Regulatory Decisions (PDF)
• Economic Values for Evaluation of FAA Investment and Regulatory Decisions
  • Revised Department Guidance: Treatment of the Value of Preventing Fatalities and Injuries in Preparing Economic Analysis, February 2008 (PDF)
  • Final Report, Revised October 3, 2007 (PDF)
  • Draft Final Report, December 31, 2004 (PDF)
  • Data Files (ZIP)
• Estimating the Regional Economic Significance of Airports (PDF, 1.67 MB)
• Planning Information Needed for FAA Headquarters Review of Benefit Cost Analysis (BCA) (PDF) - (March 31, 2006)
• Principles for Federal Infrastructure Investments (Executive Order 12893) (PDF) - (January 26, 1994)

See also . . .

• AIP Handbook, Order 5100.38
• AIP Program Guidance Letters (PGLs)
• ACRP Synthesis 13: Effective Practices for Preparing Airport Improvement Program Benefit-Cost Analysis

Contacts