CFIRE researchers recently published a guide entitled Using Benefit-Cost Analysis for Evaluating Discretionary Transportation Infrastructure Investment.
This guide uses Transportation Investment Generating Economic Recovery (TIGER) grant requirements to as an example of using BCA as a project selection tool. TIGER as a program relies on benefit-cost analysis (BCA) as a selection criteria for grant recipients. Managers and analysts alike can use BCA guidance from the US DOT and the best practices of TIGER to create a more systematic and robust BCA. This guide applies a BCA framework to a TIGER grant application and uses it as the backbone for developing a compelling and competitive application. The guide follows a nine-step process for preparing a BCA and recommends where and how the results of each step should be incorporated into a TIGER grant application. The guide is informed by the long-term outcome criteria of TIGER, the BCA requirements of US DOT, and circulars on BCA by the Office of Management and Budget. The TIGER program provided funding for a variety of projects and its application requirements are a comprehensive example of what should be included in any infrastructure BCA.
Download the guide.