Benefit-cost analysis (BCA) is a standardized, systematic way to count the benefits of a mitigation project and to compare these benefits to the costs of mitigation. A complete benefit-cost analysis counts all of the significant direct benefits of a mitigation project. A benefit-cost analysis always involves looking at damages and losses twice: first, before mitigation (the “as-is” situation) and second, after mitigation. The benefits of a mitigation project are simply the difference in expected damages and losses before and after the mitigation project are completed.
To be eligible for federal funding assistance through FEMA’s Hazard Mitigation Grants programs, a mitigation project must be cost-effective (benefit-cost ratio of 1.0 or greater using the FEMA BCA software). FEMA’s BCA Tool [Version 4.8 or 5.0] to assist Sub-Applicants to determine the cost-effectiveness of their proposed mitigation project. The FEMA BCA software (and related training materials) are available for download at: http://www.fema.gov/benefit-cost-analysis#1.
When BCA classroom training is available by MEMA, it will be announced through the Training Registration System . Training is also available online: IS-276: Benefit-Cost Analysis (BCA) Fundamentals Training: http://training.fema.gov/EMIWeb/IS/courseOverview.aspx?code=IS-276. For help with the Benefit-Cost Analysis; software download or installation, operation of the application, or technical questions; please reach out to the BCA Helpline: 1-855-540-6744 or email: firstname.lastname@example.org
Cost Effectiveness Determinations for Acquisitions and Elevations in Special Flood Hazard Areas
What is a Benefit?
Benefits of a proposed mitigation project can be sorted into four main categories:
|Avoided Physical Damages|
|Avoided Loss-of-Function Costs|
Displacement costs for temporary quarters
Loss of rental income
Loss of business income
Disruption time for residents
Loss of public services
Economic impact of loss of utility services
Economic impact of road/bridge closures
|Avoided Emergency Management Costs|
Emergency operations center costs
Evacuation or rescue costs
Temporary protective measure costs
Debris removal and cleanup costs
Other management costs