Remoteness-Compensation Methodology for Benefit/Cost Establishment and Discontinuance Criteria.
FEDERAL AVIATION ADMINISTRATION WASHINGTON D C OFFICE OF AVIATION SYSTEM PLANS
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This report develops a procedure for adjusting the benefitcost BC ratios by which proposals for FAA terminal facilities in remote locations are evaluated. The procedure is applicable to the types of installations for which BC analyses, based on nationwide average data, are incorporated in Airway Planning Standard Number One FAA Order 7031.2B. Without such an adjustment, proposals for facilities in Alaska and other such locations could not realistically be compared with those for facilities in the contiguous 48 states CONUS. The compensatory methodology first adjusts construction and installation costs according to a geographically differentiated index. Staff housing cost is subtracted. Exceptional site-preparation and other cost elements are not discarded, but their cost is made equivalent to the cost of doing the same work at a corresponding CONUS site. Next, for facilities to serve remote communities shown to be exceptionally reliant on air transportation, the ascribed benefits are adjusted upward. This benefit enhancement is proportional to the communities aviation-dependency as determined by the model contained in this report, but it is not permitted to more than double intrinsic benefits. The benefit-enhancement premium is earned by a relatively few sites where large numbers of citizens are without alternative transportation links to the outside world for extended periods. Author
- Terminal Flight Facilities
- Economics and Cost Analysis