*Originally Published in March 2018. Updated for 2020
When pursuing federal funding for a mitigation project, making a strong case for how the project will benefit the public is imperative. For years, conducting a BCA has been the go-to method for demonstrating a project’s benefits.
A benefit-cost analysis (BCA) is an equation that measures the cost-effectiveness of a proposed mitigation project throughout its service life. The federal government uses the result of a BCA — known as a benefit-cost ratio (BCR) — to decide how cost-effective their funding assistance will be in a given project. From the perspective of many funding agencies, a project is cost-effective when the benefits outweigh the costs.