REMOTENESS-COMPENSATION METHODOLOGY FOR BENEFIT/COST ESTABLISHMENT AND DISCONTINUANCE CRITERIA

This report develops a procedure for adjusting the benefit/cost (B/C) ratios by which proposals for FAA terminal facilities in remote locations are evaluated. The procedure is applicable to the types of installations for which B/C 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)

  • Corporate Authors:

    Federal Aviation Administration

    800 Independence Avenue, SW
    Washington, DC  USA  20591
  • Authors:
    • Loughlin, R M
  • Publication Date: 1977-1

Media Info

  • Pagination: 57 p.

Subject/Index Terms

Filing Info

  • Accession Number: 00167012
  • Record Type: Publication
  • Source Agency: National Technical Information Service
  • Report/Paper Numbers: FAA-ASP-76-7
  • Files: NTIS, USDOT
  • Created Date: Oct 29 2002 12:00AM