Transportation agencies can make more informed, cost-effective decisions about highway projects with the help of the Federal Highway Administration’s (FHWA) new online benefit-cost analysis tool, BCA .net. This browser-based tool is designed to provide valuable support to the highway decision-making process, as agencies look at the expected performance of a project and evaluate which project alternative will result in the greatest net benefit and the most return on taxpayer dollars.
The program also can help agencies determine the optimal timing for a project. It can be used to evaluate projects involving new lane capacity and other improvements to operational efficiency, as well as reconstruction and preservation strategies.
BCA.net evaluates projects based on capital and maintenance costs data, the project’s physical and performance characteristics, forecast travel demand and the economic value of benefits to users. Users must input data on such items as the project facility type (urban freeway, urban arterial, etc.); type of improvement being considered; project length; number of lanes; pavement condition and deterioration rate; crash rates; and current and projected traffic levels. Other items required include vehicle mix data; vehicle type and occupancy data; and right-of-way, construction and operation and maintenance costs. BCA.net provides default data for economic factors such as the value of travel time and vehicle operating costs and also calculates travel-time savings based on facility characteristics and projected traffic levels. Users also can override any of the default data in the model by putting in location-specific data.
The user then specifies a base strategy and alternative strategies for improving and maintaining the facility. BCA.net calculates the traffic impacts and agency and highway user costs and benefits for each strategy and compares them. The model generates measures such as the net present value, benefit-cost ratio and rate of return for the alternative strategies relative to the base strategy.
BCA.net can produce reports for all analysis results and their associated statistics. The tool also can be used to perform risk analysis. The risk analysis features of the program allow the user to develop probabilistic inputs and results, thus taking into account the uncertainty associated with analysis inputs.
To begin using BCA.net, visit fhwaapps.fhwa.dot .gov/bcap/. The program is available at no cost and does not require the installation of any special software. Three walk-through training exercises are available under the “Help” section of the online tool. The first exercise guides users through the basic features of the model as it performs a sample project evaluation. The two additional exercises highlight the tool’s advanced features. Users are strongly encouraged to walk through the exercises before getting started.
Up to 10 data sets can be stored on the BCA.net server. Data also can be archived on the user’s computer and restored to the BCA .net system for use in subsequent sessions.
Agencies can learn more about BCA .net at the FHWA’s Economic Analysis for Highway Decision-Makers workshop. This free one-day workshop highlights the use of economic analysis tools to support highway decision making, including fundamental concepts and such economic analysis methods as life-cycle cost analysis and benefit-cost analysis. The second half of the workshop features interactive training on using BCA.net. For more information on the workshop or using economic analysis methods in transportation decision making, visit www.fhwa.dot.gov/infrastructure/asstmgmt/economic.htm.
