Term
- Estimates the economic effect a given base/installation has on its local area
- 50 data elements / 5 tables
- computed by summing annual base payroll expenditures and estimated dollar value of indirect jobs created |
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Definition
| What is an Economic Impact Analysis? |
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Term
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Definition
| To whom is the Economic Impact Analysis applicable? |
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Term
five tables
input of approx 50 data elements |
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Definition
| How many tables does the EIA spreadsheet model have? |
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Term
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Definition
| To whom should a waiver request be submitted if a base desires to use a different method for their EIA? |
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Term
- Systematic approach to the problem of choosing the best method of allocating scare resources to achieve a given objective
- Technique to give decision makers a means to make informed decisions
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Definition
| What is an Economic Analysis? |
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Term
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Definition
| Which element of the EA states the problem that is to be met by the alternatives under study? |
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Term
Sensitivity (Risk) Analysis
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Definition
What should be performed for an EA because of uncertainty in decision making?
Determine the effect of uncertainty - |
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Term
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Executive Summary
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Prepare statement of objectives
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List assumptions and constraints (ground rules)
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Identify alternatives
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Identify and estimate benefits and costs
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Rank alternative using economic measures-of-merit
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Perform sensitivity and risk analysis
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Prepare results and recommendation (documentation)
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Definition
| What are the steps in the EA process? |
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Term
comprehensive, broad decision support document that identifies alternatives and presents business, economic,and technical arguments for selecting a "best value" alternative to achieve organizational or functional objectives
Operational business perspective
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Definition
| What is the definition of a Business Case Analysis? |
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Term
| they aid the judgement by providing possible alternatives, their costs, benefits, and risks, and the degree to which they meet program objectives, or are either within budget constraints or required additional funding |
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Definition
| If BCAs do not replace the judgement of decision makers, then what is the purpose of BCAs? |
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Term
BCA - considered broader in scope, more encompassing
- mission perspective
- viewed as "living" document that substantiate initial investment decisions; track success of those decision; breadth of scope
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EA - examine whether more economical to buy or lease |
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Definition
| What is the difference between a BCA and EA? |
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Term
1. Provide stakeholders a decision-making tool
2. Create a reference document in order to explain or defend decisions.
3. Satisfy mandatory requirements as specified in AFI 65-509, Business Case Analysis |
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Definition
| What are the reasons to prepare a BCA? |
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Term
1. Executive Summary
2. Introduction
3. Problem Statement
4. Assumption
5. Approach
6. Feasible Solutions
- current state description - "status Quo" or "As - Is"
- future state Description - "To Be"
7. Cost-benefit Analysis
8. Sensitivity and Risk Analysis
9. Results
10. Recommendation
11. Implementation
- Funding
- Change Management Plan
- Stakeholder Plan
- Communications Plan
- Training Plan
- Key Performance Measures & Outcomes
12. Appendix |
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Definition
| What is the BCA structure? |
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Term
- summaries the analysis, including the recommendation
- include the name and location of the installation, project objective and scope, alternatives, discounted life cycle costs for each alternative, and a recommendation with a brief discussion of relative benefits |
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Definition
| What is included in the Executive Summary section of an Economic Analysis? |
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Term
| State the assumptions, criteria, ground rules, constraints, and variables that influence cost and effectiveness, such as required operational readiness dates, base year of the analysis, use of constant or current dollars, age of existing facilities, assumptions about future energy prices, etc. |
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Definition
| What is required for the assumption section of an Economic Analysis? |
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Term
| - Compare the relative strenghts and weakness of each alternative and identify the most effective alternative accomplishing the mission objective. |
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Definition
| What is accomplished from the Recommendation portion of Economic Analysis? |
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