Cover Page      

Signature Page _{Revised 4/2006}    

1 Introduction      

Reference the Service-Level Mission Need Statement and Program Requirements, which are addressed in detail in Exhibit 300 Program Baseline, Attachment 1.

Briefly describe important assumptions, constraints, and conditions having major influence on the analysis and its conclusions.  The following should be considered as a minimum:  the assumed remaining service life of the currently fielded capability, the assumed required operational date for the proposed investment, the assumed economic service life of any proposed investment, and the operational framework within which any new investment must function.

List and briefly describe the alternatives analyzed as part of the business case analysis.

Briefly summarize the evaluation criteria and their relative weighting used in evaluating each alternative. Such items as payback periods, assumed lifecycle, cost and benefit ratio, risk/sensitivity analysis, and return on investment should be considered.

2 Business Case Analysis      

Provide general assumptions regarding the schedule for each alternative.  Summarize the schedule analysis results of each alternative’s schedule or the proposed investment program schedule.  The summary should include a discussion of activities taken to generate risk-adjusted schedules for each alternative or the proposed investment program schedule.  This section may augment information in Section I.H.3, Proposed/Current Baseline, in the Exhibit 300.

Briefly summarize the cost analysis conducted to generate high-confidence lifecycle cost estimates for each alternative.  Include the lifecycle cost estimate for each alternative.  Cost estimates shall be presented in base-year and in then-year dollars.  Summarize sensitivity analysis performed on cost drivers and the effect of technical, schedule and cost risk on program cost and schedule.  This section may augment information in Sections I.G.8, Acquisition Costs, and 1.H.3, Proposed/Current Baseline, in the Exhibit 300.

Summarize benefits analysis activities conducted to generate high-confidence lifecycle benefit estimates for each alternative.  Include the lifecycle benefit estimates for each alternative.  For an initial investment decision, the summary should provide enough information to show the differentiation and relative merits of each alternative.  For the final investment decision, the summary should provide more detailed, possible site-specific information, based on a greater definition and understanding and less uncertainty about the proposed investment.  Include at a minimum the ground rules and assumptions, relevant measures for the program, a description of the pre-investment baseline, quantified and non-quantified benefits impacts, FAA benefits, user benefits, and an overall summary of benefits.  This section may augment information in Section I.E.3.A, Quantitative Benefits, in the Exhibit 300.

Summarize the economic analysis conducted for each alternative or proposed investment.  Include the designated discount rate per OMB guidelines to calculate the present-value cost and benefits based on risk-adjusted estimates for benefits and costs.  Include passenger value of time; benefit cost ratio, net present value, and payback period as a minimum.

Summarize risk assessment activity and results.  Include the overall risk ratings for each alternative or for the proposed investment program. Identify major risks and planned mitigation strategies for each alternative.  Discuss the comparative risk assessment for the initial investment decision.  This section may augment information for Section I.F, Risk Inventory and Assessment, in the Exhibit 300.

Summarize activities and results of the Architecture Impact Assessment, Human Factors Assessment, Information Security Assessment, and Safety Assessments.  This section may augment information for Sections II.A, Enterprise Architecture, and II.B, Security and Privacy, in the Exhibit 300.

The Capital Investment Team assesses the budget impact of each alternative against other investment programs in the FAA's financial baseline and their relative contribution to satisfying goals in the strategic plan. When an alternative solution cannot be funded within the capital investment baseline, the Capital Investment Team may propose offsets from lower priority programs. Preliminary budget impact assessments by the Capital Investment Team shape subsequent deliberations of the business case analysis team. This section provides background information for Sections II.A and II.B in the Exhibit 300.

Identify the recommended alternative, if any, and summarize the rationale for the recommendation.  This section may augment Section I.E., Alternatives Analysis, in the Exhibit 300.

3 References      

List documentation used as references in conducting the business case analysis.  Examples of reference documentation include basis of estimates for cost, benefits, and schedule and documentation of the related assessments.  Each reference should include documentation title, originating organization, and date.