Framing BCA

The analysis framework defines the basic evaluation process structure. It is important to clearly define this framework early in the process because it allows stakeholders to understand the process, allows consistency between different evaluations, defines the information that will be needed for analysis.

The analysis framework usually defines the following factors:

• • Analysis Purpose: Will the analysis be used to determine if the project should be undertaken? Will it be used to determine which of a group of projects should be selected or which should have highest priority?

  • Should you conduct BCA for your purpose? When is BCA most useful?

  • Should you also consider economic impact analysis? How is that perspective different from BCA?

  • Appropriate level of effort for the analysis: Given the cost of the project, how much effort should be devoted to benefit-cost analysis and which aspects should receive the most attention?

  • How will the results of the analysis be presented? To whom?