scope:

Purpose

a. This Department of the Army (DA) pamphlet (PAM) supports installation analysts in understanding and developing economic analyses (EAs). It explains how to conduct EAs in support of military construction Army (MCA), Base Realignment and Closure (BRAC), military construction Army Reserve (MCAR), military construction National Guard (MCNG), and Army Family Housing Construction (AFHC) projects and how to report results. It does not apply to Productivity Capital Improvement Program, Energy Conservation Investment Program or any other analysis type not specifically listed above. Office of the Secretary of Defense (OSD) guidance on economic analyses for privatized housing and lodging is contained in the Department of Defense (DOD) 4165.63-M.

b. This pamphlet provides enough information that an entry level analyst will be able to use it as a reference to perform EAs for MCA; BRAC, MCAR; AFHC, and MCNG projects. In this document, MCA and BRAC are denoted by military construction (MILCON). (MILCON is a compound word of the words military and construction.) It describes the complete economic analysis (EA) process and the analytical tools needed to perform EAs, as well as essential data and reporting requirements. This document will be useful to all persons involved in the EA process, from those who assist in providing data to be included into the EA, to those who make decisions using results of the EAs. Entry level persons may require close supervision when undertaking tasks as part of the EA process, whereas journeymen and supervisors should be formally trained in EA.

c. All methods required to perform an EA for the MILCON process are provided in this document. It is self-contained in that the complete process of preparing an EA is described in detail with explanations of terminology, equations, and reporting elements. Although the report is directed toward the Major MILCON process, the basic EA procedures can be used for any EA.