FEMA BCA Software

RESOURCE DESCRIPTION

The Federal Emergency Management Agency (FEMA) Benefit-Cost Analysis (BCA) software is developed and used by FEMA to determine the cost effectiveness of proposed mitigation projects. The output of the software is a benefit-cost ratio (BCR), which is equal to the net total anticipated benefits (in dollars) of a particular mitigation project divided by the total anticipated costs. This measure is one of the factors considered when FEMA determines how best to allocate mitigation grant funds. BCA is performed for all hazard mitigation grant programs. These include Flood Mitigation Assistance (FMA), Pre-disaster Mitigation (PDM), Severe Repetitive Loss (SRL), and Repetitive Flood Claims (RFC). Additionally, BCA is performed for Public Assistance (PA) applications that have mitigation components. BCA projects are represented in the software as groups of structures that are being considered for mitigation projects. The software guides users through calculating a BCR for each structure based on the types of mitigations proposed for the structure. Each proposed mitigation contains several questions and computations that define the monetary costs and benefits of applying the mitigation to the structure. Factors considered when estimating the benefits of a mitigation project include the lives that will be protected, as well as buildings or infrastructure that will be protected, their replacement value, and the value of their contents. Factors considered when estimating costs include cost of equipment, labor, materials, subcontracts, maintenance, and volunteers. The average annual losses anticipated both prior to mitigation and after mitigation are also considered.

BROAD DATA CATEGORIES

• Grants and assistance

SPECIFIC DATA ELEMENTS

• Hurricane
• Earthquake
• Flood

GEOGRAPHIC COVERAGE

US