U.S. Army Cost-Benefit Analysis provides a standardized framework used by the U.S. Army—particularly the Corps of Engineers—for evaluating the economic justification of public investments, including water resources, infrastructure, and environmental projects. It guides analysts in comparing project alternatives based on their total costs and expected benefits over time.
The methodology emphasizes quantifying direct and indirect benefits such as flood damage reduction, navigation efficiency, water supply reliability, and environmental improvements. Costs include construction, operation, maintenance, and potential negative impacts. The approach applies discounting to calculate net present value and determine whether benefits exceed costs.
It also stresses risk and uncertainty analysis, consideration of non-market impacts, and transparent documentation. Overall, the framework supports objective, evidence-based decision-making to ensure that public investments deliver maximum net economic and social benefits.
