PAM 415-3 — Economic Analysis: Description And Methods
PAM 415-3 governs economic analyses supporting Army military construction and Army Family Housing Construction projects.
- Publication number: PAM 415-3
- Title: ECONOMIC ANALYSIS: DESCRIPTION AND METHODS
- Date: 09/28/2018
- Proponent: COE
- Status: ACTIVE
View PAM 415-3 on armypubs.army.mil
It covers the economic analysis process, including alternatives, life-cycle costs, benefits, sensitivity analysis, and reporting results. It also addresses project approval, cost estimation, and requirements for submitting analyses for review.
Applies to: It does not apply to Productivity Capital Improvement Program, Energy Conservation Investment Program or any other analysis type not specifically listed above.
Topics covered
- Military construction approval
- Economic analysis process
- Life-cycle costing
- Cost estimation
- Benefits analysis
- Sensitivity analysis
- Present value and discounting
- Housing economic analysis
Questions and answers
When must an economic analysis be submitted for a military construction project?
Each EA must be submitted to the attention of the USACE Economist Reviewer for review and approval prior to consideration of the project by the MILCON Integrated Programming Team (IPT). (paragraph 1-2)
What can happen if a military construction project lacks a proper economic analysis?
Lack of a proper EA in support of projects can result in deferral or elimination of the projects from the MILCON program and a loss of DA MILCON funding for the fiscal year (FY). (paragraph 1-2)
When is an economic analysis required for a Major MILCON project?
Whenever you exceed the localized maximum threshold to qualify for a Minor MILCON project, then you must have an EA since the project now becomes a Major MILCON project. (paragraph 1-6)
What is the exception to the requirement to perform an economic analysis?
There is only one exception to the requirement to perform an EA: when proposed actions are specifically directed by legislation, which included a legislative mandate specifying an exemption to the requirement for an EA. (paragraph 1-6)
Can an alternative be classified as non-viable because of its cost?
Alternatives cannot be classified as non-viable based on the assumption of prohibitive cost. (paragraph 1-2)