1. Cost-Benefit Analysis

Is there an AFG accepted formula for a cost-benefit analysis?

Ben

2. I don't think AFG has any standard on this. It's a peer review issue, so what you use needs to be reasonable and understandable. i.e. cost of bunker gear divided by 10 year life divided by citizens impacted=a reasonable number.

earl (no, don't use 30 years for bunkers--even though it may take that long to replace them again!! )

3. Cost-benefit is calculated as follows:

Cost of project

divided by

Benefit of project.

More specifically, something like this, for AFG:

Cost of project divided by (population served times years of service)

So for example, a \$100,000 project that serves a population of 4,000 for 10 years would be calculated as:

\$100,000 \$100,000
--------- = --------- = \$2.50
4,000 * 10 40,000

So the cost-benefit of this is \$2.50 per person, per year. Remember that the time element is critical; if you dilute this example down to one year (and the project is not a one-year project), you have \$25 per person, which is high.

4. Crystal Clear!! Thanks for the help!

Ben

5. cost benefit

ok.......\$ 500,000 quint

4500 residents
20 yars service life

cost benefit is : \$ 5.55 per

yes?
and is that a good c/b

6. Probably not

7. Is an \$3.06 a reasonable cost/benefit ?

8. If my memory is correct, Kurt Bradley mentioned to me that under \$2 is a competitive cost/benefit, but I don't know for vehicles.

My department is putting in for our first engine and we are around \$2.30-\$2.50 per person cost/benefit

9. Is the cost/benefit on the total \$ of project, or is on the AFG share of grant ?

10. Originally Posted by sarg77
Is the cost/benefit on the total \$ of project, or is on the AFG share of grant ?
Very good question....

11. It would make a big difference for us,because of money down on project. it would be in the \$2.37 range.

12. I would think that the federal government would be concerned with how beneficial their money would be. So I believe I would base it on the federal amount in this instance. However, if you are only matching the 5%, I would put the total grant amount in as to not confuse anyone. I believe I just talked in a circle!!! Stay Safe.

Kelly

13. Originally Posted by sarg77
It would make a big difference for us,because of money down on project. it would be in the \$2.37 range.
Exactly, it would make a huge difference for the same reason as well.

Beth

14. Originally Posted by imafireman
I would think that the federal government would be concerned with how beneficial their money would be. So I believe I would base it on the federal amount in this instance. However, if you are only matching the 5%, I would put the total grant amount in as to not confuse anyone. I believe I just talked in a circle!!! Stay Safe.

Kelly

Dont discount the value of a circle
NASCAR has done well for themselves

15. Originally Posted by imafireman
I would think that the federal government would be concerned with how beneficial their money would be. So I believe I would base it on the federal amount in this instance. However, if you are only matching the 5%, I would put the total grant amount in as to not confuse anyone. I believe I just talked in a circle!!! Stay Safe.

Kelly
I feel like Iam in a circle !!!

16. Right or wrong, here's the mental approach i take to my Cost/Benefit section:

The Cost/Benefit section of the narrative is a place to explain what will be gained by the funding we receive. Some of that will be word kind of stuff that captures the reviewer's attention--"What BENEFITS will we get??" (benefit). The formula part kind of helps the reviewer relate to it COSTS in a way other than XX thousand of greenbacks. Takes both elements to make a clear statement.

I'm not saying the formula isn't important, but it's function is to help the reviewer see the value of the project.

earl (my opinion only, no reflection on anyone i've learned from here!!)

17. We are submitting for a brush unit, a Type 6. We are a rural community that protects 8500 residents. The cost of our project is \$99,500.

We based our formula on: 8500 * 15 years.

Our ratio is \$.78 per resident.

It doesn't seem right but based on the formula, thats the number.

How deep does the review committe look at this for brush units? We have one on loan from the PA Dept of Forestry and it was just plucked out of a field from our latest fire this week. The mud was up to the top of the fender wells. It is over 22 years old and we need help. Any other ideas that would help. My grant is done but any help would be great. Thanks.

Joe

18. Cost benefit

We were under \$1 per use and effective population impact on both the engine and SCBA this year, and both were funded. If my memory serves me correctly \$1 is the magic number.

Earl makes the greatest point, the intangibles are critically important as well. Emphasize both points.

19. \$1
Dang ! I will never get it down that far
Does anybody know if you can use automatic-aid population?

20. Originally Posted by montco65
We are submitting for a brush unit, a Type 6. We are a rural community that protects 8500 residents. The cost of our project is \$99,500.
Joe
Joe,

Just out of curiosity, have you applied to replace this unit in the past? Just knowing your current fleet, I'd be concerned about making the computer.

21. Originally Posted by sarg77
\$1
Dang ! I will never get it down that far
Does anybody know if you can use automatic-aid population?
Sorry Sarg, not in the intial computer run. You can talk it up in your narrative but you can only count YOUR first in population in the computer block.

22. Originally Posted by WJVaughn
Sorry Sarg, not in the intial computer run. You can talk it up in your narrative but you can only count YOUR first in population in the computer block.
Thanks, Thats what I thought,just have to get by that &\$%@@% computer !!
Hopefully my 36 year old, bad shape pumper will make it for me .
Sarg

23. Has anyone not included actual number for cost ben in there application?

24. Originally Posted by sarg77
\$1
Dang ! I will never get it down that far
I have in my notes (I believe from Kurt) that \$2.50 is a good c/b.

25. Originally Posted by befferk
I have in my notes (I believe from Kurt) that \$2.50 is a good c/b.
That is closer to my situation !!!!
Thank you

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