ULC Purple Book Course Description

Economic Analysis MILCON
Control Number: 101
Course Number: 35EAM01A
CEUs: 0.0     PDHs: 0.0     LUs: 0.0     PDUs: 0.0     CMs: 0.0     ACE: 0.0     CEHs: 0.0
This course explains the fundamental principles and procedures for developing economic analyses (E/A) in support of military construction and capital investment projects. The practical application of economic principles is provided through "hands-on" computer training sessions in which participants develop economic analyses using the Army's economic analysis package, ECONPACK. Economic Analysis is an integral and required justification for military construction projects and capital investment proposals. This course is specifically designed to enable participants to prepare adequate, analytically accurate economic analyses in support of project funding requests to OSD and Congress. Lectures, work group exercises, practical exercises, and computer sessions are used to familiarize participants with the theoretical principles and automated capability to formulate, develop, document, and evaluate E/A.

Specific topics include (a) an overview of economic analysis as it relates to the planning, programming, and review process; (b) the economic analysis process: the logical sequential process used to develop E/A; (c) life-cycle cost analysis: terms and definitions; (d) the concept of equivalence, the time value of money, and the discounting and treatment of inflation; (e) life-cycle cost calculations: net present value, savings-to-investment ratio, discounted payback period; and (f) sensitivity analysis: testing data uncertainties. Students, using the automated system, ECONPACK, will perform calculations, document, and report analysis results. The course covers the automatic transfer of completed economic analyses to a DD Form 1391.

Nominees must be assigned to current positions involved with planning, preparing, programming, or reviewing requests for government military construction or military capital investment projects.


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