State and local transportation agencies are encouraged to use benefit-cost analysis for project selection, and proposals are occasionally made to require benefit-cost analysis as part of the planning and project development processes for all publicly funded freight projects. Such a requirement already exists for the U.S. Army Corps of Engineers, which must conduct benefit cost analysis for its civilian navigation and flood control projects. The experience is mixed, with some arguing that benefit-cost analysis has saved the nation from wasteful projects while others argue that benefit-cost analysis has paralyzed decision making, encouraged underinvestment, or put environmental restoration efforts at an inappropriate disadvantage. Congress has recently required that the Corps convene expertise from the National Academies to review its benefit-cost analysis methods. If state departments of transportation and metropolitan planning organizations are to be required or strongly encouraged to apply benefit-cost methods to all freight investments, then the experience of the Corps should be carefully considered so that mistakes are not repeated and successes are built upon.

The objective of this research is to summarize past studies and testimonies on the effectiveness of benefit-cost analysis at the Corps of Engineers, supplemented by interviews with past and present Corps officials and stakeholders.

Comments: The contractr's final report is available at

https://onlinepubs.trb.org/onlinepubs/ncfrp/docs/NCFRP22_FR.pdf

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