FAQ

• GENERAL QUESTIONS
• TRAINING RESOURCES
• DOCUMENTATION
• SOFTWARE SPECIFIC QUESTIONS

• IMPORT/ EXPORT FUNCTIONS
• ERROR MESSAGES
• MODULE SPECIFIC QUESTIONS

GENERAL QUESTIONS

Q: What is a BCA?

A: To be eligible for Federal funding assistance, a mitigation project must be considered cost-effective. The FEMA Benefit-Cost Analysis (BCA) is the method used to determine the cost-effectiveness of a proposed mitigation project.

Q: What is a BCR?

A: The Benefit-Cost Ratio (BCR) is a numerical expression of the cost-effectiveness of a project and is calculated as: total project benefits divided by total project cost. Projects with BCRs of 1.0 or greater have more benefits than costs, and are therefore considered cost-effective.

Q: Why is FEMA changing the BCA?

A: The initial BCA program was developed in the early 1990’s. Since then, interim updates have been created to address specific issues. FEMA made the decision to update the program to account for changes in technology and in response to user requests for a simplified and more efficient approach to completing the BCA.

Q: Who has been involved in these changes?

A: FEMA has collaborated with many applicants and subapplicants on enhancements that would make the software more simplified and efficient. So far, more than 200 stakeholders have participated in workshops and meetings used to develop and design the new BCA software, including:

Q: Has the FEMA Mitigation BCA Toolkit been updated?

A: Yes, the new toolkit is more comprehensive and is arranged for ease of use. Additionally, dynamic help within the software will include specific information so the user does not have to search for it.

Q: Is the new software available to download?

A: The latest version of the new BCA software is available for download through the BC Helpline: http://www.bchelpline.com/Download.aspx

Q: Is the new BCA software easier to use?

A: Yes, the new BCA software is designed to simplify the BCA application process so you can complete the application with speed, ease, and confidence. Much like today’s popular tax software package that automates your tax preparation needs by asking simple questions and calculating values, the new BCA software will do much of the same; it will save you time by asking questions pertaining to your project and will calculate values for you based on your data entry and responses to questions. In addition, new features such as a dynamic help window will offer assistance to users by providing links, definitions, and answers to topics and/or content within the BCA.

Q: Where can I find a list of acronyms that are commonly used in BCA?

A: A list of acronyms can be found by accessing this direct link to the glossary on the Resource Kit, http://www.bchelpline.com/BCAToolkit/glossary.html.

Q: What are some of the changes/improvements made to BCA?

A: The BCA reengineering effort consists of five major components: Damage Estimation Methodologies, Risk Analysis, Cost Estimation, Software, and Training.

Some of the improvements to each component include:

Damage Estimation Methodologies

Risk Analysis

Cost Estimation

Software

Training

Q: Have the BCA modules changed?

A: The original BCA program consists of methodologies and software modules for a range of major natural hazards, including:

The new tool incorporates all the same hazards, but has enhanced and consolidated them to allow for a more streamlined approach for meeting the FEMA cost-effectiveness requirements and for the user to address multiple hazards in a single BCA module run.

Q: Have the calculations been updated? How?

A: Yes, the calculations have been updated in several ways. Here are a few examples:

Q: Is it possible to include multiple structures within a project to obtain an aggregate Benefit-Cost Ratio (BCR)?

A: Aggregation is the process of combining two or more buildings and functions (i.e., roads and utilities) in a single BCA. One of the most important features in the new software is the ability to combine multiple structures within a single project and calculate the overall (aggregated) project BCR.

The Hazard Mitigation Assistance (HMA) Unified Guidance for FY 2010 states the following:

Some mitigation activities may reduce future losses for more than one hazard. In these cases, all benefits resulting from the mitigation activity may be combined to determine the BCR.

FEMA software allows for calculating an aggregate BCR for projects that address multiple structures. An aggregate BCA is calculated by dividing the total net present value of benefits for each structure by the total project cost estimate. Aggregation of benefit and cost values is allowed if the structures are proximate, such as located within a neighborhood or subdivision. With the exception of the aggregation of property acquisition and structure demolition or relocation and structure elevation within the same subapplication, benefits cannot be aggregated across mitigation activity types.

If the project is addressing the mitigation of two hazards for one structure, the project will be evaluated on the aggregate BCR. Multiple hazards can be analyzed by selecting two mitigations for the same structure. To include multiple mitigations for a single structure, select a hazard on the mitigation information screen for the structure (i.e., flood), analyze that mitigation, and then go back to the mitigation information screen for the same structure to select the other hazard (i.e., hurricane wind). Once the benefits have been calculated for both hazards, return to the Project Structures Summary screen to view the aggregate BCR.

Two separate structures, each with a different mitigation activity may not be included within a single subapplication according to the HMA Guidance with the exception noted above. In this case, each structure should be addressed in two separate subapplications each with a unique BCA.

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TRAINING RESOURCES

Q: Will I be trained on the new software?

A: Yes, the FEMA BCA team will use a combination of pre-requisite online and classroom training to support users in their transition from the prior BCA program to the new version of the software.

Q: I already took BCA training will I still be required to take the training?

A: Classroom trainings are currently being conducted using the latest version of the BCA software. FEMA strongly encourages existing BCA users to complete the online Bridge Training, designed to support advanced users transition from the current BCA program to the new version.

For new users, the FEMA BCA team will use a combination of both online and classroom training. The basic online training is designed to be completed prior to the in-depth classroom training session.

Q: How can I obtain a copy of the latest version of the software and a hardcopy of the student manual?

A: You can download the latest version of the software (Version 4.5.5) from the helpline: http://www.bchelpline.com free of charge. Just click on the download software tab and register for the software (this will ensure you are notified of new releases).

The student manual is available through the helpline under the training tab. It is divided into sections o that these files can be downloaded and printed. Please note that we are no longer distributing hard copies of the software and student manual.

Q: How many Continuing Education Units (CEUs) do I earn for completing a benefit cost-analysis (BCA) training?

A: Participants will receive up to 2 CEUs for completing a BCA training, only if they pass the final exam that is given at the end of each session. Certificates will be mailed to participants after completion of the course.

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DOCUMENTATION

Q: Will the user still need to provide complete documentation for each mitigation project?

A: Yes, it is the Applicant and subapplicant’s responsibility to provide a BCA that is reasonable, credible, and well documented, using values supported within the application. A well-documented BCA means that knowledgeable subject matter experts (BC analysts) should be able to re-create the BCA from the supporting documentation and the project application without any additional explanation.

Data Documentation Templates (DDTs) are available on the Resource Kit for each hazard to assist with the collecting and entering of information to meet requirements with in the BCA tool.

Q: Will I still need to enter a structure separately for each hazard?

A: A single project can contain multiple structures and hazards. The BCR will still need to be calculated for each structure, and for each hazard, but the software will automatically compile the BCRs.

Q: Will I still need to provide completed FEMA Elevation Certificates?

A: All mitigation projects involving the elevation or protection of residential or commercial buildings should include completed FEMA Elevation Certificates for each building listed within the application; or, an elevation certificates signed, sealed, and dated by an engineer or surveyor licensed to practice in the state where the mitigation project is to be built.

Q: Has the FEMA discount rate changed?

A: No, the standard FEMA discount rate still remains seven percent as specified by Office of Management and Budget (OMB).

Q: How do you change the Discount Rate (%) in the new BCA software?

A: FEMA Headquarters has developed the new BCA Version 4.5.5 software with a fixed discount rate of 7 percent as required for federally funded projects by the Office of Management and Budget (OMB). FEMA does not plan to allow the user to change the discount rate in the software.

Q: Does the “Building damage that would result in demolition” differ for mobile homes?

A: No, the FEMA standard value of 50 percent must be used for “Building Damage that would Result in Demolition.” If a value other than 50 percent is used, supporting documentation must be provided. Values other than 50 percent should be adequately documented by a consultation with real estate appraiser, economist, local building inspector, contractor, builder or construction company, architect or building engineer, or planner.

Q: Can I still use the BCA Tool if a detailed Scope of Work (SOW) or Cost Estimate isn’t developed?

A: If a detailed cost estimate does not exist, use the BCA Cost Estimator to develop detailed project costs. The BCA Cost Estimator contains typical work items associated with the selected mitigation project type and utilizes a simple series of inquiries, help screens, and input boxes to walk you through five major steps to develop a complete cost estimate for the mitigation project. Estimates can be developed using published, historical, or contractor pricing.

A complete and well-documented SOW is essential to develop an accurate BCA. The costs associated with each item identified in the SOW provide the basis for the BCA, because the cost-effectiveness of a project is determined by comparing the total benefits to the total cost. The cost estimate must have an appropriate level of detail for grant subapplications to be considered for funding by FEMA. Preliminary estimates are applicable for initial project screening or scoping, but detailed costs estimates should be used when submitting project subapplications for funding approval.

SOFTWARE SPECIFIC QUESTIONS

Q: What changes have been made to the software?

A: The reengineered BCA software makes completing the application easier, and helps standardize and speed-up the BCA review process. A few changes to the software include:

Q: Where can I find a list of the most recent updates made to the new software?

A: Recent updates to the software can be found through the BC Helpline: http://www.bchelpline.com/Download.aspx

Q: Can the BCA software be installed on a network?

A: No, the BCA software was designed to be installed on each computer on which it will be used. If it were installed on a network for shared usage, users could easily overwrite each other’s data.

Q: I am having trouble installing the BCA software. Where can I get help?

A: Please see the BCA Software Installation and Troubleshooting Guide: www.bchelpline.com on the Download Software page under “Click here for prerequisites to install the software, installation instructions, and troubleshooting assistance.” If the installation problem is not covered in the BCA Software Installation and Troubleshooting Guide, please contact the FEMA BC Helpline at bchelpline@dhs.gov.

Q: How can I add words or acronyms to the dictionary for spell check?

A: FEMA Headquarters has developed the new BCA Version 4.5.5 software with a fixed dictionary. FEMA does not plan to allow the user to add words or acronyms to the dictionary.

Q: How can I archive structures?

A: Export structures you want to archive, then delete them from the database.

Q: How do I print a screen?

A: There is no “print screen” function within the BCA software. You can use a screen capture program to print screens, or generate the project report and print the pages needed.

Q: How do I print a report of my BCA results?

A: Reports are generated at the project level. Open the project for which you want to generate a report. You can do this either by selecting the project button at the top of the screen to show the “Project Inventory” and opening the project from the inventory, or you can double-click the project from the “Navigator,” which is the menu on the left side of the screen. On the “Project Structures Summary” screen, click the “Print Report” button to generate the report. The report can be printed or saved as a PDF or Excel file.

IMPORT/EXPORT FUNCTIONS

Q: Can I import a project from BCA Version 4.1.3 into Version 4.5.5?

A: Yes. Depending on the type of hazard and mitigation in the project, a couple of extra steps may be required for importing. If the project contains any flood mitigations for which FEMA Flood Diagram 1 was selected, go into each imported project in Version 4.5.5 and select the appropriate new value (1A or 1B). If the project contains any Damage Frequency Assessment (DFA) module runs, we recommend that you review them because numerous validations have been added. If the project contains an Earthquake-Non-Structural mitigation for elevators, you may need to click through the entire project to generate a BCR.

Q: What is the size limit for importing or exporting a file?

A: Limitations are dictated more by the individual system’s capabilities (memory, disk space) than by the BCA software. BCA Version 4.5.5 can import and export large files (a file of 134MB was tested); however, be aware of file size limitations when storing files on hard drives or computer networks, as well as size limitations for electronic mail systems (for example, eGrants allows a maximum file size of 20MB).

Q: My exported project file is too large to upload to eGrants. How can I get it into eGrants?

A: First, try to reduce the size of the BCA project. You can do this by removing any duplicated attachments (you only need to attach documentation in one place—reference the file name in the other relevant Justification fields). You may also be able to reduce the size of the graphic files you are attaching by using a different format or resolution, or by taking screen shots of the relevant portions of large graphic files instead of attaching the whole file, where appropriate. Another option is to remove large attached files and just refer to them in the justification field. The documentation support files may be included separately with the BCA subapplication package.

Q: BCA Version 4.5.5 exports projects as “.zip” files, but some systems do not allow zip files to be transmitted. How can I get my file to such a recipient?

A: Depending on the local security policies of both the sender and receiver, a couple of options are available.

Q: I sent my exported BCA file to someone to review, but it was quarantined. Why?

A: Most likely, the receiving system is set to quarantine files with a “.zip” extension to protect users from accidentally introducing viruses and worms. See the FAQ above for other options to transmit the file.

Q: When I import a project from BCA Version 4.1.3 to the latest version of BCA 4.5, will it be automatically updated with the revised values?

A: No. The values that have been updated in BCA Version 4.5.5 are intentionally not automatically substituted if you import a project from Version 4.1.3. The software was designed this way to prevent historical data from being accidentally changed. For example in the DFA module, the default potable water “Value per Unit of Service ($/person/day)” was corrected from $88/person/day in Version 4.1.3 to $93/person/day in Version 4.5.5. Importing a Version 4.1.3 BCA project using the DFA module with loss of potable water service into Version 4.5.5 does not automatically change the default value of service. To update the value, select another “Type of Service” radio button (i.e., Electrical or Wastewater), then re-select the Potable Water radio button. This will update the Potable Water “Value per Unit of Service ($/person/day)” from $88 to $93.

Q: How do I export a structure in Excel or CSV format?

A: Select “Import/Export” from the toolbar and select the “Structure Export” tab. Select the structures from the displayed list that you want to export and click “Export to Excel” or “Export to CSV.”

ERROR MESSAGES

Q: Why can I see the benefit and cost amounts and Benefit-Cost ration (BCR) or a mitigation project in the “Mitigation Information” screen, but the fields are zeroes in the “Project Structures Summary”?

A: The mitigation has probably been excluded from the project BCR. To check this, go to the “Mitigation Information” screen for the mitigation and make sure the “Include” box is checked to include the mitigation in the calculation of the BCR for the entire project.

Q: Why does the Reports screen display “Report processing cancelled” when I click the Print Report button?

A: At times this message is displayed inappropriately, and the report is really being generated. Wait for a minute or so (depending on the size of the project) to see if the report appears. If no report appears within 1–2 minutes, close the “BCA Report” window and click “Print Report” again. If you continue to have trouble generating the report, contact the helpline for further assistance.

Q: I generated a report for my project, but a lot of data is missing. Why?

A: You may be trying to generate a report for an imported project containing a mitigation for earthquake or hurricane wind, but the hazard data needed to perform the calculations have not yet been imported.

Q: The report shows the message “Error: Subreport could not be shown.” What does that mean?

A: The above message implies that data necessary to generate the report is missing. This happens if you try to generate a report for an imported project containing a mitigation for earthquake or hurricane wind and the hazard data needed to perform the calculations has not yet been imported.

MODULE SPECIFIC QUESTIONS

Loss of Function

Q: How do I determine the “Number of customers served” for the Loss of Function for utilities?

A: The benefits calculation is based on the number of people served, not the number of their customers. Therefore, it is important to enter the number of people, which is usually based on population or the number of people per house.

Q: Where do I find the “Number of people served by police/fire stations” for Loss of Services?

A: This number is available from the stations or from city/community officials. Most cities with multiple stations are separated into districts that should have detailed population information.

Q: Where do I find the “Number of people served by hospitals” for Loss of Services?

A: Because hospitals are typically not operated by cities, the population served might be a complicated value to determine. Cities may have multiple hospitals, and some hospitals serve multiple communities. Some information, such as the number of beds and number of doctors per patient, may be found in annual reports for the hospital or on the hospital Web site. Contact the hospital to obtain their estimate on per capita served. Community planners and/or community officials may also be able to provide these estimates. If these methods are unproductive, provide a reasonable alternate methodology for determining population served with consideration for locations of other hospitals, geography, hospital size (number of beds, number of doctors), etc.

Flood

Q: What is a Depth-Damage Function (DDF)?

A: A DDF is an estimation of physical damage to a building based on a depth of flooding calculated as the percent damage to the structure and the contents. DDFs for displacement and loss of function at various flood depths are also estimated, but given in number of days. DDFs have been selected for various occupancy classes and are incorporated into the damage function library housed within the Version 4.5.5 Benefit-Cost Analysis (BCA) software.

Q: Where can I find the First Floor Elevation (FFE) of my structure?

A: The FFE can be obtained from the elevation certificate of the building. The National Flood Insurance Program requires communities to obtain lowest floor elevation information for newly constructed and substantially improved buildings in the Special Flood Hazard Area. For buildings in Zones A, elevations are measured at the top of the floor, and recorded on the elevation certificate in C2.a, b, d, and e. For buildings in Zones V, elevations are measured at the bottom of the lowest horizontal structural member, and are recorded on the elevation certificate in C2.c. Please reference the Dynamic Help topic “How do I determine the First Floor Elevation (FFE)” on the “Elevations” screen of the BCA software for more information.

Q: In the Flood module, how do I find the total size of a building?

A: The total size of the building can be found on tax records, appraisals, and surveys. The total size consists of the enclosed area within the building, including finished and unfinished basements, and the entire living space; however, it does NOT include porches, garages, car ports, patios, or other outside areas.

For flood mitigation of non-residential buildings use the default depth-damage functions (DDFs), enter only the area of the first floor for total size of the building. The default building and contents DDFs for non-residential buildings only apply to first floor damages.

For non-residential buildings using the library DDFs, enter the appropriate building area for the specific DDF chosen (usually this will be the first floor area) for the total size of the building.

Q: How do I analyze a house with a finished basement?

A: A house with a completely finished basement can be analyzed by making adjustments to the depth damage functions (DDF) for building, contents, and displacement. For houses with finished basements, select “2 or more stories” for the building type and “no” to indicate that the house does not have a basement. The first floor elevation (FFE) should be equal to the elevation of the top of the basement floor. Adjust the DDFs to zero for building, contents, and displacement below the elevation that flood water can enter the house. This adjustment can be made in two ways: a) use the Library DDF type option and select the default DDF, then enter zeros for flood depths below the entry point in the “Before Mitigation User Entered” DDF column, or b) use the Custom DDF type option and enter the default DDF values in the “Before Mitigation User Entered” DDF column starting at the flood depth that flood water enters the building. DDF values for non-integer flood depths must be interpolated and entered with the non-integer flood depth using the Custom DDF type option (flood depth values are not changeable when using the Library DDF type option). The FFE dynamic help from the Version 4.5.5 BCA software illustrates various scenarios. For buildings with finished basements, if the DDFs are not set to zero below the entry point for flood water, the module will greatly overestimate damages and the benefit-cost ratio (BCR) because it will calculate several feet of damages before water can enter the building.

A house with only a portion of the basement finished should be analyzed differently. The recommended approach is to conduct two BCA runs by dividing the house into two structures.

For example: A 1,000-square-foot (sf) house is one story with a full (1,000 sf) basement, where 60 percent (600 sf) of the basement is fully finished and 40 percent (400 sf) is unfinished.

Add two structures into the flood module and make the following adjustments. Begin with the BCA module run for the first structure, which is the part of the house with the finished basement and the first floor area directly above it. Select a 2 or more stories residential building type, and no basement. The building area is the 60 percent of the first floor area plus the finished basement area: (600 sf) + (600 sf) = 1,200 sf. Set the FFE equal to the top of the finished basement floor. Adjust the DDFs to account for the elevation that flood water can enter the house.

The second BCA module run will be for the second structure representing the unfinished basement and the first floor area directly above it. Select a one story house with basement. The building area is 40 percent of the first floor area plus the unfinished basement area: (400 sf) + (400 sf) = 800 sf. Set the FFE equal to the top of the first habitable floor (in this case the above grade floor). The DDFs do not need to be adjusted.

Do not enter the full project cost in each structure because that will be double counting the project cost. BCA Helpline recommends entering the total project cost in one of the structures and zero project cost in the other.

EARTHQUAKE

Q: The Loss of Service “benefit for critical facilities” is not incorporated into my final report for the Earthquake-Structural module. Am I getting credit for it?

A: No, currently the Earthquake-Structural module only incorporates the annual budget values entered for “Other” loss of service types. This is a known bug in the Version 4.5.5 Earthquake-Structural module. This bug will be corrected in the next release of the software. To ensure the final BCR adequately incorporates the Loss of Service for critical facilities, calculate the Loss of Service total under the appropriate critical facility by answering the loss of service questions and pressing the “Show Total” button. Manually transfer this value, multiplied by 365, into the Annual Budget under the “Other” radio button. Select “Other” using the drop down menu under the Service Name and provide adequate justification and documentation in the Justification/Documentation field at the bottom of the page. Such justification might read: “Using Other Services annual budget as workaround for known bug with critical service calculations. See fire station, police station, and hospital loss of service calculations for the daily value of service.”

Q: How is displacement time and functional downtime computed in the Version 4.5.5 Earthquake-Structural module?

A: Please refer to the “Analysis” tab of the “Seismic Data” screen in the Earthquake-Structural module (as shown in the screenshot below):

Average annual loss – Relocation (displacement) is computed using the monthly and one-time costs entered on the “Economic Values” tab in conjunction with the recovery time from HAZUS Table 15.10 (see below) without the multiplier from HAZUS Table 15.11 (see below). Recovery time for each occupancy class (building use) includes clean-up time, repair time, and other items related to implementing repairs such as decision making, contract negotiation, preparation of contract documents, inspections, mobilization, and occupancy following construction completion.

Average annual loss – Loss of Rental Income is computed using the monthly rental loss entered on the “Economic Values” tab in conjunction with the recovery time from HAZUS Table 15.10 (see below) without the multiplier from HAZUS Table 15.11(see below). Rental properties will incur a loss of rental income while the damaged building is being repaired for the full recovery time.

Average annual loss – Loss of Business Income (includes loss of public service using the annual operating budget [AOB] for public facilities) is computed using the monthly income loss or AOB, as appropriate, in conjunction with the recovery time from HAZUS Table 15.10 (see below) multiplied by the interruption time multipliers from HAZUS Table 15.11 (see below). The ability of a business or public service to begin to operate in a time period less than the recovery time from Table 15.10 is reflected for occupancy classes (building use) with multipliers (from Table 15.11) less than one.

Reprinted from the HAZUS-MH MR3 Technical Manual, FEMA 2003

Reprinted from the HAZUS-MH MR3 Technical Manual, FEMA 2003

The Version 4.5 Earthquake-Structural module displays functional downtime (see the table below) for loss of business income or loss of public service. This table reflects the values from HAZUS Table 15.10 multiplied by the values from HAZUS Table 15.11. The values below are not used for displacement unless the multipliers in Table 15.11 are equal to one. The table below can be accessed on the “Vulnerability” tab of the “Seismic Data” screen by clicking on the “Show All Input Parameters” button. The displacement days from HAZUS Table 15.10 are not displayed in the module but are used in the analysis, as previously explained.

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