This handbook is designed to provide guidance for preparing economic analyses used to guide facilities investment decisions. It provides economic analysis policy and procedures to be used by Navy commands and field offices that prepare and review facility economic analyses. The handbook utilizes policy provided in Office of Management and Budget (OMB) Circular A-94 and Department of Defense Instructions.
This edition, like previous editions, is built around the concepts of engineering economics. The “life cycle cost” approach to cost/benefit analysis, using a seven step process, is emphasized.