Appendix D - Appendix D to Subpart B of Part 4280—Feasibility Study Components
Executive Summary
| Provide an overview to describe the nature and scope of the proposed project, including the purpose, project location, design features, capacity, and estimated capital costs. Include a summary of the feasibility determinations made for each applicable component. |
Economic
| What is it? | Cost benefit analysis. | What are the factors to consider? | Minimum amount of inputs (labor, infrastructure, utilities, renewable resources, feedstocks) to operate successfully. | Contracts in place and contracts to be negotiated, including terms and renewals. | Environmental risks. | Cost of project relative to the increase in revenues or benefits provided. | Overall economic impact of project including new markets created and economic development. |
Market
| What is it? | Analysis of the current and future market potential, competition, sales or service estimations including current and prospective buyers or users. | What are the factors to consider? | Competition. | Type of project: Service, product or commodity based. | Target market, new versus established. | End user analysis, captive versus competitive. | By-product revenue streams. | Industry risk. |
Technical
| What is it? | Analyzing the reliability of the technology to be used and/or the analysis of the delivery of goods or services, including transportation, business location, and the need for technology, materials, and labor. | What are the factors to consider? | Commercial availability. | Product and process success record and duplication of results. | Experience of the service providers. | Roads, rail, airport infrastructure. | Need for local transportation. | Labor market. | Availability of materials. | Use, age, and reliability of technology. | Construction risk. |
Financial
| What is it? | Analysis of the operation to achieve sufficient income, credit, and cashflow to financially sustain the project over the long term and meet all debt obligations. | What are the factors to consider? | Commercial or project underwriting. | Management's assumptions. | Accounting policies. | Source of repayment. | Dependency on other entities. | Equity contribution. | Market demand forecast. | Peer industry comparison. | Cost-accounting system. | Availability of short-term credit. | Adequacy of raw materials and supplies. | Sensitivity analysis. |
Management
| What is it? | Analysis of the legal structure of the business or operation; ownership, board and management analysis. | What are the factors to consider? | History of the business or organization. | Professional and educational background. | Experience. | Skills. | Qualifications necessary to implement the project. |
Recommendation
| Conclude with an opinion and recommendation presented by the consultant. |
Qualifications
| Provide a resume or statement of qualifications of the author of the feasibility study, including prior experience. |