FAAXX807: NextGen Weather (Wx) Processor (NWP)

The NextGen Weather Processor's (NWP's) Return on Investment (ROI) equals 4.042. This is calculated as the Sum of the Total Gain(s) from the Investment (Benefits) , which equals $842 (PV $M) minus the Cost of Investment (Total Cost) , which equals $167 (PV $M), divided by the Cost of Investment (Total Cost) , which equals $167 (PV $M). There are several benefits categorized into three (3) main elements: flight efficiency, safety, and legacy system cost avoidance. The cost avoidance benefits (i.e., future costs to the FAA that can be avoided), flight efficiency benefits (i.e., fuel savings and/or delays) and safety benefits (i.e., avoided fatalities, injuries, and aircraft damage) have elements that are considered internal to the government. The flight efficiency and safety benefits have elements that are considered external to the government. NWP's ROI was determined through economic analysis results. Lifecycle costs were determined via a variety of estimating methodologies used to derive a point estimate for the system. Costs were time-phased and inflated using the latest Office of Management & Budget (OMB) inflation indices to calculate the Then-Year point estimate. Risk analysis was performed to calculate the High-Confidence Lifecycle Cost estimate for the Legacy Case and the system. The flight efficiency benefits are quantified in terms of fuel savings and/or delays (airborne, ground, gate) and monetized using values for fuel cost, Airline Direct Operating Costs (ADOC's) which considers the cost of fuel, crew, and maintenance, and Passenger Value of Time (PVT). Changes in the number of cancellations and diversions were also quantified where applicable and monetized using standard values. The safety benefits are quantified in terms of projected accidents and monetized using values for avoided fatalities, injuries, and aircraft damage. Other economic analysis results for the NWP System include a Benefit-to-Cost Ratio of 5.22, an Internal Rate of Return (IRR) of 35%, and a Payback Year of 2028.

• Total
• Cost Pools