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. |
7 C.F.R. 3600 app D to Subpart B of Part 4280