USACE Recommended Best Practices for Cost and Schedule Risk Analysis

This guide outlines the recommended best practices for conducting Cost and Schedule Risk Analysis (CSRA) within the U.S. Army Corps of Engineers (USACE). It details the origins of CSRA requirements stemming from the Water Resources Development Act (WRDA) of 2007, which mandates risk analyses for water resource projects during the planning phase. The document emphasizes the importance of these analyses in identifying cost and schedule risks, thereby aiding in the calculation of Total Project Cost (TPC). It specifies that the CSRA process is applicable to both Civil Works and Military Construction (MILCON) projects, with distinct methodologies based on project cost thresholds. The guide also includes information on the roles of project managers and delivery teams, as well as the necessary documentation and methods for effective risk analysis. Furthermore, it highlights the significance of annual updates and the use of risk-based contingencies to minimize funding requests and project cost exceedances.