Advanced Engineering Economics
Post September11, 2001 there has been an increased awareness of terrorism globally and as a result nations have increased spending in regards to combating terrorism. Since 2002, the United States Department of Homeland Security has seen an average annual increase of 6.85% in its budget [1, 2]. Arguments stating that majority of the money and effort spent since 2002 has been wasted have been presented . Specifically looking at the aviation security subset, recognition that the various aviation security infrastructure projects must “be installed in and function as part of operating airports, which, throughout the entire process, must be continue to handle ongoing operational requirements in a competitive and cost-effective manner to the satisfaction and safety”  of involved stakeholders, is a tremendously complex task; whose risks, not properly planned for, can be a cause of project slip. Solution providers must consider this dynamic environment in addition to any internal causes of risks that could affect the project outcome if project success in terms of positive financial performance is to be had. This paper will examine this volatile operating environment in an attempt to provide a quantification method to assess the benefits in the manufacturing, deployment and service of life safety systems in the aviation field. Specifically, a case study in which a cost benefit analysis is conducted from the perspective of the Transportation Security Administration in conjunction with Denver International Airport, of the dynamics surrounding explosive detection equipment that scan checked baggage will be conducted to analyze the effects of the involved risks on the economics of deploying infrastructure pieces in this environment. Correlations between this type of infrastructure construction project and others will be made in an attempt to draw upon proven project management strategies to combat risk and increase profits.
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White, Corey; Narvekar, Kruti; Sengupta, Sowmini; Penmetsa, Srujana; and Boulos, Zeina, "Benefit-Cost Ratio Analysis: Life Safety and Airport Infrastructure Risk Reduction using Counter Terrorism Measures" (2013). Engineering and Technology Management Student Projects. 401.