how to conduct a feasibility study
the exact format of a feasibility study will depend on the type of organization that requires it however the same factors will be involved even if their weighting varies although each project can have unique goals and needs there are some best practices for conducting any feasibility study once the initial due diligence has been completed the real work begins components that are typically found in a feasibility study include the following examples of a feasibility studybelow are two examples of a feasibility study the first involves expansion plans for a university the second is a real world example conducted by the washington state department of transportation with private contributions from microsoft inc officials at a university were concerned that the science building built in the 1970s was outdated considering the technological and scientific advances of the last 20 years they wanted to explore the cost and benefits of upgrading and expanding the building a feasibility study was conducted in the preliminary analysis school officials explored several options weighing the benefits and costs of expanding and updating the science building some school officials had concerns about the project including the cost and possible community opposition the new science building would be much larger and the community board had earlier rejected similar proposals the feasibility study would need to address these concerns and any potential legal or zoning issues the feasibility study also explored the technological needs of the new science facility the benefits to the students and the long term viability of the college a modernized science facility would expand the school s scientific research capabilities improve its curriculum and attract new students financial projections showed the cost and scope of the project and how the school planned to raise the needed funds which included issuing a bond to investors and tapping into the school s endowment the projections also showed how the expanded facility would allow more students to be enrolled in the science programs increasing revenue from tuition and fees the feasibility study demonstrated that the project was viable paving the way to enacting the modernization and expansion plans of the science building without conducting a feasibility study the school administrators would never have known whether its expansion plans were viable the washington state department of transportation decided to conduct a feasibility study on a proposal to construct a high speed rail that would connect vancouver british columbia seattle washington and portland oregon the goal was to create an environmentally responsible transportation system to enhance the competitiveness and future prosperity of the pacific northwest 1the preliminary analysis outlined a governance framework for future decision making the study involved researching the most effective governance framework by interviewing experts and stakeholders reviewing governance structures and learning from existing high speed rail projects in north america as a result governing and coordinating entities were developed to oversee and follow the project if it was approved by the state legislature 2a strategic engagement plan involved an equitable approach with the public elected officials federal agencies business leaders advocacy groups and indigenous communities the engagement plan was designed to be flexible considering the size and scope of the project and how many cities and towns would be involved a team of the executive committee members was formed and met to discuss strategies as well as lessons learned from previous projects and met with experts to create an outreach framework the financial component of the feasibility study outlined the strategy for securing the project s funding which explored obtaining funds from federal state and private investments the project s cost was estimated to be 24 billion to 42 billion the revenue generated from the high speed rail system was estimated to be 160 million to 250 million 3the report bifurcated the money sources between funding and financing funding referred to grants appropriations from the local or state government and revenue financing referred to bonds issued by the government loans from financial institutions and equity investments which are essentially loans against future revenue that need to be paid back with interest the sources for the capital needed were to vary as the project moved forward in the early stages most of the funding would come from the government and as the project developed funding would come from private contributions and financing measures private contributors included microsoft inc the benefits outlined in the feasibility report show that the region would experience enhanced interconnectivity allowing for better management of the population and increasing regional economic growth by 355 billion the new transportation system would provide people with access to better jobs and more affordable housing the high speed rail system would also relieve congested areas from automobile traffic 3the timeline for the study began in 2016 when an agreement was reached with british columbia to work together on a new technology corridor that included high speed rail transportation 4 the feasibility report was submitted to the washington state legislature in december 2020 2