The Department of Health and Human Services' (DHHS) Administration for Children and Families (ACF) provides national leadership and direction in planning, managing, and coordinating the nationwide administration and financing of a broad range of comprehensive and supportive programs for vulnerable children and families. These programs are, in large part, carried out by State and local agencies and are designed to promote stability, economic security, responsibility, and self-sufficiency.

While the programs are carried out at the state and local level, ACF retains responsibility for approving and monitoring systems development and implementation for Federally-assisted benefits programs.

ACF gives approval to the States in accordance with regulations which require the submission of Advance Planning Documents (APDs) and supporting studies.

Although the regulations codified in 45 CFR Part 95 require that a feasibility study, alternatives analysis, and cost/benefit analysis be conducted and submitted to ACF with the Implementation APD, generic yet comprehensive guidance broadly applicable to all State benefit programs had not been developed. States have had to determine the details of how to conduct these crucial studies on which Federal approval and funding depend.

The States' submissions, therefore, have varied widely in comprehensiveness and quality - sometimes to the disadvantage of the States and ACF. Efficient, effective, and timely decision-making are hampered in such cases.

Yet guidance should not force a highly standardized, checklist approach as might be developed for clerks or assembly line workers. Instead, guidance for decision-making professionals should:

• Suggest how to approach the analysis;
• Describe a broad range of considerations, which may or may not apply to the task at hand; and
• Provide a standardized framework for analysis and problem-solving.

Although the studies called for in the regulation are individually named as if they stand on their own, they are, in fact, the results of an analytical continuum. The process is one of refinement, with requirements, feasibility, alternatives, and costs defined with increasing precision as the analysis continues. (See Table 1-1 on page 1-4.)

The process is also one in which the studies are closely related and dependent upon each other. For example, requirements directly affect alternatives and costs. Costs may limit feasible alternatives.

As the process continues and needs and options are refined, earlier decisions may need reassessment. Properly approached, the process is dynamic.

By issuing guidance, ACF seeks to support the practical application of feasibility, alternatives, and cost/benefit analysis by the States. Since it is neither practical nor possible to develop a "cookbook" approach to analysis, this guide has been developed for use by the States' senior analysts and managers, for the thoughtful application of analysis to decision-making.

The purpose of this document is to:

• Suggest a standard analytical approach for conducting feasibility studies, alternatives analyses, and cost/benefit analyses;
• Develop a framework for analysis and documentation; and
• Provide worksheets to support the State during analysis and comparison of alternatives.

Although use of this guide is encouraged - to ease and expedite Federal review and approval - the guide is not mandatory.

This guide is intended to be a decision-making tool, supporting managers and senior analysts in methodically and comprehensively analyzing a range of automation solutions.

More complex, economical models for cost/benefit analysis have been developed for the business environment, employing concepts such as probability distributions and utility analysis. Such models are outside the scope of this effort, but may be employed by the States if their prior application has been successful.

Who. ACF developed this guide for the manager, senior analyst, and project members responsible for reviewing alternatives, developing costs, assessing benefits, and selecting a systems development approach. This guide is optional for use by State's in preparing or contracting for feasibility studies, alternatives analyses, and cost/benefit analyses. The guide will be used by Federal personnel in evaluating States' submissions.