These benefits, although difficult to assess, may be addressed in a project proposal. Though subjective in nature, qualitative statements can make a positive contribution in a proposal's evaluation. Examples of non-quantifiable or intangible benefits are improved morale, readiness, quality, or security. The first priority of the PEP is to fund initiatives resulting in quantifiable cost savings. Because cost savings provide a basis for funding other Army requirements and give installation commanders additional flexibility, that benefit type is given highest priority in the investment project evaluation.
Projects based on cost avoidance compete at a lower priority.
Non-quantifiable and intangible benefits in conjunction with either cost savings or cost avoidance increase a project's competitiveness. Cost savings and cost avoidance benefits and total one-time implementation and investment costs will be used to calculate the payback period for the project. The project submission will indicate whether the benefits are cost savings or cost avoidance, or the contribution of each if both are applicable. The calculation of payback period for PEP project submissions will be done using current year dollars. It is, therefore, extremely important that all details of costs and savings projections be specified in the PEP project submissions.