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Total Ownership Cost: A Recommendation For The Architecture Integration Decision Tool

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Technical Report

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Naval Postgraduate School Monterey United States

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The Future Fleet Architecture team within OPNAV N9I is starting the creation of a fleet decision aid called the Architecture Integration Decision Aid ArnDT. While containing various functional layers, this study will serve as a focused effort to make a recommendation for how to allocate resources in the development of the cost model to be utilized. Having researched various cost types, the best choice of model will be based on Total Ownership Cost framework. This study shall provide background on cost estimation, the DoD Acquisition System, and the mission of OPNAV N9I. Having established a foundation of applicability, a qualitative look at Total Ownership Cost will be conducted in order to identify the broad aspects of costs that should be addressed within such a model. An exploratory case study demonstrating the supporting systems and ArnDT capabilities will be presented to highlight what a working total ownership cost model will provide to a completed ArnDT. Lastly, a discussion of applications shall lead to a quantitative recommendation for where resources should be invested to bring this cutting-edge capability from an idea to a reality.

Subject Categories:

  • Economics and Cost Analysis
  • Computer Programming and Software

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