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Validation and Verification of the Army Program Value Added Analysis

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Value Added Analysis VAA is the methodology used to aid senior Army decisionmakers in evaluating and prioritizing among competing alternatives in the Program Objective Memorandum POM building process. VAA helps to evaluate the relative contribution Value Added of systems of interest to force level performance. VAA is fully capable of examining tradeoffs across a wide range of program issues. Recent systems that have been evaluated using VAA include Air Defense Anti-Tank System ADATS, Reconnaissance and Attack Helicopter RAH-66, and the Line of Sight Anti-Tank LOSAT System. Because the methodology is expanding beyond the research, development, and acquisition RDA appropriations and growing in popularity there is a critical need to assess and improve it. The purpose of this report is to provide a timely and unbiased analysis of VAA and make recommendations for possible modifications to the methodology. VAA is a useful tool to use in producing an acquisition strategy based upon cost effectiveness. It provides an insight to senior decisionmakers as to what systems are not feasible to buy when changes are made in the Total Obligation Authority TOA. It can force particular systems to be procured and identify systems no longer recommended, indicating possible trade-offs. VAA output indicates the types and quantities of systems of interest to be procured which give the maximum effectiveness at any given TOA funding level. VAA output can also include a funding and acquisition stream which can be used for planning and programming the systems of interest.

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  • Administration and Management
  • Information Science

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