Integrating Cost as an Independent Variable Analysis with Evolutionary Acquisition - A Multiattribute Design Evaluation Approach
AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH SCHOOL OF ENGINEERING AND MANAGEMENT
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Guidance from the Under Secretary of Defense for Acquisition, Technology, and Logistics USDATL requires 100 percent of defense programs to incorporate cost as an independent variable CAIV and evolutionary acquisition EA plans within their management baselines. Historically, these two concepts have been implemented independent of one another. In reality, CAIV and EA are tightly coupled, Integration of these two initiatives enables warfighters and developers to better allocate constrained resources, respond to fluctuations in program funding, and plan for future development activities. This research creates a decision tool to assist the DoD acquisition community in satisfying the intent of the USDATL guidance. Using multiattribute design evaluation techniques, a core CAIV model is formulated. Next, the core model is expanded to incorporate the dominant features of EA. The expanded model seeks to optimize overall utility across a horizon of multiple development increments. Additionally, technical risk factors are integrated to discount the realized level of attainment for design attributes. Using a DoD command and control system development as the case study, the fully formulated CAIVEA model is implemented and in a PC spreadsheet. An optimization application solves the mathematical program for a series of cost constraints. The resulting data are collected and translated into a variety of graphics. Sensitivity analysis is performed to understand the response caused by variations in the models parameters. Model limitations are discussed and recommendations for further investigation are presented.
- Economics and Cost Analysis
- Logistics, Military Facilities and Supplies