PURPOSE: The purpose of the Analysis of
Alternatives (AoA) Working Group is to provide a forum for the exchange of
information concerning key aspects of designing and conducting meaningful
analyses of alternatives. This information exchange will foster and improve the
use of operational research techniques and procedures between AoA analysts.
DISCUSSION: Analyses of Alternatives,
formerly called Cost and Operational Effectiveness Analyses, are prepared for
consideration at milestone decision reviews of major acquisition programs. These
analyses aid decision makers by providing the analytic underpinnings for
selection of alternatives being considered and comparing the relative advantages
and disadvantages of each alternatives in both cost and effectiveness terms.
AoAs are useful at two levels. Early in a program, AoAs assist in narrowing the
range of alternatives from the universe of possible approaches for achieving the
desired capability. Later in the process, AoAs can be used to refine tradeoffs
in performance and cost by permitting more informed treatment of Cost As an
Independent Variable (CAIV). To do this, AoAs should integrate cost, operational
effectiveness, and other germane decision factors in a manner that permits
tradeoffs between capabilities and budgets. In both cases, AoAs should document
the important rationales and assumptions underlying the procurement of major
systems.
An AoA typically draws on several sub-analyses.
These include analyses of mission needs and operational requirements, threat and
U.S. capabilities, the interrelationship of systems, the contribution of
multi-role systems, measures of combat (or operational) effectiveness and cost,
and cost-effectiveness comparisons. Applicable areas of discussion and
investigation include: Milestone decision criteria; requirements determination;
Key Performance Parameter selection; threat and mission scenario selection and
development; operational effectiveness methodologies and measures; cost and
effectiveness integration; inclusion of manpower, logistics, and infrastructure
impact of different alternatives as operational measures; linkage of performance
and effectiveness; partitioning operational requirements across systems where
overlapping capabilities exist; establishing guidelines for linking mission
needs and system tradeoffs; and establishing comparable AoA criteria across
related systems and across Services.
OTHER WORKING GROUPS: The AoA Working
Group (WG-26) is a key member of Composite Group F (Acquisition). Other groups
within Composite Group F include Measures of Effectiveness (WG-24), Test and
Evaluation (WG-25), Cost Analysis (WG-27), and Decision Analysis (WG-28).
