j7X>-8Iex'bq_w[tCgv 'HNo k')4`V, Consistency of a sound technical baseline with the program cost estimate, both maturing in comprehensiveness and detail through the acquisition systems engineering process, is essential to identifying affordability risk. 0000009870 00000 n
The Willing to Pay Principle asks,if the end users had to pay, how much would they be willing to pay? ShopifyBuyInit(); Investment decisions made by agency heads, senior acquisition executives (SAEs), chief information officers (CIOs), and program executive officers (PEOs) require a holistic view of the enterprise's missions and objectives. } 0000008075 00000 n
Early discovery of divergence permits early intervention and correction, avoiding potential affordability risk. In this step, we address the costs. To help stakeholders assess tradeoffs, present the realism in cost as well as operational terms of which mission aspects will be and might not be totally satisfied by the recommended approach along with the feasibility/projection of capability satisfaction over time/future evolutions. These analyses are described in more detail in the SEG articles on Analyses of Alternatives and Comparison of Investment Analyses. Too low? SEs are frequently called on to perform or support a number of different investment analysis types (analysis of alternatives, business case analysis, and cost benefit analysisto name a few). "button": "Add to cart" microfluidic chip chips experiment procedures streamline microfluidics channel lab summary release press thomasnet protein microreactor 0000001268 00000 n
Understanding the full DOTMLPF impact early in the program life cycle of a solution is key to avoiding affordability surprises later in the program. Cost-Effectiveness Analysis: A Systems Engineering Perspective starts with providing an overview and background of cost-effectiveness analysis and how its used. "toggle": {} In June 2010, the Office of the Secretary of Defense/Acquisition, Technology and Logistics (OSD/AT&L) launched the Better Buying Power (BBP) 1.0 initiative [2] [3]. 0000004383 00000 n
Conduct independent assessments when confronted with significant change in affordability risk.
Establish, document, and maintain a comprehensive, stable technical baseline to support timely cost analysis and design trades. 0000001772 00000 n
OSD/AT&L Memorandum for Defense Acquisition Workforce, November 13, 2012. They require that a strong systems engineering foundation be established early in a program and that there be greater reliance on a government systems engineering team to set and manage objectives. Understand life-cycle cost, schedule, risk, and affordability implications of alternatives under consideration, and incorporate these dimensions in engineering products and recommendations. Agencies across the federal government are implementing new strategies to promote AEE in their acquisition decisions and management practices. The probability is very low, but the severity is very high. Understand the basis of budgets and funding profiles. A cost benefit analysis is a project selection method in which a common metric is used to compare a projects costs and the benefits it provides. Be wary of downward directed schedules.
Provide a credible engineering basis and clarify any assumptions regarding input to the technical baseline. MITRE's systems engineering is conducted in a system acquisition context by developing solutions to meet the needs and challenges of our sponsors in executing their missions, and in aiding sponsors in planning and managing programs to acquire such solutions. AEE is not achieved through the application of any single analytic approach or engineering or management practice, or even a small set of the same. This is the foundational justification for the expenditure. Although referring to DoD, these practices are generally applicable to acquisition programs of any government agency. At the same time, affordability engineering helps sponsors respond to fiscal realities and be effective stewards of taxpayer dollars. Systems to be procured, deployed, and sustained must be affordable, that is, within the means of the sponsor's available resources, and should be efficient, providing high value for the resources to be expended. And the general pattern in life holds, that the most difficult part is the one that makes or breaks the analysis. If a materiel solution is deemed necessary, determine the non-materiel changes also needed to achieve the desired capability. These techniques are frequently used for cyber mission assurance assessments and are equally valuable to these AEE analyses. Registered in England & Wales No.
"title": "Shopping Cart", xb```=" ce`a 0 \5,WVN.Sv>3fqv{;W?{=hNP=IGi( ((]aPL;HKZ%~&=@Q F;nK45*0%1`[iFNE%4; f8;A endstream endobj 30 0 obj<> endobj 32 0 obj<> endobj 33 0 obj<>/Font<>/XObject<>/ProcSet[/PDF/Text/ImageC]/ExtGState<>>> endobj 34 0 obj<> endobj 35 0 obj<> endobj 36 0 obj[/ICCBased 56 0 R] endobj 37 0 obj<> endobj 38 0 obj<> endobj 39 0 obj<> endobj 40 0 obj<> endobj 41 0 obj<>stream "padding-right": "23px" Understand the operational gaps, mission deficiencies, or enhanced/new capabilities being sought by users. "contents": { The interfaces and dependencies of capabilities from independent, yet associated, efforts can be a big contributor to cost due to schedule mismatches, reworking of misunderstood interface exchanges, increased complexity in testing, etc. All the alternatives must be considered in tandem with the benefits of each option. moneyFormat: '%24%7B%7Bamount%7D%7D', 0000006999 00000 n To determine the benefit, the project team consults the government budget of $10 million for all wetland restoration projects for that year. Communicate the technical baseline to ensure cost analysts understand it. Affordability considerations extend beyond the system boundariesto understand them, talk with end users and participate in operational exercises and experiments. The U.S. economy has been experiencing an era of slow growth, an anemic jobs market, historic high debt, and mounting budget deficits at federal and lower levels. Ensure that cost, engineering, and management teams work together (ideally collocated) to keep the technical baseline and program cost estimate current, and maintain a list of risks, cost drivers, and alternative courses of action/mitigations to address moderate/high risk areas. 0000010246 00000 n At what performance level would an improved capability exceed that required to accomplish the mission? %PDF-1.5 % Develop alternative solutions or courses of action, and evaluate them for mission effectiveness as well as life-cycle affordability and efficiency. Your email address will not be published. "imgWithCarousel": true, Engineering and cost analysis must be closely coupled in the process. (Affordability engineering is a systems engineering competency that treats affordability as a requirement that is continuously measured, managed, and assessed throughout an acquisition programs life.). ui.createComponent('product', { Develop engineering-based timelines showing the critical paths and dependencies; ensure that risks and uncertainty have been incorporated. ShopifyBuy.UI.onReady(client).then(function (ui) { Additional references on BBP are available on the AT&L website [6]. Work with the users and other stakeholders as needed to define evolutionary approaches to meeting these requirements. A constrained federal fiscal environment places considerable economic stress on government agencies. Encourage and facilitate active participation of the broad stakeholder community and acquisition decision makers in exploring alternatives; help them understand and use the trade space to achieve program affordability and evaluate the merits of alternatives from operational as well as business perspectives. "max-width": "100%", Understand the operational mission, its context, and the current systems or solutions employed.
Integrate into the program planning the recommended AEE strategy for implementation of capabilities. Although the specific methods of dealing with the three main situations are defined above, we present the following as a checklist to define the value of any intangible asset. var client = ShopifyBuy.buildClient({ } else { As a bridge engineer and project manager, he manages projects ranging from small, local bridges to multi-million dollar projects. A company is considering spending $100,000 to produce a safety program which will reduce its WCB premiums by $10,000 per year. Measure the affordability of each solution against a current budget profile and assess the affordability risk if the budget is changed. This 26-page memo outlined 34 specific initiatives within seven key areas: AT&L has issued further guidance with specific requirements and management practices to address affordability in program planning and execution and milestone decisions. ]JqP"3;;cFp^HzL8X LP7Vu%h#duYPY+' Bernie Roseke, P.Eng., PMP, is the president of Roseke Engineering. Although the practice of AEE in acquisition is not new (acquisition guidance and regulation pre-BBP have long been concerned with delivering capabilities within cost and schedule targets), what is new is the sense of urgency given the current economic conditions. https://doi.org/10.1201/9781003196174, Registered in England & Wales No. Start with Kindergartners, MITRE Participates in Outside the Box Day, A Conference Dedicated to Women's Leadership, Nurturing Under-Represented Engineering Students, Student Cadets Learn What It Takes to "Play at Work All Day", Promoting a Culture of Health and Wellness, Fighting Polio in Africa, Thanks to MITRE's Civic Leave Program, Building a Better World, One Home at a Time, Center for Advanced Aviation System Development, Transforming the National Airspace System (NextGen), Improving National Airspace System Performance, Tax, Revenue & Financial System Transformation, Economic Infrastructure Modernization & Protection, Homeland Security Systems Engineering and Development Institute, Strengthen National Preparedness and Resilience, System of Systems Engineering Collaborators Information Exchange, Thinking Forward: CyberPhysicalHuman World, The Essence of MITREs Systems Engineering, Systems Engineering Strategies for Uncertainty and Complexity, Tools to Enable a Comprehensive Viewpoint, Enterprise Technology, Information, and Infrastructure, Engineering Information-Intensive Enterprises, Privacy Requirements Definition and Testing, Engineering Systems in the Context of Systems of Systems, Systems Engineering Life-Cycle Processes as Applied to Systems of Systems, Systems Engineering for Mission Assurance, Transformation Planning and Organizational Change, Formulation of Organizational Transformation Strategies, Community of Interest and/or Community of Practice, Planning and Managing Independent Assessments, Eliciting, Collecting, and Developing Requirements, Special Considerations for Conditions of Uncertainty: Prototyping and Experimentation, Architectural Frameworks, Models, and Views, Develop System-Level Technical Requirements, Assess the Design's Ability to Meet the System Requirements, Identify and Assess Integration and Interoperability (I&I) Challenges, Develop and Evaluate Integration and Interoperability (I&I) Solution Strategies, Create and Assess Test and Evaluation Strategies, Assess Test and Evaluation Plans and Procedures, Create and Assess Certification and Accreditation Strategies, Other SE Life-Cycle Building Blocks Articles, Spanning the Operational Space: How to Select Use Cases and Mission Threads, Acquiring and Incorporating Post-Fielding Operational Feedback into Future Developments, Test and Evaluation of Systems of Systems, Verification and Validation of Simulation Models, Affordability, Efficiency, and Effectiveness, Integrated Master Schedule (IMS)/Integrated Master Plan (IMP) Application, Source Selection Preparation and Evaluation, Data Driven Contractor Evaluations and Milestone Reviews, Risk Impact Assessment and Prioritization, Risk Mitigation Planning, Implementation, and Progress Monitoring, Reliability, Availability, and Maintainability, Establishing a Quality Assurance Program in the Systems Acquisition or Government Operational Organization, How to Conduct Process and Product Reviews Across Boundaries, Implementing and Improving Systems Engineering Processes for the Acquisition Organization, Matching Systems Engineering Process Improvement Frameworks/Solutions with Customer Needs, Opportunities to Reduce Potential Duplication in Government Programs, Save Tax Dollars, and Enhance Revenue, DoD Cost OverrunsTrends in Nunn-McCurdy Breaches and Tools to Manage Weapon Systems Acquisition Costs, Schedule Assessment Guide: Best Practices for Project Schedules.