2012-LCC11

Life Cycle Costs in CBA

Life Cycle Cost Track

LCC11_Presentation_LifeCycleCostinCBA_Griffin

Abstract:

Cost Benefit Analysis (CBAs) are of growing importance to the acquisition process. The Vice Chief of Staff for the Army signed a memo dated December 20, 2009 stating that, in this era of constrained resources, Army leaders need to be responsible stewards of government funds. Any new requirement that is unfunded and/or newly expanded program proposals will be accompanied by a thorough CBA. The CBA must identify the total cost proposal to the Army in the form of life cycle cost, benefits that will result, and the bill-payers that would be used to pay for the unfunded or new requirement. Second and third order effects of the funding decision must be included as well. The Cost Benefit Analysis is to be reviewed and approved by the Deputy Assistant Secretary of the Army for Cost and Economics (DASA-CE). Over the past 2 years, there have been lessons learned as to how to prepare and package a CBA and what to include. To date 213 CBAs have been reviewed and validated by HQDA. Furthermore, the acquisition community has taken great strides towards fine tuning the review process.

Author(s):

Niatika Griffin
DASA-CE
Niatika Griffin received her Bachelor of Science degree in Applied Mathematics and Master of Arts degree in Math Education. She spent five years as a Math educator and became an Operation Research Analyst four years ago with Office of the Deputy Assistant Secretary of the Army of Cost & Economics (DASA-CE). Tenure spent in the Weapons Systems Directorate and Cost and Policy Directorate. Currently, leads Pre-Milestone A and Milestone A Analysis of Alternatives (AoA) efforts and review Cost Benefit Analysis (CBAs) that are attached to Army requirements documents.

Ronako Carson
DASA-CE
Ronako Carson received her Bachelors degree and Master of Science Degree in Mathematics. She is an Operations Research Analyst with Office of the Deputy Assistant Secretary of the Army of Cost & Economics (DASA-CE). As part of Early Cost Team she supports cost estimating for Pre-Milestone A and Milestone A efforts as well as review Cost Benefit Analysis (CBAs) that are attached to Army requirements documents.