Strategic Value of the Business Case Analysis (BCA)
The impact of sequestration has become the main topic of discussion in almost all circles in the Department of Defense since the Budget Control Act passed into law in 2011. In response to reduced budget sequestration, the DoD has been interested in exploring potential cost reductions in weapon system operations. In nearly all lifecycle costs, sustainment generally makes up 60% to 80% of the total program costs. In a defense world seeking increased efficiencies and budget savings it is imperative to examine effective sustainment strategies. We intend to demonstrate through previous analysis and results that a Business Case Analysis (BCA) is an effective tool that will allow leaders to leverage the study to make informed decisions about cost saving measures even when in-sourcing may not be a viable option due to budget constraints.
A BCA is a decision support document that identifies alternatives and presents business, economic, risk, and technical arguments for selecting an alternative to achieve organizational or functional missions and goals. The goal of this presentation is to demonstrate this definition by presenting how a BCA is utilized to generate strategic and beneficial value to defense organizations. The attendees will be able to understand a BCA as they are walked through the required guidance and necessary documentation, the important, recommendation that is used by decisions makers for judgments for a weapon systems sustainment strategy, and reveal the most important benefit of strategic value to the defense organization.
This presentation’s analysis and results are based on recent BCA studies completed through the analysis of prime contractor sustainment and operations proposals and historic (actual) contract data. Although the assessment is based on only a few recent BCA studies, the author believes the results found can be applied across multiple aircraft and other major programs across armed services.
Eric S Buller
Booz Allen Hamilton
Eric Buller is a Senior Consultant at Booz Allen Hamilton based in Washington DC. He currently provides cost estimating and analysis support to clients in Navy Sea Systems Command at the Washington Navy Yard. Previously, he was located in the firm’s Dayton, OH office providing cost and risk analysis and acquisition logistics support to Aerospace clients at Air Force Materiel Command, Air Force Space Command and Headquarters Air Force. He has contributed to multiple Cost Benefit Analysis (CBAs), Business Case Analysis (BCAs) and program life cycle cost estimates for multiple Department of Defense weapon systems. He started with the firm as an Intern in 2009. He graduated from the University of Dayton in 2010 with a BS in Business Administration, majoring in Finance and Entrepreneurship. He is a certified Professional Cost Estimator/Analyst (PCEA) as of September 2011. This will be his first presentation at a professional conference.