Affordability procedures establish the basis for fostering greater program stability through the assessment of program affordability and the determination of affordability constraints. How Affordability is Utilized Determine competition impact on affordability Marketing determines cost limit to WIN the contract Existing inventory items with potential modification costs Set design goals Including system cost Goals and Targets Top level system or architecture Subsystems All phases.
How Affordability is Utilized Understand system requirementsvs. Myers, S. Pandolfini, J. Keane, O. Younossi, J. Roth, M. Clark, D. Lehman, and J. Redman, Q. System Affordability.
There is a clear need for: new methods to analyze tradeoffs between cost, schedule, effectiveness, and resilience; new methods to adjust priorities and deliverables to meet budgets and schedules; and more affordable systems development processes. Navigation menu Personal tools Log in. Presentation Slides. Explore Further Discover more papers related to the topics discussed in this paper. Topics from this paper.
Systems engineering. Citation Type. Has PDF. Application of advances in IT and network design offer potential for great efficiency in the delivery of information and services to end users at the enterprise and program levels. Advances within technology domains afford an opportunity to reduce life-cycle costs in the acquisition of new or enhanced capabilities and to transform operations and sustainment approaches for greater efficiency.
The U. All government agencies are feeling considerable economic stress as they strive to accomplish their missions and deliver services with constant or shrinking budgets. Agencies across the federal government are implementing new strategies to promote AEE in their acquisition decisions and management practices. This page memo outlined 34 specific initiatives within seven key areas:. In response, acquisition leadership in the various services has also issued implementation directives.
The Secretary of Defense has set targets for cost, budget, and personnel reductions in many areas of DoD's operations as well. The Office of Management and Budget and the Government Accountability Office GAO have also been targeting AEE in government spending, addressing acquisition and contracting practices, duplicative capabilities and services, and inefficient business operations [7]. 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.
At program levels, achieving AEE requires constant effort across the acquisition life cycle to examine cost and schedule implications of choices. Decisions about the system design, what requirements to meet, and how to structure and manage the acquisition impact affordability and may introduce potential affordability risk.
As illustrated in Figure 2, cost and schedule analysis is integral to the systems engineering process. It will reveal affordability risks and define the trade space that includes mission needs, cost, schedule, and performance in which to explore and critically evaluate alternatives. Engineering and cost analysis must be closely coupled in the process.
Systems engineering and technical skills must be paired with cost estimating skills to examine affordability trades and recommend analytically based courses of action. 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.
Many different definitions, usage contexts, and references to technical baselines exist in systems engineering. For purposes of measuring AEE, "technical baseline" refers to a comprehensive Acquisition Systems Engineering Baseline ASEB —the definition, description, characteristics, and details function, design, requirements of the system, the program, the acquisition approach, and all their dependencies and external interfaces that account for all aspects relevant to cost and schedule.
As the program moves through its acquisition stages, divergence of the technical baseline and cost estimate must be carefully monitored. Early discovery of divergence permits early intervention and correction, avoiding potential affordability risk. AERiE is an integral part of an Affordability Engineering Framework AEF that facilitates the validation of the technical baseline and program cost estimate, suggests and analyzes tradeoffs to address affordability disconnects, and recommends alternative courses of action.
GAO studies have identified proven acquisition practices to minimize the risk of cost growth on DoD programs. Such practices help "establish programs in which there is a match between requirements and resources—including funding—from the start and execute those programs using knowledge-based acquisition practices [10]. 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.
Practices include:. At enterprise or portfolio levels, a variety of analyses and approaches are applied to assess affordability and promote efficiency and effectiveness in investment decisions.
Each is appropriate to a decision or management context. They are expected to know the objectives of the analysis, the decisions to be supported, and the general approaches that can be applied. They are expected to enlist the support of and engage with analysts in conducting analyses supporting AEE portfolio level objectives. 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 analysis—to name a few.
These are focused on informing sponsor funding and expenditure decisions, and they provide critical analysis for assessing affordability, efficiency, and effectiveness of alternatives in deciding to select a solution or course of action. 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.
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