The cost of commonality: assessing value in joint programs
Loading...
Authors
Jessup, Rustin
Williams, Jamal
Subjects
commonality
cost
benefit
cost-benefit analysis
cost-effectiveness
joint
value
JLTV
JSF
JTRS
TFX
MDAP
cost
benefit
cost-benefit analysis
cost-effectiveness
joint
value
JLTV
JSF
JTRS
TFX
MDAP
Advisors
Cunha, Jesse M.
Dillard, John
Date of Issue
2015-12
Date
Dec-15
Publisher
Monterey, California: Naval Postgraduate School
Language
Abstract
In the 21st century, Major Defense Acquisition Programs (MDAPs) have become increasingly joint efforts. This trend has led to expanding program complexities and interdependencies. The resulting cost, schedule, and performance risks often counterbalance, and potentially outweigh, the efficiencies gained through inter-service program designs. We define these risks as the cost of commonality. Such costs are often unquantified in cost-benefit analyses in the defense acquisitions process. In this project, we first review the results of three joint MDAPs to evaluate ex-post indications of programmatic shortfalls resulting from commonality costs. We then propose a unique cost-effectiveness model to assess value in joint programs from a broader portfolio perspective. Finally, we apply our Joint Value Model to the Joint Light Tactical Vehicle program as a case study to validate the concept. The Joint Value Model provides a means for managers to evaluate cost-effectiveness in the portfolio context and compare meaningful differences among program alternatives. We recommend use of this model as a tool for program analysis at all stages of system development.
Type
Thesis
Description
MBA Professional Report
Department
Graduate School of Business and Public Policy (GSBPP)
Graduate School of Business and Public Policy (GSBPP)
Organization
Identifiers
NPS Report Number
Sponsors
Funder
Format
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.