Application of Cost Management and Life-Cycle Cost Theory to Homeland Security National Priorities

Abstract

The 2007 National Preparedness Guidelines introduces the concept of a National Preparedness System in which national capabilities are coordinated to prevent, protect against, respond to, and recover from all hazards in a way that balances risk with resources and need. To understand the resource implications of the National Preparedness System, it is critically important to determine the costs associated with achieving and sustaining target levels of capability. The purpose of this article is threefold. First, it documents a methodology that uses life-cycle cost (LCC) theory to quantify the costs of achieving and sustaining target capabilities and national priorities within the National Preparedness System. Second, the article applies the methodology to the Explosive Device Response Operations (EDRO) target capability. Third, it articulates a number of next steps needed to develop and apply LCC methods to national preparedness.