A business case analysis of pre-positioned expeditionary assistance kit joint capability technology demonstration
Lee, Hui Hyang
Nussbaum, Daniel A.
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The Pre-Positioned Expeditionary Assistance Kit (PEAK) is a Joint Capability Technology Demonstration initiative that is being managed by the Office of the Secretary of Defense, developed in partnership with the National Defense University, and is sponsored by United States Southern Command. This study analyzes the costs and benefits of implementing the PEAK as a new capability into the Humanitarian Assistance/Disaster Relief Operational community with the objective of building key capacity in partner nations to promote security and stability and focusing on providing effective, low-cost and sustainable capabilities. This thesis conducts a Business Case Analysis (BCA), including a base case analysis and sensitivity analyses focusing on the Return on Investment (ROI) of investing in, and operating and maintaining, the PEAK. The BCA compares the life-cycle cost estimate of the PEAK with that of the status quo (existing) systems in operational scenarios for a 10-year period. When compared against the estimated investment over the system life-cycle, the results show positive ROI and net present value after the first year. The savings come from the cost of water and transportation.
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