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Projects Featured in Investment Strategies and Operational Analysis:

Costing Command and Control (C2) Systems

Intermediate Capacity Allocation Methods

Maximizing Benefit from Performance-Based Service Acquisition (PBSA)

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Investment Strategies and Operational Analysis

The Investment Strategy (IS) TAT is focused on enablers: those analytical methods, processes, and tools enabling funding allocation decisions that consider the changing sponsor "regulatory" environment and the need of the sponsors to adopt new technologies and business strategies. Operational analysis was not a focus area for FY05.


Costing Command and Control (C2) Systems

Bob Fuller, Principal Investigator

Problems:
Costing C2 systems presents a challenge for senior government program managers as new technologies are implemented and new systems are developed in a joint environment. Previous costing efforts related to the Net-Enabled Command Capability program have highlighted the need for additional research and data to provide more accurate and defensible cost estimates as new C2 technologies emerge.

Objectives:
The project will identify key challenges for costing C2 programs in the DoD, such as the lack of insight into cost impacts of service-oriented architectures. Through the detailed research and analysis on a set of candidate C2 programs, the project will develop products or tools that can be used to produce better quality C2 cost estimates in a timelier manner.

Activities:
We will interview representatives of the C2 program management and costing communities to identify and understand major challenges and potential solutions. We will conduct detailed, program-specific case studies, document our draft analyses, and summarize our findings with the goal of developing a set of useful C2 costing tools and products. We will host facilitated sessions and/or conferences to validate results.

Impact:
A review of reports generated by the annual DoD Cost Research Symposium revealed that no DoD or FFRDC organization is studying the issue of costing C2 systems. Consequently, this project will have significant impact on and value to the DoD and FFRDC costing communities and the managers of all C2 programs.

Approved for Public Release: 06-1481

Presentation [PDF]


Intermediate Capacity Allocation Methods

Jennifer Gentry, Principal Investigator

Problems:
The FAA operates the National Airspace System on a "first come, first serve" basis. When the system lacks capacity to serve everyone an alternate allocation scheme is implemented. For chronic problems, the FAA has had to impose administrative rules. To remedy temporary shortfalls in capacity, the FAA uses Traffic Flow Management. The FAA needs more efficient and equitable allocation schemes.

Objectives:
This project will examine alternate allocation schemes. We will focus on solutions that incentivize users to act in ways that are consistent with system goals and outcomes, more closely align customer use of the system with operational impact, and employ user fees as both a funding mechanism and a way to affect system demand.

Activities:
The research will be conducted using theoretical elements from common pool resource management as well as discussions with experts in the field. We will pay particular attention to the ways in which user fees can influence system demand. The research is expected to result in one or more policy analysis tools for performing "what if" analyses.

Impact:
This research can inform FAA policy as the agency struggles to deal with burgeoning future demand. The results will identify ways in which the FAA can use both economic and behavioral incentives to manage this demand. In particular, the FAA can combine a potential funding mechanism (user fees) with desired operational incentives to enhance system capacity.

Approved for Public Release: 07-0089

Presentation [PDF]


Maximizing Benefit from Performance-Based Service Acquisition (PBSA)

Audrey Taub, Principal Investigator

Problems:
Federal regulations compel government agencies to structure more than 40% of key contracts as Performance-Based Service Acquisitions (PBSA) a type of contracting markedly different from other acquisition approaches and which focuses all aspects of contracting on desired performance outcomes. However, PBSA may be unsuitable for long-term complex services and requires investment of resources that have not proven to be justified in light of benefits realized.

Objectives:
Develop supporting strategies to determine (1) if/when PBSA is appropriate for a specific requirement; (2) the enterprise is capable of maximizing benefit from PBSA; (3) it is time to significantly augment or terminate PBSAs. Develop supporting tactics to maximize benefit and minimize costs once decisions have been made to implement PBSAs, including identification of performance drivers and recommendations for improving effectiveness.

Activities:
Develop a repository of PBSA cost, benefit, and statistical data; collect and assess costs, benefits and risks associated with PBSA; benchmark framework and key discoveries from interviews with PBSA practitioners; identify existing analytic approaches/tools that can be leveraged; determine approaches/tools that may need to be developed; develop a draft "model contract" and a PBSA decision-logic tree.

Impact:
In addition to capturing critical experiential information essential for informing Government PBSA implementation decisions, key impacts include providing the Government with identified methodologies and tools that effectively apply PBSA best practices and lessons learned (short-term) and growing MITRE's and CASA's business portfolio through high value acquisition tactical and strategic support (longer term).

Approved for Public Release: 06-1369

Presentation [PDF]


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Last Updated:05/02/2007

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