Cover: Toward Affordable Systems

Toward Affordable Systems

Portfolio Analysis and Management for Army Science and Technology Programs

Published Sep 17, 2009

by Brian G. Chow, Richard Silberglitt, Scott Hiromoto

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Consistent with U.S. Department of Defense acquisition policy since 2003, U.S. Army leadership has called for consideration of lifecycle cost at system design and technology development stages so that adjustments can be made early enough to ensure affordability. This study developed and demonstrated a method and model to incorporate lifecycle cost into the portfolio analysis and management process for Army Science and Technology programs. The linear programming model developed here can select an optimized portfolio of Science and Technology projects to meet all individual capability requirements at the lowest total remaining lifecycle cost. The study results demonstrate several applications important to the management of Army Science and Technology programs, as well as estimation methods for the contribution of Science and Technology projects to capability requirements and for cost components.

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The research described in this report was sponsored by the United States Army and conducted by RAND Arroyo Center.

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