Analysis of Alternatives: Keys to Success

Abstract

An analysis of alternatives (AoA) is an important step in the acquisition process. It is one of the first places where the requirements community and the resource community must come together to identify a preferred material solution that can fill a shortfall in desired operational capability. AoAs inform Service, Office of the Secretary of Defense (OSD), and congressional decision-makers on the relative cost effectiveness of viable alternatives that meet the desired capabilities. Based on conducting several AoAs for the various military Services, RAND has formed a set of important considerations when conducting an AoA: develop a thorough study plan that considers a range of alternatives and baselines; form effect relationships with oversight committees; conduct trade-off analyses and examine sensitivities; have a flexible analysis methodology; display results that are easily and quickly understood; and recognize and estimate technical, design, and production risks.