A Robust Framework for Analyzing Acquisition Alternatives

Abstract

Analysis of Alternatives (AoA) is a complex multi-dimensional decision procedure used by the US Department of Defense as part of the acquisition process. The four dimensions of the procedure are: alternatives, criteria, scenarios and stakeholders. Current AoA studies lack the structural rigor needed from such a complex procedure, which involves measurements, evaluations, analyses, modeling, as well as social aspects all in a highly uncertain environment. We propose a structured paradigm for conducting AoA, rooted in well-established methods of multi-criteria decision analysis. The core of the methodology comprises the concepts of ratio-scale matrices and the Euclidean norm. The ratio-scale matrices are used to elicit evaluations, preferences and opinions from individual stakeholders and analysts, and the Euclidean norm is utilized to remove preference inconsistencies and help form consensus.