Definition General Info Policies Guides Communities Training Related
Definition
Tradeoff Analysis determines the best balance between performance requirements, support (availability and readiness) requirements, schedule requirements, and cost requirements.
General/Information/Narrative
“Tradeoff analyses address the implications of trading one set of controllable variables (e.g., schedule or performance) for another (e.g., cost). This process helps ensure that all options are considered when balancing the cost and performance design attributes.” (LOG 101)
The best time to reduce total ownership cost and program schedule is early in the acquisition process. Continuous cost/schedule/performance trade-off analyses can help attain cost and schedule reductions.
The acceptable trade space is the difference between threshold and objective values. Cost, schedule, performance and supportability may be traded freely within these parameters without obtaining Milestone Decision Authority approval. Trade-offs outside of the trade space (i.e., decisions that result in acquisition program parameter changes) require approval of both the Milestone Decision Authority and the capability needs approval authority. Validated key performance parameters may not be traded-off without approval by the validation authority. The program manager and the user should work together on all trade-off decisions.
Policies, Directives, Regulations, Laws
AR 700-127, Integrated Logistics Support
Best Practices, Lessons Learned, Stories, Guides, Handbooks, Templates, Example Tools, Communities of Practice, LEC Tools
The Computerized Optimization Model for Predicting and Analyzing Support Structures (COMPASS) is a system Level of Repair Analysis (LORA) modeling tool. LORA is the analytical methodology used to determine the maintenance repair levels where items should be removed and replaced; and ultimately repaired or discarded. COMPASS estimates the cost to repair or discard items at various maintenance levels, with contractor facilities included as a separate level. COMPASS optimizes both the maintenance and support to achieve your target operational availability (Ao). COMPASS can consider up to four levels of organic maintenance (supports Two-Level Maintenance studies), supply support, and contractor support. You can also use COMPASS output data as a source for developing the MAC and SMR codes. COMPASS is a free tool available to both DoD and contractors at: https://www.logsa.army.mil/lec/compass/.
The Cost Analysis Strategy Assessment (CASA) Life-Cycle Cost Estimating Software uses an engineering cost model to estimate total cost of ownership based on RDT&E, Acquisition/Procurement, O&S, and Disposal activities. In addition to life-cycle cost estimation, CASA can perform trade-offs, production rate, warranty effectiveness, and other economic analyses. CASA is distributed freely to all US personnel. Request from foreign nations for CASA and associated training and technical support are handled through a Foreign Military Sales Case (FMS). CASA can be obtained here: https://www.logsa.army.mil/lec/casa/.
Training Resources
LOG 101
Related Articles
Required for:
All acquisition programs are required to perform tradeoff analysis.
Responsible Activity:
The program manager is responsible for performing thorough tradeoff analysis.
Definition General Info Policies Guides Communities Training Related