Integrating Cost as an Independent Variable Analysis with Evolutionary Acquisition

Guidance from the Under Secretary of Defense for Acquisition, Technology, and Logistics USD (ATL) requires 100 percent of defense programs to incorporate cost as an independent variable (CAIV) and evolutionary acquisition (EA) plans within their management baselines. Historically, these two concepts have been implemented independent of one another. In reality, CAIV and EA are tightly coupled. Integration of these two initiatives enables warfighters and developers to better allocate constrained resources, respond to fluctuations in program funding, and plan for future development activities. This research creates a decision tool to assist the DoD acquisition community in satisfying the intent of the USD (ATL) guidance. Using multiattribute design evaluation techniques, a core CAIV model is formulated. Next, the core model is expanded to incorporate the dominant features of EA. The expanded model seeks to optimize overall utility across a horizon of multiple development increments. Additionally, technical risk factors are integrated to discount the realized level of attainment for design attributes.