Business Case Analysis and Contractor vs. Organizational Support: A First-Principles View

Report Number: NPS-AM-04-013

Series: Acquisition Management

Category: Public-Private Partnerships (PPPs)

Report Series: Sponsored Report

Authors: Raymond (Chip) Franck

Title: Business Case Analysis and Contractor vs. Organizational Support: A First-Principles View

Published: 2004-09-01

Sponsored By: Acquisition Research Program

Status: Published--Unlimited Distribution

Research Type: NPS Faculty

Full Text URL: http://www.acquisitionresearch.net/files/FY2004/NPS-AM-04-013.pdf

Keywords: Business Case Analysis (BCA), Product Support Strategies (PSS), Program Management, Contracts, Outsourcing, Cost-Benefit Analysis (CBA), Transactions Cost Economics (TCE).

Abstract:

The Business Case Analysis (BCA) is regarded as a highly-useful management tool. BCAs are mandatory, among other things, for formulating Product Support Strategies (PSSs) in the development of major systems. While defense managers appear to have sufficient guidance regarding BCA documentation, a comparable level of guidance regarding analytical methods is not evident. In fact, there is extant OSD guidance which leaves analytical methods as a task for the services. Accordingly, this essay addresses theoretical foundations useful for BCAs, and practical foundations for analysis in the defense arena