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One principle application of this guidebook is to assist the Product Support Manager (PSM) in identifying the product support strategy that achieves the optimal balance between Warfighter capabilities and affordability.A BCA does not replace the judgment of a decision maker.BCAs may be somewhat different from other decision support analyses through their emphasis of the enterprise wide perspective of stakeholders and decision makers and assessment of the holistic effects impacted by the decision.Other names for a BCA are Economic Analysis, Cost-Benefit Analysis, and Benefit-Cost Analysis.
A BCA concludes with a recommendation and associated specific actions and an implementation plan to achieve stated organizational objectives and desired outcomes.This guidebook should be used in conjunction with other analytical tools and guidance and can be further tailored for specific types of BCAs. Estevez Principal Deputy Assistant Secretary of Defense for Logistics and Materiel Readiness The guidebook was updated in March 2014 deleting Appendix C and to reflect current law, Do D instructions, and Better Buying Power 2.0. Governance, Validation, and Approval 365.1 Governance 365.2 Validation and Approval 366.Documentation 376.1 Lessons Learned and Best Practices 376.2 Documentation 376.3 Revalidation Analysis of Product Support Strategy BCAs 37Appendix A – Product Support BCA Checklist and Phases 38A.1 Product Support BCA Checklist 38A.2 Product Support BCA Process Flow 42Appendix B – Guidelines for Capturing Cost 43Appendix C – Product Support BCA Timeline and Life Cycle 45Appendix D – Analytical Tools 48Appendix E – Glossary of Terms 105Appendix F – Acronyms 108Appendix G – Product Support BCA Policies, Statutes, and References 111A Business Case Analysis (BCA) is a structured methodology and document that aids decision making by identifying and comparing alternatives by examining the mission and business impacts (both financial and non-financial), risks, and sensitivities.Broadly speaking, a BCA is any documented, objective, value analysis exploring costs, benefits, and risks. § 2337, Do DI 5000.02 and the Defense Acquisition Guide.Product Support Manager responsibilities relative to cost-benefit analyses are spelled out in 10 U. Prior to each change in the Product Support Strategy or every five years, whichever occurs first, the program must revalidate any business-case analysis performed in support of the product support strategy.
A senior team of system engineers, logisticians, acquisition experts, and financial experts from the Services, Agencies, Industry, and Academia embedded their broad knowledge and experience into this guidebook to help BCA practitioners serve their primary customers, the Warfighter and the Taxpayer. Data Management 113.1 Data Management Introduction 113.2 Recommended Authoritative Data Sources 11PRODUCT SUPPORT BCA PROCESS 134.