OmegaPS Users’ Group Meeting OUGM19

Graham’s New Car In February I bought a new car. I needed a new car I had a description of what it was to be like I had a top-end budget When looking at options, I balanced the price to buy with the cost to own. I considered supportability issues. Even in simple acquisitions we apply a business case analysis. Often this BCA is all about the best way to keep the new item at its desired operating level – sustainment.

Using OmegaPS Analyzer to Evaluate Support Solutions Graham Brum 8 May 2019

Introduction Asset acquisition and operation is a complex process that involves multiple government departments. It has 4 principles to be optimized to maximize value to Canada. It is too complex to present in this session – so I assume you have some awareness. Part of any decision making is always based on the owner’s cost to keep the new item working at its required level. The decision process is often referred to as a business case analysis (BCA). In this case a BCA for Sustaining the asset’s capability (SBCA) The goal of the Sustainment Initiative is to generate tailored solutions that maximize value to Canada through the optimization of the four principles: Performance – Defence equipment that is operationally ready and mission capable; Value for Money – The required outcomes (i.e. fit for purpose and quantity) are procured at a price commensurate with the market rate for comparable procurements; Flexibility – An adaptable and scalable support system that can readily be adjusted to changes in operational requirements and/or operating budgets; and Economic benefits – Leverage industrial benefits from defence procurements to create jobs and economic growth for companies in Canada. Departmental Divisional Structure The structure in each department associated with the SBCA Process (DND, PSPC, ISED, etc.) differs. Nevertheless, in each department a responsible Director will challenge and approve the outcomes and proposed recommendations of the SBCA analysis, and once agreed will sign the SBCA Report. The signature signifies concurrence with the: sustainment strategy/solution in DND, procurement strategy/solution in PSPC, Industrial and Technological Benefits (ITB) / Value Proposition (VP) strategy/solution at ISED. It also signifies approval to proceed to DPS Governance as applicable.

Presentation Topic Sustainment Business Case Analysis in DND uses OmegaPS Analyzer to enable the comparison of support options. Comparison is conducted using a number of key performance indicators. This presentation will present a comparative analysis methodology using the tool. UGM19 Program

The Tool? A thing used to help perform a job. Computing A piece of software that carries out a particular function, typically creating or modifying another program. In this work, OmegaPS Analyzer is the ‘software tool’ and business case analysis is the ‘process tool’. Together the two aid the practitioner in making good decisions.

Outline Purpose of comparative analysis. Processes to achieve required outcomes. Contractors and the SBCA Tools for cost analysis of alternatives Analyzer and cost analysis Scope of cost analysis approaches Problems with assessing alternatives This will be a fairly high level introduction to this topic. Not enough time for detailed explanation, however, will introduce you to the topic if it is new or provide discussion points if you have been involved in an SBCA.

Purpose of Comparative Analysis Comparative analysis is a well defined process used to generate: Preferred (balanced) solutions based on required objectives. Proposed solutions that meet Ao and LCC goals Cost estimates of preferred solutions. Alternative approaches and their costs for expected solution. The results substantiate the options Establishes a supportability baseline with respect to SBCA choice

Process To Achieve Required Outcomes Analyse historical data (i.e. DRMIS, op usage, HUMS). Review supportability baseline in OmegaPS LSAR (if exists). Establish “As Is” support solution baseline to initiate Baseline Comparisons (BCS). RFI/RFP data request from industry. Define Cost Breakdown Structure to be used. Identify costs to be assessed: cost drivers and differentiators. Develop desired support solution through government and industry engagement. Gap analysis (if modifying an existing system).

Contractors And The SBCA Process Canada works in collaboration with Industry for complex assets Contractors provide guidance to the SBCA process to ensure ‘realistic’ solutions are considered and compared. Information is requested through the RFI process. To be useful data that is relevant to the CAF/DND requirement should be provided.

Cost Analysis Tools CBS – Cost Breakdown Structure BCS – Baseline Comparison System DATM – Design Availability Target Model Alternatives assessment – Trade-off and Sensitivity Analyses LCC Bid Evaluation – comparative proposals TLAS – Through Life Availability Simulation

Part of Generic CBS

Basic BCS Life Cycle

LCC Comparison for ISS Alternatives

Using Analyzer – Data Set Up Enter support organization (baseline and desired). Identify operational usage and mission types. Build the CBS structure - import. Identify Cost and Rates to be included in assessment. Develop ‘generic/basic’ equipment structure for comparative assessment. DATM Ao allocation if required.

Using Analyzer – Data Review Receive engineering data as a proposed concept design. Integrate into baseline scenarios. Run LCC analysis. Run Ao Assessment in DATM. Run TLAS.

Scope Of Cost Analysis Approaches Simple – Eqp with one generic LRU; basic operations; Non-complex Complete Comprehensive

Problems With This Process Data not available – neither history nor proposed new solutions. Responses to RFI are not detailed (e.g. total cost for 5 years of support). RFP did not include LCC bid eval. Proposed system not fully representative of the real system. GFI data not accurate

Examples CBS – Cost Breakdown Structure spreadsheet BCS – Drone data set DATM – Drone targets based on early data Alternatives assessment – Trade-off and Sensitivity Analyses LCC Bid Evaluation – comparative proposal TLAS – Drone simulation (tomorrow’s workshop)

Thank You For Your Attention!