1. BUSINESS CASE ANALYSIS
Esther Morse, Director
Weapon Systems Support Directorate
OFFICE OF THE ASSISTANT SECRETARY OF THE ARMY
(ACQUISITION, LOGISTICS & TECHNOLOGY)

2. DEFINITION
Business Case Analysis (BCA): A structured and systematic methodology for analyzing the alternatives involved in a business decision
Can be tailored to particular circumstances
Considers processes, resources, and feasible alternatives
Emphasizes financial consequences

3. BACKGROUND BCA Usage: Industry Information Technology Arena
Among Program/Project Managers
Companies contemplating mergers and acquisitions

4. BACKGROUND (Cont’d) Department of Defense Usage Increasing Due to:
Budgetary Constraints
Personnel Shortages
Need to
Develop Effective Acquisition Strategies
Reach Sound Business Decisions
Reduce Operating and Life Cycle Costs
Maintain Robust Warfighting Force Structure

5. ARMY APPROACH EFFORTS TO ENCOURAGE USE
Assistant Secretary (ALT) Item of Emphasis
Deputies Staff Meetings
Article in AL&T Magazine
Handbook Publication

6. ARMY APPROACH (Cont’d)
Assistant Secretary, FM&C (Deputy for Cost and Economics)
Highlighting AL&T Magazine Article
Revising Cost Analysis Manual
Including Chapter on BCAs
Combining Economic Analysis and Cost Analysis Concepts

7. FOCUS Applicability: Major Defense Acquisition Programs Weapon Systems
Information Technology Programs
Acquisition Categories I – III
Non-Major Systems

8. COMMON ELEMENTS OF BCA Problem Definition Objectives Assumptions
Alternative Solutions

9. COMMON ELEMTNTS (CONT’D)
Data Collection
Identification of Data Required
Classification of Data (cost, performance, schedule, etc)

10. COMMON ELEMENTS (Cont’d)
Evaluation
Analyze Data to Address Objective
Develop Findings

11. COMMON ELEMENTS (CONT’D)
DUE OUT
Report
Conclusions
Recommendations (Basis for Acquisition Strategy or Business Decision)