Project Title: Evaluating Value
“We have got to stop spending more and more to get less and less.”
- Secretary of the Air Force, Deborah Lee James, on the Air Force Bending the Cost Curve (BTCC) Initiative
“Price is what you pay. Value is what you get.”
- Warren Buffet
Standard measures of acquisition effectiveness (e.g. cost and schedule growth) primarily address short-term trends without reflecting the utility of products and services acquired. Relevant timescales for evaluating acquisition trends and overall performance span decades, and key factors include utility, cost, and time to deliver capability. These factors constitute the framework for a value metric, where value is defined as a consumer’s perception that the utility of a delivered article or service is, at a minimum, worth the cost. Factors for evaluating value are similar to those assessed on a programmatic basis through cost-capability analyses. However, no systemic process exists to quantifiably evaluate value on an enterprise scale.
The Air Force Office of Transformational Innovation (OTI) is interested in building an analytical framework to apply industry-derived value measures to the Air Force acquisition process. OTI has completed a preliminary review of documented success cases in industry for enterprise-wide requirements processing, project management, engineering, manufacturing, and marketing to assess the applicability of industry best practices to Air Force activities.