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.A BCA has three major elements: the purpose, process components, and quality foundation (see Figure 1).
This guidebook is organized into two sections: The People section provides guidance on assembling a Product Support BCA team.
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 Product Support BCA helps leadership with significant investment and strategic decisions across all applications of Product Support.
For example, Product Support BCAs may support decisions on whether or not to transform the product support strategy or business operations, develop a web-based training curriculum, or retire an asset.