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The items of this element should clearly annotate what issue the BCA is attempting to solve and how success will be measured.
The BCA process components are those subsections of the BCA that directly execute and report on analytical actions.
The third major BCA element contains the supporting foundation of the BCA that directly affects the quality and completeness of the analysis.
Background research, due diligence, governance, and data management and control underlie and prop up the entire process.
The PSM prepares a Product Support BCA for major product support decisions, especially those that result in new or changed resource requirements.
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.
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.
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It should reflect the appropriate level of analysis needed to provide a fair assessment of the proposed alternatives.