A Cost Capability Analysis (CCA) is an analytical tool used by Program Management to examine the cost and military utility.  It allows for better understanding and decision-making of the effects of requirements on cost and capability.

Purpose of Cost Capability Analysis (CCA)

The purpose of a CCA is to support the delivery of cost-effective solutions through deliberate trade-off analysis between operational capability and affordability.

Cost Capability Analysis (CCA) Methodology

A CCA uses Multi-Objective Decision Analysis (MODA) that results in a trade space between cost and warfighting capabilities. The MODA utilizes an attribute hierarchy to assign a value score to each alternative. Alternatives then are compared based on the requirement attribute score and cost to determine which are most efficient (i.e., provide the greatest performance for the cost, or lowest cost for given performance). Once these efficient alternatives are identified, it’s up to the Program Manager, working with the stakeholders, to decide the proper trade-off between cost and performance on the efficient alternatives. The main outcomes are:

• Provides a way to depict and show what capability is lost or gained from one alternative to another and at what cost
• Provides a way to down-select alternatives based on affordability and minimum acceptable capability
• Identifies cost and operational effectiveness drivers
• Identifies relative value in terms of warfighting capability (i.e. mission tasks, measure of effectiveness)
• Integrates cost and military utility to illuminate the trade space
• Yields information to compare many options cost and capability
• Reduces potential sources of bias for the development of candidate solutions

Acquisition Decision Points

The CCA process emphasizes capability and affordability discussions. A CCA is required to support 12 distinct requirements and acquisition decision points, to include the Initial Capabilities Document (ICD), Materiel Development Decision (MDD), Analysis of Alternatives (AoA), and at each requirements and acquisition forum through production. See figure below.

AcqLinks and References:

• Article: Cost Capability Analysis “Introduction to a Technique” by Frank Delsing
• [1] Air Force Life-Cycle Management Center Standard Process for Cost Capability Analysis – 10 Jan 2018

Updated: 7/30/2021

Rank: G1