An Analysis of Alternatives (AoA) is an analytical comparison of the operational effectiveness, suitability, and life-cycle cost of alternatives material solutions that satisfy an established capability need to be identified in an Initial Capabilities Document (ICD). It focuses on the identification and analysis of alternatives, Measures of Effectiveness (MOE), schedule, Concepts of Operations (CONOPS), and overall risk. An AoA also assesses Critical Technology Elements (CTEs) associated with each proposed material solution, including; technology maturity, integration risk, manufacturing feasibility, and technology maturation and demonstration needs.
Definition: The Analysis of Alternatives (AoA) is a documented evaluation of the performance, operational effectiveness, operational suitability, and estimated costs of alternative systems to meet a capability need that has been identified through the Joint Capabilities Integration and Development Systems (JCIDS) process.
Instruction: DoD Instruction 5000.84 “Analysis of Alternatives”
Outline: Recommended Outline for the AoA Plan
The AoA Study Guidance is developed and approved by the Director of Cost Assessment and Program Evaluation (DCAPE) with the input of other DoD officials. Prior to the Materiel Development Decision (MDD) review, the DCAPE provides the AoA study guide to the DoD Component designated by the Milestone Decision Authority (MDA). Following receipt of the AoA study guidance, the DoD Component prepares an AoA study plan that describes the intended methodology for the management and execution of the AoA. The AoA study plan is coordinated with the MDA and approved by DCAPE prior to the MDD review.
When is the AoA Conducted
The AoA is conducted during the Materiel Solution (MS) Phase before Milestone A. The final AoA supporting a Milestone A decision is provided to the DCAPE not later than 60 days prior to the milestone decision review meeting. The DCAPE normally develops and approves AoA Study Guidance. 
Steps to Conducting an AoA
The typical steps in conducting an AoA include:
- Step 1 Plan: Determine the goals, schedule, stakeholders, funding, team, and deliverables.
- Step 2 Establish analysis foundation: Determine the problem and scope being addressed and the ground rules and assumptions.
- Step 3 Identify and Define Alternatives: Identify the alternatives to the problem set.
- Step 4 Assess Alternatives: Assess each of the alternatives identified
- Step 5 Compare Alternatives: Determine pros and cons against alternative solutions
- Step 6 Report results: Document results for decision-makers
- Step 7 Follow-up: Conduct follow-up analysis on any chose alternative
Notional Analysis of Alternative (AoA) Outline
The AoA will normally include the following sections, although it can (and should) be tailored or streamlined to support the given situation:
- Capability Need, Deficiencies, and Opportunities
- Program Description
- Operational Environments
- Operational Concept
- Operational Requirements
- Status Quo (Baseline) and Alternatives
- System Design, Performance, and Measures of Effectiveness
- Life-Cycle Costs of Baseline and each alternative
- Life Cycle Cost per unit system
- Life Cycle Cost per specified quantity of systems
- Analysis of Alternatives
- Trade-off Analysis
- Sensitivity Analysis
- Recommendations and Conclusions
AoA Reporting and Certification
For Major Defense Acquisition Programs (MDAP) at Milestone A, the Milestone Decision Authority (MDA) must certify in writing to Congress that the Department has completed an AoA consistent with study guidance developed by the Director of Cost Assessment and Program Evaluation (DCAPE). For MDAPs at Milestone B, the MDA must certify in writing to Congress that the Department has completed an AoA with respect to the program. 
When is the AoA Updated
An AoA should be updated and performed in each acquisition phase and throughout the lifecycle of a program to guarantee that the correct material solution is being developed. The update should be used to refine the proposed material solution and reaffirm the rationale in terms of cost-effectiveness.
AoA Input into the Technology Development Strategy (TDS)
The Technology Development Strategy (TDS) should highlight how the risks identified in the AoA areas are going to be addressed and minimized in the Technology Maturation & Risk Reduction (TMRR) Phase and on the path to full manufacturing capability in the Production and Deployment (PD) Phase.
AoA Input into an Alternative Systems Review (ASR).
Completion of the Alternative Systems Review (ASR) should provide a comprehensive rationale for the proposed material solution(s), based upon the AoA that evaluated relative cost, schedule, performance (hardware, human, software), and technology risks.
STATUTORY: for MDAP, Major Automated Information System (MAIS) programs, and all Automated Information Systems (AIS) programs, including National Security Systems (NSSs), at Milestone A. Updates required through Milestone C (or Milestone B if there is no Milestone C) for MAIS programs, and all AIS programs.
REGULATORY: for all other specified Program Type/Event combinations.
- The Milestone Decision Authority will determine if a new or updated AoA is needed after Milestone A. Make sure you know the AoA requirements during each phase.
AcqLinks and References:
-  Defense Acquisition Guidebook
- DoD Instruction 5000.84 “Analysis of Alternatives”
- Analysis of Alternatives Handbook – July 2016
- Analysis of Alternatives (AoA) Study Guidance
- (Old Version) Analysis of Alternative (AoA) Handbook – July 2008
- Decision-Based upon AoA by Dr. David G. Ullman – January 2009
- Recommended Outline for the AoA Study Plan