Analysis of the Costs and Benefits of Implementing the Navy's Acquisition Requirements for Training Transformation (ARTT) Initiative: Integrating Training Needs Analysis and Content Development with Model-Based Product Support (MBPS)
Abstract
The Navys Acquisition Requirements for Training Transformation (ARTT) project is designed to obtain and use data acquired for systems engineering and configuration management to improve the development of technical training. Using Navy experts estimates of the cost reductions that ARTT provides, this analysis evaluates ARTTs cost-effectiveness. Two dimensions of uncertainty are addressed: (1) uncertainty about the scope of training that will be affected, and two cases are postulated of new training content per year; and (2) uncertainty about the proportion of savings that could occur, and three cases are examined. The costs of developing and implementing ARTTs capabilities are taken from 20-year budget estimates based on Navy Program Objective Memorandum (POM) 22 program planning data. The analysis assumes that ARTTs benefits will be phased in over a 20-year period. The evaluation uses net-present-value analysis as directed by OMB Circular A-94. The analysis finds that ARTT is cost-effective for all six cases. The discounted benefits minus the discounted costs are positive. Further, the breakeven period, the time at which cumulative benefits exceed cumulative costs, ranges from 2 to 7 years for the two higher estimates of proportional savings. However, many uncertainties remain.
Document Details
- Document Type
- Technical Report
- Publication Date
- Aug 01, 2020
- Accession Number
- AD1119640
Entities
People
- Jerome Bracken
- Karen L. Johnson
- Stanley A. Horowitz
Organizations
- Institute for Defense Analyses