Acquiring Technical Data with Renewable Real Options
Abstract
This research will investigate new methods for acquiring technical data with flexible options to be exercised at the time of need. The technical approach will use Real Options Theory for pricing such options under uncertainty. Expected results include a decision framework and method for assessing the value of technical data options in the general case of spare parts procurement. Test scenarios will be based on case examples of procurement of technical data to support uncertain future needs for spare parts procurement. The broader public purpose will be to advance the understanding of how to value and apply real options in settings where downstream life cycle needs are uncertain and subject to change, with the goal of reducing risk and cost. The methods and models developed will be freely available to benefit public programs that need to mitigate the cost and risk of being dependent on a sole source for the life of the system. This research is consistent with the public service mission of Analytic Services Inc. to “Inform Decisions that Shape the Nation’s Future".
Document Details
- Document Type
- DoD Grant Award
- Publication Date
- Aug 10, 2016
- Source ID
- N002441510012
Entities
People
- Michael Mcgrath
Organizations
- Office of the Secretary of Defense