Objectives: To identify, develop, and validate sound Methods, Processes, and Tools (MPTs) to enable DoD leadership and program managers to make a convincing case for investments in system flexibility when acquisition decisions are made.
In the first research thrust, a taxonomy of methods for valuing flexibility was developed. This taxonomy is designed around salient system characteristics in order to allow a decision-maker to select an appropriate method for valuing flexibility. Initial development created a software implementation of the Flexibility Valuation Method Selection Tool. Additionally, a series of cases illustrated how varying assumptions necessitates varying tools for valuing flexibility in the case of operating an observation satellite.
In the second research thrust, new tools were developed for estimating operation and support costs to improve Life Cycle Cost estimates. Validated macro-stochastic models were developed which demonstrated the ability to improve estimates of O&S costs for SARs. These models may provide significant value to decision-makers designing and investing in flexibility through improved cost estimates.
In the third research thrust, a detailed case study of valuing flexibility in ship maintenance was presented using data from both U.S. and Dutch naval experience. Knowledge Value Added and Integrated Risk Management models were used to assess technology implementation processes in order to maximize value of flexibility.