FAR 48 CFR § 46.702.c states "The benefits to be derived from a warranty must be commensurate with the cost of the warranty to the Government." Is there training that describes how a cost benefit analysis would be conducted by the Program Manager? Further, is there training that identifies clause requirements such as DFARS 252.246-7005 & 252.246-7006 requiring the use of warranty clauses and document attachments when contracts include warranties for serialized items? Thank you.
DoD Office of Small Business Programs (OSBP) Benefit Analysis Guidebook
The DoD Office of Small Business Programs (OSBP) Benefit Analysis Guidebook provides good information on benefit analysis regarding contract requirements. Example 10 (PDF page 89) describes the benefit analysis of warranties.
The DoD OSBP Benefit Analysis Guidebook can be found here:
ACQ 160 Program Protection Planning Awareness
ACQ 160 offers a module that describes trade-off analyses.
Module 10 Learning Objective: "Recognize the purpose and characteristics of trade-off analysis and how program protection requirements are incorporated into the Request for Proposal."
Additionally, DAU's Mission Assistance activities include a variety of consulting services for teams and individuals; the two acquisition workshops listed below offer training in overall Cost-Benefit Analysis.
Note: Workshops are scheduled on-demand and delivered by DAU faculty for requesting organizations at the customer's location or at DAU facilities. These Mission Assistance activities are not offered for general registration. They are designed and delivered in an "Intact Team" environment.
In some cases a Fee-For-Service (FFS) arrangement may apply and would be coordinated between the organization's representative and the appropriate DAU representative. This will be reflected in the Support Agreement (DD1144, or IAA for non-DoD organizations) signed by both parties. Fees may include: materials, instructor(s )travel, per diem, and in some cases labor rates.
WORKSHOP - WSB 011 Practical Government Business Cases
“This workshop covers the foundational elements of any decision analysis process which are variously referred to as Cost-Benefit Analysis (CBA), Business Case Analysis (BCA), Analysis of Alternatives (AoA), Economic Analysis (EA) and several other terms. Participants quickly explore the theory, but spend most of the time analyzing real world examples. The course culminates in a day-long case where groups build an acquisition style BCA or CBA.
The following critical behaviors can be applied on the job:
- Translate open-ended guidance into analyzable objectives or problem statements, courses of action, and criteria.
- Breakdown complex decisions, costs and benefits into analysis.
- Create decision papers that are easy to comprehend regardless of the complexity of the issues or data.”
WORKSHOP - WSB 012 Executive Cost - Benefit Analysis
“A Cost-Benefit Analysis (CBA) and its close companions of Business Case Analysis (BCA) and Economic Analysis (EA) are structured methods of quickly and concisely showing the costs and benefits of making a change with an emphasis on the quantifiable impact of making that decision.
This fast paced course is designed for executives and other reviewers of CBA submittals to give them an overview and some practice in reviewing CBA submissions. The format of the class is short lectures to remind everyone of the terms and the rules of the topic area, followed by examples and exercises. This course is very hands-on with well more than half the time allotted to analyzing and working through examples and exercises. All of the exercises and examples come from real world submissions that fell short of the ideal submission. We look at what was submitted, why it was flawed and what it would take to get it back on track.
This is not a math course. There is some math involved, but the emphasis is on the thought process that needs to be used to validate and approve CBAs.”