Product Support Business Case Analysis (PS BCA)

Purpose

The primary objective of a Product Support Business Case Analysis (PS BCA) is to analyze and determine the best value Product Support Strategy (PSS) for a Department of Defense (DoD) system. The BCA does not replace the judgment of a decision maker but provides an analytic, standardized, and objective foundation upon which credible decisions can be made. The BCA is a comprehensive, fair, and accurate comparison when evaluating multiple alternatives and should consider broad Department-wide impacts and context throughout the analysis.

Requirements

10 USC 4324, Life-cycle management and product support, requires Product Support Managers (PSMs) of covered systems to “conduct appropriate cost analyses to validate the product support strategy and life cycle sustainment plan, including cost-benefit analyses as outlined in Office of Management and Budget Circular A-94.”  

DoD Instruction (DoDI) 5000.91, Product Support Management for the Adaptive Acquisition Framework, requires PSMs to “conduct a PS BCA to assess courses of action being considered and document the recommended course of action in the Life Cycle Sustainment Plan (LCSP) that achieves readiness goals, manages risks, and is cost-effective

DoDI 5000.91 also states the PSM will implement the PSS via the LCSP through arrangements with various public and private Product Support Integrators (PSI) and Product Support Providers (PSP). The PSM will use Product Support Analysis (PSA) to support the PS BCA, PSS, and LCSP.  The PSM will collaborate with users, systems engineers, cost analysts, and other stakeholders to develop risks and assumptions unique to the system. The LCSP will be reviewed and updated as necessary, following approval or revalidation of the PS BCA and before Sustainment Reviews (SRs) are conducted, to incorporate program bed-down plans through retirement and disposal of the system, and other updates as warranted.

The DoD Product Support BCA Guidebook includes guidance by Adaptive Acquisition Framework (AAF) pathway, as follows:

• Urgent Capability Acquisition – not required until the disposition official recommends transition to a program of record
• Middle Tier of Acquisition – required for entrance to Rapid Fielding
• Major Capability Acquisition – required for Milestones A, B, and C and post-IOC in coordination with Sustainment Reviews (MDAPs)
• Software Acquisition – not required for stand-alone software programs
• Defense Business Systems – not required*
• Services Acquisition – not required*

*Note: The governing 5000-series pathway DoD instructions recommend or require a BCA for the acquisition strategy (not specifically for product support).

Revalidation

Revalidation is defined as the process to re-evaluate the ground rules and assumptions, performance of the PSS, and any other attributes of the system such as a change to concepts of operation or support strategy to confirm the continued soundness and acceptability of the previously approved PSS. Acceptability is defined as being capable of meeting the performance and cost metrics in the program’s requirements documents.

10 USC 4324 requires PSMs for covered systems "prior to each change in the product support strategy or every five years, whichever occurs first, [to] revalidate any business-case analysis performed in support of the product support strategy."  DoDI 5000.91 further requires the Program Manager and PSM to “revalidate the PS BCA based on changes (to systems, hardware or software, constraints, and operational environment) or every 5 years, whichever occurs first.”

Product Support BCA Process

The DoD Product Support BCA Guidebook identifies a proposed process flow consisting of 16 steps organized into three phases:

• Planning & Organizing
  • Step 1: Initial Planning
  • Step 2: Identify the PS BCA Stakeholders
  • Step 3: Conduct the PS BCA Kick-off Meeting
  • Step 4: Define Analytical Foundation of the PS BCA
  • Step 5: Data Collection Planning
• Conducting the PS BCA
  • Step 6: Develop Evaluation Criteria
  • Step 7: Develop Alternatives
  • Step 8: Gather Benefit and Cost Data
  • Step 9: Conduct Risk & Sensitivity Analysis
  • Step 10: Conduct Comparative Analysis
  • Step 11: Writing the PS BCA Draft Report
• Reporting Results
  • Step 12: Distribute Draft for Comment Adjudication
  • Step 13: Obtain Final Approval and Signature
  • Step 14: Document Lessons Learned & Best Practices
  • Step 15: Develop an Implementation Plan
  • Step 16: Document Completion of PS BCA

For details on each step, refer to the guidebook. The guidebook also includes appendices containing information related to: (a) revalidation examples; (b) frequently asked questions; (c) elements of a PS BCA Charter; and (d) sufficiency memorandum for PS BCA update.

PS BCA Report Outline

The DoD PS BCA Guidebook provides a proposed outline of the PS BCA Report, to be used in conjunction with Service Component guidance, as follows:

1. Executive Summary
2. Introduction
3. Assumptions and Methods
4. Alternatives Considered
5. Benefits and Cost Analysis
6. Risk Analysis and Mitigation Plans
7. Sensitivity Analysis
8. Comparative Analysis Across the Alternatives
9. Recommendations and Implementation Plan

Additional Resources

For a list of DoD and Service Component policy and guidance for conducting PS BCAs, refer to the DoD Product Support BCA Guidebook Section 6.

For additional resources on BCAs, please consult the Life Cycle Logistics Professional Reading List.

To view a 1-hour recording of the Jul 2024 web event From Insights to Action: The Product Support BCA Guidebook Update, featuring OSD and Service subject matter experts, navigate here.

To view a 7-minute video interview with the Deputy Assistant Secretary of Defense for Product Support's interim Policy Director, navigate here.