PEO-IWS ACB Insertion Portfolio Optimization (Excerpt from the Proceedings of the Seventh Annual Acqusition Research Symposium Thursday Sessions, Volume 2)

摘要

Program Executive Office-Integrated Warfare Systems (PEO-IWS) engaged a team from the Naval Postgraduate School (NPS) to conduct a pilot study to apply the Knowledge Valued Added + Real Options + Integrated Risk Management + Portfolio Optimization (KVA + RO + IRM + PO) method to estimate the value stream created by the capabilities to be inserted within the Aegis Weapons System (AWS) through the Advanced Capability Build (ACB) process--as described in the PEO-IWS Surface Combat System Acquisition Management Plan (AMP)--given budget constraints and ship industrial availability schedules. The goal was to determine what order of capability insertion provided the best returns within an optimized portfolio, treating each capability as a real option. The KVA + RO + IRM + PO approach was used to estimate the warfighter value delivered by each capability within the context of a portfolio- optimization, integrated risk-management model. The results provide a set of options based on selected constraints for insertion of the capabilities over the period of interest (Fiscal Years 2014-2025) based on an optimized portfolio model. For detailed information on the KVA + RO +IRM + PO approach, see the technical appendix to this report.