III. Analyze alternatives 12. Identify significant risks and mitigation strategies Met. Alternative Definition: The AoA team identifies and documents the risks and risks and mitigation strategies for each alternative. Risks were discussed are ranked in terms of significance to mission needs and in the AoA report. requirements. All risks are documented for each along with any overarching or alternative specific mitigation strategies. Schedule risk, cost risk, technical risk of technical obsolescence, dependencies between a new project and other projects or systems, procurement and contract risk, and resources risks are examined. Effect: Since AoA processes typically occur early in the process, risk is inherently a part of every alternative. Not documenting the risks and related mitigation strategies for each alternative prevents decision makers from performing a meaningful trade-off analysis necessary to choose a alternative. 13. Determine and quantify benefits/effectiveness Intent was met: Definition: The AoA team uses a standard process to to OHEP program the benefits and effectiveness of each alternative. The and future directions AoA team drafts a metric framework that details the methods of program are used to evaluate and quantify the measures of effectiveness Many of the and measures of performance for all mission needs. The AoA benefits are intangible team quantifies the benefits and effectiveness of each therefore a NPV could over the full life-cycle, if possible. Just as not be used alternative’s costs cover the entire life-cycle for each alternative, the Discussed in a and effectiveness measures cover each HEP Memo dated alternative’s if possible, in order to determine each net Dec 17, 2016. alternative’s present value (NPV)—the discounted value of expected minus the discounted value of expected costs. In cases where the means to monetize a benefit are too vague (for intangibles like scientific knowledge), the AoA team treats those benefits as strategic technical benefits and uses scalability assessments to quantify those benefits so that they are compared across all viable alternatives. In situation where benefits cannot be quantified, the AoA team explains why this is the case as part of their analysis. Effect: Determining a standard process to quantify benefits is an essential part of the AoA process. If the AoA team does not clearly establish criteria against which to measure all bias is introduced to the study. Additionally, if the AoA team does not examine effectiveness over the entire life-cycle, decision makers cannot see the complete picture and are from making an informed decision.
III. Analyze alternatives 12. Identify significant risks and mitigation strategies Definition: The AoA team identifies and documents the risks and mitigation strategies for each alternative. Risks are ranked in terms of significance to mission needs and requirements. All risks are documented for each along with any overarching or alternative specific mitigation strategies. Schedule risk, cost risk, technical risk of technical obsolescence, dependencies between a new project and other projects or systems, procurement and contract risk, and resources risks are examined. Effect: Since AoA processes typically occur early in the process, risk is inherently a part of every alternative. Not documenting the risks and related mitigation strategies for each alternative prevents decision makers from performing a meaningful trade-off analysis necessary to choose a alternative. Met. Alternative risks and were discussed in the AoA report. 13. Determine and quantify benefits/effectiveness Definition: The AoA team uses a standard process to the benefits and effectiveness of each alternative. The AoA team drafts a metric framework that details the methods used to evaluate and quantify the measures of effectiveness and measures of performance for all mission needs. The AoA team quantifies the benefits and effectiveness of each over the alternative’s full life-cycle, if possible. Just as costs cover the entire life-cycle for each alternative, the and effectiveness measures cover each alternative’s if possible, in order to determine each alternative’s net present value (NPV)—the discounted value of expected minus the discounted value of expected costs. In cases where the means to monetize a benefit are too vague (for intangibles like scientific knowledge), the AoA team treats those benefits as strategic technical benefits and uses scalability assessments to quantify those benefits so that they are compared across all viable alternatives. In situation where benefits cannot be quantified, the AoA team explains why this is the case as part of their analysis. Effect: Determining a standard process to quantify benefits is an essential part of the AoA process. If the AoA team does not clearly establish criteria against which to measure all bias is introduced to the study. Additionally, if the AoA team does not examine effectiveness over the entire life-cycle, decision makers cannot see the complete picture and are from making an informed decision. Intent was met: to OHEP program and future directions of program are Many of the benefits are intangible therefore a NPV could not be used Discussed in a HEP Memo dated Dec 17, 2016.
PIP-II%20ICR%20Cost_Sch_AoA_Checklist-01%20Dec%202017.docx