As the Department of Defense defines the policies required to enact Acuisition Reform, Cost-As-An-Independent-Variable (CAIV) continually rises to the forefront. Currently, most weapon systems are designed to meet a very stringent set of design criteria with very little thought of the resulting cost. By making cost as the independent variable, cost and performance trades c an be conducted in order to meet realistic program objectives. Implementing CAIV allows the opportunity to optimize system development within defined budgetary constraints. The most opportune time to reduce cost and cycle time is early in a program's life cycle. Significant savings can be achieved byintroducing CAIV into the acquistion process as early as the Concept Exploration (CE) phase.
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