Appendix XI: Best Practices for the Analysis of Alternatives Process

Background

The Analysis of Alternatives (AOA) process compares the operational effectiveness, cost, and risks of a number of potential alternatives to address valid needs and shortfalls in operational capability. This process helps ensure that the best alternative that satisfies the mission need is chosen on the basis of the selection criteria, such as safety, cost, or schedule.

GAO has identified 22 best practices for an AOA process by (1) compiling and reviewing commonly mentioned AOA policies and guidance used by different government and private-sector entities, and (2) incorporating experts’ comments on a draft set of practices to develop a final set of practices.74

These practices can be applied to a wide range of activities and situations in which a preferred alternative to the development plan in place must be selected from a set of possible options, as well as to a broad range of capability areas, projects, and programs. These practices can also provide a framework to help ensure that entities consistently and reliably select the program alternative that best meets the mission need. The guidance below is an overview of the key principles that lead to a successful AOA process and is not meant as a prescriptive “how to” guide with detailed instructions for each best practice identified because each entity may have its own process in place.

The 22 best practices that GAO identified are grouped into the following phases:

  • Initialize the AOA process: includes best practices that are applied before starting the process of identifying, analyzing, and selecting alternatives. This includes determining the mission need and functional requirements, developing the study time frame, creating a study plan, and determining who conducts the analysis.

  • Identify alternatives: includes best practices that help ensure the alternatives that will be analyzed are sufficient, diverse, and viable.

  • Analyze alternatives: includes best practices that compare the alternatives selected for analysis in terms of costs, benefits and risks. The best practices in this category help ensure that the team conducting the analysis uses a standard, quantitative process to analyze the alternatives.

  • Document and review the AOA process: includes best practices that are applied throughout the AOA process, such as documenting in a single document all steps taken to initialize, identify, and analyze alternatives, selecting a preferred alternative, and independently reviewing the AOA.

  • Select a preferred alternative: includes the final step of comparing alternatives and selecting a preferred alternative that best meets the mission need.

The five phases address different themes of analysis necessary to complete the AOA process and comprise the beginning of the AOA process (defining the mission need and functional requirements) through the final step of the AOA process (select a preferred alternative). There are three key entities that are directly involved in the AOA process: the customer, the decision-maker, and the AOA team.

• The customer refers to the group that is the one who implements the final decision (i.e. the program office, agency, and the like). A complex AOA process that impacts multiple agencies can have multiple customers.

• The decision-maker is the person or entity that signs off on the final decision and analysis documented by the AOA report, and who will select the preferred alternative based on the established selection criteria. The decision-maker should remain informed throughout the AOA process. For example, the decision-maker could form a committee that consists of management and other groups independent of the AOA process who possess the required technical expertise or broad organizational knowledge to keep the decision-maker appraised of and to inform the AOA process.

• The AOA team is the group who is involved in the day-to-day work of the AOA process and who conducts the identification and assessment of alternatives that is the foundation of the AOA process.

  1. GAO first identified 24 best practices to establish an AOA process in DOE and NNSA Project Management: Analysis of Alternatives Could Be Improved by Incorporating Best Practices GAO-15-37. GAO refined these best practices and condensed them to 22 best practices in Amphibious Combat Vehicle: Some Acquisition Activities Demonstrate Best Practices; Attainment of Amphibious Capability to be Determined GAO-16-22. The AOA process best practices listed in this guide further refine and supersede those described in GAO-15-37 and GAO-16-22.↩︎