Phase: Initialize the AOA process

1. Define mission need

Definition: The customer defines the mission need (i.e., a credible gap between current capabilities and those required to meet the goals articulated in the strategic plan) without favoring a predetermined solution. To ensure that the AOA process does not favor one solution over another, the AOA is conducted before the design and development of the required capabilities. The customer decides when in a program’s design an AOA should be performed, with the understanding that the more complete the design, the more information is available to support a robust analysis and to select a preferred alternative that best meets the mission need.

Effect: Allowing mission need to be defined in solution-specific terms creates a potential bias which could prevent the inclusion of viable alternatives and invalidate the analysis.

2. Define functional requirements

Definition: The customer defines functional requirements (i.e. the general parameters that the selected alternative must have in order to address the mission need) based on the mission need without a predetermined solution. The customer defines the capabilities that the AOA process seeks to refine through characterized gaps between capabilities in the current environment and the capabilities required to meet the stated objectives for the future environment. These functional requirements are realistic, organized, clear, prioritized, and traceable. It is advisable that functional requirements be set early in the AOA process, prior to the identification of alternatives, and agreed upon by all stakeholders.75

Effect: Setting functional requirements to a standard other than the mission need allows bias to enter the study because the functional requirements might then reflect arbitrary measures, preventing the inclusion of viable alternatives. Additionally, functional requirements that are not tied to mission need make it difficult to quantify the benefits of each alternative relative to what is required and make it challenging for decision-makers to assess which capability gaps will be met for each alternative. If functional requirements are established after the AOA has begun, bias may influence the study’s results.

3. Develop AOA time frame

Definition: The customer provides the team conducting the analysis enough time to conduct a robust and complete analysis. Since the AOA process requires a large team with diverse resources and expertise, the process needs sufficient time to be accomplished thoroughly. A detailed schedule to conduct the AOA is developed prior to starting the process. The duration of the AOA process depends on the number of viable alternatives and availability of the team members. The timeframe is tailored for the type of system to be analyzed and ensures that there is adequate time to properly accomplish all of the AOA process steps.

Effect: Recommending an alternative without adequate time to perform the analysis is a contributing factor to high dollar acquisitions that have overrun both cost and schedule while falling short of expected performance.

4. Establish AOA team

Definition: After the customer establishes the need for the AOA in steps 1 through 3, a diverse AOA team is established to develop the AOA. This team consists of members with a variety of necessary skill sets, specific knowledge, and abilities to successfully execute the study. For example, the AOA team includes individuals with skills and experience in the following areas: program management, federal contracting, cost estimating, risk management, sustainability, scheduling, operations, technology, earned value management, budget analysis, and any other relevant area of expertise. The AOA team can consist of both government and contractor support personnel, and the AOA team lead should be qualified and experienced to lead the AOA.

Effect: Without the appropriate expertise on the team, errors in the results and gaps in the analysis may occur, causing the AOA’s completion to be delayed until more SMEs are identified and tasked to work as part of the AOA process.

5. Define selection criteria

Definition: The customer, with input as needed from the decision-maker and the AOA team, and prior to the analysis, defines selection criteria based on the mission need. The selection criteria are independent of a particular solution. For example, the selection criteria could consider trade-offs between costs and capabilities, schedule flexibility of the alternatives, analysis of risks for each alternative, and other factors identified by the customer or the AOA team.

Effect: If selection criteria are not established prior to the analysis in the AOA process based on documented based on the mission need, bias can enter the AOA process and prevent the decision-maker from forming an impartial and credible decision.

6. Weight selection criteria

Definition: The customer, with input as needed from the decision-maker and the AOA team, decides on the weighting of the selection criteria to reflect the relative importance of each criterion prior to the beginning of the AOA. The rationale for the weighting of the selection criteria should be documented and explained in the AOA report. The AOA team applies the selection criteria during the analysis phase to inform the decision-maker.

Effect: An unjustified weighting method can oversimplify the results and lead to an uninformed and biased decision.

7. Develop AOA process plan

Definition: The AOA team creates a process plan, including proposed methodologies for identifying, analyzing, and selecting alternatives prior to beginning the AOA process. This plan establishes the critical questions to be explored, the selection criteria, the basis of estimates, and measures that are used to rate, rank, and decide among the alternatives. Additionally, the plan includes the criteria used to determine each alternative’s viability. A road map and standard work breakdown structure are used to compare the alternatives with the baseline and with each other. The AOA process plan is captured in a document that will ultimately be included in the final AOA document described in best practice 18.

Effect: If methodologies for the remaining phases of the AOA study are not established and documented up front, the risk of applying poor methodologies as part of the AOA analysis increases, which could result in bias when selecting a preferred alternative.


  1. Stakeholders are people who have an interest in or investment in the AOA and are impacted by and care about how the results of the AOA process.↩︎