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Why do we need to do CBAs?
A. In order to enable Army senior leaders to make resource informed decisions, the VCSA and USA issued a memorandum to the principal officials in HQDA directing unfunded requirements and new program proposals submitted to the Army Senior Leadership to be accompanied by a CBA.
The APGM requires CBAs in support of the program objective memorandum and budget estimates submission development.
Since then, several Army commands and service commands have issued guidance to employ CBAs to accompany proposals at their respective levels.
The CBA is a tool to help leaders make decisions by providing clear choices that carefully weigh costs, tradeoffs, and benefits.
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When do we need to do CBAs?
A. CBAs are needed to support a decision for additional resources or a shift in resources. If the CBA will need to be reviewed, it is a good idea to plan time for its review in the decision making process. Currently, some processes such as the Army Cost Position (ACP) factor in time for CBA review.
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Who does CBAs?
A. Every organization in the Army can be asked for a CBA. Decision making bodies will ask for a CBA in order to make informed decisions and have a full range of options and associated consequences of those options.
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What needs to be included in a CBA?
A. The well formulated CBA should include a clear problem and real alternatives that address the problem. Every CBA should also include well documented backup material that define all assumptions, facts, constraints, calculations, and methodology on how COAs, tradeoffs, and costs were devised. The CBA guidebook provides a step by step process to assemble a CBA as well as a checklist.
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What is the Cost Benefit Analysis Review Board (CBARB)?
A. The CBARB is the reviewing body that accepts CBAs and validates that all necessary components to include COAs, Benefits, and Tradeoffs are included. The CBARB convenes to review and validate a CBA when a CBA is submitted for review. The CBARB will provide recommendations to the DASA-CE, who will provide feedback to the decision making authority.
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What does the CBARB check for when I submit a CBA?
A. CBAs coming to the CBA mailbox need accompanying details in addition to the powerpoint slides to include analysis spreadsheets for cost estimates, assumptions, and details for tradeoffs and benefits. The CBARB will not be able to review and validate a CBA that only includes the summary presentation slides for senior level review. The CBA checklist provides a short summary of documents to check for prior to submission.
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How long does it take to put a CBA together? Or How much time will this add to our process?
A. Assembling a CBA could take anywhere from days to months to complete. Even prior to the advent of the CBA, organizations usually performed all the work necessary to present a CBA, but the process and methodology in developing the requirement and recommendation(s) were not always captured in the presentation.
The CBA presentation template is meant to provide a briefing template that captures the elements required to make a resource informed decision. It attempts to summarize the result of any research or analysis that substantiates the CBA. The backup material containing the research and analysis needs to be well documented or explained in detail to the CBARB.
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How long does the CBARB need to validate my CBA?
A. Depending on the complexity, the CBARB needs approximately 3-10 working days once it receives a complete CBA. However, the CBARB may require additional time to get clarification on detailed data, analysis, assumptions which will extend the number of days it takes for CBA review. In cases where submitters have been working with CE on cost methodology and the benefits and tradeoffs are clear, the CBARB can review a submission in less than a week.
Some recent submissions have taken multiple weeks to review due to lack of details, no supporting documentation, poor COA development, or inability to locate the data analyst to answer questions.
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Are acquisition programs affected by the CBA policy?
A. Yes, the policy can be applied to acquisition programs. However, the intent and requirements of the CBA may be met by other analysis (AOA, PBL, Business case...). CBAs support the VCSA and USA in prioritizing Army funding, even for acquisition programs that fall under the ASA(ALT).
Currently, large acquisition programs (ACAT I & II) currently meet the CBA/CBARB requirements. The acquisition process mandates rigorous vetting of assumptions, costs and benefits during the AoA approval process, of which the DASA CE is a part of as an AROC member. Costs are also included in the AoA and validated in an Army Cost position. Requirements changes not covered by an AoA should be reviewed by configuration steering board (CSB).
As for life cycle O&S costs, there are PBL estimates that provide courses of actions, tradeoffs, and associated costs.
Accompanying JCIDS documents existing positions suffice and meet the intent of the CBA guidance as per the DASA-CE.
For smaller acquisition programs (ACAT III) that do not have costs and requirements validated in the same manner, shortfalls that demand a UFR, or changes in the program that do not demand a revalidation of costs and requirements in the acquisition/JCIDS process, then a CBA is required.
ACAT I and ACAT II programs could require a CBA, but if the alternatives/COAs are covered by the AOA, then a new CBA isn't required.
In addition, the submitter of the CBA needs to prepare it. While DASA-CE is available to assist, there is not an entity that will put this package together. The submitter or sponsor will need to coordinate with the PEO or PM office to provide the backup data as well as the points of contact for cost estimates and analysis details.
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What are the dollar thresholds for a requirement to necessitate a CBA?
A. In developing the Army Program Objective Memorandum (POM), a CBA is required for any proposed new requirement or increase in funding that totals $10 million in any one year or $50 million over the period FY23-27. In addition, a Program Evaluation Group (PEG) may require a CBA below these dollar thresholds if it determines that the proposal is sufficiently important.
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What resources are available to help me do a CBA?
A. CBA resources to include the guidebook, templates, & examples are posted under the "Documents" tab on this page.
In addition, users can download inflation indices and discount rates from the FM&C homepage (see Documents link on this page).
DASA CE members regularly provide assistance in identifying the proper methodology and tools for cost estimating.
Questions or requests for assistance can be sent via email by clicking here to email the CPP help desk (asafmc-cpp-helpdesk@army.mil).
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Where can I learn more about CBAs?
A. DASA-CE regularly conducts 4-hour CBA training to familiarize people with the basic elements of a CBA and resources available for the cost estimating portion of the CBA. Please see training contact under the "Contact Us" tab at the top of this page.
The Cost Management Certificate course is a 4-week class. For details click the link "Training".
Questions or requests for assistance can be sent via email by clicking here to email the CPP help desk (asafmc-cpp-helpdesk@army.mil).