[The Alternative Analysis section should identify options and alternatives to the proposed project and the strategy used to identify and define them. Further analysis of these potential options should be performed to identify a preferred solution. Include a description of the approaches for the identification of alternatives and a description of each alternative considered. Include two viable alternatives: keeping things “as-is” and one additional alternative.

Each alternative must include an analysis of its costs and benefits, requirements and constraints, and risks.

Begin this sub-section by stating how many alternatives will were considered. For example:

“The following [cite number] alternatives were considered for this analysis:

• Alternative 1 – <Baseline/Status Quo/As Is> – <short description>

• Alternative 2 – <short name> – <short description>”

Continue by explaining why and how the alternatives presented here were selected (e.g., alignment to goals, feasibility, cost, etc.) For example:

“These alternatives were selected because <state reason(s)>. Each of these alternatives is described below in more detail and assessed across the following dimensions: costs and benefits, requirements and constraints; and risk. Consistent formats and scoring methodologies were used so results can be easily compared.”]

5.1 Alternative A (Status Quo)

[Provide a detailed description of Alternative A (the status quo).]

5.1.1 Cost and Economic Viability

[Use the table below to conduct a cost-benefit analysis for Alternative 1. Double click on the table to enter data into the embedded spreadsheet. Include one column for each of year of the solution’s expected life span. To do this, you may need to add or delete columns in the table below. You may also need to add or delete rows. Your analysis should:

· Include “all incremental, direct, and indirect costs to the taxpayer” (DOD, 2011, p.25)

· Include “all relevant anticipated costs directly or indirectly associated with each feasible alternative over the life of the program. Show all resources required to achieve the stated objective. Estimate all future costs from the start through implementation, operation, and disposal for a program or project. In the disposal, include the cost of disposal, and/or residual value for the old unit” (DOD, 2011, p.25)

· “Ensure that cost estimates are consistent with the assumptions, ground rules, and objectives of the product support strategy” (DOD, 2011, p.25)

· “Estimate all relevant future costs from inception through implementation, operation, and disposal for the program or project….The cost of an alternative includes the cost of operating the status quo programs until the chosen alternative is fully implemented” (DOD, 2011, p.26).

Conclude this sub-section with a narrative summary of the costs-benefit analysis. This summary should state the net present value, the expected lifespan of the alternative, and your confidence in the estimates (high, medium, or low).]

Cost-Benefit Analysis

Initial

Investment

Year 1Year 2Year 4Year 4

Costs

Non-recurring Costs

Cost of _____

Recurring Costs

Cost of _____

Total Costs$0$0$0$0$0

Benefits

Revenue from ______

Total Benefits$0$0$0$0$0

Net Costs/Benefits$0$0$0$0$0

Discount Rate5.00%

Present Value$0

5.1.2 Weighted Multi-criteria Analysis

[“Provide a summary for how Alternative 1 satisfies requirements and constraints. For example: This alternative satisfies [all, most, some] known requirements and overcomes [all, most, some] constraints. Its greatest strengths are in [explain what they are and why they are important]. Its greatest limitations are [explain what they are and why they are an issue]. Expectations regarding how well this alternative is expected to satisfy each requirement and constraint have been scored and provided in the table below” (DOD, 2014, p.8)]

Alternative # 1: Weighted Multi-criteria Analysis
Requirements	Weight	Rating	Score	Score Rationale
[Describe requirement]
[Describe requirement]
Sub-Total
Constraints
[Describe requirement]
[Describe requirement]
Sub-Total
Total Score

1. Score = “Rating” multiplied by “weight”

5.1.3 Risk Summary

[Conduct a risk analysis by completing the table below. Include any risks associated with assumptions. Include a narrative describing the risks. For example: This alternative has been evaluated to be [high, medium, low] risk. Areas of greatest risk were [list and explain]. Areas of lowest risk were [list and explain]” (DOD, 2014, p. 9).

Risk Category	Impact	Likelihood	Risk Level (Impact x Likelihood)
			0
			0
			0
Overall	0	0	0

5.2 Alternative B

[Provide a detailed description of Alternative B. This alternative must include the use of an information or communication technology.]

5.2.1 Cost and Economic Viability

[Use the table below to conduct a cost-benefit analysis for Alternative 2. Double click on the table to enter data into the embedded spreadsheet. Include one column for each of year of the solution’s expected life span. To do this, you may need to add or delete columns in the table below. You may also need to add or delete rows. Your analysis should:

· Include “all incremental, direct, and indirect costs to the taxpayer” (DOD, 2011, p.25)

· Include “all relevant anticipated costs directly or indirectly associated with each feasible alternative over the life of the program. Show all resources required to achieve the stated objective. Estimate all future costs from the start through implementation, operation, and disposal for a program or project. In the disposal, include the cost of disposal, and/or residual value for the old unit” (DOD, 2011, p.25)

· “Ensure that cost estimates are consistent with the assumptions, ground rules, and objectives of the product support strategy” (DOD, 2011, p.25)

· “Estimate all relevant future costs from inception through implementation, operation, and disposal for the program or project….The cost of an alternative includes the cost of operating the status quo programs until the chosen alternative is fully implemented” (DOD, 2011, p.26).

Conclude this sub-section with a narrative summary of the costs-benefit analysis. This summary should state the net present value, the expected lifespan of the alternative, and your confidence in the estimates (high, medium, or low).]

Cost-Benefit Analysis

Initial

Investment

Year 1Year 2Year 4Year 4

Costs

Non-recurring Costs

Cost of _____

Recurring Costs

Cost of _____

Total Costs$0$0$0$0$0

Benefits

Revenue from ______

Total Benefits$0$0$0$0$0

Net Costs/Benefits$0$0$0$0$0

Discount Rate5.00%

Present Value$0

5.2.2 Weighted Multi-criteria Analysis

[“Provide a summary for how Alternative 2 satisfies requirements and constraints. For example: This alternative satisfies [all, most, some] known requirements and overcomes [all, most, some] constraints. Its greatest strengths are in [explain what they are and why they are important]. Its greatest limitations are [explain what they are and why they are an issue]. Expectations regarding how well this alternative is expected to satisfy each requirement and constraint have been scored and provided in the table below” (DOD, 2014, p.8)]

Alternative # 2: Weighted Multi-criteria Analysis
Requirements	Weight	Rating	Score	Score Rationale
[Describe requirement]
[Describe requirement]
Sub-Total
Constraints
[Describe requirement]
[Describe requirement]
Sub-Total
Total Score

1. Score = “Rating” multiplied by “weight”

5.2.3 Risk Summary

[Conduct a risk analysis by completing the table below. Include any risks associated with assumptions. Include a narrative describing the risks. For example: This alternative has been evaluated to be [high, medium, low] risk. Areas of greatest risk were [list and explain]. Areas of lowest risk were [list and explain]” (DOD, 2014, p. 9).

Risk Category Impact Likelihood Risk Level (Impact x Likelihood) 0 0 0

Overall 0 0 0

PAGE

Revision Date: Error! Unknown document property name. Page 2 of 8

EPLC_Business_Case_Template.doc

_1603697762.xls

Alternative_Analysis_Example

Cost-Benefit Analysis
	Initial Investment	Year 1	Year 2	Year 4	Year 4
Costs
Non-recurring Costs
Cost of _____
Cost of _____
Cost of _____
Recurring Costs
Cost of _____
Cost of _____
Cost of _____
Total Costs	$0	$0	$0	$0	$0
Benefits
Revenue from ______
Revenue from ______
Revenue from ______
Total Benefits	$0	$0	$0	$0	$0
Net Costs/Benefits	$0	$0	$0	$0	$0
Discount Rate	5.00%
Present Value	$0

Sheet1

Alternative # 1: Requirements Satisfaction
Requirement	Score (0 to 5)	Weight	Weighted Score	Score Rationale
[Describe requirement]
[Describe requirement]
Total Score
1. Score range is: 0 (does not meet requirement), 1 (minimally meets requirement) to 5 (greatly exceeds requirement).
2. Weighted score = “score” multiplied by “weight factor”

Sheet2

Alternative 1 - Operational Benefits/Impacts
Operational Area	Score	Rationale
Mission/business function
Interoperability
Customer/User benefit
Efficiency
Info Assurance/Security
Reliability/ Quality
Sustainability
Other
TOTAL SCORE:
NOTE: Scores range from -5 to +5.

Sheet3

Risk Factor	Pre-Risk Mgmt Analysis			Risk Management Strategy		Post-Risk Mgmt Analysis
	1. Probability	2. Impact	3. Areas Impacted			1. Probability	2. Impact	3. Areas Impacted
Risk Table Legend
1. Probability		2. Impact				3. Areas of Impact
70-100%	Certain	Project Failure			Catastrophic (Cat)	Operations:		Programmatic (P)
40-69%	Probable	Failure to meet major requirements, major cost increase, or schedule delay			High	IT System:		Technical (T)
5-39%	Possible	Extensive adjustments needed to meet schedule			Moderate (Mod)	Delays & Shippages:		Schedule (S)
Near 0%	Improbable	Minor adjustments needed to meet goals			Low	Staff & Equipment:		Resources (R )
						Funding Shortfall:		Cost (C )
						Decision-Making:		Political (Pol)

Sheet4

Risk Category	Impact	Likelihood	Risk Level (Impact x Likelihood)
			0
			0
			0
Overall	0	0	0

_1603697745.xls

Alternative_Analysis_Example

Cost-Benefit Analysis
	Initial Investment	Year 1	Year 2	Year 4	Year 4
Costs
Non-recurring Costs
Cost of _____
Cost of _____
Cost of _____
Recurring Costs
Cost of _____
Cost of _____
Cost of _____
Total Costs	$0	$0	$0	$0	$0
Benefits
Revenue from ______
Revenue from ______
Revenue from ______
Total Benefits	$0	$0	$0	$0	$0
Net Costs/Benefits	$0	$0	$0	$0	$0
Discount Rate	5.00%
Present Value	$0

****For C. Owens Only****

<Project name>

Business Case

TABLE OF CONTENTS

1 Executive Summary

2 Introduction

3 gENERAL Project iNFORMATION

4 Ground Rules, Assumptions, and Criteria

5 aLTERNATIVES and aNALYSIs

5.1 Alternative A (Status Quo)

5.1.1 Cost and Economic Viability

· Include “all incremental, direct, and indirect costs to the taxpayer” (DOD, 2011, p.25)

· “Ensure that cost estimates are consistent with the assumptions, ground rules, and objectives of the product support strategy” (DOD, 2011, p.25)

· “Estimate all relevant future costs from inception through implementation, operation, and disposal for the program or project….The cost of an alternative includes the cost of operating the status quo programs until the chosen alternative is fully implemented” (DOD, 2011, p.26).

Conclude this sub-section with a narrative summary of the costs-benefit analysis. This summary should state the net present value, the expected lifespan of the alternative, and your confidence in the estimates (high, medium, or low).]

5.1.2 Weighted Multi-criteria Analysis

5.1.3 Risk Summary

5.2 Alternative B

5.2.1 Cost and Economic Viability

· Include “all incremental, direct, and indirect costs to the taxpayer” (DOD, 2011, p.25)

· “Ensure that cost estimates are consistent with the assumptions, ground rules, and objectives of the product support strategy” (DOD, 2011, p.25)

· “Estimate all relevant future costs from inception through implementation, operation, and disposal for the program or project….The cost of an alternative includes the cost of operating the status quo programs until the chosen alternative is fully implemented” (DOD, 2011, p.26).

Conclude this sub-section with a narrative summary of the costs-benefit analysis. This summary should state the net present value, the expected lifespan of the alternative, and your confidence in the estimates (high, medium, or low).]

5.2.2 Weighted Multi-criteria Analysis

5.2.3 Risk Summary

_1603697762.xls

Alternative_Analysis_Example

Sheet1

Sheet2

Sheet3

Sheet4

_1603697745.xls

Alternative_Analysis_Example

For C. Owens Only