A Review of the Department of the Army's Decentralized Cost Benefit Analysis Process

A Review of the Department of the Army’s Decentralized Cost Benefit Analysis Process by Gerard M. Acosta Legislative Studies Graduate Certificate, Georgetown University, Washington D.C, 2010 MS, University of Phoenix, 2005 BS, University of South Florida, 1998 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University August 2012 Abstract From 1996 to 2006, the number of Department of Defense (DoD) contract transactions increased, leading to over expenditures and the need for agencies to determine benefit estimation to improve risk management of a project. The purpose of this qualitative case study was to apply a total quality management theory to explore if a standardized versus decentralized benefits framework within the cost benefit analysis process could improveFrom 1996 to 2006, the number of Department of Defense (DoD) contract transactions increased, leading to over expenditures and the need for agencies to determine benefit estimation to improve risk management of a project. The purpose of this qualitative case study was to apply a total quality management theory to explore if a standardized versus decentralized benefits framework within the cost benefit analysis process could improve the Department of the Army acquisition selection process. The two central research questions addressed (a) the differences between successful and failed acquisition systems cost benefit analysis, and (b) whether a standardized or decentralized cost benefits framework would best serve contract selection process. Data were collected via interviews with 20 DoD acquisition specialists and analysis of cost benefit analysis cases; NVIVO software was used to examine word frequency and comparative phrases. The data analysis resulted in themes that encompassed how standardization improves product quality, enhances innovation, and accelerates the acquisition procurement process. Other themes included the need to build metrics into the cost benefit assessment to measure risk management controls and cost-reduction initiatives. The DoD might benefit from the results of this study by reviewing and instituting a standardized benefit assessment within its cost benefit analysis framework to protect business stakeholders’ from fraud, waste, or abuse. The implications of this doctoral study will promote social change in the form of government spending fiscal stewardship and could serve as a benchmark to improve the budget formulation and management of the American taxpayer’s investment in national security. A Review of the Department of the Army’s Decentralized Cost Benefit Analysis Process by Gerard M. Acosta Legislative Studies Graduate Certificate, Georgetown University, Washington D.C, 2010 MS, University of Phoenix, 2005 BS, University of South Florida, 1998 Doctoral Study Submitted in Partial Fulfillment of the Requirements for the Degree of Doctor of Business Administration Walden University August 2012 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent on the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. All rights reserved. This edition of the work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC. 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, MI 48106 1346 UMI 3539046 Copyright 2012 by ProQuest LLC. UMI Number: 3539046 Dedication I would like to dedicate this doctoral study to the influential people in my life who have given me the drive to achieve my aspirations. First to my son Yaniyou are my little angel and purpose in life. To my parents, Gerardo and Ilka Acosta, who have taught me the values to be a humble person and civic leader. To my fiancee and best friend, Paulette, who has been the cornerstone for this achievement. Thank you for your guidance, advice, and love during my journey to accomplish this lifetime goal. A special recognition and thanks goes to all the Soldiers and leaders, with whom I have served with during my 12 years of military service. To the Paratroopers of the 4 th Brigade Combat Team (Airborne), 25 th Infantry Division and Army Staff, Office of Chief Legislative Liaisonthanks for all your support during this process. To my mentors in OCLL and COL “Mo” Goins, thanks for keeping the standards high, setting a great example, and pushing me to be a better leader.