What is AR 11-18?
AR 11-18 refers to Army Regulation 11-18, which establishes the Cost and Economic Analysis Program (CEAP) within the U.S. Army.
What is the purpose of AR 11-18?
The purpose of AR 11-18 is to provide guidance and procedures for implementing and executing the Army's CEAP. It establishes the processes for conducting cost and economic analyses to support decision-making in Army acquisition programs.
Who does AR 11-18 apply to?
AR 11-18 applies to all members of the Army involved in the development, acquisition, and sustainment of Army materiel systems.
What is the objective of the Cost and Economic Analysis Program?
The objective of the Cost and Economic Analysis Program is to provide comprehensive and accurate economic information to decision-makers, enabling them to evaluate alternatives, make informed decisions, and allocate resources effectively.
What types of analyses are conducted under AR 11-18?
AR 11-18 mandates the conduct of both cost analyses and economic analyses. Cost analyses focus on estimating the resources required to develop, produce, and support a system, while economic analyses assess the economic impact and cost-effectiveness of proposed alternatives.
How are cost analyses used within the Army?
Cost analyses are used to support the Army's acquisition decision-making process, evaluating alternatives based on their life-cycle costs, cost drivers, and affordability.
What is the role of economic analyses in the Army?
Economic analyses play a crucial role in evaluating and comparing alternatives by considering costs, benefits, risks, and trade-offs associated with different courses of action within the Army's decision-making process.
How does AR 11-18 promote the use of cost and economic analyses?
AR 11-18 mandates the application of cost and economic analyses throughout the life cycle of an Army system, encouraging the incorporation of these analyses into planning, programming, budgeting, and execution processes.
Are there any exceptions or waivers to AR 11-18?
Exceptions and waivers to AR 11-18 may be granted by the Assistant Secretary of the Army (Acquisition, Logistics, and Technology) or their designee in specific cases where compliance is not feasible or would cause undue hardship.