A government/industry standard cost effectiveness analysis (CEA) model

Abstract

A comprehensive cost effectiveness analysis (CEA) computer model has been developed to evaluate engineering changes to aircraft engines. This CEA model is unique in that it has been adopted by the US Air Force, US Navy, and US Army, as well as jet engine manufacturers such as Pratt & Whitney and General Electric, as a standard cost analysis tool. In an environment of budget cutting and limited options, the standard CEA model provides a level playing field for consistent evaluations of proposed tasks within a program, between programs, and even between services. The CEA model is easy to use, models many different situations, provides instant feedback on "what-if" scenarios, and allows graphic presentations to be easily obtained. Thorough analysis by contractors and the government have ensured that the output of the CEA model is consistent with expected results from more strenuous methods. The success of this joint services, government/industry effort to establish a standard, uniform CEA model is especially noteworthy considering the ever increasing importance of consistent cost effective decisions in an environment of limited funding. The teaming process used to create the CEA model and the adaptation of the model to applications other than aircraft engines are recommended.