Creation of a System of Systems Portfolio Management and Technology Selection Methodology

Report Number: NPS-AM-10-074

Series: Acquisition Management

Category: Acquisition Strategy

Report Series: Proceedings Paper

Authors: Richard Volkert, Carly Jackson, Peter Gentile, Lance Harper, Art Van Nostrand, Tom Sondi, Kenneth Michaud

Title: Creation of a System of Systems Portfolio Management and Technology Selection Methodology

Published: 2010-04-01

Sponsored By: Acquisition Research Program

Status: Published--Unlimited Distribution

Research Type: Other Research Faculty

Full Text URL: http://acquisitionresearch.net/files/FY2010/NPS-AM-10-074.pdf

Keywords: Acquisition Strategy

Abstract:

As OSD seeks to field new capabilities while working to reduce cost and risk, it becomes imperative that systems engineering tools evolve. Traditionally, cost/schedule monitoring, technology assessment, and performance analyses have been conducted as independent activities focused on systems. However, as systems become more complex and entwined into operating as components of System of Systems (SoS), the need for more insight during the design and development stages increases. This dictates the need for a methodology for SoSs that allows for fully integrated analysis and trade-offs of the technical, cost, and schedule design spaces. The US Navy (PMS 420, SSC Pacific), Northrop Grumman, and the Stevens Institute of Technology are collaborating to develop such a comprehensive financial and portfolio management methodology for SoSs. The concept leverages the System Readiness Level (SRL) as a measure of SoS development and coalesces a system performance monitoring approach that provides insight into both current and anticipated performance. Additionally, a methodology for understanding the impact of technical trades within a SoS is introduced. Together, these tools allow for a true trade-off analysis capability that can be used to examine the extent to which a set of technology options either meet budget constraints or maximize performance.