An overview of cost and operational effectiveness analysis (COEA)

This paper contains an overview on one of the most talked about topics in the Department of Defense, the cost and operational effectiveness analysis (COEA) and discusses performance of a COEA in support of the DoD material acquisition system. The material outlines the suggested analysis approach described in today´s governmental regulations and provides in detail the methodology needed to perform these studies, a requirement which has been passed down to the analysis “shops” of the military services. The paper defines the purpose and scope of the COEA and overviews the important factors and techniques needed to perform these studies. Highlighted are the planning requirements, modeling issues, and the need for various forms of verified and validated data. Discussed is the establishment of measures of merit used to distinguish the worth of the various alternatives under consideration, as well as the simulation tools used to define and evaluate the effectiveness of operations and costs in the envisioned environment. Topics covered range from those discerning the political study environment, to the techniques for presenting the analytical results