Cost-Effectiveness Analysis

4 Selected Commentaries on Cost-Effectiveness

DOI: 10.1201/9781003196174-4

Although cost-effectiveness is not an especially controversial topic, there has been quite a lot of commentary about it over the years. This chapter covers some of this commentary. First, we examine a survey of weapon system cost-effectiveness methodologies [1]. This author articulates some four reasons that cost-effectiveness estimates are used, namely:

1. To provide objective criteria in order to select a preferred system
2. To highlight technical and cost weaknesses of the alternatives
3. To set the stage for moving into the Contract Definition Phase for the system
4. To define the traceability of important system performance parameters

Three levels of analysis are presented: ...