Analysis of alternatives: A framework for robust resource allocation

The AI team take a deep dive into Analysis of Alternatives (AoA), a method for making informed resource allocation decisions, used particularly within government agencies like the OMB and DoD. It outlines four maturity levels of AoA, ranging from justifying a single alternative (Level 0) to a robust multi-dimensional analysis incorporating uncertainty (Level 3). The author critiques existing OMB (Level 1) and DoD (Level 2) approaches, advocating for a Level 3 approach that integrates a comprehensive decision-making process, including uncertainty analysis and stakeholder input. The paper emphasizes the importance of accurate estimations, risk assessment, and a holistic decision-making framework for effective resource allocation. Finally, it suggests using tools like Accord™ to support Level 3 AoA studies.

While the paper is dated, the method is just as applicable today as it was when introduced.