In the context of acquisition, what is the goal of performing a Cost Benefit Analysis (CBA)?

Performing a Cost Benefit Analysis (CBA) is primarily aimed at evaluating the return on investment (ROI) for a particular acquisition or investment decision. This process involves identifying and quantifying the benefits that a project or acquisition can provide against the costs associated with it. By doing this, decision-makers can ascertain whether the potential benefits justify the costs, which is essential for ensuring that resources are allocated efficiently and effectively.

The focus of a CBA is on assessing whether the benefits expected from a project will exceed the costs involved, which aligns closely with the concept of ROI. This helps organizations, including those in the Army acquisition process, to make informed decisions based on a thorough understanding of the financial implications of their choices.

While enhancements to product design, streamlining contract negotiations, and reducing workforce requirements can be important factors in the acquisition process, they are not the primary focus of a Cost Benefit Analysis. The CBA is fundamentally about quantifying and comparing costs and benefits to determine the financial viability and effectiveness of an investment.