What does 'Cost-Per-Unit' refer to in the context of acquisition?

'Cost-Per-Unit' refers specifically to the average cost incurred for each unit of a product or service over its lifecycle. This metric is crucial in the context of acquisition, as it helps assess the financial implications of procuring and maintaining items throughout their operational life. Understanding the cost per unit allows decision-makers to evaluate the efficiency and effectiveness of their investments, comparing different options not just based on the initial purchase price, but also considering ongoing costs such as maintenance, support, and operational expenses.

This approach emphasizes the importance of lifecycle cost analysis in the acquisition process, ensuring that resources are allocated wisely and that any procurement decisions contribute to the overall budget management of a program. By focusing on the average cost per unit, organizations can make informed choices that align with both financial sustainability and strategic objectives.