3.4.4 Reduction of Life-Cycle
DoD considers the reduction of total cost to acquire
and operate systems while maintaining a high level of performance for the user
to be of highest priority. This is reflected, in part, through the
introduction of the "Cost As an Independent Variable" (CAIV) concept. CAIV
entails setting aggressive, realistic cost objectives early in an acquisition
program and then managing all aspects of the program to achieve those
objectives, while still meeting the user's performance and schedule needs.
Inherent in the CAIV concept is the realization that risks must be understood,
taken, and managed in order to achieve cost, schedule, and performance
objectives. An understanding of risk is essential to setting realistic cost
objectives. The PM and user representatives should identify risk and cost
driving requirements during the generation of the Operational Requirement
Document (ORD) in order to know where tradeoffs may be necessary.