S T R AT E G Y
&
O R G A N I Z AT I O N
About Booz Allen
Booz Allen Hamilton has been
at the forefront of strategy
and technology consulting for
nearly a century. Providing
a broad range of services in
strategy and organization,
technology, operations,
and analytics, Booz Allen is
committed to delivering results
that endure.
For more information contact
David Bracamonte
Principal
619/725-6614
bracamonte_david@bah.com
Tom Dauber
Principal
703/984-1800
dauber_tom@bah.com
Robert Holt
Principal
732/936-3519
holt_robert@bah.com
www.boozallen.com
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T E C H N O L O G Y
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O P E R AT I O N S
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A N A LY T I C S
Cost Risk Analysis
Understanding cost risk to make informed decisions
As an increasing number of defense, intelligence, and civil programs experience cost overruns, it is more important than ever that decision makers understand the risk and uncertainty
associated with their cost estimates. To obtain the most accurate assessment possible, it
is critical that advanced, reliable analytical methodologies are used and that the results are
presented in a clear and concise manner that allows stakeholders to make informed business decisions.
Booz Allen can help you be ready for what’s next
At Booz Allen Hamilton, a leading strategy and technology consulting firm, we understand the
importance of knowing what a program will cost as early as possible. To this end, we provide
our clients a best-in-industry, cross-functional staff that can deliver the following across a
wide range of defense and intelligence community domains:
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Extensive Experience: Whether for the contractor or government, from the program office
to the Cost Analysis Improvement Group, or from program conception to completion, we
have experience at all levels and phases of the program.
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Innovative Solutions: Booz Allen staff members have presented more than a dozen
papers on cost risk analysis at a variety of industry and domain conferences and
are widely recognized as subject matter experts in the field.
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Tailored Approaches: At Booz Allen, we understand that methodologies must be tailored
to each specific client situation. We use standard, repeatable processes that can be
adjusted to use the best data sources and approaches available to help our clients
achieve results that are actionable and that meet their specific needs.
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Reach-Back Ability: Booz Allen’s consultants can reach back to hundreds of subject
matter experts across all of the defense, intelligence, and civil community domains
to ensure that all our clients’ pressing issues are well understood and addressed.
Ready for what’s next. www.boozallen.com
Our services and approach
Booz Allen’s approach to cost risk analysis includes:
Risk
Management
Effort
Risk
Mitigation
Strategies
Discrete Risks
& Opportunities
Monte Carlo
Simulation
Cost
Estimating
Effort
Probabilistic
Cost Estimate
Budgeting
Decisions
Cost
Uncertainty
Reserve
Positions
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Using proven techniques applied to historical and/or program data to provide accurate
cost risk and uncertainty projections so that clients can anticipate and plan for cost growth
well before it occurs
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Seamlessly integrating the cost estimating, schedule estimating, and risk management
efforts via the Risk Integrated with Schedule and Cost—Intelligent Quantification
(RISC-IQ™) methodology so that clients can manage and mitigate their risks
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Providing decision makers with an easily understood summary of the most complicated
sets of analysis so that they can make informed judgments regarding investments,
budgeting, and the building of management reserves
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Ensuring the analysis is thorough and defendable to the cost oversight groups
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Determining confidence levels for cost and schedule so that programs can budget for
success while still planning at a level that ensures costs are kept as low as possible
History of success
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US Air Force—Long-Range Strike (LRS) Aircraft
US Air Force—Satellite Control Network Contract (SCNC)
Defense Information Systems Agency (DISA)—Net-Centric Enterprise Services (NCES)
US Navy—Mobile User Objective System (MUOS)
National Security—New Imaging System
National Security—Cryptologic Program Support Group (CPSG)
Joint Planning and Development Office (JPDO)—Next Generation Air Transportation
System (NextGen)
US Department of Agriculture (USDA)—Financial Management System
Department of Homeland Security (DHS)—Cost Analysis for Integrated Wireless Network
US Department of Agriculture (USDA)—Integrated Acquisition System (IAS)
Social Security Administration (SSA)—electronic Continuing Disability Review (eCDR)
Whether you’re managing today’s issues or looking beyond the horizon, count on us to help
you be ready for what’s next.
05.082.10-C