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  • Predictive Analytics for Improved Cost Management

PRICE Creates Business Case for Federal Agency Modernization Program

MT. LAUREL, NJ / March 1, 2003 / Working as a partner with Altarum, PRICE Systems provided the United States National Archives and Records Administration (NARA) cost estimating and analysis support for the ERA Business Case Analysis (BCA). This BCA was required as part of a submission to the organizations Investment Review Team as well as the U.S. Office of Management and Budget.

PRICE developed hardware and software life cycle cost estimates of three alternatives identified by NARA. The life cycle was defined as investment, systems operations and support and phase out. The PRICE team identified costs for the preferred acquisition scenario for elements in each of the life cycle phases.

As part of this process, PRICE supported the collection, analysis and normalization of cost data, developed a technical & programmatic baseline, defined the cost estimating methodology, mapped the estimate to ERA Cost Estimating Structure and assisted NARA management with the development of cost/benefit issues.

PRICE's Approach
PRICE Systems' methodology involved:

  • The identification of key functional mission areas that could be eliminated or made more efficient through ERA implementation.
  • Interviewing Subject Matter Expert and data gathering on current systems, processes, procedures and costs.
  • Projections of future workload based on historical data.
  • Estimation of future costs to perform key mission functions using current technology, processes and procedures.

Costs Avoidance Opportunities
PRICE's analysis identified and quantified several internal and external cost avoidance opportunities, some of these include:

  • The new system would provide the ability to ingest Census files in their native format and store them digitally, drastically reducing the cost to convert, ingest and store the data in a usable form.
  • The system would enable NARA to better meet statutory requirements to save copies of all Federal Web sites, which presently is over 30M web pages, and over 6,000GB of data.
  • The system would enable NARA General Counsel to reduce their costs and improve responsiveness in supporting litigation during the discovery phase of lawsuits involving the U.S. Federal Government.