MIL-HDBK-1390
4.4.4.2 Near term cost. Deferring the near term costs of LORA, due to program cost and schedule constraints,
can result in significantly higher support costs over a system's life cycle. Investment decisions made about the
support structure during the Materiel Solution Analysis (MSA) and Technology Maturation and Risk Reduction
(TMRR) phases can preclude, or significantly reduce, later changing repair level decisions during the Operations
and Support (O&S) phase. These decisions ultimately determine the support concept and the system's life cycle
cost even though the funds are not spent until years later.
4.4.4.3 Cost savings with fielded systems. LORAs should be conducted on all fielded systems upgraded, or in
the process of being upgraded, to determine whether the materiel change or improvement will have an impact on the
existing maintenance concept. If so, it may be cost beneficial to adopt the new maintenance concept determined by
the LORA. In many cases, the sensitivity evaluation of the final LORA report may be beneficial in indicating when
a repair level should be changed. Cost savings and improved support capability may result from changing an item
from discard to repair or from repair to discard, or by changing repair levels when the item failure rate has increased
and repairing it requires existing test equipment and stocked parts.
4.4.4.4 Controlling costs. Data and data documentation costs can be controlled by the following methods:
a. Screening requirements prior to preparation of solicitation documents. Each data requirement should be
reviewed for data content, end use, formatting needs, scheduled delivery, and estimated cost to eliminate
duplication and ensure proper integration/scheduling of requirements.
b. Involve potential bidders in briefings and planning conferences prior to release of a solicitation document.
This helps ensure that data and data documentation requirements are realistic and that the maximum use is
made of data already available.
4.4.4.5 Underfunded LORA. If the LORA process is underfunded and activities are either delayed or omitted
all together, the possibility for shortages of resources and spares will exist. These shortages can have adverse effects
on the maintenance plan, readiness, and the support system of the equipment in one or more of the following ways.
a. Lengthen repair times (i.e., failure durations).
b. Allow failures to be generated faster than they can be fixed.
c. Lead to shortages of spares and replacements for the failed items brought in need of repair.
d. Increase downtime of equipment waiting for repair.
e. Reduce end item availability.
LORA models. The LORA can be performed using one or more LORA models or techniques. The
4.5
model/technique used is dependent on such factors as the availability of data, complexity and type of weapon system
being analyzed, life cycle phase, and the purpose of the analysis (e.g., design tradeoffs, MTD and RTD
development, and basis for SMR coding). LORA computer models deal primarily with the economic aspects of
maintenance planning by evaluating maintenance alternatives and identifying a least-cost solution.
LORA validation. Validation should occur during the evaluation and review of the performing
4.6
activity's LORA efforts (e.g., evaluating the LORA program plan and LORA report submissions) and by conducting
LORA on selected fielded systems to verify that the maintenance concept determined in earlier LORAs is still valid.
4.6.1 Conducting the LORA program. Part of a potential performing activity's response to an RFP should be
a description of how the LORA program will be conducted. This response may be in the form of a preliminary
LORA program plan. Before awarding a contract, each proposal should be evaluated for completeness, accuracy,
and validity to ensure the bidder is responsive to the LORA SOW requirements, has considered all areas required in
conducting a LORA, and understands the LORA model proposed and its products. In reviewing a proposal,
questions such as, "What policies will be followed in the execution of the model?" and "What variables will be
sensitized?" should be addressed.
4.6.2 LORA program plan review. The LORA program plan should be reviewed as quickly as possible
considering the lead time associated with developing and buying items, support and test equipment, and technical
data. The LORA program plan should be reviewed for completeness, accuracy, and utility. This will ensure that the
equipment acquisition, source coding, and provisioning actions are based on the best information available.
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