A methodological approach for conducting a business case analysis of Zephyr Joint Capability Technology Demonstration (JCTD)

• Main Author: Kwok, Yew Heng
• Other Authors: Nussbaum, Daniel
• Published: Monterey California. Naval Postgraduate School 2012
• Online Access: http://hdl.handle.net/10945/10291

Zephyr, a high altitude long endurance (HALE) solar powered, unmanned aerial vehicle (UAV) is thus identified as a Joint Capability Technology Demonstration (JCTD) candidate. This program is managed by the Office of Secretary of Defense (OSD) and is sponsored by United States Central Command (USCENTCOM) and United States European Command USEUCOM. This program aims to accelerate the development and operational evaluation of the Zephyr concept so that the system can transit to production and be deployed in the field to address military needs in the quickest possible time. The objective of this study is to analyze the Return on Investment (ROI) of the Zephyr system. This is achieved by developing a model to carry out a Business Case Analysis (BCA) of JCTDs, including defining the methodical structure required in the business case report conducting Zephyr JCTD BCA, with a baseline analysis, followed by sensitivity, as well as a quality risk assessment for Zephyr system. The BCA compares the life cycle costing with that of the Global Observer, a liquidhydrogen fuelled UAV, in operational scenarios over a period of 15 years.