Recent budget reductions have caused the U.S. Army to face tremendous challenges in managing their portfolio of ground combat systems---placing many important programs at risk. To address these challenges, the Army and a supporting team developed and applied the Capability Portfolio Analysis Tool (CPAT) to optimally invest in ground combat modernization over the next 25-35 years---providing the analytical rigor needed to help senior Army decision makers allocate scarce modernization dollars to protect soldiers and maintain a combat edge. Using a novel four-phase mixed integer linear program, CPAT delivers unparalleled insight into multi-decadal modernization planning and illustrates a cultural shift in the Army's thinking and processes towards informed analytics. Most importantly, CPAT is used to inform critical funding determinations for major at-risk programs and has helped shape decisions to continue modernization of the $10 billion Stryker family of vehicles (originally slated for cancelation) and to reallocate roughly $28 billion by not pursuing the Ground Combat Vehicle new-start program as originally envisioned. Senior Army leaders have called CPAT a “game changer" and enthusiastically endorsed its use. Over 40 studies have been completed using CPAT, applying sound Operations Research methods and allowing Army acquisition executives to base investment decisions on analytically rigorous evaluations of portfolio tradeoffs--- optimally prioritizing billions of taxpayer dollars.
