What does "Cost as an Independent Variable" (CAIV) emphasize?

The principle of "Cost as an Independent Variable" (CAIV) emphasizes that cost is a critical factor in systems acquisition, and it should be considered equally alongside performance and schedule. By prioritizing cost alongside these other parameters, CAIV aims to achieve a balance that ensures projects remain affordable, allowing for effective decision-making regarding trade-offs among performance, cost, and schedule. This approach helps ensure that programs are not only technically capable but also economically viable, ultimately leading to more successful outcomes in the acquisition process.

By focusing on this balance, acquisition managers can make informed decisions that align with both budget constraints and performance goals, thus promoting smart fiscal management within the parameters of project execution.