I__. - International Military Testing Association

ECONOMIC ANALYSES
Department of Defense and Department of the Navy regulations require
performing an economic analysis to assist in determining whether or not a system
is cost-effective. An initial study was conducted by a contractor, whose
representatives visited each of the MEPS in the continental United States to collect
cost information in four areas: (1) development, (2) procurement, (3)
implementation, and (4) operations and support.
The Brogden-Cronbach-Gleser approach to test utility evaluation was
employed. This approach assesses the dollar utility of the incremental validity of a
new instrument (e.g., CAT-ASVAB) over the validity of an existing instrument ‘(e.g.,
P&P-ASVAB) in terms of improved performance. A conventional ten-year economic
life was used, and the net life cycle benefit computed for each alternative concept of
operation. The incremental validity used for CAT-ASVAB was 0.002, a conservative
estimate based upon simulation results assessing the increased precision of CAT-
ASVAB over P&P-ASVAB. The results appear promising for two concepts of operation:
centralized testing, and the recruiter screening approach. The high-volume site and
mobile van concepts were not cost-effective.
A pivotal issue in these economic analyses is the actual increment in validity
which can be expected by using CAT-ASVAB instead of P&P-ASVAB. While simulation
results were adequate for initial analyses, empirical data are necessary for any
conclusive evaluation. Therefore the Manpower Accession Policy Steering
Committee (MAPSC) instructed the Executive Agent to evaluate new tests which
offered significant promise for enhancing ‘the predictive effectiveness of the
current battery.
A final economic analysis study will bc performed under contract. Results
from this study will be crucial in determining whether or not CAT-ASVAB should be
implemented nationwide.
250