CAIV

Cost As an Independent Variable is an acquisition management approach where cost is treated as a fixed constraint rather than a dependent outcome. Under CAIV, programs establish cost objectives early and design requirements and capabilities to fit within those cost boundaries rather than designing capabilities first and calculating costs afterward.

CAIV requires tradeoff analysis between cost and performance, encouraging program managers to prioritize requirements and accept reduced capability if necessary to meet cost targets. The approach aims to prevent cost growth by making cost a primary design driver alongside schedule and performance. CAIV is particularly relevant in defense acquisition reform initiatives.