Application of Multi-Criteria Decision Making Method to the DLA Energy Military Construction Portfolio Selection Process Open Access
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Each year, the Department of Defense (DoD) is provided with an appropriation and authorization act from Congress known as the Military Construction (MILCON) program. The DoD delegates this financial authority to subordinate units for the purpose of funding the design and execution of new facilities. There are specific fiduciary instructions, which speak to the authority of these funds, but there is minimal direction on how to best use the funds. With this, subordinate units are provided great latitude in determining the method by which they will build their MILCON project portfolio. While the intention of this latitude is benevolent, the result is that portfolio selection can be inconsistent and potentially negligent. I identify a variety of methods available in the literature and industry that have been and can be applied to various project-portfolio and project-portfolio-like decision- making processes. Building on a thorough literature review, the focus shifts to applying Rank Order Centroid (ROC) weighting methodology and the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) Multi-Criteria Decision Making Method (MCDM) to a real-world scenario. I present a case study of The Defense Logistics Agency Energy MILCON portfolio and the decision-making process to identify a quick, easy, and consistent process for building a MILCONproject portfolio.