DoD weapon programs often experience significant cost and schedule problems because they are allowed to start with too many technical unknowns and not enough knowledge about the development and production risks they entail. This report reviews DoD's Analysis of Alternatives (AOA) process -- intended to assess the operational effectiveness, costs, and risks of alternative weapon system solutions. This report: (1) examines whether AOAs have been effective in identifying the most promising options and providing a sound rationale for weapon program initiation; (2) determines what factors have affected the scope and quality of AOAs; and (3) assesses whether recent DoD policy changes will enhance the effectiveness of AOAs. Illus.