Affordability for Major System Acquisitions

Abstract

The objective of this study was to develop a management approach for addressing the affordability problem in the procurement funding area. It was concluded that affordability determinations must be the responsibility of the PPBS resource allocation process because affordability deals principally with the question of how to allocate finite budget resources to competing programs. DSARC's role in affordability should be supportive of the PPBS. It was also concluded that there is a need to establish a 15-year baseline procurement program for each Service. It was recommended that OSD develop an affordability analysis procedure for each Service to use in establishing its own 15-year baseline procurement program. Such a procedure was developed, based on the use of an affordability matrix for the procurement appropriations of each Service. It allocates forecasted procurement resources to programs for a 15-year period based on program priority and cost, thereby establishing a 15-year baseline procurement program for each Service.

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Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1980
Accession Number
ADA083804

Entities

People

  • William G. Moeller

Organizations

  • LMI

Tags

Communities of Interest

  • Materials and Manufacturing Processes
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Availability
  • Business Administration
  • Computer Programming
  • Congress
  • Contracts
  • Cost Estimates
  • Defense Systems
  • Department Of Defense
  • Government Procurement
  • Governments
  • Instructions
  • Logistics Management
  • Management Personnel
  • Military Procurement
  • Procurement
  • Weapon Systems

Fields of Study

  • Medicine

Readers

  • Life Cycle Cost Analysis
  • Logistics and Supply Chain Management.