Analytical Tools for Affordability Analysis

Abstract

What is Affordability Analysis? Starting with 2010 s Better Buying Power memorandum, OSD has issued policy requiring acquisition programs to present affordability analyses at Milestone reviews. This requirement is now part of Department of Defense Instruction 5000.02. The Defense Acquisition Guidebook (DAG) was updated in July 2013 to reflect the new requirement and provide guidance. Affordability Analysis shows each program s planned development and production costs over time, in the context of: The cost and schedules of the other programs in the relevant acquisition portfolio. The projected available funding over the life cycles of those programs. This task is assigned to Service leadership: Not the program s responsibility. Should reflect Service long-term planning.

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Document Details

Document Type
Technical Report
Publication Date
May 01, 2015
Accession Number
ADA625196

Entities

People

  • David F Tate

Organizations

  • Institute for Defense Analyses

Tags

Communities of Interest

  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Capital Investments
  • Contracts
  • Cost Analysis
  • Cost Estimates
  • Costs
  • Department Of Defense
  • Learning
  • Military Acquisition
  • Money
  • Probability Distributions
  • Procurement
  • Production
  • Production Rate
  • Risk Analysis
  • Tactical Vehicles
  • Vehicles

Readers

  • Defense Acquisition Program Management