Affordability Constraints in Major Defense Acquisitions
Technical Report,01 May 2015,31 May 2016
INSTITUTE FOR DEFENSE ANALYSES ALEXANDRIA VA ALEXANDRIA
Pagination or Media Count:
We studied the Affordability constraints placed on acquisition programs since Better Buying Power was introduced by the Under Secretary of Defense for Acquisition, Technology and Logistics in 2010. This initiative can be thought of as extending programming from five years in the future to the full life of each acquisition program, typically in excess of twenty-five years. We discuss the management issues involved in carrying out this initiative, along with its results. The most significant outcome is that it has brought Service programmers to the Office of the Secretary of Defenses Defense Acquisition Board process. Program managers now need to have their long-term plans approved by the programmers, who verify that it fits with the long-term plans of the Service. While an affordability analysis is not a cost estimate, it cannot possibly be any more precise than the numerous program cost estimates used to conduct the analysis, meaning there will always be some uncertainty in planning, and the uncertainty gets larger the further into the future one looks.
- Economics and Cost Analysis
- Logistics, Military Facilities and Supplies