Affordability for Major System Acquisitions
LOGISTICS MANAGEMENT INST BETHESDA MD
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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. DSARCs 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.
- Logistics, Military Facilities and Supplies