Analytical Tools for Affordability Analysis
INSTITUTE FOR DEFENSE ANALYSES ALEXANDRIA VA COST ANALYSIS GROUP
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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.
- Economics and Cost Analysis
- Operations Research
- Logistics, Military Facilities and Supplies