Analytical Tools for Affordability Analysis

Abstract

Beginning with the Better Buying Power initiatives, the military components have been required to perform full life-cycle portfolio-level affordability analyses with respect to major defense acquisition programs at key milestones. Prior to this, there was no formal requirement to reconcile program acquisition baselines with resource forecasts beyond the five years of the Future Years Defense Program. This paper discusses the analytical challenges associated with Affordability Analysis and describes methods and tools that the Institute for Defense Analyses is developing to address these challenges.