Consequences of BBP's Affordability Initiative

Abstract

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 25 years and discussing the full plan at Defense Acquisition Board (DAB) meetings. We discuss the management issues involved in carrying out this initiative, along with the results it has had. The most significant outcome is that it has brought Service programmers to the Office of the Secretary of Defense's DAB process. Program managers now need to have their long-term plans approved by the programmers who verify that they fit with the long-term plans of the Service. While an Affordability Analysis is not a cost estimate, it cannot be any more precise than the numerous program cost estimates used to conduct the analysis.