Affordability is the degree to which the
life-cycle cost of an acquisition program is in consonance with the
long-range investment and force structure plans of the Department of Defense
or individual DoD Components. The following procedures establish the basis
for fostering greater program stability through the assessment of program
affordability and the determination of affordability constraints:
C4.4.1. The DoD Components shall plan
programs consistent with the DoD Strategic Plan, and based on realistic
projections of likely funding available in the Future Years Defense Program
(FYDP) and in years beyond the FYDP.
DoD Component sponsors shall emphasize affordability early in the proposed
program. The ORD (CJCS Instruction 3170.01B (reference (f)
)) shall address cost.
MDA shall assess affordability at each decision point. No acquisition program
shall proceed into System Development and Demonstration unless sufficient
resources, including manpower, are programmed in the most recently approved
FYDP, or will be programmed in the next Program Objective Memorandum (POM),
Budget Estimate Submission (BES), or President.s Budget (Pub. L. 104-106
(1996) (reference (bo)) and OMB Circular
A-11 (reference (b)
Cost Analysis Improvement Group (CAIG) reviews shall ensure that cost data
supporting affordability judgments for ACAT I programs are accurate. (See section
. ) The Cost/Performance IPT shall
ensure that cost and benefit data supporting affordability judgments for
ACAT IA programs are accurate. (See paragraph C7.6.6.
C4.4.5. The manpower estimate for the
program shall address manpower affordability in terms of military
end-strength, civilian full-time equivalents, and contractor work years.
Prior to submitting the POM or BES to the Secretary of Defense, the Heads of
the DoD Components shall consult with USD(AT&L) or ASD(C3I), as
appropriate, when the POM or BES contains a significant change in funding for,
or reflects a significant funding change in, any program subject to Defense
Acquisition Board (DAB) or DoD Chief Information Officer (CIO) review (DoD
Directive 5134.1 (reference (bp)
C4.4.7. Full Funding
C22.214.171.124. When the DAB or Information
Technology Overarching Integrated Product Team (IT OIPT) (see paragraph
. ) reviews a program, the Head of the DoD Component
responsible for the program shall report the funding for the program, as contained
in the most recent, Secretary of Defense-approved FYDP, to USD(AT&L) or
ASD(C3I), as appropriate. The Head of the DoD Component shall describe the
best possible acquisition strategy, given currently approved program
funding. If the DoD Component prefers a different approach, the Head of
the DoD Component shall describe the DoD Component preference, as well.
C126.96.36.199. If, after review,
USD(AT&L) or ASD(C3I) concludes that the FYDP funding for the program will not
support the program as presented, the Head of the DoD Component shall
commit to incorporate appropriate funding in the next FYDP update.