answers
What is an affordability assessment?
An assessment of the degree to which the life cycle cost of an acquisition program is in consonance
with the long-range modernization, force structure, and manpower plans of the individual DoD
components, and the department as a whole.
Affordability assessments are typically conducted:
By resource Analysts in the DoD Component Headquarters of supporting organization.
For MDAS and MIAS, Affordability Assessments are required at:
Milestones B and C
MDAP
Major Defense Acquisition Programs
MIAS
Major Information Acquisition Programs
Joint Affordability Assessments are conducted by
The lead DoD Component
Full Funding
Inclusion of the dollars and manpower needed for all current and future efforts to carry out the
acquisition and support strategies.
CAIV
Cost as an Independent Variable
Full Funding is
Part of the entrance criteria for the transition into the Engineering and Manufacturing Development
Phase (at milestone B)
Full Funding is Assessed
By the Milestone Decision Authority at each decision point.
Cost As an Independent Variable is covered in what directive?
DoD Directive 5000.01
Cost as an Independent Variable
All participants in the acquisition system are expected to recognize the reality of fiscal constraints,
and to view cost as an independent variable.
Cost As an Independent Variable refers to what type of cost?
, Lifecycle cost
Total Ownership Costs
Other infrastructure or business process costs not necessarily attributable to the program
Life Cycle costs are made up of what 4 cost categories?
Research and Development Costs, Investment Costs, Operations and Support Costs, and Disposal Cost
Research and Development covers
development costs incurred from the beginning of the conceptual phase through engineering and
manufacturing development, and potentially into LRIP.
Investment covers
production and deployment costs incurred from the beginning of low rate initial production through
completion of deployment
Operating and Support covers
Sustainment costs incurred from the initial system deployment through the end of system operations.
Disposal covers
costs associated with demilitarization and disposal of a military system at the end of its useful life.
AoA
Analysis of Alternatives
When is an Analysis of Alternatives required?
For ACAT 1 or above acquisition programs at major milestone decision points and at the full-rate
production decision
What is an AoA?
An analytical comparison of the operational effectiveness, suitability, and life-cycle cost of alternatives
that satisfy established capability needs.
What is the purpose of an AoA?
To assess the potential material solutions to satisfy the capability needs in the approved Initial
Capabilities Document.
D, CAPE
Director, Cost Assessment and Program Evaluation
What does D, CAPE provide?
basic policies and guidance associated with the AoA process.
What is the first major step leading to a successful AoA