Tag Archives: Chad JR Ohlandt

Dispelling the Myths of DoD’s Affordability Policy

Author: Chad J.R. Ohlandt, Ph.D.

The term “affordability” has taken on a particular meaning in the context of DoD’s recent policy and process changes. Efforts to better define and enforce affordability began recently with the first Better Buying Power (BBP) memo in 2010 and have continued with BBP 2.0, revisions to DODI 5000.02, and updates to the Defense Acquisition Guidebook (DAG). While many techniques have the potential to better estimate costs, to drive costs down, and to make products and services more affordable, they are often confused with affordability policy. Affordability policy is about establishing the dollar amount the Component is willing to spend on the desired capability in the context of all other fiscal demands over the long term. This is a Component-wide leadership responsibility requiring inputs from multiple communities.

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