Enclosure 8: Affordability Analysis & Investment Constraints - New Enclosure • Establishes the fundamental concepts and approaches for developing and applying affordability constraints as part of life-cycle investment analysis, decision making, and management • Affordability Analysis is a DoD Component responsibility that will address the total life-cycle of the planned program - Nominally, this analysis covers 30 to 40 years into the future • Each Component determines the techniques they use for affordability analysis • MDA certifies affordability within the FYDP (as required by 10 U.S.C. 2366b) • Affordability Constraints determined by the resources a Component can allocate for a system, given inventory objectives and all other fiscal demands on the Component • When constraints cannot be met…..technical requirements, schedule, and quantities must be revisited…..if affordability caps cannot be raised or constraints lowered elsewhere….the program will be canceled 48
