Reform of Budgeting for Acquisition: Lessons from Private Sector Capital Budgeting for the Department of Defense

Report Number: NPS-FM-06-072

Series: Financial Management

Category: Capital Budgeting

Report Series: Proceedings Paper

Authors: Jerry McCaffery and Larry Jones

Title: Reform of Budgeting for Acquisition: Lessons from Private Sector Capital Budgeting for the Department of Defense

Published: 2006-04-01

Sponsored By: Acquisition Research Program

Status: Published--Unlimited Distribution

Research Type: NPS Faculty

Full Text URL: http://acquisitionresearch.net/files/FY2006/NPS-FM-06-072.pdf

Keywords: Capital Assets,

Abstract:

The ongoing replacement of Department of Defense (DoD) capital assets, as well as other much needed capital investments, will likely take place during a time of decreasing, or at least slowly growing financial resources over the long term. Some of this is due to the growth of entitlements, some to the size of the predicted deficit. Still another pressure is the long-term cost of military activity in Afghanistan and Iraq, predicted by CBO to be $450 billion over the next ten years. In addition, the Department of Defense is in the midst of an era of