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A Portfolio Assessment Approach to Inform Resource Allocation Decisions

RAND · SARA STULLKEN, JIM MIGNANO, LAUREN A. MAYER, SARAH ZABEL, DON SNYDER, RACHEL SLOVER ·

Executive Summary

This RAND report introduces a structured assessment approach for the Department of the Air Force (DAF) to evaluate cross-cutting portfolios, such as enterprise information technology, within the Planning, Programming, Budgeting, and Execution (PPBE) process. The approach aims to improve resource allocation decisions by systematically assessing capability gaps and proposed investments. It provides a framework for ensuring investments align with strategic priorities and address critical or urgent needs.

Why It Matters

This document is crucial for defense analysts as it outlines a systematic methodology for optimizing resource allocation within the DAF, directly impacting future military capabilities and strategic readiness. Understanding this framework helps in anticipating how the Air Force prioritizes and funds critical programs, especially those that are cross-cutting and often underfunded.

Key Takeaways

  • The DAF's PPBE process struggles with prioritizing cross-cutting portfolios (e.g., EIT) due to their indirect operational support, leading to potential underfunding.
  • RAND developed a five-step assessment approach to systematically evaluate capability gaps and investments, ensuring traceability and defensibility in budget requests.
  • The approach emphasizes assessing whether capability gaps are in-scope, critical, and urgent, and if investments are supportable and strategically aligned with DAF priorities.

Strategic Relevance

This report provides a critical framework for enhancing the DAF's resource allocation process, directly influencing its ability to develop and sustain capabilities vital for national security. By improving the prioritization of cross-cutting portfolios, it ensures foundational elements like IT and infrastructure receive adequate funding, which is essential for overall strategic readiness and operational effectiveness.

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Key Entities

Department of the Air Force (DAF)RAND Project AIR FORCEPlanningProgrammingBudgetingand Execution (PPBE)U.S. Department of WarProgram Assessment and Evaluation (PA&E)Enterprise Information Technology (EIT)U.S. Air ForceU.S. Space ForceCongressOffice of Management and Budget (OMB)Office of the Secretary of War (OSW)Cost Assessment and Program Evaluation (CAPE)

Best For

Policy MakersDefense PlannersBudget AnalystsMilitary StrategistsAcquisition Professionals

Related Themes

Defense BudgetingMilitary ModernizationStrategic PlanningCapability DevelopmentAir Force StrategyResource Management

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