AFPD65-5 — Cost And Economics

AFPD65-5 governs Air Force cost and economic analysis, financial oversight, and policy supporting acquisition and sustainment decisions.

Search AFPD65-5

  • Publication number: AFPD65-5
  • Title: COST AND ECONOMICS
  • Date: 2018-12-18

View AFPD65-5 on armypubs.army.mil


It covers program office estimates, non-advocate cost assessments, independent cost estimates, economic analyses, and financial analyses. It requires cost and economic analysis to support decision makers, acquisition programs, budgeting, source selections, and milestone decisions.

Topics covered

  • Program office estimates
  • Non-advocate cost assessments
  • Independent cost estimates
  • Economic analyses
  • Financial oversight
  • Cost and planning factors
  • Air Force Services NAFI activities
  • AAFES corporate operations

Questions and answers

What must the Air Force provide decision makers through cost and economic analysis?

The Air Force shall support the Strategy, Planning, Programming, Budgeting, and Execution Process (SPPBE) and the acquisition system within the Department of Defense, by providing decision makers with credible and objective cost and Economic Analysis. (paragraph 1)

When are program office estimates required?

Program Office Estimates or Single Best Estimates for all Active Acquisition Master List Acquisition Category (ACAT) I, II and III programs to include Business System Category and Defense Business Systems programs. (paragraph 1)

What are non-advocate cost assessments used to support?

Non-Advocate Cost Assessments will be used to support milestone decisions, the SPPBE process, source selections, program and unit cost breaches, Analysis of Alternatives on programs expected to meet ACAT I thresholds, and requested rapid prototyping/rapid fielding initiatives. (paragraph 1)

When are independent cost estimates required?

Independent Cost Estimates for Major Defense Acquisition Programs, Major Automated Information Systems milestones, and Defense Business Systems Authority to Proceed decisions where decision authority has been delegated to the Service Acquisition Executive. (paragraph 1)

When must the Air Force conduct economic analyses?

Economic Analyses for the Air Force when deemed necessary or required by law. (paragraph 1)

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