THE LONG VIEW


LIRA decision support tool enables better long-range planning and budgeting


by MG Robert M. “Bo” Dyess Jr. and Mr. David N. Lakin T 126


o many, lira was the Italian currency before the euro. But to those who are part of the Army’s acquisition, requirements or resourcing commu- nity, the word suggests LIRA, the game-changing


Long-range Investment Requirements Analysis.


LIRA annually examines the life-cycle affordability of esti- mated future materiel requirements over a 30-year period against estimated total obligation authority, or legal spend- ing limit. In other words, each year LIRA asks the question: Can the Army afford a weapon system or piece of equipment, and all the associated costs over its required useful life, with 30 years as a frame of reference?


In the past decade, DOD has taken steps to improve its acqui- sition strategies and better monitor its weapon acquisition programs, and continues to develop policies for estimating operating and support costs. Tis focus on improving acqui- sition processes is how LIRA began in 2012, as a structured annual review involving certain parties addressing a set of capabilities and aspects of affordability. LIRA is becoming a


Army AL&T Magazine January–March 2015


strategic weapon as we continue to provide for our Soldiers while facing the challenges of sequestration.


“I can’t make a good decision on a program with only five years of information,” said the Hon. Heidi Shyu, assistant secretary of the Army for acquisition, logistics and technol- ogy (ASA(ALT)) and the Army’s acquisition executive, in 2012. She was expressing frustration with making major decisions on acquisition programs without being able to see how they fit in the overall Army budget over the long term, not the requisite five-year period of the program objective memorandum (POM). LIRA changed the forecasting pro- cess by providing a 30-year look, which also helps avoid any unexpected budgeting issues or “bow waves.”


LONG-TERM AFFORDABILITY While no one can accurately predict 100 percent of the Army’s future fiscal resources over the long term, a credible baseline funding projection is a key element in determining the affordability of various programs. Te LIRA process helps in that effort by eliminating the seam that existed previously


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