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             Congressional                                                   ____
          ~   Research Service






FY2024 NDAA: Department of Defense Office

of   Cost Assessment and Program Evaluation

(CAPE)



Updated January 23, 2024


The U.S. Department of Defense's (DOD) Office of Cost Assessment and Program Evaluation (CAPE)
provides independent analysis of the cost and performance of major weapons systems and plays a key role
in developing the DOD budget. CAPE was established in 2009 pursuant to the unanimously passed
Weapon Systems Acquisition Reform Act (WSARA; P.L. 111-23). For FY2023, its budget was $67.9
million and it had 157 staff.
The National Defense Authorization Act for Fiscal Year 2024 (FY2024 NDAA; P.L. 118-31 @902)
authorizes CAPE funding at requested amounts and adopts a Senate-passed provision that modifies the
responsibilities of the Director of CAPE, among other things. The enacted bill did not adopt a House-
passed provision that would have repealed the position of director of CAPE, disestablished the office, and
authorized the Secretary of Defense to transfer certain office responsibilities. Also not adopted was a
Sense of the Senate supporting CAPE's role in providing independent cost assessments.


Background

10 U.S.C. §139a and 10 U.S.C. Chapter 222 describe CAPE's statutory duties. The director of CAPE is
appointed by the President and approved by the Senate. CAPE plays a role in both DOD's Planning,
Programming, Budgeting, and Execution (PPBE) process and in the Defense Acquisition System (DAS).
Within PPBE, CAPE informs the assessment of resource requirements in warfighting scenarios; convenes
senior leader decision-making bodies; and has primary responsibility for generating a classified budget-
related database called the Future Years Defense Program (FYDP). Within the DAS, CAPE guides and
evaluates the analysis of alternatives, which occurs early in the acquisition process; conducts or reviews
independent cost estimates and/or lifecycle cost analyses for all Major Defense Acquisition Programs
(MDAPs); and establishes DOD-wide policy and procedures for estimating the total costs of procurement
contracts, including multi-year procurements (MYP).


                                                             Congressional Research Service
                                                             https://crsreports.congress.gov
                                                                                 IN12254

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