A Defense Industrial Capabilities Assessment is an assessment of an industry where there’s a known problem with the skills and knowledge, processes, facilities, and equipment needed to design, develop, manufacture, repair, and support DoD products. It’s done on a case-by-case basis for private or public industrial activities. The guidelines in DoD Instruction 5000.60 are used when a DoD acquisition manager, inventory control point manager, or other buyer determines there is a substantial risk that an industrial capability needed to support DoD programs or products may be lost. [1]

An industrial capability analysis summary report summarizes the results of an industrial capability analysis. It recommends an action or investment and addresses cost, schedule, effects on performance, and pertinent qualitative considerations. It defines how and when the action would be incorporated into the budget and, if possible, identifies budget offsets. [1]

Government funds will be used to preserve an industrial capability only if it’s the most cost- and time-effective alternative to meeting national security requirements. DoD Instruction 5000.60 Enclosure 2 provides the criteria for the assessment of endangered industrial capabilities and the procedures for preserving capabilities at the program level and below. [1]

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Updated: 6/12/2018

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