Spectrum-Dependent Asset Value Determination
DON CIO Memo - Publish Date: 12/12/13
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The purpose of this memo is to establish Department of the Navy policy to comply with recent Office of Management and Budget requirements concerning spectrum dependent (S-D) communications-electronics systems. S-D programs must now determine the value of the spectrum they will use when acquiring S-D systems/equipment and consider that value as a cost when making procurement decisions.
Subj: SPECTRUM-DEPENDENT ASSET VALUE DETERMINATION (S-DAVD)
Ref: (a) OMB Circular A-11, Preparation, Submission, and Execution of the Budget, Section 31.12
(b) 10 USC Sec. 2434 - Independent Cost Estimates; Operational Manpower Requirements
(c) DoD Directive 5000.01, Subject: The Defense Acquisition System
(d) DoD Instruction 5000.02, Subject: Operation of the Defense Acquisition System
(e) DoD Directive 5000.04, Cost Analysis Improvement Group (CAIG)
(f) DoD 5000.4-M, Cost Analysis Guidance and Procedures
Encl: (1) Spectrum-Dependent Asset Value Determination (S-DAVD) Requirements
(2) Example Requests for Proposal Required Text
(3) Methodology to Evaluate Spectrum Efficiency
The purpose of this memorandum is to establish Department of the Navy (DON) policy to comply with recent Office of Management and Budget requirements concerning spectrum dependent (S-D) communications-electronics systems (reference (a)). S-D programs must now determine the value of the spectrum they will use when acquiring S-D systems/equipment and consider that value as a cost when making procurement decisions. References (b) through (f) provide management principles and mandatory policies and procedures for all acquisition programs.
The Department of Defense defines Spectrum Efficiency as "Use of the minimum amount of electromagnetic spectrum resources necessary to ensure maximum operational effectiveness in fully accomplishing the required mission while taking all practicable steps to minimize impacts to other systems in the electromagnetic environment." Per reference (a), "In some cases, greater investments in systems could enhance spectrum efficiency (e.g., purchase of more expensive radios that use less bandwidth); in other cases, the desired service could be met through other forms of supply (e.g., private wireless services or use of land lines)."
To enable the DON to assess trade-offs between equipment and spectrum requirements investments, it is DON policy that:
- S-D asset value determinations (S-DAVDs) must be included in the development of budget justifications for procurement of S-D systems, including major telecommunication, broadcast, radar, and related systems. Enclosure (1) provides specific information on the requirements for S-DAVDs.
- Requests for Proposal (RFPs) for all S-D systems must require respondents to address spectrum efficiency factors. Enclosure (2) contains examples of language that can be used in RFPs for this requirement.
- S-DAVDs from selected and non-selected proposals must be included as an attachment to the program's Spectrum Supportability Risk Assessment.
Specific guidance on determining spectrum efficiency is provided in enclosure (3).
The DON Chief Information Officer (CIO), in coordination with the Assistant Secretary of the Navy (Research, Development, and Acquisition), will continue to review S-DAVD requirements and will update this policy as necessary.
The DON CIO point of contact for this effort is Mr. Tom Kidd. He can be reached at
(703) 695-1978 or at thomas.kidd@navy.mil.
Signed by:
Terry A. Halvorsen
Department of the Navy Chief Information Officer