Portfolio Reviews

The Army's new capability portfolio review effort is intended to help the service take a holistic look at its programs and find potential efficiencies, Army Vice Chief of Staff Gen. Peter Chiarelli told the House Armed Services readiness subcommittee today.

Answering a question about the increasing price of systems, Chiarelli said an assessment of any individual item will typically show the system is needed. But examining "a portfolio of common systems" will probably reveal areas in which the Army has more of a specific capability than it needs or opportunities for improved efficiencies, he said.

He used the example of precision munitions, noting that a portfolio review might find that some munitions are precision that do not need to be -- significantly increasing the cost.

"It's time we think in the Army that we step back," Chiarelli said of the portfolio review approach.

InsideDefense.com in early March reported on a Feb. 22 rule set signed by Joseph Westphal, under secretary of the Army, and Gen. Peter Chiarelli, Army vice chief of staff, that sets the guidelines for conducting the one-year, pilot capability portfolio review effort directed by Army Secretary John McHugh. The purpose is to conduct an “Army-wide, all-components revalidation of requirements.”

More here.