Department of Defense
DIRECTIVE
NUMBER 7045.20
September 25, 2008
Incorporating Change 1, May 25, 2017
USD(P)
SUBJECT: Capability Portfolio Management
References: See Enclosure 1
1. PURPOSE. This Directive:
a. Establishes policy and assigns responsibilities for the use of capability portfolio
management in order to advise senior leadership on capability investment pursuant to the
authority vested in the Secretary of Defense by section 113 of title 10, United States Code
(Reference (a)).
b. Incorporates and cancels the “Action to Critical Path (ACP) 2” portion of Deputy
Secretary of Defense Memorandum (Reference (b)) and incorporates and cancels Deputy
Secretary of Defense Memorandums (References (c) and (d)).
2. APPLICABILITY. This Directive applies to OSD, the Military Departments, the Office of
the Chairman of the Joint Chiefs of Staff and the Joint Staff, the Combatant Commands, the
Office of the Inspector General of the Department of Defense, the Defense Agencies, the DoD
Field Activities, and all other organizational entities within the Department of Defense (hereafter
referred to collectively as the “DoD Components”).
3. DEFINITIONS. See Glossary.
4. POLICY. It is DoD policy that:
a. The Department of Defense shall use capability portfolio management to advise the
Deputy Secretary of Defense and the Heads of the DoD Components on how to optimize
capability investments across the defense enterprise (both materiel and non-materiel) and
minimize risk in meeting the Department’s capability needs in support of strategy.
b. The existing joint capability area (JCA) structure shall serve as the Department’s common
framework and lexicon for the organization of capability portfolios in accordance with Deputy
Secretary of Defense Memorandum (Reference (e)).
