Department of Defense
INSTRUCTION
NUMBER 7041.03
September 9, 2015
Incorporating Change 1, October 2, 2017
DCAPE
SUBJECT: Economic Analysis for Decision-making
References: See Enclosure 1
1. PURPOSE. In accordance with the authority in DoD Directive (DoDD) 5105.84
(Reference (a)), this instruction:
a. Reissues DoD Instruction 7041.3 (Reference (b)) to establish policy, assign
responsibilities, and provide procedures for conducting cost-effective economic analyses
evaluating the costs and benefits of any government decisions to initiate, renew, or expand
program or project alternatives under the Office of Management and Budget (OMB)
Circular No. A-94 (Reference (c)).
b. Authorizes the Defense Economic Analysis Council (DEAC) as the means to pursue
uniform economic policy throughout DoD, resolve any issues that may arise, and represent joint
Military Service opinion to OSD.
2. APPLICABILITY. This instruction:
a. Applies to:
(1) OSD, the Military Departments, 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, and the DoD Field Activities, and all other organizational
entities within the DoD (referred to collectively in this instruction as the “DoD Components”).
(2) The evaluation of decisions about the startup research, acquisition, renewal,
renovation, conversion, upgrade, expansion, pre-planned product improvement, leasing, or
operations of all programs or projects issued under the authority of this instruction. The adoption
of such programs and projects is expected to commit the government to a series of measurable
expenditures or benefits beyond the inception date.
(3) Prescribed methodologies to all considerations for investment.
