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Abstract System design is commonly thought of as a process of maximizing a design objective subject to constraints, among which are the system requirements. Given system-level requirements, a convenient management approach is to disaggregate the system into subsystems and to “flowdown” the system-level requirements to the subsystem or lower levels. We note, however, that requirements truly are constraints, and they typically impose a penalty on system performance. Furthermore, disaggregation of the system-level requirements into the flowdown requirements creates added sets of constraints, all of which have the potential to impose further penalties on overall system performance. This is a highly undesirable effect of an otherwise beneficial system design management process. This article derives conditions that may be imposed on the flowdown requirements to assure that they do not penalize overall system performance beyond the system-level requirement.