2.6 Programming Funds

Question 1

Coverage of the POM and BES

Answer 1

BES = Budget Year
POM= Budget Year+4 Years

Question 2

Five Steps of the Financial management Process

Answer 2

Step 1: Capability Needs
Step 2: Cost Analysis
Step 3: PPBE
Step 4: Congressional Enactment
Step 5: Budget Execution

Question 3

Scope of the Future Years Defense Program (FYDP)

Answer 3

Forces, Funding, Manpower
Past Year
Current Year
Budget Year
Budget Year +1-4 (outyears)

Forces Only
Budget Year +5-7 (Outyears

Question 4

When the FYDP is Unlocked

Answer 4

August - updated to refelct the Servies POM and BES
January - Updated to reflect DoD’s portion of Presidents Budget

Question 5

Three ways the FYDP can be viewed

Answer 5

DoD Appropriations
Major Force Programs (MFP)
Components

Question 6

Eleven (11) Major Force Programs (MFP)

Answer 6

1. Startegic Forces
2. General Purpose Forces
3. Command, Control, Communications, Intellegence
4. Mobility Forces
5. Guard and Reserve Forces
6. Research and Development
7. Central Supply and Maintenance
8. Training, Medical and Personnel Activities
9. Administartion and Associated Activities
10. Support of Other Nations
11. Special Operations Forces

Question 7

Program Element (PE)

Answer 7

Divided from the MFPs

The primary unit of data in the FYDP and is normally the smallest aggregation of resources controlled by OSD. It generally represents a collection of functional or organizational entities and their related resources.

Question 8

Eight PE Alphabetical Suffixes

Answer 8

A - Army
M - Marine
N - Navy
F - Air Force
D - OSD
E - DARPA
J - JCS
S - DLA

Question 9

Programming Phase

Answer 9

APR- Defense Planning Guidance published.
AUG- Services Submit POM to CAPE
- Joint Staff review Service POM/assess DPG compliance document review in Chairman’s Program Assessment (CPA)
SEP-NOV - OSD reviews and makes recommend changes through POM Issue papers
- services comment / reclama the issues
- DEPSECDEF makes decisions on issue Papers
NOV - DEPSECDEF transmits decisions through Resource Management Decision (RMD). Components revise based on guidance

Question 10

The Three (3) Funding Polices that Govern Appropriates and Control

Answer 10

Annual Funding
Incremental Funding
Full Funding

https://dau.csod.com/content/dau/publications/6573/Content/Projects/Res/library/ACQ2020_M2_L06_FundingPolicies.pdf

Question 11

Annual Funding

Answer 11

O&M and MILPERS Appropriations

Request only the dollars that you need to spend to operate, maintain,
or pay the forces in a given fiscal year

https://dau.csod.com/content/dau/publications/6573/Content/Projects/Res/library/ACQ2020_M2_L06_FundingPolicies.pdf

Question 12

Incremental Funding

Answer 12

RDT&E Appropriations

Only budget funds for the research and development work to be performed during each fiscal year

https://dau.csod.com/content/dau/publications/6573/Content/Projects/Res/library/ACQ2020_M2_L06_FundingPolicies.pdf

Question 13

Full Funding

Answer 13

PROC, MILCON, Shipbuilding

Each year’s (procurement) appropriation request must contain the funds estimated to be required to cover the total cost to be incurred in completing delivery of a given quantity of usable end items such as aircraft, missiles, ships, vehicles and ammunition.”

key words above are “usable end items.” Piecemeal procurement of systems is NOT permitted

https://dau.csod.com/content/dau/publications/6573/Content/Projects/Res/library/ACQ2020_M2_L06_FundingPolicies.pdf

Question 14

Funded Delivery Period

Answer 14

The funded delivery period is a 12-month period that begins when the
contractor delivers the first item of a fiscal year procurement.

https://dau.csod.com/content/dau/publications/6573/Content/Projects/Res/library/ACQ2020_M2_L06_FundingPolicies.pdf

Question 15

Two exceptions to Full Funding Policy

Answer 15

Advance Procurement
Multiyear Procurement

Question 16

Advance Procurement

Answer 16

Advance procurement may be used to:
1. Maintain critical skills that would otherwise be lost between low rate initial production and full rate production; and/or

2. Protect the schedule by providing necessary components at the right time for incorporation into the production of the weapon system, i.e., to prevent a slowdown or break in production.

In both cases, the advance procurement must be justified on the basis of cost savings.

https://dau.csod.com/content/dau/publications/6573/Content/Projects/Res/library/ACQ2020_M2_L06_AdvanceProcurement.pdf

Question 17

Multi Year Procurement

Answer 17

The purpose is to reduce program cost growth and introduce
stability into the acquisition process.

In theory it does so by making a commitment to the contractor to procure a specific quantity of a weapon system over several years to be funded on a year-by-year basis.

The contractor is thus incentivized to realize savings, particularly through economic order quantity (EOQ) purchases (i.e., bulk purchases), and investment in productivity enhancements.

The funding of EOQ procurements associated with a multiyear procurement is considered an exception to the full funding policy in that whole end items are not being financed.

https://dau.csod.com/content/dau/publications/6573/Content/Projects/Res/library/ACQ2020_M2_L06_MultiyearProcurement.pdf