2.6 Programming Funds Flashcards
Coverage of the POM and BES
BES = Budget Year
POM= Budget Year+4 Years
Five Steps of the Financial management Process
Step 1: Capability Needs
Step 2: Cost Analysis
Step 3: PPBE
Step 4: Congressional Enactment
Step 5: Budget Execution
Scope of the Future Years Defense Program (FYDP)
Forces, Funding, Manpower
Past Year
Current Year
Budget Year
Budget Year +1-4 (outyears)
Forces Only
Budget Year +5-7 (Outyears
When the FYDP is Unlocked
August - updated to refelct the Servies POM and BES
January - Updated to reflect DoD’s portion of Presidents Budget
Three ways the FYDP can be viewed
DoD Appropriations
Major Force Programs (MFP)
Components
Eleven (11) Major Force Programs (MFP)
- Startegic Forces
- General Purpose Forces
- Command, Control, Communications, Intellegence
- Mobility Forces
- Guard and Reserve Forces
- Research and Development
- Central Supply and Maintenance
- Training, Medical and Personnel Activities
- Administartion and Associated Activities
- Support of Other Nations
- Special Operations Forces
Program Element (PE)
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.
Eight PE Alphabetical Suffixes
A - Army
M - Marine
N - Navy
F - Air Force
D - OSD
E - DARPA
J - JCS
S - DLA
Programming Phase
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
The Three (3) Funding Polices that Govern Appropriates and Control
Annual Funding
Incremental Funding
Full Funding
https://dau.csod.com/content/dau/publications/6573/Content/Projects/Res/library/ACQ2020_M2_L06_FundingPolicies.pdf
Annual Funding
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
Incremental Funding
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
Full Funding
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
Funded Delivery Period
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
Two exceptions to Full Funding Policy
Advance Procurement
Multiyear Procurement
Advance Procurement
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
- 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
Multi Year Procurement
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
