4.5 Resource Allocation

Question 1

Four phases of resource allocation

Answer 1

1. PPBE
2. Enactment
3. Apportionment
4. Execution

Question 2

Enactment Phase

Answer 2

Begins when the President submits the annual budget to Congress.

Then the House and Senate Committees set the overall budget ceilings for the various major Government functions in Budget Resolutions. Budget Resolutions are not laws.

This phase ends when the President signs the annual authorization and appropriation bills.

Question 3

Apportionment Phase

Answer 3

funds are made available to DoD and other federal agencies after signed into law by President

Apportionment occurs when the Office of Management and Budget distributes the Budget Authority to DoD and other federal agencies.

Then funds are obligated for the programs and needs defined in the resource allocation process.

Question 4

Authorization Bill

Answer 4

Act of Congress that gives permission for a Federal program or activity to begin or continue from year to year but it does not grant funding.

The House Armed Services Committee (HASC) and Senate Armed Services Committee (SASC) are responsible for:
- Reviewing the President’s Budget
- Holding hearings on DoD budgets
- Drafting the Defense Authorization Bill

Question 5

Appropriation Bill

Answer 5

Act of Congress that provides Budget Authority (BA) and permits Federal agencies to incur obligations and make payments from the U.S. Treasury.

The House and Senate Appropriations Committees:
- Review the President’s Budget
- Hold hearings
- Draft various Appropriations Bills

Question 6

Three Funding Policies

Answer 6

Annual (O&M and MILPERS)

Incremental

Full Funding

Question 6

Annual Funding Policy

Answer 6

Governs O&M and MILPERS

Requires you only request dollars needed in given fiscal year

Question 6

Incremental Funding Policy

Answer 6

Governs RDT&E

Only budget funds for R&D work performed each fiscal year

Question 6

Full Funding Policy

Answer 6

Governs Procurement and Military Construction

Question 6

Two expectations to Full Funding

Answer 6

Advance Procurement - funds set aside to buy components and material before end item procured to avoid serious break in continuity (Example:long lead items)

Multi-Year Procurement - funds used to aquire multiple years of equipment with single contract to reduce cost and maintain stability. Congress must approve

Question 7

Expiration of Budget Activites

Answer 7

Five year period after obligation window

Available for continued outlay of funds

Expires after period