Full funding is the preferred policy of the Department of Defense (DoD) and the Oversight Congressional Committees and states that procurement and construction accounts fully fund in one (1) fiscal year the total cost of end-items and construction projects to be acquired. The objective is to ensure that the Congress and the public can see the full dimensions and cost of an acquisition program when presented in the budget. To comply with the full funding policy, at the time of contract award, funds are available to cover the total estimated cost to deliver the contract quantity of complete, militarily usable items. If a future-year appropriation is required for delivery of the end-items, the contract is not fully funded. The number of contracts required to procure a defense system, the type of contract awarded, and the timing of the award have no bearing upon whether or not an item is fully funded. Advance EOQ procurement and advance procurement are two exceptions to the full funding policy. All other exceptions to full funding are approved at the OSD level. [1]

See Incremental Funding Policy

AcqLinks and References:

Updated: 6/8/2018

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