Acq Notes

Are the efforts and/or services identified in the Statement of Work (SOW) consistent and in sync with the President’s budget submission for that specific fiscal year? Is the work/service a bona fide need of the fiscal year sought to be charged? Does the SOW meet the necessary expense test? What appropriation is being charged? Is […]

DoD policy requires cost definition criteria that can be used in determining the content of the programs and activities that comprise the Defense budget. Costs are categorized as either expenses or investments. Purchases (i.e., obligations) of non-centrally managed items with a unit cost of $250,000 or less, are considered expenses funded from appropriations available to

The Defense Working Capital Fund (DWCF) allows the federal government to purchase and repair activities to account for costs and revenue as if it were a commercial business. The DWCF was established under the authority of Title 10, United States Code (USC) Section 2208, and was effective in fiscal year (FY) 1992. It was established

Disposal Cost consists of the expenses associated with demilitarization and disposal of a military system at the end of its useful life. Typically costs include: [1] Collection/storage/disposal of hazardous materials and/or waste Decontamination Disassembly Materials processing Safety precautions Transportation of the system to and from the disposal site The intent of the use of the

The Cost and Software Data Reporting (CSDR) system is the primary means that DoD uses to collect actual cost and related business data on Acquisition Category (ACAT) I and ACAT IA defense contracts. Program Managers (PM) use the CSDR system to report data on contractor development and production costs and resource usage incurred in performing

Department of Defense (DD) Form 250 is the Material Inspection and Receiving Report (MIRR) required for most supply and service contracts. You must complete this form with each service submission if your contract includes DFARS Clause 252.246-7000. DFARS Part 246.370 prescribes the inclusion of this clause in solicitations and contracts when there will be separate

Cost estimating is a valuable tool that is used in each of the acquisition phases.  There are a number of cost-estimating techniques that can be used in estimating the costs of a future and current weapon system.   The use of a specific approach will depend on how much information is available and where the weapon

Note: Cost Analysis Improvement Group (CAIG) is now known as Cost Assessment and Program Evaluation (CAPE). The Cost Assessment and Program Evaluation (CAPE) office provide independent analytic advice to the Secretary of Defense on all aspects of the Defense program, including alternative weapon systems and force structures, the development and evaluation of defense program alternatives,

Cost As an Independent Variable (CAIV) is an acquisition philosophy that emphasizes keeping system Life-Cycle Cost (LCC) within an established range by trading the other system acquisition variables of performance or schedule. [3] Definition: Cost As an Independent Variable (CAIV) is a strategy for acquiring and supporting defense systems that entails setting aggressive, realistic cost objectives

A Cost Analysis Requirements Description (CARD) is used to formally describe the acquisition program for purposes of preparing both the DoD Component Cost Estimate and the Independent Cost Estimate (ICE) for Acquisition Category (ACAT) I and ACAT IA programs. The CARD is a description of the technical and programmatic features of an acquisition program or system

Contract financing payments are authorized Government disbursement of monies to a contractor prior to acceptance of supplies or services by the Government. They are based upon Firm Fixed Price (FFP) contracts. The specific methods of Government contract financing payment liquidation include: Commercial advance and interim payments Progress Payments Performance-Based Payments 1) Commercial Advance and Interim

Contractor Cost Data Reporting (CCDR) is the primary means within the Department of Defense (DoD) to systematically collect actual data on the development and production costs incurred by contractors in performing DoD acquisition program contracts. Cost and Software Data Reporting (CSDR) System The Cost and Software Data Reporting (CSDR) system is the primary means that

A Component Cost Position (CCP) is the estimated cost for an acquisition program by a service component (Air Force, Army, Navy, Marine Corp) for each year throughout the Future Years Defense Program (FYDP).  Each service component will establish a DoD component cost position for all Major Defense Acquisition Programs (MDAP) at each milestone review. Full

Below is a list of common accounting definitions: Commitment (Apportionment): A firm administrative reservation of funds based on firm procurement requests, unaccepted customer orders, directives, and equivalent instruments which authorize the recipient to create obligations without further recourse to the official responsible for certifying the availability of funds. Planning Process Programming Process Authorizations & Appropriations

Note: The DoD is back on an annual budgeting cycle. In 2003, the DoD adjusted its planning, programming, and budgeting procedures to support a two-year cycle that results in two-year budgets. The revised process is described in Management Initiative Decision (MID) 913, dated May 22, 2003. The concept in MID 913 is consistent with submission

Budget execution is the process established to carry out the programs for which funds were appropriated. Administering offices, operating budget and sub-allocation holders, and fund administrators execute the budget through the signing of contracts, projects orders, work requests, and other funding documents. Funding documents authorize organizations to provide specified goods and/or services and obligate the

An Allocated Cost is a type of expense that is clearly associated with and so can be readily assigned to a certain business process, project or department. Allocated cost types might include fabrication costs, sales costs, project management costs, and associated fixed costs. Another example, a company might allocate or assign the cost of an

Procurement of Ammunition funds the construction, procurement, production, and modification of ammunition, and accessories therefore; specialized equipment and training devices; practice and general-purpose bombs; airborne rockets; and related support equipment, including spare parts.[1] Ammunition procurement appropriations are used to finance the following efforts: [1] Production engineering Quality assurance Product improvement within the current performance envelope

Affordability is the results obtained from the Affordability Analysis of the Life-Cycle Cost (LCC) of a proposed acquisition, which the purchase is in accord with the resources and long term requirements of the acquirer. The Defense Acquisition Guidebook (DAG) defines affordability as the degree to which the LCC of an acquisition program is in consonance

Aircraft Procurement funds the construction, procurement, and production of new aircraft; the modification of in-service aircraft; and the procurement of peculiar and common ground support equipment; tooling; test equipment; specialized equipment; training aids and training equipment; simulators; spare parts and support of aircraft industrial production facilities (i.e., government-owned, contractor-operated facilities). Aircraft procurement appropriations are used

Advance Procurement (AP) (FAR 32.4, DFARS 217.1) is authority provided in an appropriations act to obligate and disburse funds during a Fiscal Year (FY) before that in which the related end item is procured. The funds are added to the Budget Authority (BA) for the FY and deducted from the BA of the succeeding FY.

Advance Payments (FAR 32.403)(FAR 52.232-12 Clauses) are a type of contract financing the Government provides to contractors to accomplish or to maintain progress on an essential program or contract objectives. It’s rarely used but is sometimes offered to contractors who are unable to start or maintain satisfactory progress on contracts without advance financing from the

10 U.S.C. 127 – Emergency & Extraordinary Expenses 10 U.S.C. 114 – Annual Authorization of Appropriations 10 U.S.C. 2204 – Obligation of Appropriations 10 U.S.C. 2208 – Working Capital Funds 10 U.S.C. 2307 – Contract Financing 10 U.S.C. 2410a – Miscellaneous Procurement (Severable Service Contracts) 10 U.S.C. 2667 – Leases: Non-Excess Property of Military Departments

31 U.S.C. 1301 was enacted in 1809, this statute is one of the cornerstones of congressional control over the Federal purse. Because money cannot be paid from the Treasury except under an appropriation, and because an appropriation must be derived from an act of Congress, it is for Congress to determine the purposes for which