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 to finance the following efforts:
- Production engineering; quality assurance
- Product improvement within the current performance envelope for items in production
- Production acceptance test and evaluation
- Contractor engineering and technical services for multiple sites being stood up (not to exceed 12 months after acceptance of the 1st production article/unit)
- Integrated logistics support
- Training planning; site activation planning
- Production scheduling/planning
- Project office and acquisition manager technical support services, whether performed under contract or by in-house field activity personnel, when integral to the execution of procurement program (e.g., production direct support costs such as production testing, quality assurance, production engineering, and equipment assembly)
Each Aircraft Procurement appropriation is subdivided into seven (7) Budget Activities (BA):
- BA-1 – Combat Aircraft
- BA-2 – Airlift Aircraft
- BA-3 – Trainer Aircraft
- BA-4 – Other Aircraft
- BA-5 – Modification of Aircraft
- BA-6 – Aircraft Spares and Repair Parts
- BA-7 – Aircraft Support Equipment and Facilities
The time limit is for three (3) fiscal years. This appropriation is controlled at the command level on a program-year and weapons system line-item basis. Under the program-year concept, new procurement programs should be obligated during the first year of availability to the extent possible. A program year consists of all programs budgeted and approved for funding in a specific budget year. Each procurement action is charged to the program year under which it was budgeted. Subsequently, within scope program cost changes are funded from the program-year account under which the basic transaction occurred.
Fully Funded: Under the flyaway concept, the investment end-item is the complete new procurement or modified aircraft including the cost of approved allowances of items carried on-board. It excludes all other supply system items.
Types of Costs
Investment costs and intrinsic items of expense when included in the production aircraft/modification kits.
Must be authorized by the Milestone Decision Authority (MDA) for procurement Low-Rate Initial Production (LRIP) or have received a Full-Rate Production Decision (FRPD).
- aircraft production quantities must match Conference Appropriations Committee tables, but
- aircraft modernization/retrofit kits may be accelerated from amounts specified in the President’s budget submission but should not exceed inventory objectives
May NOT Fund
Functions performed by HQ personnel performed as part of HQ oversight; policy development and guidance; management and distribution of resources; program performance review and evaluation; planning, programming, and budgeting; travel of HQ/Program Executive Officer (PEO) personnel; other direct expenses of HQ/PEO personnel; and any other costs more appropriately funded by other specific appropriations.
- More detailed definitions for Aircraft Procurement Budget Activities are contained in DoD Financial Management Regulation 7000.14-R, Volume 2B, Chapter 5, paragraph 050201.
AcqLinks and References:
- Financial Management Compendium
- DoD Instruction 7000.14 “DoD Financial Management Policy and Procedures”, – 15 Nov 92
- DoD Instruction 7000.14-R“ DoD Financial Management Policy and Procedures”, Volume 2A
- Website: DoD Comptroller: DoD 7000.14R – (Most Updated Versions)