Financial Management

Full Funding Policy

Full funding is the preferred policy of the Department of Defense (DoD) and the Oversight Congressional Committees and states that procurement and construction account fully fund in one (1) fiscal year the total cost of end-items and construction projects to be acquired.

Full Funding Policy Objective

The objective is to ensure that Congress and the public can see the full dimensions and cost of an acquisition program when presented in the budget.

Full Funding Description

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 has no bearing upon whether or not an item is fully funded.

Full Funding Exceptions

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]

Types of Funding Policy

The following are the main types of funding policies in the Government:

AcqLinks and References:

Updated: 6/18/2021

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