Acq Notes

Appropriated funds are divided into two (2) basic types; (1) investment funds and (2) expense funds. The defining of an acquisition as either investment or expense, or even a combination of the two, is not always simple. Generally, however, the following definitions apply. [1] Investment: Includes the cost of real property and capital assets which

Research & Development (R&D) Cost consists of development costs (both contractor and Government) incurred from the beginning of the Materiel Solution Analysis (MSA) Phase, Technology Development (TD) Phase, and through the end of the Engineering and Manufacturing Development (EMD) Phase. Typically costs include: [1] Advanced technology development Assembly Common support equipment Development Engineering Change Orders

Research, Development, Test & Evaluation (RDT&E) Appropriations (Appropriations Categories) finances expense and investment costs necessary for basic and applied scientific research, development, test, and evaluation including maintenance, rehabilitation, lease of operation of facilities and equipment. RDT&E appropriations are used to finance the following efforts: See Research & Development Costs Research, Development, Test & Evaluation Efforts,

  The Office of the Secretary of Defense (OSD) Office of Cost Assessment provides independent analysis and advice to DoD officials on matters of cost estimation and cost analysis for weapons acquisition programs, including matters of program life-cycle cost. The Director of Cost Assessment and Program Evaluation (DCAPE) provides policies and procedures for the conduct

OSD analysts expect to see at least 80% of Procurement funds obligated by the end of the first year of execution of those funds. For RDT&E appropriations, they expect expenditures of at least 55% of the amount appropriated by the end of the first year of execution. [1] These benchmarks are derived from historical information

Operating and Support Cost (O&S) consists of sustainment costs incurred from the initial system deployment through the end of system operations. This includes costs, directly and indirectly, attributable to the system (i.e., costs that would not occur if the system did not exist), regardless of funding source or management control. Typically costs include: [1] Continuing

Operation & Maintenance (O&M) Appropriations fund the cost of operating and maintaining equipment at a state of readiness. It covers expenses such as civilian salaries, travel, minor construction projects, operating military forces, training and education, depot maintenance, stock funds, and base operations support. Definition: Operation and Maintenance (O&M) appropriations are used to finance “expenses” not related

Manpower estimates serve as the authoritative source for out-year projections of active-duty and reserve end-strength, civilian full-time equivalents, and contractor support work-years. The estimate is prepared by the program manager and approved by the DoD Component manpower authority (for the military departments, normally the Assistant Secretary for Manpower and Reserve Affairs). They’re due prior to

The Military Interdepartmental Purchase Request (MIPR) is a method for transferring funds from one military organization to another to procure services, supplies, or equipment for the required service. A MIPR is processed on DD Form 448 and may be accepted on a direct citation or reimbursable basis and is defined in the Federal Acquisition Regulation

A Life-Cycle Cost (LCC) is the total cost of a program from cradle to grave. (also referred to as Total Ownership Cost (TOC)) LCC consists of Research and Development (R&D) Costs, Investment Costs, Operating and Support Costs, and Disposal Costs over the entire life cycle. These costs include not only the direct costs of the

A Line of Accounting (LOA) is the funding associated with a federal organization’s budget. By understanding the elements that comprise an LOA, you can determine the Service designator, fiscal year, appropriation, subhead, object class, plant UIC, sub-allotment, authorized accounting activity, transaction type, and Work Breakdown Statement (WBS) element/cost element. Definition: A Line of Accounting (LOA)

Investment Cost consists of production and deployment costs incurred from the beginning of Low-Rate Initial Production (LRIP) through completion of deployment. Typically costs include: [1] Common support equipment Deploying the primary hardware Engineering change orders Industrial Facilities Initial Spares and Repair Parts Military construction Operational/Site Activation Operations and Maintenance Operations and maintenance associated with the

The Incremental Funding Policy states that partial funding of a contract is allowed with additional funds anticipated to be provided at a later time, and the amount budgeted shall be limited to the budget authority needed to cover all costs expected to be incurred during a (12) month period. This is used when the total

A Funded Delivery Period encompasses a 12-month period that begins when the contractor delivers the first item of a fiscal year procurement. Confusion exists regarding this time period because, in many instances, accurate Administrative Lead-time (ALT) and Production Lead-times (PLT) have not been included in the calculation. The calculation should begin with October 1. From

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