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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 […]

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

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

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)

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 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

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

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

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

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