Example: 5713010 111 4720 119992 020100 00000 000000 503000 F03000 Department: 57 Fiscal Year: 1 Appropriation Symbol: 3010 Fund Code:11 Fiscal Year: 1 Operating Agency Code: 47 Allotment Serial Number: 20 Budget Program (First 2 digits of BPAC): 11 Project Number (3rd thru 6th digit of BPAC): 9992 Material Program Code: 020100 Element of Expense/Investment […]
Funding for Program Management Administration (PMA) is the cost of mission essential office operations in direct support of a program and its program management office (PMO). It’s budgeted on an annual basis and reflected in the fiscal year during which the requirement is projected to execute. PMA costs are charged to the appropriation funding the
The Comprehensive Cost and Requirement System (CCaR) is an enterprise program and financial management system that delivers real-time program information to government decision-makers. At the core of the CCaR System are automated reports and analysis tools that allow the program and financial managers to define program requirements, formulate program budgets, forecast program execution, and track
Should Cost Management is a technique implemented by the DoD on their acquisition programs to understand the true cost of a program once all the unnecessary costs are eliminated. It helps Program Managers (PM) identify and eliminate inefficient and non-productive tasks from their program. It’s designed to proactively target cost reduction and drive productivity improvement.
Affordability Analysis is a tool that DoD Components use to determine their priorities and what they can and what they can’t afford on their program(s). It’s based upon the Life-Cycle Cost (LCC) for current or future program(s). The Milestone Decision Authority (MDA) approves the Affordability Analysis at the milestones below. (See Affordability) Definition: Long-range planning
There is a variety of sources of Department of Defense (DoD) budget and program information. Understanding the Future Year Defense Program (FYDP) budget will allow companies to recognize potential business opportunities. The main source of budget information is available at the DoD Comptroller Budget and services websites. Below is a list of the
The funding of economic order quantity (EOQ) purchases (i.e., bulk purchases) associated with a multiyear procurement (FAR 17.1) is considered an exception to the full funding policy in that whole end items are not being financed. Funding for EOQ procurements is included in advance procurement budget requests unless an exception is granted by USD (Comptroller).
Research Development Test & Evaluation (RDT&E) funding is used to pay the operating costs of dedicated activities engaged in the conduct of research, development, and test and evaluation efforts performed by a contractor and/or government organization. It’s used to develop equipment, material, or computer application software and its Development Test and Evaluation (DT&E) and Initial
An Enterprise Architecture (EA) describes the “current architecture” and “target architecture,” and provides a strategy that will enable an agency to transition from its current state to its target environment. The Office of Management and Budget defines enterprise architecture as the explicit description and documentation of the current and desired relationships among business and management
To comply with the DoD Information Enterprise requirements for an acquisition program throughout its life-cycle, a Program Manager (PM) should: [1] Meet the DoD Architecture Framework (DoDAF) requirements in producing architectural views. Meet the DODAF Meta-model (DM2) Physical Exchange Specification (PES) requirements for sharing/reusing architecture data. Meet the DoD Information Technology (IT) Standards Registry (DISR)
An Automated Information System (AIS) is a system of computer hardware, computer software, data, and/or telecommunications that performs functions such as collecting, processing, storing, transmitting, and displaying information. Program Managers (PM) for acquisitions of AIS applications are responsible for coordinating with organizations that will host (run) the applications early in the acquisition process. The PM
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, 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
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
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
