Financial Management

Financial Management

Fund Cite Structure Breakdown

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 […]

Financial Management

Fund Cite Structure Breakdown Read More »

Financial Management

Funding – Program Management Administration (PMA)

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

Financial Management

Funding – Program Management Administration (PMA) Read More »

Financial Management

Comprehensive Cost and Requirement System (CCaR)

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 which allow the program and financial managers to define program requirements, formulate program budgets, forecast program execution, and track

Financial Management

Comprehensive Cost and Requirement System (CCaR) Read More »

Financial Management

Should Cost Management

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.

Financial Management

Should Cost Management Read More »

Financial Management

Affordability Analysis

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

Financial Management

Affordability Analysis Read More »

Financial Management

Sources of DoD Budget Information

  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

Financial Management

Sources of DoD Budget Information Read More »

Financial Management

Multi-Year Procurement

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).

Financial Management

Multi-Year Procurement Read More »

Financial Management

Research and Development Funding

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

Financial Management

Research and Development Funding Read More »

Financial Management

DoD Enterprise Architecture

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

Financial Management

DoD Enterprise Architecture Read More »

Financial Management

Automated Information System (AIS)

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

Financial Management

Automated Information System (AIS) Read More »

Financial Management

Compliance with Information Enterprise

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)

Financial Management

Compliance with Information Enterprise Read More »

Financial Management

OSD Office of Cost Assessment

  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

Financial Management

OSD Office of Cost Assessment Read More »

Financial Management

Research & Development Appropriation

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,

Financial Management

Research & Development Appropriation Read More »

Financial Management

Research and Development Cost

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

Financial Management

Research and Development Cost Read More »

Financial Management

Operating and Support Cost

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

Financial Management

Operating and Support Cost Read More »

Financial Management

Military Interdepartmental Purchase Request (MIPR)

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

Financial Management

Military Interdepartmental Purchase Request (MIPR) Read More »

Financial Management

Manpower Estimates

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

Financial Management

Manpower Estimates Read More »

Financial Management

Operation & Maintenance Appropriations

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

Financial Management

Operation & Maintenance Appropriations Read More »

Financial Management

Investment Cost

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

Financial Management

Investment Cost Read More »

Financial Management

Line of Accounting (LOA)

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)

Financial Management

Line of Accounting (LOA) Read More »

Financial Management

Funded Delivery Period

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

Financial Management

Funded Delivery Period Read More »