Term
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Definition
| O&M, MILPER appropriations |
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Term
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Definition
RDT&E
9, 15, 18 month exceptions |
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Term
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Definition
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Term
| Exceptions to Full Funding |
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Definition
Advance Procurement
Multiyear Procurement |
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Term
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Definition
| What funding is considered "Expenses" |
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Term
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Definition
| Budget request basis is on funding needed to operate and maintain DOD activities and pay personnel for 12 month budget period. (i.e. normally the fiscal year). |
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Term
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Definition
| Intent of Policy: To provide only those funds reqruied to pay for expenses associated with "normal" operations of DoD activities for a 12 month period. |
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Term
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Definition
| Can be tied to the criteria of Expense and Investment |
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Term
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Definition
| Costs incurred to operate and maintain the organization such as personal services, supplies and utilities |
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Term
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Definition
| Costs that result in the acquisition of, or an addition to, end items. These cost benefit future periods and generally are of a long term charachter such as real property and personal property. |
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Term
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Definition
| DOD considers O&M and MILPERS what type of appropriations? |
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Term
| Investment appropriations |
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Definition
| DoD considers Procurement and Expenses what type of appropriations? |
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Term
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Definition
| What covers both expenses and investments? |
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Term
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Definition
| What are three general classifications of the appropriation categories? |
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Term
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Definition
| Simply means that you request only the dollars that you need to spend to operate, maintain or pay the forces in a given year. |
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Term
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Definition
Civilian and contractor labor
rental charges
food
clothing
fuel
maintenance
repair and overhaul of equipment (except when funded by investment)
assemblies
spares
reepair parts
other items of equipment that are not centrally controlled and have a system unit cost of less than $100K
real property maintenance |
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Term
Civilian and contractor labor
rental charges
food
clothing
fuel
maintenance
repair and overhaul of equipment (except when funded by investment)
assemblies
spares
reepair parts
other items of equipment that are not centrally controlled and have a system unit cost of less than $100K
real property maintenance |
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Definition
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Term
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Definition
| not centrally controlled and have system unit cost less of than $100K |
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Term
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Definition
Pay
Allowances
special pays
PCS
retirement accural |
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Term
| Annual Funding Policy (Service Contract Exception) |
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Definition
| Suppose you get on contract with a service provider in May of a fiscal year and fund the contract using O&M appropriated money. Assuming the contract has a period of performance of 12 months, this means that without the exception, the contract would be unfunded starting in October |
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Term
| Annual Funding Policy Service Contract Exception |
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Definition
| Funds made available for a given fiscal year may be obligated for the total amount of that contract |
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Term
| Severable Service Contracts |
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Definition
| US Code Title 10, Section 2410a provides DOD authority to budget for and obligate funds what kind of contracts for periods that cross fiscal years provided the contract period does not exceed 12 months |
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Term
| Annual Funding Policy (Service Contract Exception) |
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Definition
| Funds made available for a given fiscal year may be obligated for the total amount of that contract. |
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Term
| Annual Funding Polciy (Service Contract Exception) |
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Definition
| Allows putting a full year's money on the contract and preventing a break in service. |
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Term
| Incremental Funding Policy (RDT&E) |
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Definition
| Annual budget to cover only those costs expected to be incurred duirn ga given fiscal year. |
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Term
| Rationaal for budgeting on incremental funding |
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Definition
-Government will obligate funding only for work being performed duirng a given FY
-Contractor will perform work required by contract
-Contractor will incur costs to perform that work
-Contractor will submit invoice to recieve payment for that work
-Government will pay fo rwork perfomred that FY with that year's appropriated funds |
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Term
| Incremental Funding Policy - Intent of Policy |
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Definition
| To achieve effective rationing of scarce funds amonth research programs |
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Term
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Definition
| prepared on the basis of costs expected to be incurred during the FY for which you are preparing the budget |
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Term
| Preparing a RDT&E funded contract |
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Definition
| You estimate the contractor will incur $30M of costs for a particular year. The contractor will eventually submit a voucher for the costs and it will be paid out of the money approrpiated for that year, but that doesn't mean the voucher will be paid that year. |
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Term
| Incremental Funding Policy (RDT&E) |
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Definition
| Annual budget to cover only those costs expected to be incurred during a given fiscal year. |
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Term
| Incremental Funding Policy |
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Definition
| Annual budget required to cover only those costs expected to be incurred for the work done during a FY |
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Term
| Rationale for budgeting on incremental funding |
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Definition
-Govt will obligate funding only for work to be performed during a given FY
-Contractor will perform work required by contract
-Contractor will incur costs to perform that work
-COntractor will submit invoice to receive payments for that work
-Govt will pay for work performed that FY with that year's appropriated funds |
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Term
| Incremental Funding Policy (Intent of Policy) |
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Definition
| To achieve effective rationing of scarce funds among research programs |
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Term
| Incremental Funding Policy |
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Definition
| Incuring a cost means taking an action that results in a future payment by the USG. |
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Term
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Definition
| Incremental funding applies to what type of work? |
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Term
| Incremental Funding Policy - 9 month exception |
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Definition
| The program office should budget only for a 9month or lesser period in the first year of a New Start Proram; thereafter, 12 months until last year of that effort. |
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Term
| Incremental Funding Policy - 15 month exception |
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Definition
| Service or Defense Agency Comptroller must approve extension of up to 3 months beyond end of the FY for which funds are requested. |
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Term
| Incremental Funding Policy - 18 month exception |
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Definition
| There are circumstances where R&D requirements can not logically be divided; where it is unfeasible to limit the contract to a short period of in the second year; or where the planned technical effort is such that no responsible contractor would accept a contract for less than completion increment. |
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Term
| Service or Defense Agency Comptroller |
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Definition
| Who approves Incremental Funding Policy that takes longer than 12 months but less than 18 months |
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Term
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Definition
| Applies to the two appropriations considered to fund investments - procurement and MILCON |
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Term
| Usable End Items - Full Funding |
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Definition
| can't buy turrets one year, treads the next year, then tank bodies |
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Term
| Funded Delivery Period - Full Funding |
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Definition
| can't fund a production lot consistin gof more items than contractor can deliver in 12 month period following first item delivery |
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Term
| Reduce the number of items in lot so it fits in FDP or delay first delivery so that last item delivery occurs within 12 months of first |
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Definition
| What do you do if you discover that lot delivery streteches beyond the 12 month FYP? |
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Term
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Definition
| These are considered investments |
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Term
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Definition
| Annual budget to cover total estimated cost for a specific quanity of military usable end items deliverable in a 12 month funded delivery period |
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Term
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Definition
| To infor OSD, Congress and the Public |
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Term
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Definition
| No piecemeal procurement of systems allowed |
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Term
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Definition
| TIme period (12 month maximum) during which contracted items are planned to be delivered, starting with planned delivery of the first item. |
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Term
| Full Funding Policy - intent of Policy |
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Definition
| To provide total funding for investment items to satisfy an approved 12 month requirement. |
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Term
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Definition
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Term
| DOD Financial Management Regulation Requirement |
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Definition
| Each production contract action has proper amount in the budget |
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Term
| DOD Financial Management Regulation Requirement - Full Funding Policy |
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Definition
| From the outset of a procurment program, identification of total estimated cost of that program is required so "Congress and the Public can be fully aware of the dimensions and cost when the program is first presented in the budget. |
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Term
| DOD Financial Management Regulation Requirement - Full Funding Policy |
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Definition
| For budgeting purposes, funding for each FY shall be sufficient to procure complete, usable end items (i.e. the item can not depend on funding in the future year to make it usable for its intended purpose. |
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Term
| DODI 5000.02 Requirement - Full Funding Policy |
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Definition
| Full funding (i.e. the inclusion of the dollars and manpower needed for all current and future year efforts to carry out the acq. strategy in the budget and out year progra, which shall be programmed in anticipation of each Milestone (A, B, C, FRPDR decisions) |
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Term
| DODI 5000.02 Requirement - Full Funding Policy |
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Definition
| Required signed and documented component level cost position for milestone reviews |
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Term
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Definition
This policy applies to:
-programming and budgeting actions
-required quantities on a year to year basis
-quantities that can be delivered during a future 12 month period (as a maximum period)
-each separate FY as an indpendent action |
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Term
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Definition
| This policy does not require the total procurement qty desired for the entire life cycle of the program to be budgeted in any one single FY |
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Term
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Definition
This policy applies to:
-programming and budgeting actions |
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Term
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Definition
This policy applies to:
-required quantities on a year to year basis |
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Term
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Definition
This policy applies to:
-quantities that can be delivered during a future 12 month period (as a maximum period) |
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Term
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Definition
This policy applies to:
-each separate FY as an indpendent action |
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Term
| Advance Procurement Exception (Full Funding policy exception) |
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Definition
Related to long lead items where:
-Lead time of the item is greater than the life of the appropriation or
-Lead time of the item is greater than other components, parts and material of the same end item; or
-Efforts must be funded in an advance procurement timeframe to maintain a planned production schedule |
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Term
| Procurement Exception for full funding policy |
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Definition
| Procurement action is not for a usable end item |
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Term
| Multiyear Procurement MYP Exception (Full Funding policy exception) |
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Definition
| Associated with Economic Order Qty (EOQ) of components, parts or materials of end item |
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Term
| Multiyear Procurement MYP Exception (Full Funding policy exception) |
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Definition
| Contract deliveries will exceed the 12 month funded delivery period. |
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Term
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Definition
| Who normally appropriates on a year to year basis without committing to a program acq qty |
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Term
| Advance Procurement - Full Funding Policy - Exception |
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Definition
| Is allowed for the situation where some components of an end item have significantly greater lead times than other components so these components have to be procured in advance of the rest of the items so as not to disrupt the flow of the production line. |
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Term
| Multiyear Procurement (MYP) (Full Funding policy exception) |
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Definition
| Is allowed for the situation where Economic Order Quanity (EOQ)theory supports commitment to buying over a period of time longer than one year. THis is an exception to the funded delivery period since the contract will specifiy delivery of a number of a items over a period from 1-5 years. Also Congress normally does not commit appropriating money for longer than a year, nor commit up front to appropriating money for a program's full procurement qty. |
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Term
| Exception for Full Funding Policy |
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Definition
Shown in ACQ Strategy
Approved at MS Decision |
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Term
| Long Lead Item (LLI)/Long Lead Time (LLT) Materials |
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Definition
| THose components of a system or piece of equipment for which the times to design and fabricate are the longest, and therefore, to which an early committment of funds may be desirable in order to meet the earliest possible date of system completion |
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Term
| Advance Procurement Long Lead Items (Full Funding) |
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Definition
Circumstances that justify:
-When necessary to maintain (protect) planned production schedule
-Lead-time of component greater than life of the appropriation
-Lead time of component significantly longer than remainder of end item |
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Term
| Advance Procurement Long Lead Items (Full Funding) |
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Definition
Budgetary Implications:
-Minimum amount budgeted = termination liability of total cost of long lead time items being procured
-Budgeted amount generally required one fy year in advance of related end item
-Budget amount is shown as a separate line entry on various budget exhibits |
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Term
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Definition
| Congress appropriates moeny to obligate on the oontract on a year to year basis. Of course, Congress or DOD can break this bu thte financial penalities are usually so onerous, that one signed this will be funded. |
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Term
| Multiyear Procurement (Full funding excpetion) |
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Definition
| A single contract for a specific qty of usuable end items to be delivered over a period of time greater than one year but not more than five. |
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Term
| Multiyear Procurement (Full funding excpetion) |
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Definition
| After initial approval, Congress, the Service requests - and Congress appropriates - required budget on a year to year basis to obligate against the contract. |
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Term
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Definition
| What is a multiyear procurement benefit? |
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Term
| Provides assurance to the contractor of future years business, encourages contractor investment in manufacturing process, and increases contractor productivity = lower cost to the government. |
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Definition
| What is a multiyear procurement benefit? |
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Term
| Multiyear Procurement (Full Funding Policy) |
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Definition
Potential Problems:
-Govt. liable for a penalty (in a decreasing amount) for early cancellation of contract |
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Term
| Multiyear Procurement (Full Funding Policy) |
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Definition
| Can not budget for cancellation / termination liablity |
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Term
| Multiyear Procurement (Full Funding Policy) |
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Definition
| Controversial concept (both Congress & OSD) |
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Term
| Multiyear Procurement (Full Funding Policy) |
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Definition
| Biggest benefit is stabilty over time. Contractor can place orders well in advance knowing that a certain number of end items will almost surely be bought -- achieves economy of scale. |
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Term
| Multiyear Procurement (Full Funding Policy) |
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Definition
| Should satify significant savings compared to annual contract buys |
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Term
| Multiyear Procurement (Full Funding Policy) |
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Definition
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Term
| Multiyear Procurement (Full Funding Policy) |
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Definition
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Term
| Multiyear Procurement (Full Funding Policy) |
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Definition
| Condifidence in cost estimates |
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Term
| Multiyear Procurement (Full Funding Policy) |
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Definition
| Confidence in the contractor's ability to procure |
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Term
| Multiyear Procurement (Full Funding Policy) |
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Definition
| Committment by the Service, OSD, Congress to provide the approrpiate level of funding for current and out years |
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Term
| Multiyear Procurement (Full Funding Policy) - Cancellation Costs |
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Definition
These may cover
-non-recurring costs
-recurring costs (with approval of Agency Head and USD) |
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Term
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Definition
| Negotiated along with other provisions of the contract |
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Term
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Definition
| A decreasing amount each year |
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Term
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Definition
| Not an additonal amount to be budgeted |
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Term
| MYP Contracts with Cancellation Ceiling > $100M |
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Definition
| Required a 30 day written notice to Congressional Defense Committee prior to award |
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Term
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Definition
| This is negotiated with the contractor but is not budgeted |
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Term
| Fixed Price Production Contracts |
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Definition
| These often in include a Limitation to Government Obligations (LOGO) clause that requires the Contractor to notify the government 90 days prior to incurring costs equal to 85% of obligated amount |
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Term
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Definition
| Fund LRIP items intended for Initial Operational Test and Evaluation (IOT&E) using RDT&E funds but you can also use procurement funds if the IOT&E items will not be destroyed in testing and are intendend for the operational inventory. |
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Term
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Definition
| Permit an orderly increase in production ramp up |
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Term
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Definition
| Establish an initial production base |
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Term
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Definition
| Provide production configured or representative articles for oeprational test |
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Term
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Definition
| Articles destroyed or not going into operational inventory |
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Term
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Definition
| Articles scheduled to go into operational inventory |
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Term
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Definition
One that increases performance (i.e. enhances the performance envelope)
One that does not increase performance |
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Term
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Definition
Three types of activities to be funded:
-Determine how to do the modification (research and test possible alternatives)
-Purchase the "modification kit" to improve the product
-Install the "modification kit" on the fielded system |
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Term
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Definition
| What type f funding: Mod increases performances and Independent DT or IOT&E required |
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Term
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Definition
| What type of funding: System in production? |
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Term
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Definition
| What type of funding: System is not in production |
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Term
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Definition
| The realignment of budget authority from a purpose for which appropriated to finance another (usually emergent) requirement |
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Term
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Definition
| Only funds "currently available" for obligation |
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Term
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Definition
| Funds identified in the FYDP can be "shifted" or "moved" |
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Term
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Definition
| Occurs when reprogramming action results in a movement of budget authority from one appropriation to another (i.e. O&M Army to O&M Navy, A/C procurement USAF to RDT&E USAF) |
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Term
| Congress Approval -Reprogramming |
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Definition
Reprogramming actions
-procurement qty increase
-affects items of special congressional interest
-exceeds specific $$ thresholds
-establishes a new program
-involves the termination of an approved program
-usually done by services as part of the annual ominbus reprogramming submission |
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Term
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Definition
Requires approval from USD
No change in purpose
Documents realingment of funds to a different line item
May be used to correct mistakes in appropriations
"Does not mean Internal to a program" |
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Term
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Definition
Congressional Notification
-Requires a 30 day notification to Defense Committee
-No action until 30 days after such notification
-Establishes a new program
-EST new procurement program including mods costs <$20M for the entire effort
-EST new development effort costing <$10M for the entire effort
-Intiation of safety modifications of <$20M
-Termination of programs falling below BTR amounts |
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Term
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Definition
| Obligation Avail: 2 years |
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Term
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Definition
| Obligation Avail: 3 years |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| Obligation Avail: 5 years |
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Term
| Below Threhold Reprogramming (BTR) |
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Definition
| Different appropriations have different time periods during which they are available for obligation |
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Term
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Definition
| 1-5 years (What type of account) |
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Term
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Definition
| 5 years (What type of account) |
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Term
| Closed / Cancelled Accounts |
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Definition
| > 10 years (What type of account) |
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Term
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Definition
| Available for new obligations, increased in scope on existing obligations, payments and adjustments |
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Term
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Definition
| Available for payments and adjustments (up or down) to existing obligations |
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Term
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Definition
| Not available for new obligations or increased in scope on exisitng obligations |
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Term
| Closed / Cancelled Account |
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Definition
| No longer available for payments or obligation adjustments |
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Term
| Closed / Cancelled Account |
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Definition
| Adjustments and payments are charges to currently available appropriations of same type up to lesser of 1% of currently available approrpriaton of closed appropriation |
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Term
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Definition
| FY, appropriation, and line item idenity remain to enable "charging" original obligation fund cite |
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Term
| Closed / Cancelled Account |
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Definition
| FY, appropriation, and line item identity remains only for accounting tracking purposes |
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