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1 1 (February 7, 2020)

handle is hein.crs/govcabr0001 and id is 1 raw text is: Defense Primer: Procurement - mmm, go mppm qq\ , q I aS 11LIANJILiN, Updated February 7, 2020 While the common use of the word procurement implies the process of obtaining goods or services, uses of the word procurement by national security experts and practitioners generally refers to a specific title within the annual National Defense Authorization Act (NDAA) and defense appropriations legislation. The Department of Defense (DOD) procurement appropriations title provides funds for non-construction- related investment costs the costs to acquire capital assets, such as an F-35 Joint Strike Fighter aircraft or a Virginia- class submarine. Investment costs are distinguished from expenses the costs of resources consumed in operating the Department, such as food and fuel. DOD uses procurement appropriations to obtain various categories of materiel, such as: * new military hardware, such as aircraft, ships, armored vehicles, and other major equipment (e.g., radios and satellites); * upgrades to existing equipment, including extending service life or remanufacturing existing systems; * weapons and ammunition, ranging from air-to-air missiles to rifle rounds; and * spare parts, particularly those that are centrally managed. Procurement funding authorized in a given fiscal year can usually be obligated over a period of three years. The most prominent exception is Navy Shipbuilding and Conversion funding, which is available for five years. The Department of Defense Appropriations Act, 2020 (Division A of P.L. 116-93) provided $133.9 billion in procurement funding for DOD in the regular, or base, budget (see Table 1), in addition to $11.8 billion in procurement funding designated for Overseas Contingency Operations (OCO). NDAA and Defense Appropriations CRS In Focus IFIO515, Defense Primer: The NDAA Process, by Valerie Heitshusen and Brendan W. McGarry, and CRS In Focus lF10514, Defense Primer Defense Appropriations Process, by James V. Saturno and Brendan W. McGarry. In general, Congress appropriates money for defense procurement under a policy of fullfunding, which requires Congress to fund the entire procurement cost of end items (such as AIM-9 Sidewinder missiles or KC-46A refueling tankers) in one fiscal year. In other words, the total funding necessary to acquire a useable end item is approved by Congress in a single fiscal year, even though related work may span many years. In a handful of cases, programs are procured using incrementalfunding. Under incremental funding, a system's cost is divided into two or more annual portions, or increments, that can reflect the need to make annual progress payments to the contractor as the system is built. Incremental funding has principally been used to procure certain ships and submarines. Table I. DOD Procurement Appropriation Subtitles, by Enacted Base Budget Amounts, FY2020 U.S. $ Procurement Subtitle (Acronym) (billions) Shipbuilding and Conversion, Navy (SCN) $24.0 Other Procurement, Air Force (OPAF) $21.4 Aircraft Procurement, Navy (APN) $19.6 Aircraft Procurement, Air Force (APAF) $17.5 Other Procurement, Navy (OPN) $10.1 Other Procurement, Army (OPA) $7.6 Procurement, Defense-Wide (PDW) $5.3 Procurement of Weapons and Tracked Combat $4.7 Vehicles, Army (WTCV) Weapons Procurement, Navy (WPN) $4.0 Aircraft Procurement, Army (APA) $3.8 Missile Procurement, Army (MIPA) $3.0 Procurement, Marine Corps (PMC) $2.9 Procurement of Ammunition, Army (PAA) $2.6 Missile Procurement, Air Force (MPAF) $2.6 Space Procurement, Air Force (SPAF) $2.4 Procurement of Ammunition, Air Force (PAAF) $1.6 Procurement of Ammunition, Navy and Marine $0.8 Corps (PANMC) Defense Production Act Purchases $0.1 TOTAL $133.9 Source: CRS analysis of the FY2020 Department of Defense Appropriations Act (Division A of P.L. I 16-93) and accompanying Joint Explanatory Statement. Note: Numbers may not sum due to rounding and exclude Overseas Contingency Operations (OCO) funding for procurement programs.

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