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1 1 (January 7, 2021)

handle is hein.crs/goveauf0001 and id is 1 raw text is: C o n gr r e s io a e s a c S e v k Updated January 7, 2021 Defense Primer: Procurement Background While the common use of the word procurement implies a process of obtaining goods or services, national security practitioners generally use the word to refer to a specific title within the annual National Defense Authorization Act (NDAA) and defense appropriations legislation. Appropriations for Procurement 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, including: * new military hardware (e.g., aircraft, ships, armored vehicles, radios, and satellites); * upgrades to existing equipment, including service life extension or remanufacturing programs; * weapons and ammunition (e.g., air-to-air missiles and rifle rounds); and * spares and repair parts. Procurement funding provided to the department 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, 2021 (Division C of P.L. 116-260) provided $136.5 billion in procurement funding for DOD in the regular, or base, budget (see Table 1), in addition to $6.4 billion in procurement funding designated for Overseas Contingency Operations (OCO). NDAA and Defense Appropriations CRS In Focus IF 10515, Defense Primer The NDAA Process, by Valerie Heitshusen and Brendan W. McGarry, and CRS In Focus IF10514, Defense Primer Defense Appropriations Process, by James V. Saturno and Brendan W. McGarry. How is DOD Procurerment Funded? 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 incremental funding. 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, FY202 I Procurement Subtitle (Acronym) (billions) Aircraft Procurement, Army (APA) $3.5 Missile Procurement, Army (MIPA) $3.2 Procurement of Weapons and Tracked Combat $3.6 Vehicles, Army (WTCV) Procurement of Ammunition, Army (PAA) $2.8 Other Procurement, Army (OPA) $8.6 Aircraft Procurement, Navy (APN) $19.5 Weapons Procurement, Navy (WPN) $4.5 Procurement of Ammunition, Navy and Marine $0.8 Corps (PANMC) Shipbuilding and Conversion, Navy (SCN) $23.3 Other Procurement, Navy (OPN) $10.5 Procurement, Marine Corps (PMC) $2.6 Aircraft Procurement, Air Force (APAF) $19.2 Missile Procurement, Air Force (MPAF) $2.1 Procurement of Ammunition, Air Force (PAAF) $0.6 Other Procurement, Air Force (OPAF) $23.4 Procurement, Space Force (PSF) $2.3 Procurement, Defense-Wide (PDW) $5.8 Defense Production Act Purchases $0.2 TOTAL $136.5 Source: CRS analysis of the joint explanatory statement to accompany the Department of Defense Appropriations Act, 2021 (Division C of P.L. 116-260). Note: Amounts exclude OCO funding. ittps://crsreports.congress.gt

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