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1 1 (December 9, 2021)

handle is hein.crs/govegtk0001 and id is 1 raw text is: Defense Primer: Procurement Background While procurement implies a process of obtaining goods or services, the word also refers to a specific title and associated accounts 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 FY2022 President's budget request included $132.5 billion in procurement funding for DOD (see Table 1). The budget submission discontinued requests for Overseas Contingency Operations (OCO) as a separate funding category for various appropriations accounts, including procurement-related accounts. As of the date of publication, Congress has not passed an FY2022 defense appropriations act. NDAA and Defense Appropriations CRS In Focus IF10515, Defense Primer: The NDAA Process, by Valerie Heitshusen and Brendan W. McGarry, and CRS In Focus IF 10514, Defense Primer: Defense Appropriations Process, by James V. Saturno and Brendan W. McGarry. How is DOD Procurement Funded? In general, Congress appropriates money for defense procurement under a policy of fullfunding, which requires funding 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 Updated December 9, 2021 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 some cases, programs have been procured using incremental funding, a funding policy typically associated with research and development activities. 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. FY2022 President's Budget Request for DOD Procurement Appropriations Accounts Account (Acronym) (billions) Aircraft Procurement, Army (APA) $2.8 Missile Procurement, Army (MIPA) $3.6 Procurement of Weapons and Tracked Combat $3.9 Vehicles, Army (WTCV) Procurement of Ammunition, Army (PAA) $2.2 Other Procurement, Army (OPA) $8.9 Aircraft Procurement, Navy (APN) $16.5 Weapons Procurement, Navy (WPN) $4.2 Procurement of Ammunition, Navy and Marine $1.0 Corps (PANMC) Shipbuilding and Conversion, Navy (SCN) $22.6 Other Procurement, Navy (OPN) $10.9 Procurement, Marine Corps (PMC) $3.0 Aircraft Procurement, Air Force (APAF) $15.7 Missile Procurement, Air Force (MPAF) $2.7 Procurement of Ammunition, Air Force (PAAF) $0.8 Other Procurement, Air Force (OPAF) $25.3 Procurement, Space Force (PSF) $2.8 Procurement, Defense-Wide (PDW) $5.5 Defense Production Act Purchases $0.3 TOTAL $132.5 Source: CRS analysis of FY2022 Department of Defense budget justification documentation; H.Rept. 117-88; and explanatory statement accompanying Senate Appropriations Committee-released Department of Defense Appropriations Bill, 2022. Note: Total may not sum due to rounding.

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