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1 1 (January 5, 2023)

handle is hein.crs/govekbx0001 and id is 1 raw text is: Congressional Research Service Informing the IegislThve debate s:nw 1914 Updated January 5, 2023 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 Department of Defense Appropriations Act. 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, 2023 (Division C of P.L. 117-328) provided $162.2 billion for procurement accounts (see Table 1). Defense Authorization and Appropriations Resources CRS In Focus IF 10516, Defense Primer: Navigating the NDAA CRS In Focus IF10515, Defense Primer: The NDAA Process CRS In Focus IF 10514, Defense Primer: Defense Appropriations Process How is DOD Procurement Funded? In general, Congress appropriates money for defense procurement under a policy of full funding, which requires funding the entire procurement cost of end-items (e.g., 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 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. Funding for DOD Procurement Accounts in the Department of Defense Appropriations Act, 2023 Account (Acronym) (billions) Aircraft Procurement, Army (APA) $3.8 Missile Procurement, Army (MIPA) $3.8 Procurement of Weapons and Tracked Combat $4.5 Vehicles, Army (WTCV) Procurement of Ammunition, Army (PAA) $2.8 Other Procurement, Army (OPA) $8.7 Aircraft Procurement, Navy (APN) $19.0 Weapons Procurement, Navy (WPN) $4.8 Procurement of Ammunition, Navy and Marine $0.9 Corps (PANMC) Shipbuilding and Conversion, Navy (SCN) $32.0 Other Procurement, Navy (OPN) $12.1 Procurement, Marine Corps (PMC) $3.7 Aircraft Procurement, Air Force (APAF) $22.2 Missile Procurement, Air Force (MPAF) $3.0 Procurement of Ammunition, Air Force (PAAF) $0.9 Other Procurement, Air Force (OPAF) $28.0 Procurement, Space Force (PSF) $4.5 Procurement, Defense-Wide (PDW) $6.1 Defense Production Act Purchases $0.4 National Guard and Reserve Equipment $1.0 TOTAL $162.2 Source: CRS analysis of Department of Defense Appropriations Act, 2023 (Division C of P.L. 117-328) and accompanying explanatory statement. Note: Totals do not include emergency funding provided in the Additional Ukraine Supplemental Appropriations Act, 2023 or the Disaster Relief Supplemental Appropriations Act, 2023 (Division M and Division N, respectively, of P.L. 117-328).

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