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1 1 (December 20, 2018)

handle is hein.crs/govywb0001 and id is 1 raw text is: Defense Primer: Procurement Background 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. Appropriations for Procurement The Department of Defense (DOD) procurement appropriations title provides funds for non-construction- related investment costs, or the costs to acquire capital assets, such as an F-35 Joint Strike Fighter or a Virginia- class submarine. Investment costs are distinguished from expenses, which are consumed in the operation of the DOD. 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 rounds for individual rifles; 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 U.S. Navy Shipbuilding and Conversion funding, which is available for five years. In FY2019, DOD received $135.4 billion in base budget procurement funding (see Table 1), as well as $12.6 billion in procurement funding designated for DOD overseas contingency operations (OCO). NDAA and Defense Appropriations For more information, see CRS In Focus IF105 15, Defense Primer The NDAA Process, by Valerie Heitshusen and Brendan W. McGarry and CRS In Focus IF105 14, 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 Congress to fund the entire procurement cost of end items (such as Sidewinder missiles or KC-46A tankers) in one fiscal year. In other words, the total funding necessary to acquire a useable end item is approved by Congress in a Updated December 20, 2018 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. It has principally been used to procure certain ships and submarines. Table I. DOD Procurement Base Appropriation Subtitles, by Enacted Amounts, FY2019 U.S. $ Procurement Subtitle (billions) Dept. of the Navy - Shipbuilding and $24.1 Conversion Dept. of the Air Force - Other $21.0 Dept. of the Navy - Aircraft $20.1 Dept. of the Air Force - Aircraft $17.1 Dept. of the Navy - Other $9.1 Dept. of the Army - Other $7.8 Defense-wide - Procurement $6.8 Dept. of the Army - Weapons and Tracked $4.5 Combat Vehicles Dept. of the Army - Aircraft $4.3 Dept. of the Navy - Weapons $3.7 Dept. of the Army - Missiles $3.1 Dept. of the Navy - Marine Corps Procurement $2.7 Dept. of the Air Force - Missiles $2.6 Dept. of the Army - Ammunition $2.3 Dept. of the Air Force - Space $2.3 Dept. of the Air Force - Ammunition $1.5 National Guard and Reserve Equipment $1.3 Dept. of the Navy - Navy and Marine Corps $1.0 Ammunition Defense Production Act Purchases $0.05 joint Urgent Operational Needs Fund $0.0 TOTAL $135.4 Source: CRS analysis of H.Rept. 115-952, conference report to accompany H.R. 6157, 1 15th Cong., 2nd sess., September 13, 2018. Note: Numbers may not add due to rounding https:/crsreports.con, -- -q

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