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handle is hein.crs/govepue0001 and id is 1 raw text is: Congressional Research Service
informing the legislative debate since 1914

Updated May 7, 2024

Defense Primer: Procurement
Overview
While procurement implies a process of obtaining goods or
services, the word also refers to a specific title and to
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 nonconstruction-
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, 2024 (P.L.
118-47) provided $168.7 billion for procurement accounts
(see Table 1).
NDAA and Defense Appropriations
CRS In Focus IF10516, Defense Primer Navigating the NDAA
CRS In Focus IF10515, Defense Primer The NDAA Process
CRS In Focus IF10514, Defense Primer Defense Appropriations
Process
How is DOD Procurement Funded?
In general, Congress appropriates money for defense
procurement under a policy offullfunding, 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.
Table I. Funding for DOD Procurement Accounts in
the Department of Defense Appropriations Act, 2024
(Division A of P.L. 1 18-47)
Account (Acronym)                $ (billions)
Aircraft Procurement, Army (APA)                  $3.3
Missile Procurement, Army (MIPA)                  $4.6
Procurement of Weapons and Tracked                $4.2
Combat Vehicles, Army (WTCV)
Procurement of Ammunition, Army (PAA)             $2.9
Other Procurement, Army (OPA)                     $8.6
Aircraft Procurement, Navy (APN)                 $19.8
Weapons Procurement, Navy (WPN)                   $5.9
Procurement of Ammunition, Navy and Marine        $1.2
Corps (PANMC)
Shipbuilding and Conversion, Navy (SCN)          $33.7
Other Procurement, Navy (OPN)                    $14.4
Procurement, Marine Corps (PMC)                   $3.9
Aircraft Procurement, Air Force (APAF)           $20.8
Missile Procurement, Air Force (MPAF)             $4.7
Procurement of Ammunition, Air Force              $0.6
(PAAF)
Other Procurement, Air Force (OPAF)              $31.3
Procurement, Space Force (PSF)                    $4.1
Procurement, Defense-Wide (PDW)                   $6.4
Defense Production Act Purchases                  $0.6
National Guard and Reserve Equipment              $1.0
TOTAL                                           $168.7
Source: CRS analysis of Department of Defense Appropriations Act,
2024 (Division A of P.L. 118-47) and accompanying explanatory
statement.

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