Funding Policy Study Guide: Ref Exam 4
Study guide for exam 4 Funding Policies
1. What are the three funding policies?
Annual (severable service contracts)– O&M & MILPER, 12 months, expenses, total amount
Incremental – RDT&E (only in fiscal year) rationing
Full Funding – Procurement and MILCON (12 month funded delivery period), MS B, comptrollers fund PROC programs (“investments”)
2. What is a Full Funding Policy?
Year to Year
Maximum
Separate
Independent
3. Does the full funding policy require total procurement quantities for the life of the program?
No (it is not for a usable end item)
4. What are the exceptions to the full funding policy? (FRPDR MS ABC AcStrat)
Advance Procurement Exception - LLI
Multi Year Procurement (MTY ex) – single contract for specific quantity end item delivered greater than one year, not more than 5 (congressional approval)
5. What are the types of material release?
Full Release
Limited/Conditional
Interim/Training
Incremental
6. Full funding policy exception policy needed when contract delivery exceeds 12 month period?
Multiyear Procurement – SECDEF involvement
Significant savings
Stable reqs
Stable design
Confidence in cost
Commitment by service
Confidince in contractor
Promote national security
7. MYP Cancellation cost – not budgeted (>100m req 30 day written notice)
8. Go into operational inventory Product improvements – procurement
Funds in the FYDP – can be moved
Destroyed - RDT&E
Product improvements - DIP (determine mod, install mod, and purchase mod)
9. What are the benefits of multi-year procurements?
Brings stability to the acquisition and budgeting process for the bot the Ktr and GOV
10. Only funds ____________ can be reprogrammed?
“Currently Available”
11. What are the four types of reprogramming?
Congressional Prior Approval
Below threshold reprogramming – same req no change in purpose (same appropriation)
Congressional Notification
Internal Reprogramming -3 –
1. What are the three funding policies?
Annual (severable service contracts)– O&M & MILPER, 12 months, expenses, total amount
Incremental – RDT&E (only in fiscal year) rationing
Full Funding – Procurement and MILCON (12 month funded delivery period), MS B, comptrollers fund PROC programs (“investments”)
2. What is a Full Funding Policy?
Year to Year
Maximum
Separate
Independent
3. Does the full funding policy require total procurement quantities for the life of the program?
No (it is not for a usable end item)
4. What are the exceptions to the full funding policy? (FRPDR MS ABC AcStrat)
Advance Procurement Exception - LLI
Multi Year Procurement (MTY ex) – single contract for specific quantity end item delivered greater than one year, not more than 5 (congressional approval)
5. What are the types of material release?
Full Release
Limited/Conditional
Interim/Training
Incremental
6. Full funding policy exception policy needed when contract delivery exceeds 12 month period?
Multiyear Procurement – SECDEF involvement
Significant savings
Stable reqs
Stable design
Confidence in cost
Commitment by service
Confidince in contractor
Promote national security
7. MYP Cancellation cost – not budgeted (>100m req 30 day written notice)
8. Go into operational inventory Product improvements – procurement
Funds in the FYDP – can be moved
Destroyed - RDT&E
Product improvements - DIP (determine mod, install mod, and purchase mod)
9. What are the benefits of multi-year procurements?
Brings stability to the acquisition and budgeting process for the bot the Ktr and GOV
10. Only funds ____________ can be reprogrammed?
“Currently Available”
11. What are the four types of reprogramming?
Congressional Prior Approval
Below threshold reprogramming – same req no change in purpose (same appropriation)
Congressional Notification
Internal Reprogramming -3 –