What are the three main types of appropriation and their availability for obligation? - ANSWER 3400 - O&M (1-year appropriation)
3600 - RDT&E (2-year appropriation)
3080 - Procurement (3-year appropriation)
Within procurement there are different types of appropriation for aircraft, naval ...
What are the three main types of appropriation and their availability for obligation? - ANSWER 3400
- O&M (1-year appropriation)
3600 - RDT&E (2-year appropriation)
3080 - Procurement (3-year appropriation)
Within procurement there are different types of appropriation for aircraft, naval ships, etc.
What is 3400 money used for? - ANSWER Operations and Maintenance including Day to Day
expenses such as training, exercises, deployments, civilian salaries, and operating and maintaining
installations, Minor construction <$750K.
What is 3600 money used for? - ANSWER RDT&E including scientific research, development, test and
evaluation- can incrementally fund.
What is 3080 money used for? - ANSWER Procurement including production and modification of
aircraft, missiles, weapons, vehicles, ammunition, and IT.
Other procurement is a catch all appropriation for investment items that are not purchases with the
more specific procurement appropriations (.i.e communications, spares, support equipment)
What are the other types of appropriations and their respective timelines for obligation? - ANSWER
3300 - MILCON (5-year appropriation) - construction > $750K
3500 - Civilian payroll (1-year appropriation)
(3-year appropriations):
3010 - Aircraft
3011 - Ammo
, 3020 - Missiles
3021 - Space
What is the Bona Fide Need Rule? - ANSWER A fiscal year appropriation may be obligated only to
meet a legitimate, or bona fide, need arising in, or in some cases arising prior to but continuing to
exist in, the fiscal year for which the appropriation was made.
• Current year money for current year needs.
• Requires both the timing of the obligation and the bona fide need to be within the fund's period of
availability.
What are the exceptions to the Bona Fide Need Rule? - ANSWER 1. Lead-time (considering normal
production time)
2. Maintaining a "stock level"- OK to replenish stock used in the current FY even though the stock will
not be used until following FY
2.a. An order or contract for the replacement of stock is viewed as meeting a bona fide need of the
year in which the contract is made as long as it is intended to replace stock used in that year, even
though the replacement items will not be used until the following year
What is the Misappropriation Act/Purpose Statute? - ANSWER 31 USC, Section 1301
Appropriations by Congress shall be applied only to the objects for which the appropriations were
made except as otherwise provided by law
What is Full Funding? - ANSWER 1. Funds are obligated to cover entire price.
2. Applies to procurement funds (3080/3010/3011/3020/3021); O&M non severable (3400).
3. Need to purchase a useable end item.
4. Limitation of Cost Clause.
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