Overseas Contingency Operations Funds Impact on Defense Commercial Industrial Base
Abstract
Overseas Contingency Operations (OCO) funds are often referred to as a slush fund (McGarry and Epstein, 2019, p. 9) to subsidize base defense funding and the Budget Control Act. OCO funds finance unforeseen requirements to support combat operations in specific theaters. One of the 2018 National Defense Strategy objectives is summarized as harness and protect the National Security Innovation Base (Carter J. , 2018, para. 20). The defense commercial industrial base is a critical component of the National Security Innovation Base. OCO funds are provided to the defense commercial industrial base for research and development, procurement, sustainment, and / or support services. An objective within the 2018 National Defense Strategy states, Establish an unmatched twenty-first century National Security Innovation Base that effectively supports Department operations and sustains security and solvency (Department of Defense, 2018, p.4). Are OCO funds enabling the commercial industry base, as a component of the National Security Innovation Base, to support the objective? Research indicates OCO funds are indeed negatively impacting industrys ability to forecast, plan, and invest in capability, often times resulting in an increased cost to the Government. To mitigate the effects of OCO funds on the industrial base to provide the Warfighter the greatest capability at the lowest cost, recommendations are provided. Eliminate Budget Control Act limits or increase limits of the Budget Control Act, enabling OCO funds to be utilized for only OCO purpose criteria. OCO funds should be used for requirements that are funded based on the OCO funds criteria, not anything else. Enable Department of Defense and services to plan and program OCO funds similar to base across the future years defense program and the extended planning period. The Department of Defense provide a budget to the White House that fully funds the National Security Strategy and National Defense Strategy.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 25, 2020
- Accession Number
- AD1106553
Entities
People
- Misty N Glover
Organizations
- Defense Acquisition University