Budgeting for Secondary Supply Items by the Military Departments
Abstract
Funding for secondary supply items is a complex process involving the stock funds of the Military Departments and the Defense Logistics Agency (DLA) as well as the procurement and operations and maintenance appropriations of the Military Departments. Secondary supply items represent "readiness" resources and include consumables, such as nuts and bolts, and reparables, such as transmissions and engines, used to maintain and support major end items of equipment. There are over 4 million secondary supply line items in the DOD wholesale supply system. The budgeting process for secondary supply items begins at each of the respective Inventory Control points (ICP's) of the Military Departments. The initial budget step requires the calculation of line item deficits (insufficient assets to satisfy future requirements) as of March 31, 18 months before the budget year. This line item calculation process includes the accumulation, extraction, and display of basic supply data from subsystems that relate assets to requirements in a specific time sequence or issue period. Requirements are then arrayed against this time sequence, assets are applied, and a supply position by line item is developed. The developed stratification provides the annual funding requirements over a 221 -year period for items in a deficit position. For budget purposes, the stock funds' peacetime commitment and obligational authority requirements are derived from and supported by this line item simulation of buy stratification process, subject to adjustments. Adjustments that the ICP's and Military Departments make to the stratification deficits are discussed in greater detail in Finding B of this report. The adjusted stratification is the basis for the ICPs' budget submissions to their respective headquarter activities.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 20, 1991
- Accession Number
- ADA380096
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense