Use of Contract Authority for Distribution Depots by the Defense Logistics Agency
Abstract
Contract authority is a form of budget authority granted by specific statutory authority to incur obligations in anticipation of either receipts or an appropriation of liquidating cash with which to pay the obligations. Because it is used in advance of appropriations or other funding, it is different from the inherent authority normally granted to every Government agency, that is, to enter into contracts or obligations based on available funds. Agencies using contract authority must receive appropriations or obtain receipts or collections sufficient to liquidate obligations. The Under Secretary of Defense (Comptroller) is responsible for allocating contract authority to the activity groups of the Defense working capital fund. The contract authority is automatically liquidated when reimbursements are reported to the Office of Management and Budget. Since FY 1992, the Under Secretary of Defense (Comptroller) has authorized the Defense Logistics Agency (DLA), a part of the Defense working capital fund, to use contract authority to operate certain business activities, including its distribution depot activity group, which receives, stores, and issues stocks of inventory. From FY 1992 through FY 2000, DLA used $12.2 billion of contract authority of which $1.8 billion was used by the distribution depots.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 16, 2001
- Accession Number
- ADA390310
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense