Navy Ship Procurement: Alternative Funding Approaches - Background and Options for Congress
Abstract
Some observers have proposed procuring Navy ships using incremental funding or advance appropriations rather than the traditional full funding approach that has been used to procure most Navy ships. Supporters believe these alternative findings approaches could increase stability in Navy shipbuilding plans and perhaps increase the number of Navy ships that could be built for a given total amount of ship-procurement finding. The issue for the 109th Congress is whether to maintain or change current practices for funding Navy ship procurement. Congress decision could be significant because the full funding policy relates to Congress' power of the purse and its responsibility for conducting oversight of defense programs. For Department of Defense (DOD) procurement programs, the full funding policy requires the entire procurement cost of a usable end item (such as a Navy ship) to be funded in the year in which the item is procured. Congress imposed the full funding policy on DOD in the l950s to strengthen discipline in DOD budgeting and improve Congress' ability to control DOD spending and carry out its oversight of DOD activities. Under incremental funding, a weapon's cost is divided into two or more annual increments that Congress approves separately each year.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 25, 2005
- Accession Number
- ADA435333
Entities
People
- Ronald O'Rourke
Organizations
- Defense Acquisition University