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End-Year DOD Contract Spending (CRS Report for Congress)

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Release Date Revised Nov. 17, 2017
Report Number IF10365
Report Type In Focus
Authors Heidi M. Peters
Source Agency Congressional Research Service
Older Revisions
  • Premium   Nov. 7, 2017 (2 pages, $24.95) add
Summary:

The Department of Defense (DOD) obligates approximately $300 billion annually on defense acquisitions. These funds, drawn primarily from more than 100 distinct DOD appropriations accounts, can be divided into six major categories (or six ‘colors of money’): Operation and Maintenance (O&M); Research, Development, Test, and Evaluation (RDT&E); Procurement; Shipbuilding and Conversion; Military Construction (MilCon); and Military Personnel (MilPers). Funds from these accounts generally must be obligated within specific time periods (see Figure 1). When an obligation period ends, unobligated funds generally expire. DOD has a further five years to liquidate (spend) or reprogram already obligated funds.