Peer replies should be a minimum of 160 words, include at least 1 direct question and add value to the discussion
STUDENT 1: Sparks
What is the topic of your end-of-course research paper? What are some of the major budgetary issues that you will address relating to the defense project you are researching?
The topic of my end of course research paper looks at the learning objective for week 1, which was the political nature of the budget process. I have always found that topic to be one of the most interesting political topics within our nation. Understanding how the government uses my tax dollars was one of the draws for me to the contracts field. I am going to be looking at the pros and cons of the political nature in the budget process over the past 30 years. I will look at how all the presidents back until Reagan had influence on the process, and the outcomes that came with them, such as new legislation. The overarching question of my paper is essentially, whether or not the political nature of the process hurts the American citizen, or if it is in their best interest.
Explain the practice of “full funding” as it applies to Congressional funding for defense programs. What are some of the problems associated with this type of funding versus annual appropriations?
Full funding is essentially the “ideal-world” type funding method for defense programs. It is exactly how it sounds, where the funds needed for the program are not just obligated, but are actually funded in whole. This is typically what is desired for programs for all parties so that there is more certainty that the program will be able to move forward. The issues that come with this is that when you fully fund a program up front, there is less flexibility on the governments end, for example it comes to adjusting for unforeseen circumstances.
STUDENT 2: Schweitzer
The topic of my end of course research paper is providing an in-depth explanation of the federal budgeting process through time and its evolution.It will describe the impacts of war on the national deficit.Additionally, it will address the actions taken to remedy the deficits driven by war and how they resulted in permanent budgetary changes.The evolution of the budget allows me to address the key issues with spending we have had over time, and the solutions used in the past which may be helpful to address the current deficit.
Full funding is when all of the money to pay for a defense program is appropriated to the one fiscal year on the front end.This can cause an issue when funding amounts are not sufficient to support a program to completion.The cost requirements may change as a result of inflation or unexpected issues.An example of an unexpected program change can be seen in the F-35 program.When the Chinese mimicked the F-35, a large program overhaul occurred.If this program had been fully funded, in the year the contract was procured, then the program would have exhausted all funds before receiving program benefit.The text provides examples of years when inflation occurred outside of projected tolerances.Some years this left the DOD underfunded.When this occurred, the DOD had to forgo certain programs which had been accounted for in the budget.In years of lower than expected inflation it resulted in a defense surplus.
full funding does have its issues, it can also be beneficial.If an
agency is at the end of a fiscal year and has funds to obligate, then it
could obligate the excess funds to support a contract in the
appropriated year.Full funding is also tied into the Bona Fide needs
rule regarding severable and non-severable services.Below are a few
links where this rule and explanation can be found.