What is the definition of an unfunded requirement (UFR) as found in a business regulation/guidance?
Unfunded requirements are approved and prioritized requirements that do not survive the PPBE process. The JCIDS and acquisition processes react to warfighting and political necessity to approve more programs than DoD can pay for. Unfortunately, this is a fact of life we all must live with, and every administration understands this. During wartime, requirements for additional funding become even more desperate due to losses on the battlefield and the increase in operations tempo. Every year the Service Chiefs identify UFRs for congressional information and action. Even though the Congress realizes the Chiefs must support a balanced President's budget, they also realize the need is normally much greater. There is risk associated with the providing UFRs to Congress: approval of funding requirements not in the President's Budget rarely results in top-line increases. More importantly, the normal process is to fund those programs that generate congressional interest by identifying offsets to other programs. This creates further turmoil in the budget process.
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Reference: RQM110 (DAU)