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  • Question

    When a funding sponsor that has BA-4 funds is told by another organization that it will accept MPF-6 funds via FAD, what does that mean and what is the general process?


    Answer

    Since you did not provide any additional details, my best guess is that the funding sponsor’s BA-4 funds are Research, Development, Test & Evaluation (RDT&E) funds which would further lead me to believe that the MPF-6 funds you mention are really MFP -6 (Major Force Program 6) which is also Research and Development. The FAD is a funding authorization document.  A commonly used FAD is a Military Interdepartmental Purchase Request (MIPR).

    A MIPR allows military agencies the opportunity to obligate funds from finance and accounting office to federal agencies for the purpose of purchasing products and services.  Frequently, military services either have funds that need to be committed against a fiscal year for a known requirement or they receive funding to support the needs of a critical mission. MIPRs are ideal for these circumstances. Funds may be obligated and product requirements provided anytime during the duration of the project.

    Your financial management/Comptroller chain of command should be able to provide you specifics of the situation you brought up.  Below, I have provided you some information on the BAs of RDT&E funds.

    Each RDT&E appropriation is subdivided into seven budget activities (BAs): BA-1 Basic Research, BA-2 Applied Research, BA-3 Advance Technology Development, BA-4 Advance Component Development and Prototype (ACD&P), BA-5 System Development and Demonstration (SDD), BA-6 RDT&E Management Support, and BA-7 Operational System Development. More detailed definitions for RDT&E Budget Activities are contained in
    DoD Financial Management Regulation 7000.14-R, Volume 2B, Chapter 5, paragraph 050201.
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