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  • Question

    What is the prevailing guidance on ordering parts in example~Aug 2019 ISO production that occurs in 2nd qtr 2020?


    Answer

    Long lead (Advanced) procurement finances long lead components in order to protect production schedules, maintain critical skills in the workforce and to avoid costly delays in the production process.

    It normally starts 12 months out from the end item contract and is shown as a separate line item on the budget request.

    Advance procurement must be justified on the basis of COST savings.

    Also, Advanced Procurement is an exception to the full funding policy rules as there is "No usable end item"

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