Financial Management Regulation Volume 2A Chapter 1 010212 addresses budgeted for IT and software efforts.  Without the specifics of the program being provided by the submitter it is impossible to provide a yes/no answer.  Attempts to contact the submitter were unsuccessful so the response provides general guidelines for funding software:  

RDT&E:
- Software development (writing code)
- Software upgrades that increase performance envelope
- Software required for RDT&E test purposes
- Software that requires DT or IOT&E

Procurement:
- R&D developed software approved for production item
- COTS Software approved for use “as is” in production item
- Software packages included with purchase of ADP equipment to be used without modification 

O&M:
- Software that replaces operational software
- Software upgrades with no significant change to performance
- Software that is an iteration on the basic release and not
involving significant performance improvements or extensive testing 

Use of procurement funds for software purchases is restrictive.  Recommend that you talk to your Comptroller to get their guidance on local policy.