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    I am being told that I cannot put on order any CLCs for next years' buy right now. In essence I will be buying "ahead of need". I recall a case study in 401 where this was the main teaching point and I cannot recall what the story line was or the outcome. My POR is published at "X" amount of Hornets and I just want to buy to fill that requirement, while keeping the vendor's line hot. Am I really going to have to wait to buy CLCs only during that particular year to match that particular FY airframe procurement numbers or can I buy the whole requirement now. And what is the magic formula if the latter.


    Answer

    Whether you are funding your War Reserve spares as "replenshment spares" (Operations and Maintenance (O&M) appropriation) or as "initial spares" (procurement appropriation), you would not be able to buy muliple years worth of requirements with FY11 funds.  In the case of O&M, it is a "one-year" appropriation which means it is to fund only the requirements of that one fiscal year (the "Annual Funding"). 

    There is an "exception" that allows obligating funds in one fiscal year for items that will be needed in the next fiscal IF the lead time for those items requires purchase in the previous fiscal year.  It doesn't appear this exception impacts your situation and the lead time has probably already be factored into the plan currently in place to fund your spares by fiscal year as you describe.  So, based on the one-year appropriation you would be violating the Bond Fide Needs Rule (Title 31, U.S. Code, Sec 1502) by using FY11 funds to buy spare requirements for FY12 and years beyond.  If you are funding the CLCs as "initial spares" (procurement) then funds should have been budgeted in the appropriate fiscal year based on planned procurement/delivery of the end items they support. 

    Thus you have established a requirement each year and justified the number of spares and associated funding in a particular fiscal year (reflected in appropriate procurement budget exhibits justifying the President's Budget).  In this case, you would potentially violate the Bona Fide Needs rule and possibly the Misappropropriations Act (Title 31, U.S. Code, Sec 1301) if you were to use FY11 funds to fund more spares than you justified and accomplished this by NOT funding some other part of the procurement program that WAS justified in the procurement exhibits.  If the CLCs are procurement funded and the dollar amount for your "accelerated buy" is less than $20M you could potentially accomplish your goal by submitting a letter notification reprogramming to Congress citing the cost savings.  Recommend you consult your comptroller chain-of-command about this possiblity.  Unfortunately, until DoD has an actual FY11 appropropriation (not a continuing resolution) this is likely not viable.

     

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