How the Money Flows – A Simplified Look from My Foxhole

Leadership

Mar 13

Now that we have an approved Budget; what’s next? When will we see new start contracts for a given year?

1. President’s Budget
2. Congressional Approved
3. Appropriations – HASC + SASC approval
4. Signed into Law
5. OSD - Office of the Secretary of Defense
6. Service Branch
7. Major Commands
8. Subordinate Commands
9. Program Executive Office or Tiered Command
10. Program Office
11. Product Office

The total process takes months to complete. Being that we are at #3 today, it will still take upwards of 60 days or more to trickle down the line to #10.

Yes, we can get into an entirely different discussion on how the services and program offices request funding but that’s too over-the-top for the typical industry partner. This is a very simplified look from my understanding of the process on how the money flows.

Written By: Mark Bigelow

Defense Industry