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Need To Extend the Period of Availability for Navy Shipbuilding Funds

MASAD-81-22 Published: Apr 01, 1981. Publicly Released: May 01, 1981.
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Highlights

The Navy's shipbuilding programs are fully funded, and the funds must be obligated within 5 years or they expire. The Navy has requested that the current 5-year time limit for obligation of shipbuilding and conversion funds be extended to 7 years.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Congress should give the Navy 7 years in which to obligate shipbuilding funds and make the extension retroactive to include the FYs 1978 through 1981 appropriations.
Closed
Please call 202/512-6100 for additional information.
Congress should consider providing cost growth funds as a part of the individual ship budget line item, rather than including all ship program cost growth in one budget line item. For example, the budget line for FFG would then contain funds for the fiscal year procurement, advance procurement on future year programs, and cost growth on prior year ships. This would provide the Congress greater visibility and control over the funds applied to individual ships, like the FFG, since all funds would be in one budget line. However, if such an action is taken, the Congress should also recognize that doing so reduces the Navy's flexibility to adjust resources among ship programs to meet changing requirements, especially in view of the line item appropriation which allows no reprograming actions without prior approval. The need for some flexibility has been recognized by both the Congress and us.
Closed
Please call 202/512-6100 for additional information.

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Budget administrationFunds managementMilitary appropriationsMilitary vesselsNaval procurementUnobligated budget balancesMilitary forcesShipsSocial security numbersProcurement