1、 https:/crsreports.congress.gov Updated November 17, 2017End-Year DOD Contract SpendingBackground Information The Department of Defense (DOD) obligates approximately $300 billion annually on defense acquisitions. These funds, drawn primarily from more than 100 distinct DOD appropriations accounts, c
2、an be divided into six major categories (or six colors of money): Operation and Maintenance (O&M); Research, Development, Test, and Evaluation (RDT&E); Procurement; Shipbuilding and Conversion; Military Construction (MilCon); and Military Personnel (MilPers). Funds from these accounts generally must
3、 be obligated within specific time periods (see Figure 1). When an obligation period ends, unobligated funds generally expire. DOD has a further five years to liquidate (spend) or reprogram already obligated funds. Figure 1. Appropriation Lifespan (color of money”) Source: Defense Procurement Acquis
4、ition Policy Notes: Dark colors represent current funds (available for new obligations, obligation adjustments, expenditures, and outlays). Light colors represent expired funds (unavailable for new obligations). Why the Current System Was Created In 1956, Congress established M accounts and merged s
