Budget scoring of alternative financing methods for defense requirements

Abstract

This research investigates procurement scoring and the Department of Defense's (DoD) use of alternative financing methods, such as leases and public-private ventures. One of the major impediments to using alternative forms of procurement financing for acquiring defense capabilities is in the budgetary treatment, or "scoring," of these initiatives by the Congressional Budget Office (CBO), the Office of Management and Budget (OMB) and the congressional Budget Committees. The current scoring policy that has been applied to many initiatives essentially negates the financial advantage for using alternative forms of financing. Therefore, this research examines existing policies and their adherence to statutes and the role of the various government organizations and committees in actual recording of obligations and outlays related to financing alternatives used by federal agencies. Preliminary evidence suggests that this emerging area has major importance for future DoD acquisitions in a resource-constrained environment. Included are recommendations for changes in budgetary scoring that encompass the full scope of federal obligations and expenditures while promoting efficient, more rapid and fiscally responsible acquisitions.