FACILITIES

Industrial property (other than material) such as, buildings, structures, improvements, plant equipment, special tooling, military property, and special test equipment used for production, maintenance, research, Development, or test, including Real Property and rights therein. See also Facility.

FACILITY

1) A physical plant, such as real estate and improvements thereto, including buildings and equipment, that provides the means for assisting or making easier, the performance of a function; for example, a base, arsenal, or factory. 2) Any part or adjunct of a physical plant, or any item of equipment that is an operating entity and contributes or can contribute to the Execution of a function by providing some specific type of physical assistance. See also Facilities.

FACILITY IMPROVEMENT

That construction necessary to replace obsolete Facilities or to expand a Facility in order to improve operating Efficiency.

FACT-FINDING

A phase in the post Proposal submittal period of a Source Selection, which allows the customer to: (a) review the Support Data on a proposal; (b) investigate certain areas in more depth; (c) conduct Audits of rates, Factors, and supplier quotations used in the proposal; and, (d) conduct onsite surveys and reviews of Cost and technical information retained at contractors' plants.

FACTOR(S)

A numerical expression of value, or a ratio, expressed as a percentage. A factor is used as a multiplier which, when combined with, or related to other factors or Variables, contributes to produce a result. See Cost Factor.

FACTORED ITEMS

Labor or material estimated by the application of a Factor to a labor Base of hours or dollars.

FACTORY TRAINING

Training or instruction provided to the Government by a vendor or manufacturer on a system or equipment, regardless of the site at which the training is conducted. Factory training is also known as Contractor Plant Services (CPS), contract specialized training, and/or contract training.

FACTUAL DATA

1) Data which can be proven or substantiated. 2) All verifiable facts which can be reasonably expected to contribute to a sound Estimate of future Costs, as well as the validity of costs already incurred, factual data consists of more than historical Accounting data. Factual data may also include supplier Quotations, changes in production methods, changes in production or procurement volume, Unit Cost trends, such as those associated with labor Efficiency, Make or Buy decisions, and any other management decisions which could be reasonably expected to have a bearing on the costs of any proposed Contract or contract modification.

FAILURE

1) The inability of an item to perform within previously specified limits. 2) A malfunction that causes Degradation or complete loss of equipment performance. 3) The event in which any part of an item does not perform as required by its performance Specification. See also various types of failure, such as Dependent Failure, Non-Critical Failure, and Random Failure.

FAILURE ANALYSIS

The logical, systematic Examination of an item or its diagram(s) to identify and analyze the Probability, causes, and consequences of potential and real Failures.

FAILURE-FREE WARRANTY

A Procurement methodology whose purpose is to bring manufacturers, or Design Control agents, into the loop of continuously upgrading the field Reliability of designated equipment(s).

FAILURE MODE

The manner in which an item function can fail. Typical Failure modes include: (a) premature operation; (b) failure to operate at a prescribed time; (c) failure to cease operation at a prescribed time; (d) failure during operation; and, (e) degraded, excessive, or prohibited Operational Capability.

FAILURE RATE

The number of Failures of an item per unit of measure. The unit of measure may be time, distance, operating hours, Cycles, etc., as applicable for the item.

FALLBACK POSITION

An alternative or second choice position.

FALSE REMOVAL

The removal of a presumably failed item from its normal location which, after testing, is found to be operating properly.

FATIGUE

A physical weakening of material because of age or stress.

FATIGUE ALLOWANCE

Time included in a production Standard to allow for decreases or losses in production which might be attributed to worker fatigue. The fatigue Allowance is usually applied as a percentage of the leveled, normal, or adjusted time.

FAULT

1) A Degradation in performance due to detuning, maladjustment, misalignment, or Failure of parts, etc. 2) A physical Defect in a Component, circuit, or system that may or may not cause a failure. A Transient Fault is a fault that is intermittent and does not remain constant for all time. A Solid Fault remains for all time after its initial occurrence.

FAULT DETECTION

Tests performed to determine if any malfunctions or Faultsare present in a unit.

FAULT ISOLATION

1) Tests performed to isolate Faults within the unit(s) under test. 2) The process of determining the degree of imperfection to which an item has degenerated, when measured against approved standards.

FEASIBILITY STUDY

A study of the applicability or desirability of any management or procedural system from the standpoint of advantages versus disadvantages in any given case.

FEDERAL ACQUISITION REGULATIONS (FAR)

The primary regulation for use by federal executive agencies for the Acquisition of supplies and services with appropriated funds. The FAR directs the defense Program Manager in many ways, including Contract Award procedures, acquisition planning, warranties, and establishing guidelines for Competition. The FAR is supplemented by the Military Departments and by DoD. The DoD supplement is called DFARS (Defense FAR Supplement).

FEDERAL CATALOG SYSTEM

A federal program administered by the DoD, which names, describes, classifies, and numbers each item recurrently used, bought, stocked, or distributed by the federal Government, so that only one distinctive combination of letters or numerals or both identifies the same item throughout the federal Government.

FEDERAL SUPPLY CLASSIFICATION (FSC)

The FSC and its indexes have been developed and adopted by the DoD for use in classifying items of supply identified under the Federal Catalog System. The FSC is a Commodity classification designed to serve the functions of supply and is sufficiently comprehensive to permit the classification of all items of personal property. To accomplish this, groups and classes have been established for the universe of commodities, with emphasis on the items known to be in the supply system of the federal Government. The FSC utilizes a four-digit coding structure, the first two digits of which identify the group, and the last two digits of which identify the classes within each group. Code numbers are so assigned as to make it possible to expand the number of groups and classes as that becomes necessary.

FEDERAL SUPPLY CODE FOR MANUFACTURERS (FSCM)

A coding system of five-digit numbers assigned to establishments which are manufacturers of, or have Design Control over, items of supply procured by agencies of the federal Government.

FEE

1) A fixed charge. 2) A payment for professional services. 3) Profit. 4) For the Government, the term profit is used for Fixed-Price Contracts, while fee relates to Cost Type Contracts. In specified Cost Reimbursement pricing arrangements, fee represents an agreedto amount beyond the initial Estimate of Costs. In most instances, fee reflects a variety of factors, including Risk, and is subject to statutory limitations. Fee may be fixed at the outset of performance, as in a CostPlusFixedFee arrangement, or may vary (within a contractually specified minimummaximum range) during performance, as in a CostPlusIncentiveFee arrangement.

FENCED FUNDING

An identified aggregation of resources reviewed, approved, and managed as a distinct entity. The proposed program must be developed within directed resource limitations and the approved program must be implemented within specified resources. Examples of fenced areas include Intelligence and Security and Support to Other Nations.

FIDELITY BOND

Insurance against losses arising from dishonest acts of employees and involving money, merchandise, and/or other property.

FIELD CHANGE

Any modification or alteration made to equipment after its delivery to the Government.

FIELD MAINTENANCE

Maintenance authorized and performed by designated maintenance activities in direct support of the User. Field maintenance is normally limited to replacement of unserviceable parts, subassemblies or assemblies.

FIELD PRICING SUPPORT

The Analysis of contractor pricing proposals by any or all field technical and other specialists, including plant representatives, Administrative Contracting Officers, contract auditors, price analysts, quality assurance personnel, engineers, and legal and small Business specialists.

FIELD SERVICE REPRESENTATIVE

A part of Contractor Engineering and Technical Services (CETS). An agent of a manufacturer or Commercial concern who provides administrative or technical support, or product liaison for the customer or users of the manufacturer's products. For the Government, this service is an important Element in providing a technical communication channel between the producer and the military field Users.

FIELD SURVIVAL RATE (FSR)

The percentage of failed assemblies sent from an operational site that actually arrive at a designated maintenance Facility.

FIGURE

1) A word used in documentation to denote a graph, Curve, picture, or Chart. Figures are usually identified by a number which associates the figure with a particular section of the document. 2) A specific amount of money. 3) A numerical assignment of worth or value. See Figure of Merit.

FIGURE OF MERIT

The numerical value assigned to a measure of Effectiveness, performance, or other parameter, as a result of an Analysis, synthesis, or Estimating Technique.

FINAL

1) A term used in Estimating to define a point in Estimate preparation when Configuration development, program definition, and other information, reviews, and conclusions are considered firm enough for a Commitment and final costing to be accomplished. 2) Completed documentation which is no longer a Draft and which does not require further modification prior to delivery.

FINAL ASSEMBLY

The joining together of the major sections of a system or piece of equipment to form a complete unit.

FINAL AUDIT CLEARANCE

Government Acceptance of appropriate documentation evidencing that a contractor's responsibility for an item or items of Government property has ceased. Such documentation may be in the form of a delivery and acceptance document, a sales order or shipping document (in accordance with approved disposition instructions), approved relief of accountability, or approved contract Closure, etc. See Audit.

FINANCIAL ANALYSIS

An Appraisal of the financial or "dollar" aspects of an operation or activity. Financial analysis normally involves an Analysis of Cash requirements, net present value, and internal rate of return.

FINANCIAL MANAGEMENT

The planning, organizing, directing, and controlling of the dollars and resources of a program, project, or Agency. See Business and Financial Management.

FINANCIAL REPORT

A formal statement, or series of statements, with or without narrative or discussion, showing financial condition at a given time, or the results of transactions or operations for a given period.

FINANCIAL STATEMENT

A formal financial report, especially one showing financial status at a given date and the results of operations for a given time.

FINISHED GOODS

The materials or products, on which, from the standpoint of the entity involved, manufacturing or processing operations have been completed, and which are being held for use, Consumption, or sale.

FIRM FIXED PRICE (FFP) CONTRACT

A contract which provides for a price which normally is not subject to any adjustment. FFP contracts are generally used for contracts Awarded after formal advertising, or for negotiated contracts when reasonably definite specifications are available and Costs can be estimated with reasonable accuracy to enable the negotiation of a fair price. An FFP contract price may be altered under the provisions of a Contract change clause, Economic Price Adjustment clause, or Defective Pricing clause, if such clauses are written into the contract. See Contract Type.

FIRMWARE

The combination of a hardware device and Computer instructions or computer Data that reside as read-only software on the hardware device.

FIRST ARTICLE

Generally, the first complete representation of a production model. However, first articles may include preproduction models, initial production samples, test samples, first lots, pilot models, and/or pilot lots. First article approval involves the testing and Evaluation of the first article for conformance with specified contract requirements before, or in, the initial stage of production under a contract.

FIRST ARTICLE TESTING (FAT)

Production testing that is planned, conducted, and monitored by the materiel developer. FAT includes preproduction and initial production testing conducted to ensure that the contractor can furnish a product that meets the established technical criteria.

FIRST DESTINATION TRANSPORTATION COST

The Cost of freight, cartage, handling charges, etc., for an item to be shipped from the manufacturer to the first station or Depot of delivery.

FIRST UNIT EQUIPPED DATE

The scheduled date that a system or End Item and its agreed upon support Elements are issued to the designated Initial Operational Capability unit, and that training specified in the new equipment training plan has been accomplished.

FISCAL PERIOD

An Accounting Period of a specified time duration.

FISCAL POLICY

1) For the Government, the policy pursued in connection with legislation or administrative practices relating to taxation, currency, public Appropriations and Expenditures, Government funds, and similar matters, particularly the intended effect of such legislation and administrative practices upon the Economy of the nation. 2) In Business, the overall financial operating policy of a company with regard to Assets, liabilities, Cash Flow, Expenses, indebtedness, stocks, Bonds, etc.

FISCAL YEAR

A twelvemonth period selected for Accounting purposes. The fiscal year for most agencies of the U.S. Government begins on the first day of October and ends on the thirtieth day of September of the following Calendar Year. The fiscal year is designated by the calendar year in which it ends; i.e., the fiscal year l9Xl is the year beginning 01 October l9X0 and ending 30 September l9Xl. The fiscal year for contractors may begin at any time selected, but must encompass a full twelvemonth period.

FISCAL YEAR BUY

The Procurement of a specific amount of hardware, software or equipment with the funds provided in a specific Fiscal Year Funding. The actual Expenditure period for the procurement may cover several fiscal years.

FISCAL YEAR FUNDING

An overused term in Estimating that can cause confusion. In common usage it can mean: (a) dollar amounts by fiscal year in Incremental Funding; (b) dollar amounts that cover Fiscal Year Buys under full funding; or, (c) dollar amounts provided to a Contract that cover a period of one Government fiscal year only (annual funding). The use of this term should be avoided or always clarified with additional explanation.

FITNESS FOR USE

The Effectiveness of the Design, manufacturing, and support processes utilized in delivering a system that meets operational requirements under all anticipated operational conditions.

FIXED ASSET

Any natural resource, subject to depletion, and any tangible Asset used in the conduct of Business and not intended for sale as a part of normal operations. Tangible fixed assets include land, buildings, machinery, tools, patterns, delivery equipment, furniture and fixtures, etc.

FIXED COST(S)

Costs that do not vary with the volume of Business, such as property taxes, insurance, Depreciation, security, and minimum water and utility fees. See also Variable Cost.

FIXED OVERHEAD COST

An item of Overhead cost (or the Aggregate thereof) which is not considered to vary directly as a result of changes in volume of production.

FIXED-PRICE CONTRACT (FP)

A type of Contract which generally provides for a firm price, but which, under certain appropriate contract clauses (change clauses, Economic Price Adjustment clauses, etc.) may provide for an adjustable price, for the supplies or services which are being procured. Fixedprice contracts are of several types designed to facilitate proper pricing under varying circumstances. Some of the various types are FirmFixedPrice Contracts, FixedPriceWithEscalation Contracts, FixedPrice Redeterminable Contract, and FixedPriceIncentive Contracts. See Contract Type.

FIXED PRICE CONTRACT WITH PROVISIONS FOR REDETERMINATION OF PRICE CONTRACT (FPR)

A Fixed-Price Contract which contains provisions for the subsequent negotiated adjustment, in whole or in part, of the initially negotiated Base price. Depending on the contract provisions, adjustments may be upward or downward, retroactive or prospective.

FIXED-PRICE-INCENTIVE TYPE CONTRACT (FPI)

A Fixed-Price Contract with provision for the adjustment of Profit and price by a formula based on the relationships between negotiated and Actual Costs, performance, schedule, and/or other agreed upon parameters.

FIXED-PRICE REDETERMINABLE CONTRACT

A Fixed-Price Contract which calls for a review and revision of the original negotiated contract price during or at the completion of contract performance.

FIXED-PRICE WITH ESCALATION CONTRACT

A Fixed-Price Contract which provides for the upward and downward revision of the stated contract price upon the occurrence of certain economic fluctuations, which are specifically defined in the contract.

FLEXIBLE BUDGET

1) A Budget containing alternative allowances to organizational subdivisions, based on varying rates of production or other measures of activity. 2) A budget subject to change as operations proceed or work is identified and finalized.

FLIGHT TEST

1) A flight performance test of aeronautical equipment, including aircraft, space vehicles, or missiles. This test is a normal step in the testing of new equipment and a regular part of the periodic inspection of an aircraft. Flight testing is usually preceded by Fatigue and static article testing. 2) The use of aircraft to test other systems, such as radars or communications equipment, etc.

FLOAT

The period of time that an activity may be delayed without becoming critical to the overall schedule.

FLOOR CHECK

A personal identification of employees on the job with the names recorded on the payroll or labor Cost charges.

FLOW CHART

A graphic representation of a particular process using symbols to show the stepbystep sequence of operations or procedures.

FLOW DIAGRAM

The path of movement in a particular process super-imposed on a graphical representation of the process.

FLOW PROCESS CHART

A graphic representation of the sequence of all operations, transportation, inspections, delays, and storage occurring during a process or procedure.

FLOW TIME

The time required for a defined amount of work to be completed.

FLYABLE

An aircraft in such material condition as to be safe and capable of normal flight operations without regard to Capability to perform a specific mission or to weather, personnel availability, or base condition, or whether fueled, armed or scheduled for flight.

FLYAWAY COST

All Costs related to the production of a useable End Item of military equipment. Flyaway cost includes the cost of procuring the basic unit (including such costs as system/project management, test, and Data, etc.), an allowance for changes, all installed Government-Furnished Equipment, any nonrecurring start-up production costs, warranties, and First Destination Transportation Costs (unless the latter is a separate Budget Line Item). Flyaway cost is also referred to as Rollaway Cost or Sailaway Cost.

FOCAL POINT

The principal point of contact in an organization for the coordination and exchange of information on any specific project or task.

FOLLOW-ON

Any Contract or contract supplement that calls for similar services or items as those previously procured or in production.

FOLLOW-ON COST STUDY

An indepth Government Cost Analysis which utilizes the initial Should Cost study as the Baseline for the Evaluation of a contractor's efforts and ongoing performance. The study determines what Benefits have accrued from improvements in the contractor's management and manufacturing operations, and compares this Data against the contractor's Cost Proposal and Supporting Data for the purpose of establishing the Government's negotiation objectives.

FORCE(S)

Broadly, the fighting Elements (combatants) of the overall defense structure; units, equipment, personnel, etc.

FORCE LEVELS

The number of aircraft, ships, and other forces that are required to accomplish assigned tasks or missions. Force levels are normally identified by specified aircraft model, ship type, personnel divisions, etc.

FORCE STRUCTURE

The composition of a military service, or of all of the services together, in terms of the number of major combat and support units and their relationship to each other.

FORECAST

1) A projection. 2) An Estimate of trends, Commitments, Obligations, and Expenditures for a period of time in the future.

FOREIGN MILITARY SALES (FMS)

That portion of U.S. security assistance to other nations as authorized by the Foreign Assistance Act of 1961, as amended, and the Arms Export Control Act, as amended. The recipient provides reimbursement for Defense Articles and services transferred from the U.S., through Credit, Cash sales from stocks of the DoD, or DoD guaranties covering private financing.

FORM, FIT, AND FUNCTION (F3)

For Software, the mapping of the Functional Allocations and Decompositions in Hardware and software (the form) into a systems Architecture comprised of Data Processing assets (i.e., processors, servers, personal Computers, and workstations, etc.) and the capabilities, capacities, and interfaces associated therewith (the fit), to execute system mission profiles (the function).

FORMAL QUALIFICATION REVIEW (FQR)

A systems level Configuration Audit conducted after system testing is completed to ensure that the performance requirements of the system specification have been met.

FORWARD FINANCING

An Air Force term for Forward Funding.

FORWARD FUNDING

The carry-over of Research Development Test and Evaluation funds into the second year of Appropriations availability. Forward funding requires permission from high authority.

FORWARD PRICING

The prospective pricing of Overhead and labor rates in advance of specific Contract negotiations.

FORWARD PRICING RATE AGREEMENT (FPRA)

Written agreements negotiated between a contractor and the Government to make certain rates available for use during a specified period of time in the pricing of Contracts or modifications. FPRA's represent reasonable projections of specific Costs to be incurred in future periods that are not easily estimated for, identified to, or generated by a specific contract, contract End Item or task.

FRONT END

Planning or resource Commitment at the beginning of the Development process to anticipate later requirements and reduce future problems. Also called Early-on.

FULL AND OPEN COMPETITION

A Procurement and Source Selection in which all responsible sources are eligible to compete. Full and open Competition is the standard for competition in contracting, and is required in the DoD by the Competition in Contracting Act.

FULL FUNDING

A Budget rule applied to Procurement and Military Construction, full funding is the annual Appropriation of funds for the total Estimated Costs to be incurred in the delivery of a given quantity of a usable End Item at the time the Acquisition is authorized to be initiated, even though the actual Expenses of the program may occur over several fiscal years.

FULL OPERATIONAL CAPABILITY (FOC)

The full attainment of the Capability to employ effectively a weapon, item of equipment, or system of approved specific Characteristics, which is manned and operated by a trained, equipped, and fully supported military unit or force. See also Operational Capability and Initial Operational Capability.

FULL RATE PRODUCTION

The production of economic quantities following the stabilization of system Design and prove-out of the production process.

FUNCTION

1) An assigned duty, role, or activity. 2) In Acquisition, functions are taskoriented blocks of related effort or people necessary to produce outputs (i.e., Engineering, tooling, manufacturing, quality assurance, materiel, program management, etc.). See also Functional Characteristics.

FUNCTIONAL ALLOCATIONS AND DECOMPOSITIONS

In Software, the identification and mapping of how the functional requirements of a system are distributed among Hardware and software Configuration Items (CIs).

FUNCTION(AL) ANALYSIS

1) An approach to the solution of a problem, in which the problem is broken down into its component Functions, such as intelligence, fire-power, or mobility. Each relevant function is then further analyzed and broken down into smaller functional Components, until a level of molecularity suitable for solution of the problem is attained. 2) The determination of functions, and their sequences and interdependence required to accomplish a Mission objective, and the relating of basic requirements to the functions upon which they impact. See also Functional Characteristics.

FUNCTIONAL AREA

1) A grouping of the individuals in an organization by the Function that each performs. Typical functional areas include Engineering, manufacturing, financial management, test, etc. 2) A distinct group of system performance requirements which, together with all other such groupings, forms the next lower level Breakdown of the system on the basis of function. See also Functional Support.

FUNCTIONAL BASELINE

Documentation describing a system's or segment's Functional Characteristics and the Verification required to demonstrate the achievement of those specified functional Characteristics. The system or segment Specification establishes the functional Baseline. See Type A Specification.

FUNCTIONAL CHARACTERISTIC(S)

Quantitative performance, operating, and logistics parameters and their respective tolerances. Functional Characteristics include all performance parameters, such as range, speed, lethality, reliability, maintainability and safety. See also Physical Characteristics.

FUNCTIONAL CONFIGURATION AUDIT (FCA)

The formal examination of Functional Characteristics test Data for a Configuration Item, prior to Acceptance, to verify that the item has achieved the performance specified in its functional or allocated Configuration Identification.

FUNCTIONAL CONFIGURATION IDENTIFICATION (FCI)

The current approved, or conditionally approved, technical documentation for a Configuration Item (CI), which prescribes: (a) all necessary Functional Characteristics; (b) the tests required to demonstrate the achievement of specified functional Characteristics; (c) the necessary interface characteristics with associated CIs; (d) key lower level CIs, if any; and, (e) Design Constraints, such as envelope dimensions, Component standardization, use of inventory items, or integrated logistics support policies, etc. See Configuration Identification.

FUNCTIONAL COST CATEGORIES

Identification of the type of work being performed (Engineering, manufacturing, etc.) under the items of a program Work Breakdown Structure (WBS), or by Functional Support element.

FUNCTIONAL CYCLE

The application of the System Engineering process to an activity for the definition or refinement of appropriate system Elements.

FUNCTIONAL MANAGEMENT

The process of planning, organizing, coordinating, controlling, and directing efforts within a structure which groups responsibilities according to the type of work to be performed.

FUNCTIONAL ORGANIZATION

The classic Hierarchical Organization, with clear lines of authority in Functional Areas reporting ultimately to one head.

FUNCTIONAL REALLOCATION

For Software, the identification that a redistribution of the functional requirements of a system has occurred in the new target environments among the Hardware and software Configuration Items relative to the original host environments.

FUNCTIONAL SPECIALISTS

Specialists, such as senior logisticians, Test and Evaluation experts, etc., who assist and exercise surveillance over lower levels of management.

FUNCTIONAL SUPPORT

Systematized methodologies and procedures, or a common set of standards applied to materiel Acquisition programs, which include, but are not limited to, personnel, technical requirements planning, security, Automated Data Processing, Cost Analysis, training, safety, Audit, logistics, product assurance, reliability, equal employment opportunity, obligation planning and reporting, industrial preparedness, Value Engineering, test, public affairs, legal, inspector general, mobilization, contracting, international cooperation, and small Business.

FUND

1) A source of supply; a stock. 2) A sum of money or other resource, authorized by law or a management decision, to be set aside and to be used or expended only for specified purposes. 3) To provide or set aside resources for a specific purpose.

FUND ACCOUNTING

The reporting and record keeping of financial transactions in terms of separate Funds or kinds of funds.

FUND AVAILABILITY

The status of Obligational Authority.

FUND SUBDIVISION

A segment of an Appropriation or other Fund, created by funding action, as an administrative means of controlling Obligations and Expenditures within an Agency.

FUNDED REQUIREMENT

A need for something that has already been recognized and provided for by the Allocation of Funds.

FUNDING

1) An administrative action, normally within the chain of command or management, of granting and limiting authority to incur Obligations and make Expenditures. 2) Money available for furthering a Contract or project purpose.

FUNDING COVERAGE

Customer funding available to cover or pay for Contract work.

FUNDING LIMIT

A specific amount of dollars available on a Contract through a given period of time. See Limit of Government Obligation.

FUNDING PROFILE

1) A Chart or graph showing time phased Expenditures, Termination Liability, and Funding requirements on an incremental basis for a program or project. 2) Program funding, usually displayed in columnar spread sheet format by years, starting with previous years and continuing through Current Year and out-years.

FUNDING PROFILE LIMIT

The optimum schedule usually associated with hardware procurements. The schedule represents the most economical production rates, disregarding the approved Funding Limit. From this schedule various Constraints can be applied to provide management with impacts on the program.

FUNDING WEDGE

The initial Funding Estimate used to get a program recognized in the Future Years Defense Program.

FUTURE YEARS DEFENSE PROGRAM (FYDP)

The official DoD document which summarizes forces and resources associated with programs approved by the Secretary of Defense. The FYDP consists of three major parts: (a) the organizations affected (Air Force, Army, Navy, etc.); (b) Appropriations accounts; and, (c) the 11 Major Force Programs (strategic forces, airlift/sealift, Research and Development, etc.). Under the biennial Planning, Programming, and Budgeting System cycle, the FYDP is updated in even years in April (by the Program Objective Memorandum) and October (by the Budget Estimate Submission); and then in January (by the President's Budget) of odd years. The primary Data element in the FYDP is the Program Element.