Use the responsible program or contracting office for this instrument.
The recorded role is not itself a general application endpoint.
What this role does not control
A routing lead does not establish funds, an individual delegation or approval of the proposed action.
No authorization of financing-cost treatment for covered contracts entered on or after Dec.31,2029
Government termination liability capped at funding obligated when terminated
Financing entity is not a subcontractor solely by participating
Pilot establishment and current implementation guidance not verified
Legal basisSources linkedLegal sources and instrument limits are recorded.
RequirementsGates recordedRead the requirements for this instrument; applicability depends on the proposed action.
Public fundingRules recordedThe record states funding rules and conditions; no program amount is attributed to this action.
Assigned rolesRoles recordedPublic sources describe institutional authority. The instrument identifies approval and execution roles; a specific signature remains transaction-dependent.
EngagementProgram unverifiedPilot establishment and implementing procedures not verified.
A discretionary pilot permits reasonable market-rate interest, bond discounts and capital refinancing costs to become allowable and allocable direct or indirect costs for covered inventory-management and capacity-expansion contracts. The financing is supplied by an independent financing entity; this is not a new DoD direct-loan or guarantee program.
What this is not / limit: No authorization of financing-cost treatment for covered contracts entered on or after Dec.31,2029
Executing role: Covered-contract contracting and pricing teams under implemented pilot
Authority holder
Secretary of Defense
Eligibility gate
Secretary establishes pilot after briefing congressional defense committees on material/inventory audit compliance
Covered activity manages production or sustainment inventories, or materially expands production/sustainment capacity through capital expenditure
Cost paid to independent Federal/State-organized financing entity engaged in financing business; not under common control with borrower
Financing costs reasonable and consistent with market rates; material/inventory management audit requirements satisfied
Funding condition
Contract payments subject to availability of appropriations for purpose; financing-cost allowability does not itself provide funds or create government credit subsidy authority.
All recorded limits
No authorization of financing-cost treatment for covered contracts entered on or after Dec.31,2029
Government termination liability capped at funding obligated when terminated
Financing entity is not a subcontractor solely by participating
Pilot establishment and current implementation guidance not verified