Another primary point of the Full Funding Policy states that the Military cannot fund more than what the contractor can deliver in a 12 month period.

• A. Military cannot fund more than contractor can deliver in a 12 month period
• B. Usable end items must be contracted for
• C. Funding should be allocated equally
• D. End items can be funded for more than 12 months

Answer: (A)

Under the Full Funding Policy, obligations are limited to what the contractor can realistically deliver in a 12-month period. This keeps funding aligned with the contractor’s production and delivery schedule, prevents tying up funds for items that can’t be produced in the near term, and supports disciplined budgeting and cash flow management. Because the policy centers on matching funding to a 12-month delivery window, you cannot fund more than what can be delivered in that year, nor fund for more time than the contractor’s capacity allows. The other ideas—contracting only usable end items, distributing funding equally, or funding for more than 12 months—do not reflect this 12-month delivery cap, so the statement about not funding more than a year's deliveries is the correct one.