text: Chapter 2
  contracting officer, and SJA/fiscal lawyer) is deployed early on in the operation to provide the commander
  the ability to augment sustainment capability immediately through theater support contracts.
  FUNDING RESPONSIBILITIES IN A CONTINGENCY OPERATION
  2-60. The SECDEF directs CCDRs and assigns Executive Agents for an operation (e.g. contingency,
  humanitarian, peace keeping). The executive agent is responsible for funding and financial management
  alignment in support of the operation. When an Army Service Component Command (ASCC) is
  designated as executive agent or lead service, all funding will be coordinated through the Army Budget
  Office.
  2-61. The senior financial manager in theater has the responsibility to provide contingency funding for all
  theater costs or reimbursable budget authority for all theater costs associated with the contingency
  operation. Although responsible for funding all theater costs, the theater financial manager will need to
  identify the major costs drivers such as:
  * External Support Contracts, (e.g., Logistics Civil Augmentation Program (LOGCAP)). Basic life
  support requirements like sleeping areas, shower, latrine, dining, firefighting, and laundry
  facilities are often provided through LOGCAP. In some operations, LOGCAP support
  constitutes a significant cost.
  * Stock fund (all classes of supply, mostly class IX repair parts). The Stock fund is specifically
  used to provide the acquisition of materiel. It does this by procuring material from commercial
  sources and holding items in an inventory. Deployed units requiring material will determine if
  the items can be procured through the stock fund first since the use of the stock fund is the
  preferred method to acquire material in deployed operations.
  * Theater Support Contracts (e.g., non-stock fund (also referred to as local purchases)). Theater
  support contracts are used to purchase supplies, services and construction from commercial
  sources rather than through the stock fund. Use of theater support contracts/non-stock fund
  requires the requesting activity to submit a DA Form 3953 to the G-8 for funding and use the
  supporting contracting organization to procure the goods or services.
  * Strategic lift (into and out of theater). Strategic lift (STRATLIFT) is the air, sea, and ground
  costs associated with deploying units and equipment into and out of theater. STRATLIFT is
  provided by the U.S. Transportation Command.
  See DODFMR VOL 12, chapter 23, Table 23-1 for a breakout of all reportable cost categories used during
  a contingency operation.
  2-62. Multitudes of funding options are available to the theater and will include funding sources from other
  U.S. agencies (e.g. intelligence funding, counter-drug funding, and Department of State funding). Funding
  authorities the financial manager may leverage during a contingency operation are:
  * Contingency Construction Authority.
  * Other Procurement, Army .
  * Host Nation Support Agreements (assistance in kind).
  * Theater specific appropriated funding.
  2-63. Historically, contingency operations have been unforecasted events and therefore not part of a unit’s
  annual budget. Initial funding for a contingency operation requires using available home station dollars to
  fund requirements arising from participation in contingency operation. The use of available unit funds to
  support contingency operations requirements is known as “cash flowing.” All cash flow funding will
  include guidance to establish and send budget estimates, track all direct and indirect costs, and report all
  funding in support of the operation for potential reimbursement.
  2-64. In some instances, costs for which funds have been provided to deploying units may not be incurred
  as a result of a contingency operation. Offset costs is an effort by HQDA to capture the amount of
  operation tempo funding a unit will not require due to the contingency operation funding available during
  pre-deployment, deployment, and reconstitution. HQDA will consider the timeframe to pull, or offset, the
  home station funding.