Assessing the Impact of Continuing Resolutions (CRs) on DoD Contract Obligation Rates

Abstract

One concern often raised with the Department of Defense (DoD) Planning, Programming, Budgeting, and Execution (PPBE) process is the potential effect of continuing resolutions (CRs) on spending. Using DoD data on monthly total contract obligations from fiscal years (FYs) 2011–2023, this research examines whether CRs or other variables had a statistically significant effect on the monthly rate at which the DoD obligates funds on contracts. Linear regression models of obligation data find that budgetary CRs from Congress generally correlated with higher obligation rates in the few months after the full budget is passed (i.e., a bump in spending once managers know their authorized spending). The months affected varied by category (“color”) of money. Also, in some Research, Development, Test, and Evaluation (RDT&E) budget activities, spending was also lower during CR months.