PMs/TPOCs: 7 Essential Steps to Access Reconciliation Defense Funding Opportunity
A process to help your projects benefit from re-authorized funds, elevate your programs, and navigate a seldom-understood bureaucratic process. There are seven steps that the PM team and the vendor team can take as a combined effort to elevate their work.
Rumor Up Front: This plop of cash is first-come, first-served because they don't know what to do with it. Let's see how that flakes out and the executive's repercussions and future actions. Nonetheless, below is a straightforward process to get in the mix and enhance your programmatic work.
The $150 billion in defense funding available through the recent legislation represents a massive opportunity, but accessing it requires navigating a completely new process. Here's your step-by-step guide to successfully pursuing this funding.
1. Identify Your Target Funding Bucket (Industry)
What to do: Research the 287 different funding buckets in the legislation to find the one that aligns with your technology or service.
How to do it:
- Review the 12 pages of defense-specific content in the "Big Beautiful Bill."
- Match your solution to specific congressional intent language
- Focus on buckets that emphasize competition in the defense industrial base, AI initiatives, or emerging technologies
Pro tip: The funding buckets often have significantly more money than originally proposed (sometimes increasing from $200 million to $1 billion), so don't be discouraged by initial estimates.
2. Gather Your Program Element (PE) and BPAC Codes (PM/Vendor)
What to do: Identify the specific Program Element codes and Budget Program Activity Codes (BPAC) your funding request should target.
How to do it:
- Connect with program managers in your target service branch
- Access internal SharePoint sites or Joint Budget and Operational System (JBOS) databases
- For BPAC codes, understand the numbering system:
- First digit: Type of funding (6 = R&D, other numbers = procurement)
- Second digit: Technology readiness level (1-3 = laboratory/basic research, 4+ = program-specific)
- Remaining digits: Service-specific initiative codes
Tip: Target funding in the 6-3, 6-4, or 6-5 range, as the current administration cut basic research funding (6-1, 6-2).
3. Map Your Personnel Network (Vendor)
What to do: Identify and establish relationships with key personnel involved in your funding request process.
Key roles to identify:
- Program Manager (PM) for your target office
- The Contracting Officer who will handle the execution
- Finance personnel who will process the funding
- Budget office contacts who will approve the spend plan
Factoid: Personal relationships matter significantly in this process. Having contacts who can vouch for your company and solution can be the difference between approval and denial.
4. Develop Your Congressional Connection Strategy (Vendor)
What to do: Establish or leverage relationships with congressional offices that have previously supported your technology area or company.
How to do it:
- Identify senators or representatives who have historically supported funding in your technology area
- Reach out to congressional staffers on relevant committees (Armed Services, Appropriations)
- Document any previous congressional support or interest in your technology
Why it matters: When budget offices are uncertain about a spending plan, they often contact congressional staffers to verify its alignment with congressional intent. Having a staffer who can say, "Yes, we've been tracking this company," can be decisive.
5. Create Your Spend Plan Document
What to do: Develop a comprehensive spend plan that addresses all required elements and meets the finance community's priorities.
Essential elements:
- Congressional alignment: Clear connection to specific funding bucket language
- Technical details: PE codes, BPAC codes, program office information
- Personnel: Names and roles of key execution personnel
- Acquisition strategy: Preferably SBIR Phase III for sole-source capability
- Timeline: Obligation and expenditure schedule
- Risk assessment: How you'll mitigate execution risks
Format considerations:
- Address the document to finance management personnel, not program managers
- Emphasize the speed of execution and ease of money flow
- Include contract numbers for existing vehicles when possible
- Specify "TBD" for new contracts that will be written
6. Time Your Submission Strategically
What to do: Submit your spending plan at a time when it's most likely to receive favorable consideration.
Strategic timing factors:
- Early submission advantage: Since the process is new, early submissions that make sense may help establish the framework
- Budget cycle alignment: Consider that FY26 funding will create a "double whammy" effect with both traditional and new funding streams available
- Staffing considerations: Budget offices are understaffed, so avoid peak review periods
- Congressional calendar: Align with congressional schedules and appropriations committee activities
Pro tip: Plan for a 6-8 week approval process similar to traditional budget approvals, but potentially longer for initial submissions as the process is established.
7. Prepare for the Approval Process
What to do: Understand and prepare for the various stages of the approval process, including potential pushback or questions.
Process stages:
- Initial PM review: Your program manager contact reviews and forwards
- Budget office evaluation: Finance personnel assess alignment and feasibility
- Congressional verification: Potential outreach to relevant congressional staffers
- Final approval: Money is allocated to specific program elements for execution
How to prepare:
- Ensure your PM contact fully understands and supports the spend plan
- Have backup documentation ready for any questions about congressional intent
- Prepare to iterate quickly based on feedback
- Maintain regular communication with your PM throughout the process
Red flags to avoid:
- Vague connections to congressional intent
- Incomplete technical specifications
- Unknown or untrusted personnel
- Overly complex acquisition strategies
- Unrealistic timelines
Bonus: Leverage the SBIR Phase III Advantage
You have a significant advantage in this process if you have an existing SBIR Phase II award. SBIR Phase III contracts allow for sole-source awards, which means:
- No lengthy competitive processes
- Faster execution timelines
- Easier approval from finance personnel
- Lower risk of protests or delays
Even if your Phase II work was limited, you can expand and accelerate activities under Phase III, making it an ideal vehicle for this new funding opportunity.
Bottom Line
Success in accessing this $100+ billion funding opportunity requires more than good technology—it requires understanding bureaucratic processes, building relationships, and presenting your solution in a way that makes approval easy for overworked finance personnel. Those who master this new system early will have significant advantages in securing funding and shaping how this process evolves.
This is the same drill you must do whenever you have a project, nested in a program that employs your technology. Technology employment is hard; if you do your homework, much of this paperwork and administrative tasks should be "at the ready".
