Resilient financial management drives $95.8 billion Fiscal Year 2026 execution
WRIGHT-PATTERSON AIR FORCE BASE, Ohio -- The Air Force Materiel Command executed $95.8 billion across its Fiscal Year 2026 financial portfolio, maintaining near-100% obligation rates despite a 43-day government shutdown, 79-day continuing resolution and emergent operational requirements.
“We’ve had an incredible year,” said Lt. Gen. Linda Hurry, AFMC commander. “Our successes are a direct reflection of the contributions made at every echelon. Whether supporting contracting, financial management, program execution, sustainment, readiness, or headquarters operations, AFMC remains postured to deliver for our Air Force and our nation.”
Through disciplined financial management and enterprise coordination, AFMC protected readiness and depot sustainment pipelines, reduced fiscal year 2027 contract risk, advanced modernization priorities and supported Department of the Air Force solvency actions.
“I’ve jumped out of perfectly good airplanes, and while I love a good freefall, I have to admit that there were times this fiscal year when I wondered if we had a working parachute. In each of those high-pressure moments, I simply focused on the incredible Financial Management professionals across AFMC. Their exceptional skill, dedication, and resilience reassured me that our parachute was fully intact,” said Brig. Gen. Jason Corrothers, AFMC Director of Financial Management and Comptroller.
A breakdown of key AFMC financial portfolios follows.
Operation and Maintenance
The AFMC Operation and Maintenance team executed 99.9% of its $3.4 billion portfolio, including full obligation of $12 million in reconciliation funding for the Rapid Sustainment Office.
At the start of the fiscal year, the team obligated $40 million across 151 approved excepted activities to maintain critical programs during the government shutdown. The portfolio also internally funded $67 million in emergent operational requirements and returned $64 million to support the Air Force solvency plan.
As fiscal pressures continued, AFMC identified $87 million in contracts that could be incrementally funded to address the command’s highest priorities. Through internal realignments and additional Department of the Air Force resources, the team reduced unfunded FY27 contract requirements at the start of the fiscal year from $87 million to $10 million.
The resulting funding strategy fully supported previously deferred base communications and support-service contracts, vehicle program requirements and war reserve materiel needs. It also restored $33.6 million to extend logistics information-technology contracts through March 2027.
AFMC directed an additional $63.6 million in year-end funding toward high-priority unfunded requirements, including:
- Strategic Mission Planning and Execution System
- Edwards Air Force Base Federal Aviation Administration range licensing
- Air Force Metrology and Calibration operational support
- F-35 data analytics
- Installation communications requirements.
Installation and Mission Support
The Air Force Installation and Mission Support Center concluded FY26 with a nearly 100% obligation rate against approximately $9.4 billion in Air Force and Space Force funding.
AFIMSC managed significant fiscal pressure associated with a $1.3 billion Facility Sustainment, Restoration and Modernization reduction, emergent high-priority requirements and congressional marks that created a $2.1 billion backlog of deferred installation requirements.
The team maintained solvency while ensuring uninterrupted funding for priority life, health and safety needs while delivering major infrastructure and quality-of-life projects.
AFIMSC also executed $1.1 billion in Air Force Construction Task Order projects, $927 million in reconciliation military construction funding, $222 million in dormitory projects and $211 million in Pacific Deterrence Initiative infrastructure.
Centralized Asset Management
The Centralized Asset Management portfolio, which includes Weapon System Sustainment and the Flying Hour Program, executed nearly 100% of its $21 billion portfolio, including $2.2 billion in reconciliation funding.
The CAM team contributed $1.4 billion toward Air Force solvency requirements while employing contract rephasing, funding realignment and risk-management strategies to preserve readiness.
Weapon System Sustainment efforts mitigated $330 million in operational risks and restored $119 million in critical contract requirements across multiple mission areas. The work supported sustainment and readiness needs for platforms and capabilities including but not limited to the F-35, MQ-9, F-22, KC-135, RC-135, B-2, T-6, T-38, and C-12.
The Flying Hour Program executed more than $6.6 billion and managed $600 million in reimbursable funding, securing 905,000 Air Force flight hours in support of global operations.
Investment
AFMC’s investment portfolio obligated nearly 100% of $49.8 billion in research, development, test and evaluation and procurement funding.
The command also obligated 98.5% of $12.2 billion in reconciliation funding, providing critical stability for high-priority nuclear modernization, next-generation air dominance and advanced munitions programs.
Investment funding sustained programs including the:
- LGM-35A Sentinel
- Long Range Standoff weapon
- F-47
- Collaborative Combat Aircraft
Procurement activity sustained key platforms and launched new efforts related to the B-21 Raider. It also supported advanced munitions such as the Joint Air-to-Surface Standoff Missile-Extended Range and Long Range Anti-Ship Missile while expanding capabilities with the Air-Launched Rapid Response Weapon and Family of Affordable Mass Missiles.
Working Capital Fund
AFMC’s Working Capital Fund team led a $1.6 billion solvency and cash-recovery effort related to current operations, helping protect critical depot repair and supply missions.
The team analyzed 1,300 job-order numbers and recovered a historic $680 million in prior-year losses. It also implemented a three-month, $1.2 billion Flying Hour Program rate reduction, creating enterprise trade space and reducing pressure on working-capital cash.
In support of audit readiness, the Working Capital Fund accounting team matched 98% of inventory items across a $45 billion portfolio to Federal Logistics Data records. The effort resolved a historical opening-balance barrier with the Independent Public Accountant and advanced the command’s progress toward a clean audit opinion.
Contracting
AFMC Contracting obligated $90.96 billion in Federal Acquisition Regulation (FAR)-based contracts, executing 52,860 contract actions. This represents 76% of total Air Force spending and 51.6% of all Air Force actions. Additionally, AFMC executed 1,332 non-FAR actions, obligating $3.23 billion in non-FAR awards.
In addition to external actions, the AFMC contracting team led several enterprise initiatives that directly impact acquisition modernization and warfighter readiness.
AFMC continued efforts to migrate all legacy contract writing system users to CON-IT across 114 Department of Defense Activity Address Code sites. The team drove transitions across 64 sites this fiscal year—successfully completing 52 major migrations with 14 ongoing transitions ahead of schedule. A custom database upload tool deployed across 25 buying organizations reduced migration timelines by more than 80%, helping contracting professionals transition to the new system while maintaining mission execution.
The organization also led enterprise training for more than 8,500 acquisition professionals, strengthening the workforce’s ability to implement policy and regulatory requirement changes with agility. Partnering with the AFMC Strategic Plans, Programs, Requirements and Analyses directorate, the contracting team reviewed $32.2 billion in requirements approval documents, reducing review and processing timelines by 20 days, and identified projected FY27 savings of $541 million through review of Small Business Administration 8(a) contracts.
Small Business
The AFMC Small Business team had another successful year in FY26, with $10.4 billion in awards, generating a record $9.1 billion for non- Small Business Innovation Research/ Small Business Technology Transfer awards. This is the third consecutive year that AFMC Small Business spend has exceeded $10 billion.
The SBIR/STTR awards eclipsed $2 billion in new Phase III contracts for the second year in a row. These awards play a key role in the transition of new technologies and capabilities to the warfighter.
AFMC also continues to strengthen the industrial base with 799 new small business entrants to the AFMC marketplace. AFMC reached record levels in average obligations per small business contracts, obtaining an average of $772,000, an increase of 5.6% over FY25.
Additionally, with the emphasis on Other Transaction Agreements to further speed up the acquisition life cycle, AFMC separately awarded over $224 million to small businesses.
Positioned for Fiscal Year 2027
AFMC financial management professionals are coordinating with the field to execute the FY27 Execution Plan. Building upon lessons from FY26, the command will continue to identify and manage fiscal risks early, protect readiness and modernization priorities, preserve industrial capacity and deliver responsive support to Air Force and joint warfighters
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