FINANCIAL MANAGEMENT POLICY MANUAL

prior to approval of title, as follows: ...to remain available for
obligation until September 30, 20___: Provided, that additional
obligations may be incurred after September 30, 20___, for
engineering services, tests, and evaluations, and other such budgeted
work that must be performed in the final stage of ship construction;
Provided further, That none of the funds herein provided for the
construction or conversion of any naval vessel to be constructed in
shipyards in the United States shall be expended in foreign shipyards
for the construction of major components of the hull or superstructure
of such vessel: Provided further, That none of the funds herein
provided shall be used for the construction of any naval vessel in
foreign shipyards."
3. LIMITATIONS:
a. Authorizing Legislation.
As specified in 10 U.S. Code 114, the program to be financed by the
SCN appropriation must first be approved through authorizing
legislation.
b. Time Limitations.
(1) Administrative. Within the legal availability of the
appropriation, as indicated in subpar. (2), administrative limitations
have been established.
(a) Basis Ship Construction/Conversion Project. For a basic
ship construction or conversion project, excluding post delivery
and initial outfitting projects, the obligation and work limiting
date (OWLD) is established as 11 months following
completion of fitting out (CFO) of the ship. For purposes of
completing required SCN class design agent (CDA) efforts
under contract, performance for such required efforts may be
completed after OWLD. However, obligations for such efforts
must occur prior to the OWLD for each ship.
(b) Post Delivery Project. Post delivery projects are
programmed and budgeted as annual requirements usually in
the year of post shakedown availability (PSA) and the funds
appropriated are available for obligation for 24 months.
However, obligations may not occur after the OWLD which is
established as 11 months following CFO of the ship.
Performance by a contractor of contractor responsible items is
limited only by the terms of the contract.
(c) Initial Outfitting Project. Initial outfitting projects are
programmed and budgeted as annual requirements, depending
on lead-times, over the ship's construction and post delivery
periods. The funds appropriated for initial outfitting projects
Financial Management Policy
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