FINANCIAL MANAGEMENT POLICY MANUAL

must be obligated within 24 months. However, obligations
may not occur after the OWLD, which is established as 11
months following CFO.
(d) Extensions. The 24-month limitation data for post delivery
and outfitting projects may be extended if authorized by the
Chief of Naval Operations. The overall obligation and work
limiting date of 11 months following CFO can be extended
only if the circumstances warrant and approval is granted by
the Comptroller of the Navy. Requests for extensions are
submitted to the Comptroller of the Navy.
(2) Congressional.
(a) Five-Year Limitation. The budget request submitted to the
Congress for each fiscal year under the SCN appropriation is
for a multiple-year appropriation to remain available for
obligation for 5 fiscal years except as noted in subpar. (b).
Each fiscal year appropriation enacted is separate and discrete.
Following the period of availability for incurring new
obligations, the account remains available for use for 5 years
for effecting authorized obligation adjustments and payments
in accordance with NAVCOMPTINST 7040.37.
(b) Additional Availability. Based upon statutory language for
the SCN appropriation, additional obligations may be incurred
after the 5-year limitation for those work elements performed
in the final stages of ship construction. The extended
availability is authorized to cover those items essential to
delivering a complete ship and encompasses items such as
engineering services, tests, evaluations, trials, and deferred
work. These obligations can be related to within scope
obligations or can be new scope obligations if used for the
purpose of completing the ship as originally intended. Ship
characteristics changes approved through the Ship Cost
Adjustment (SCA) processes, prior to the 5-year limitation and
within the ship budget, can be contracted within this period.
Characteristics changes approved after the 5-year limitation
can only be funded in a cost growth line item contained in an
active SCN appropriation. Advance procurement line items,
service and landing craft, post delivery and initial outfitting
programs, cost growth, escalation on prior year programs and
similar line items will not be extended beyond the 5-year
limitation for new scope obligations. This extended
availability applies to all SCN appropriations currently
Financial Management Policy
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