FINANCIAL MANAGEMENT POLICY MANUAL

authority, and are accepted if such support does not interfere with the
activity's regular mission.
2. PRINCIPLES
a. Dominant User. Interservice support assignments are made in
accordance with the dominant (principal consumer) concept where no
conflict exists with any peculiar capabilities of other DOD components.
b. Execution. Interservice support agreements are executed at the lowest
command level possible. Higher echelons of command normally issue
policy as to the command level at which interservice support agreements
may be executed. Disagreements or rejections of requests for support,
which cannot be resolved by commanders concerned, will be forwarded
for resolution through command channels.
c. Termination of Agreements. Support provided under the provisions of
a support agreement by a Department of the Navy activity shall not be
terminated unilaterally. Normally, a minimum of 180 days advance notice
of a proposed termination shall be provided by either party to an
agreement. Whenever possible, such notification should be timed so as to
permit consideration of the necessary funding adjustments during the
budget formulation process.
3. BUDGET POLICY
a. General. In instances where the Secretary of Defense or the Secretary
of the Navy directs the performance of interservice support by a
Department of the Navy activity, the programming, budgeting, and
financing of such support will be the responsibility of the parent Navy or
Marine Corps command.
b. Reimbursement.
(1) Non-DoD Components. Logistic and/or administrative support
furnished to U.S. Government departments/agencies other than DoD
components is covered by specific written agreements when costs are
significant and are to be recovered. Financial considerations required
by proposed new interdepartmental support agreements should be
staffed by the Comptroller (Budget Policy and Procedures Division)
prior to acceptance of such arrangements. When available, standard
rates, as prescribed by the Office of Management and Budget (OMB),
should be used as a basis for effecting reimbursement. However,
when actual costs of support furnished differ significantly from
standard costs, reimbursement should be based on actual cost.
(2) DoD Components. The general principle to be followed in the
provision of logistic and/or administrative support to other DoD
components is that the performing activity should recover by
reimbursement its net additional identifiable costs, using standard
Financial Management Policy
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