FINANCIAL MANAGEMENT POLICY MANUAL

activities providing support to State Department activities overseas will report
to N09BF or HQMC (PP&O-PLU), as appropriate, the estimated costs to be
incurred for a full fiscal year. This report is due on 30 April for the fiscal year
being reported on.
7. OVERSEAS SECURITY SUPPORT. Overseas Security Support services
are governed by a Memorandum of Understanding (MOU) between the
Department of State and the Department of Defense in accordance with the
Omnibus Diplomatic Security and Anti-terrorism Act of 1986 (22 U.S. Code
4801). Payment for these services is also administered by CNO (N-09BF) or
HQMC (PP&O-PLU).
(Change 67)
075215 NATIONAL AERONAUTICS AND SPACE
ADMINISTRATION
1. GENERAL. A joint agreement between the Department of Defense
(DoD) and the National Aeronautics and Space Administration (NASA)
provides specific guidance for estimating, budgeting, and billing for contract
administration and related support services provided to the NASA.
2. POLICY. A basic hourly rate is applied to the actual direct hours worked
for NASA by the Navy and includes the following elements of cost:
a. direct labor,
b. indirect labor,
c. fringe benefits,
d. travel,
e. administrative support.
The hourly rate is reviewed annually and adjusted if necessary to reflect cost
changes resulting from wage increases and changing workload. NASAauthorized
overtime will be applied at the currently established overtime
billing rate.
3. PROCEDURES
a. Estimating. The Chief of Naval Operations (CNO) provides NASA
with estimates, by 15 April and 15 October each year, of the total
reimbursable costs projected for the current and budget fiscal years.
Estimates are based on uncompleted contract administration services,
audit work on hand, and work to be performed on NASA delegations.
Reimbursements earned are continuously reviewed to ascertain whether
they are in line with annual cost estimates. NASA is advised promptly of
any significant (5 percent variation) revisions considered appropriate.
Financial Management Policy
3-111