FINANCIAL MANAGEMENT POLICY MANUAL

a. routine port services to naval vessels in territorial waters of the United
States or in waters under U.S. control, including pilotage, tugs, garbage
removal, line handling, and utilities;
b. routine airport services to military aircraft, including landing and
takeoff assistance, use of runways, parking and aprons, and servicing;
c. miscellaneous supplies to naval vessels and military aircraft, including
fuel, provisions, spare parts, and general stores, but not including
ammunition (subject to the approval of the cognizant fleet or force
commander when provided overseas);
d. subject to the approval of the Chief of Naval Operations in each
instance, overhauls, repairs, and alterations to naval vessels and military
aircraft, including necessary equipment and its installation required in
connection therewith. OPNAVINST 4900.79 series applies.
When items a and b are performed by military personnel without direct cost to
the Department of the Navy, such services are provided to friendly foreign
governments without charge, except at industrial fund activities.
2. FUNDING. Reimbursable work for foreign governments is initially
financed by Department of the Navy operation and maintenance
appropriations or by the Navy Working Capital Fund.
3. AUTHORITY FOR NONREIMBURSABLE PORT SERVICES. Pursuant
to law (10 U.S. Code 7227) and as authorized by Navy Regulations, Art.
0835, routine port services may be provided without reimbursement to naval
vessels of allied countries (NATO countries, Australia and New Zealand, and
other countries designated by the Secretary of Defense) provided there is an
agreement providing for reciprocal provision of port services to U.S. naval
vessels without charge. If these routine port services are performed by an
industrially funded activity; e.g., shipyard or public works center, the costs are
to be charged to military support funds of the command in charge of the
industrial activity.
(Change 60)
075244 FUEL EXCHANGE AGREEMENTS
1. AUTHORITY. Pursuant to law (10 U.S. Code 7227), and as implemented
by Navy Regulations, Art. 0835, fuel may be provided to, or received from a
friendly foreign government on a replacement or reimbursable basis under a
Fuel Exchange Agreement (FEA). An FEA is an international agreement
following different billing and reimbursement guidance from that contained in
par. 075243. Under FEA's, transfers of fuel are normally replaced in kind.
However, fuel issues paid for in cash by foreign governments will be charged
the standard price in effect at the end of the calendar year, when the status of
the accounts of the participating governments is determined, without
assessment of administrative or accessorial charges. Statements and billings
are required at least annually with settlement in cash, or by replacement of
Financial Management Policy
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