FINANCIAL MANAGEMENT POLICY MANUAL

075363 MAJOR EQUIPMENT OR COMPONENT
1. SCOPE.
This paragraph provides requirements guidance and budget policy for
procurements of major spare equipment or system components required
for expeditious replacement in the event of major damage from battle, fire,
collision, explosion, storm, etc. These major equipment and components
are principle items as opposed to secondary item spares and repair parts
generated by the equipment provisioning process.
2. REQUIREMENTS.
Generally, spare equipment or system components will be acquired only if
the equipment provisioning process will not provide all secondary items
necessary to assemble a complete equipment or system component, and
the nonavailability of the spare for replacement will seriously degrade the
capability of a combatant unit to prosecute the missions for which
designed. As a general rule, one spare will be acquired when 50 or less
equipment installations are planned and two spares will be acquired when
more than 50 installations are planned. However, actual spare quantities
of a specific equipment or system component will be approved by the
Chief of Naval Operations and the Commandant of the Marine Corps, as
applicable.
3. BUDGET POLICY.
Spare equipment or system components will be budgeted in the same
procurement appropriation in which the equipment or system is normally
budgeted. However, the Shipbuilding and Conversion, Navy (SCN)
appropriation will only budget spare equipment or components for those
equipments and systems included in a shipbuilding program for the first
time. Replacement spares and spares for equipment included in a previous
shipbuilding program will not be budgeted in the SCN appropriation.
(Change 48)
075364 INITIAL OUTFITTING
1. SCOPE.
This paragraph provides funding policy for the initial outfitting of
investment end-items such as ships, aircraft, vehicles, or other weapons
and equipment. However, this guidance is not applicable to Research,
Development, Test and Evaluation activities or end-items.
2. POLICY.
Initial outfitting is the complement of support items required to make a
newly deployed end-item complete and ready to operate. Allowance list
changes for operating end-items are also considered initial outfitting. As
Financial Management Policy
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