FINANCIAL MANAGEMENT POLICY MANUAL

delineated in par. 075001, initial outfitting costs are classified investments
by definition and are chargeable to procurement appropriations. This
includes both items that would be otherwise classified as expenses or
investments.
3. FUNDING GUIDANCE
a. Investment End-Items.
Initial outfitting requirements necessary to support end-items such as
ships, aircraft, weapon systems, and equipment will be financed by the
same procurement appropriation as the end-item to be supported and
are the budget responsibility of the command budgeting for the
acquisition of the end-item. This guidance applies to both support
items peculiar to the end-item and to common-use items capable of
supporting several different end-items.
(1) Ships.
Under the sailaway concept, the investment end item is the
complete operational new construction/conversion ship. This
includes the cost of approved allowances of on-board support
items. It excludes all other supply system items. For ships funded
in the Shipbuilding and Conversion, Navy appropriation,
contractor and government furnished equipment spares
requirements are financed in the outfitting line on a lead time to
need basis.
(2) Aircraft.
Under the flyaway concept, the investment end-item is the
complete new procurement or modified aircraft including the cost
of approved allowances of items carried on-board. It excludes all
other supply system items.
(3) Vehicles.
Under the rollaway concept, the investment end-item is the
complete new procurement or modified vehicle including the cost
of approved allowances of items carried on-board and issued with
the vehicle to render it initially operable. It excludes all other
supply system items.
(4) Other Weapons/Equipment.
The investment end-item is the complete new procurement
weapon/equipment including the cost of items that must be issued
with the weapon/equipment to render it initially operable, e.g.,
special tools and test equipment, protective gear, other equipage,
manuals, software, spare and repair parts, etc. Items "issued with"
means those items issued with the weapon/equipment when it is
Financial Management Policy
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