FINANCIAL MANAGEMENT POLICY MANUAL

1. CETS will not exceed the 12-month period after acceptance of
the first production unit of the model being produced, and
2. CETS will be procured as a separate line item in the production
contract.
In the event that items within a contract are funded by several
Department of the Navy Procurement appropriations, CETS qualifying
for funding under Procurement appropriations will be funded by the
dominant Procurement appropriation involved.
c. Research, Development, Test and Evaluation, Navy Appropriation.
CETS required in direct support of research and development program
effort for systems and other items, from inception through completion
of initial operational test and evaluation, will be budgeted under the
appropriation Research, Development, Test and Evaluation, Navy
(RDT&E,N) and funded under the appropriate RDT&E,N project.
Contract technical support which is not project oriented, e.g., range
operations, is not categorized as CETS and is budgeted under
RDT&E,N in the management and support category.
d. Operation and Maintenance Appropriations.
CETS required to support follow-on test and evaluation efforts
directed for the demonstration of operational suitability of systems and
other items being introduced into inventory will be budgeted under
Operation and Maintenance (O&M) appropriations. Additionally,
CETS not meeting criteria for funding under RDT&E,N or
Procurement appropriations will be budgeted within O&M
appropriations, e.g., CETS authorized after the 12-month limitation.
e. NWCF Activities.
CETS requirements for activities that operate under NWCF procedures
will be included in total CETS requirements budgeted in Procurement
accounts. However, CETS requirements beyond the 12-month period
authorized to be financed by Procurement appropriations will be
financed by the NWCF.
(Change 48)
075367 BOATS AND CRAFT
The Shipbuilding and Conversion, Navy (SCN) appropriation will budget for
the following boats and crafts:
1. service craft included in the current issuance of SECNAVINST 5030.1,
"List of classifications of naval ships and service crafts";
2. all landing craft;
Financial Management Policy
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