FINANCIAL MANAGEMENT POLICY MANUAL

075371 INFORMATION TECHNOLOGY, AUTOMATED
INFORMATION SYSTEMS, AND GENERAL PURPOSE
COMMUNICATION SYSTEMS
1. GENERAL
Information technology (IT), automated information systems (AIS),
and general purpose communication systems that are not embedded in
weapons systems and/or major end item procurements are budgeted
according to the expense and investment criteria (see paragraph
075001) and the appropriation or fund’s purpose.
2. BUDGETING
The following guidelines are provided to help determine which
appropriation to use:
a. RDT&E Appropriation.
All costs associated with software development/modification efforts
that provide a new capability or expand the capability of the current
software program (i.e., expand the performance envelope) are funded
in the RDT&E appropriation. Systems capability is defined as
reaching the systems performance objective (Milestone C approval), as
defined in the requirements documentation. Modifications to existing
software programs are subject to this definition. Costs to be funded in
the RDT&E appropriation include: software programming efforts,
purchase of hardware required to develop the software change,
contracted program management and technical assistance support,
development testing (DT) and/or initial operational test and evaluation
(OT&E) required prior to system acceptance/approval.
(1) Some software programs may be approved for
deployment/implementation prior to reaching the system
performance objective (i.e., similar to LRIP approval). In such
instances, all follow-on software programming efforts required
to reach the system performance objective will be funded in
RDT&E.
(2) Commercial-off-the-shelf (COTS) packages/systems that
require modification (engineering design, integration, test, and
evaluation) to achieve the objective performance will be
budgeted in RDT&E. This includes purchase of the COTS
system.
(3) The acquisition, operation and maintenance of IT systems that
are used exclusively to support RDT&E activities will be
budgeted and funded within an RDT&E appropriation.
Financial Management Policy
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