FINANCIAL MANAGEMENT POLICY MANUAL

is considered a major reactivation which constitutes an extension of
the original capital investment in lieu of replacement by new
procurement. When reactivation consists of work to repair and update
the same or similar military capabilities with modern technical
improvements without changing the mission/characteristics or
extending the useful life of a ship beyond the original construction
design, it is considered overhaul/modernization. For example, USS
New Jersey was reactivated during the Southeast Asia conflict as a
major gun platform without significantly changing the mission or
military characteristics. At that time, the reactivation was funded with
applicable Procurement appropriations and the O&MN appropriation.
As the battleships are currently being reactivated, the SCN
appropriation is being utilized to fund the significant increase as well
as their new role in the fleet battle groups.
d. Conversion.
A conversion consists of that work necessary to change the mission or
type classification of a ship and/or to appreciably change the military
characteristics of a ship.
e. Service Life Extension Program (SLEP).
A Service Life Extension Program (SLEP) consists of that work
necessary to significantly extend the useful life of a ship beyond that
expected of the construction design considering normal maintenance,
repair, and overhaul. This entails the work necessary to restore the
hull, machinery, and all equipment, including combat systems, to a
level of serviceability adequate to support mission requirements of the
ship during its extended life. Improvements to military and technical
characteristics by alterations made in conjunction with such restoration
may be included. Typically, such work involves laying-up the ship for
an extended period beyond that necessary for normally scheduled
overhaul. A SLEP constitutes an extension of the original capital
investment in lieu of replacement by new procurement.
f. Overhaul/Modernization.
Overhaul/modernization consists of that work necessary for depot
level repair and for incorporation of military and technical
improvements without significantly changing the mission and
characteristics or extending the useful service life of the ship beyond
the construction design. While such efforts are normally funded in the
Navy O&M and other procurement appropriations, surface ship and
submarine nuclear refueling overhauls, concurrent modernization
efforts, and advance planning are funded in the SCN appropriation.
Financial Management Policy
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