FINANCIAL MANAGEMENT POLICY MANUAL

5. RDT&E,N LEGAL RESTRICTIONS.
The Incremental Programming Policy does not establish any additional
legal restrictions beyond those already adhering to the RDT&E,N
appropriation, i.e., funds are available for obligation for a period of 2
years and only for the purposes justified to and approved by the Congress.
Therefore, there can be no violation of 31 U.S. Code 1301(a), in the
RDT&E,N appropriation if an obligation occurs during the 2-year
availability and is otherwise appropriate as to purpose. However, in
regard to the application of this incremental programming policy, the
absence of violations of law does not diminish the seriousness of
infractions against the policy. Officials disregarding the policy as
expressed herein expose themselves and the Department of the Navy to
substantial criticism, potential reprimand, and future funding reductions to
subject programs.
6. ADMINISTRATION OF THE POLICY.
Administering offices holding RDT&E,N allocations will be responsible
for adherence to this policy in formulating and executing assigned
segments of the appropriation. This includes responsibility for authorizing
in-house work at field activities under operating budgets and reimbursable
orders. The incremental programming policy does not impose any
additional restrictions on field activities beyond those normally entailed in
the acceptance of operating budgets and reimbursable orders except where
the field activity is acting as a contracting agent. Contracts are to be
administered by field activities subject to the guidelines established in
subpar. 2 as modified for the exigencies of execution in subpar. 3.
(Change 67)
075403 PROGRAM AND BUDGET COSTS
1. SCOPE.
This paragraph establishes definitions, policy, and cost criteria for
classifying the financial resources to support Department of the Navy
(DON) RDT&E programs. This guidance shall be used to define the
content of the RDT&E,N appropriation.
2. DEFINITIONS.
As used in this paragraph, definition of terms follows:
Development Test and Evaluation (DT&E) - Test and evaluation
conducted to assist the engineering design and development process
and to verify attainment of technical performance specifications and
objectives.
Operational Test and Evaluation (OT&E) - Test and evaluation
conducted to estimate a system's operational effectiveness and
Financial Management Policy
3-190