FINANCIAL MANAGEMENT POLICY MANUAL

and cost/effectiveness studies and analyses, definition studies, the
various systems development stages, and related test and evaluation.
b. Test Articles.
RDT&E test articles include the development, engineering, design,
purchase, fabrication, or modification of experimental development,
test, evaluation, or prototype articles (including end-items, weapons,
equipment, components, or materials) in the quantities required to
support testing in the conduct of approved RDT&E programs. Costs
related to test articles also include any related design and
manufacturing engineering, tools, tooling, and facilities necessary for
the fabrication of a specific article under realistic conditions essential
for reliable test results leading to approval of the end product for
operational use. All items expected to be consumed or used solely in
R&D developmental or operational test and evaluation will be
financed by RDT&E appropriations. If the asset, originally procured
for testing, will subsequently be fielded for operational use, then
procurement funding should be used. Ammunition and tactical
missiles, otherwise procured in quantity for inventory under existing
procedures, may be issued on a priority basis for use in R&D testing
without reimbursement.
c. Product Improvement.
RDT&E,N-financed product improvement includes the research,
development, engineering, testing and evaluation effort related to
redesign of major end-items and major components (currently in
production or in the operational inventory) to increase the current
performance envelope in order to extend the useful military life of
such items.
d. Aircraft Engine Component Improvement Program.
The aircraft engine component improvement program (CIP) is funded
by the RDT&E,N appropriation to provide for continuing
improvements in the areas of reliability, maintainability, durability,
correction of service-revealed deficiencies, time-between-overhaul,
etc. The criteria for CIP is established at the point in time when there
has been a Government acceptance of the first procurement funded
item, and the item has successfully completed stringent qualification
verification or testing to demonstrate initial production suitability.
e. Development Test and Evaluation (DT&E).
Development and pre-production prototypes will be RDT&E,N
financed and used for DT&E, including scientific, technical and
weapons effects tests.
Financial Management Policy
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