FINANCIAL MANAGEMENT POLICY MANUAL

constructed under this section on property owned by the United
States, unless the contract contains:
(a) a provision for reimbursing the Government for the fair
value of the facilities at the completion or termination of the
contract or within a reasonable period of time thereafter;
(b) an option in the United States to acquire the underlying
land; or
(c) an alternative provision that the Secretary of the Navy
considers to be adequate to protect the interests of the
Government in the facilities;
(3) proceeds of sales or reimbursements under this section shall be
paid into the Treasury as miscellaneous receipts, except to the
extent otherwise authorized by law with respect to property
acquired by the contractor;
(4) authority to make the required determination by the Secretary
of the Navy is delegated as set forth in the Navy Acquisition
Procedures Supplement (NAPS) 5245.302 for projects under $3
million. Projects exceeding $3 million require OSD approval, in
accordance with DFARS 245.302-1, in addition to Secretarial
determination.
i. RDT&E Activities.
RDT&E,N financing is appropriate for the operation and maintenance
expenses of organizations/activities (including those operated by
contract) which are classified as R&D activities because they are
engaged in the conduct of the RDT&E program or primarily engaged
in its management, administration, and direct support. This includes
costs of end-items, weapons, equipment, components, materials,
services, salaries, and base operations support of direct R&D effort,
including minor construction projects within the dollar amount
authorized for operating appropriations. Installation costs of
equipment, when accomplished concurrently with a military
construction project, will be financed by the Military Construction
appropriation financing the construction project. The salaries of R&D
activity personnel who are performing technical work within the scope
of a properly funded RDT&E,N reimbursable order or expense
operating budget are properly chargeable to the RDT&E,N
appropriation, regardless of where the work is performed (e.g.,
contractor's plant, departmental headquarters, program management
offices). Base operations not in direct support of R&D effort are
funded by Operation and Maintenance appropriations. This includes
common support costs under host-tenant agreements; support of
military facilities such as barracks, BOQs, and chapels; and support of
Financial Management Policy
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