FINANCIAL MANAGEMENT POLICY MANUAL

morale, welfare, and recreation activities. (See Part B, Section II, of
this Chapter.)
j. Aircraft and Ships Assigned RDT&E Missions.
The support of aircraft, service craft, and ships which are not part of
the operating forces because they are assigned to Program VI
(RDT&E) in the Future Years Defense Program includes all costs of
operation and maintenance, such as flying-hours and depot level
maintenance for aircraft, and steaming, alteration, overhaul, activation/
inactivation for ships. Requirements for commercial charter and/or
hire of ships and aircraft are also included when the primary purpose
of the charter and hire is to support RDT&E,N funded projects.
k. Shipbuilding Design.
The support of ship building design includes preliminary design and
contract design costs as follows:
(1) preliminary design refers to costs incurred in definition of a
ship's mission and performance parameters within limitations of
technical feasibility that should result in a design which, on a
performance-basis or requirements-basis, approaches the Navy's
goal;
(2) contract design follows preliminary design and refers to the
tasks that expand preliminary design and engineering to establish
configurations for a bid package containing the contract plans and
specifications necessary to meet the Navy requirements for the
ship contract.
l. Prototype Training Devices.
The development and initial acquisition of a training device are
considered to be RDT&E program costs. The prototype training
device, including its Government-furnished equipment and support, is
funded by the RDT&E,N appropriation until formal Government
acceptance of the device. The RDT&E,N account will not fund
beyond the initial system unless more than one system is required to
demonstrate the training device performance. However, the
RDT&E,N appropriation does finance the development cost of
enhancing performance capability of devices already in inventory.
m. Manufacturing Technology.
The Manufacturing Technology (MT) program, which demonstrates
factory application of new or improved technology in producing
defense items, will be RDT&E,N financed.
Financial Management Policy
3-196