FINANCIAL MANAGEMENT POLICY MANUAL

f. Fleet Support.
The operating cost of Fleet aircraft and ships in support of DT&E and
IOT&E is financed from Operation and Maintenance appropriations by
Fleet Commanders as Fleet operations costs. However, reimbursement
to the Fleet from the RDT&E,N appropriation is authorized for
command support and special support costs incurred in connection
with DT&E and IOT&E.
g. General Procurement.
Articles (including major end-items, weapons, equipment,
components, and materials) of types regularly procured to meet
established general requirements may be assigned or allocated on a
priority basis for use in support of approved R&D programs, and if not
consumed in testing, may be financed by Procurement appropriations.
These articles may include those which are normally procured for
operational use, operational training, or for inventory. If the article is
procured and utilized prior to being received into physical inventory or
operational use, then proper records must be established and
maintained to assure accountability. This policy applies to all
investment items of equipment, including assemblies, spares and repair
parts subject to centralized individual item management
(Appropriation Purchases Account and Marine Corps Appropriation
Stores Account). The RDT&E,N appropriation will finance any costs
necessary to return the item to serviceable condition following test
activities. Reimbursement by the RDT&E,N appropriation is also
required if the items cannot be returned after use.
5. NON-RDT&E RELATED COSTS FUNDED BY OTHER APPROPRIATIONS
a. Production and Logistics Testing.
Testing funded by appropriations other than RDT&E,N includes
acceptance, quality control, and surveillance testing of articles
obtained for other than RDT&E purposes; routine testing in
conjunction with logistics support; and testing related to the operation
and maintenance of equipment and material acquired for use under
appropriations other than RDT&E.
b. Follow-on Operational Test and Evaluation (FOT&E).
For programs proceeding in the classical sense, FOT&E is funded by
Procurement appropriations for acquisition of test articles and by the
developing agency’s Operation and Maintenance appropriation for
special support and command costs incident to FOT&E (through OT-
III) efforts.
c. Commercial Items.
Commercial items for testing and operational evaluation by field units
Financial Management Policy
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