FINANCIAL MANAGEMENT POLICY MANUAL

i. Low Rate Initial Production (LRIP) Assets.
LRIP provides production configuration or representative articles for
operational test (RDT&E funded); establishes an initial production
base for the system (procurement funded); and permits an orderly
increase in production rate for the system (procurement funded). If the
asset requires development or operational testing by an independent
test agency (COMOPTEVFOR), then it should be procured with
RDT&E funds. If the asset will be fielded, procurement funds must be
used. LRIP quantities will be determined as part of the Production and
Deployment approval (Milestone C) and must be identified in budget
documentation. RDT&E funds will be budgeted to procure the items
required for operational testing of LRIP assets.
7. USE OF DEPARTMENT OF THE NAVY RESEARCH FACILITIES BY
ACADEMIC INVESTIGATORS
a. General.
Department of the Navy (DON) specialized facilities will be made
available for research by academic investigators who are working on
experiments which have scientific merit, relate to Department of
Defense (DoD) research objectives, or contribute to the advancement
of national research and research training. Academic investigators
must agree to make the results of their research available to the DoD
and all other interested Government agencies. It is anticipated that the
scope of most academic research performed at DON activities will be
sufficiently limited to be covered by funds and resources controlled
directly by the activity concerned. However, NWCF activities may
request that funding be provided by the academic institution and/or
sponsoring organization.
b. Funding
(1) Department of the Navy Activities.
Normal operating costs of the research facility being used by
academic investigators will not be billed, unless significant
incremental costs not directly related to the mission of the research
facility will be incurred. Additional costs generated from the
academic research may be borne by the DON activity concerned.
The significance of such costs and the anticipated impact on the
mission will be determined, primarily:
(a) by the local DON activity director, for research activities
of the DON; and
(b) by the primary DON contract monitor, for DONsponsored
research centers.
Financial Management Policy
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