Appropriated Funds Summary
FMS CASEBothMulti-YearsUntil expended
*These funds are usually issued for one year and extended for three months if necessary.

Additional information about these and other appropriations is available from the NAVCOMPT Manuals available through the Comptroller’s office.

It is worthwhile to note that once appropriations have cancelled for expenditures (payments) against valid obligations (generally, commercial contracts), funds to make required payments must come from current year appropriations.

Operations and Maintenance (O&M):

There are separate O&M appropriations for each of the military departments (Army, Navy, Air Force, and Marines) as well as their reserve components. O&M funds are for expense items and, as the name implies, are for the operation and maintenance support of the service. The O&M appropriations are further sub-divided into Budget Activities corresponding to the DoD list of Major Force Programs. O&M appropriations are available for obligation for one year and available for obligation adjustments and expenditure for an additional five years.

Other Procurement (OP):

One of the several Procurement appropriations is the Other Procurement appropriation designated for each of the military departments (OP,A; OP,N; OP,AF; P,MC). OP appropriations are for investment items that do not fall into a specific area for which funds are separately approved, e.g., aircraft, weapons, military construction, etc. Generally, procurement appropriations are available for obligation for three years and an additional five years for adjustments and expenditure.

Aircraft Procurement (AP):

A common appropriation at NAWCTSD is Aircraft Procurement, Navy (AP,N). As the name indicates, these funds are appropriated for the procurement and modification of Naval aircraft and support equipment, including training devices/systems. This investment appropriation is divided into seven Budget Activities and is available for obligation for three years plus five more years for adjustments and expenditure.

Research, Development, Test, and Evaluation (RDT&E):

Common to all services and defense agencies, RDT&E funds are available for both investment and expense items that are procured as part of an RDT&E project. The RDT&E appropriation is divided into seven Budget Activities corresponding to the various phases or categories of research. A key feature of the RDT&E Appropriation is that it can be used to incrementally fund project effort. The funds are appropriated for two years with a goal of 100% obligation in the first year of availability. After the two years of availability for obligation, the funds are available for an additional five years for adjustments and expenditure. The seven budget activites relative to RDT&E are:

Budget ActivityResearch CategoryTitle
16.1Basic Research
26.2Applied Research
36.3aAdvanced Technology Development
46.3bDemonstration & Validation
56.4Engineering & Manufacturing Development
66.5RDT&E Management Support
76.6Operational Systems Development
Note: 6.1 through 6.3a are referred to as Science and Technology (S&T) under the purview of Director Defense Research & Engineering (D,DR&E)

Shipbuilding and Conversion, Navy (SC,N):

Received occasionally at NAWCTSD, these funds are available for obligation for five years plus five more for adjustments and expenditure.

Foreign Military Sales (FMS):

These funds represent foreign customer funds on deposit with the treasury for payment of bills associated with properly executed and approved FMS cases. These are referred to as “no year funds” with no expiration date. They are available for both expense and investment items that are part of the sale. There are a number of unique rules that apply to FMS transactions. Questions should be addressed to NAWCTSD Code 1.4.1.

Last Update: 29 April 2010