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Appropriated funds are divided into two (2) basic types; (1) investment funds and (2) expense funds. The defining of an acquisition as either investment or expense, or even a combination of the two, is not always simple. Generally, however, the following definitions apply. [1] Investment: Includes the cost of real property and capital assets which

  The Office of the Secretary of Defense (OSD) Office of Cost Assessment provides independent analysis and advice to DoD officials on matters of cost estimation and cost analysis for weapons acquisition programs, including matters of program life-cycle cost. The Director of Cost Assessment and Program Evaluation (DCAPE) provides policies and procedures for the conduct

Research, Development, Test & Evaluation (RDT&E) Appropriations (Appropriations Categories) finances expense and investment costs necessary for basic and applied scientific research, development, test, and evaluation including maintenance, rehabilitation, lease of operation of facilities and equipment. RDT&E appropriations are used to finance the following efforts: See Research & Development Costs Research, Development, Test & Evaluation Efforts,

Research & Development (R&D) Cost consists of development costs (both contractor and Government) incurred from the beginning of the Materiel Solution Analysis (MSA) Phase, Technology Development (TD) Phase, and through the end of the Engineering and Manufacturing Development (EMD) Phase. Typically costs include: [1] Advanced technology development Assembly Common support equipment Development Engineering Change Orders

Operating and Support Cost (O&S) consists of sustainment costs incurred from the initial system deployment through the end of system operations. This includes costs, directly and indirectly, attributable to the system (i.e., costs that would not occur if the system did not exist), regardless of funding source or management control. Typically costs include: [1] Continuing

OSD analysts expect to see at least 80% of Procurement funds obligated by the end of the first year of execution of those funds. For RDT&E appropriations, they expect expenditures of at least 55% of the amount appropriated by the end of the first year of execution. [1] These benchmarks are derived from historical information

The Military Interdepartmental Purchase Request (MIPR) is a method for transferring funds from one military organization to another to procure services, supplies, or equipment for the required service. A MIPR is processed on DD Form 448 and may be accepted on a direct citation or reimbursable basis and is defined in the Federal Acquisition Regulation