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  • Question

    I am looking for a DAU produced slide that details what you can spend different pots of money on. Specifically, PMC, RDTNE & OMMC within the USMC. If this is not currently in a slide, what reference and citation will I need to look at?


    Answer

    The basic reference is the Financial Management Regulation or FMR.  The basic categories of funds you note above have the same purpose regardless of service, that is, RDTE (Navy) and RDTE (Army) fund the same kinds of activities, which is shown below for your convenience. 
     
    The RDT&E appropriation accounts finance research, development, test and evaluation efforts performed by contractors and government installations to develop equipment, material, or computer application software; its Development Test and Evaluation (DT&E); and its Initial Operational Test and Evaluation (IOT&E).  These efforts may include purchases of end items, weapons, equipment, components, and materials as well as performance of services – whatever is necessary to develop and test the system.  This applies to automated information systems as well as weapon systems.  RDT&E funds are also used to pay the operating costs of dedicated activities engaged in the conduct of Research and Development programs. RDT&E funds are used for both investment-type costs (e.g., sophisticated laboratory test equipment) and expense-type costs (e.g., salaries of civilian employees at R&D-dedicated facilities).  There is an RDT&E appropriation for each service (Army, Navy, and Air Force) as well as one to cover other Defense agencies as well as separate ones for both the operational test and developmental test activities. 
      
    The Procurement category consists of a number of procurement appropriation account titles such as Shipbuilding and Conversion Navy, Aircraft Procurement Air Force, Missile Procurement Army, Procurement Marine Corps, etc.  Procurement appropriations are used to finance investment items, and should cover all costs necessary to deliver a useful end item intended for operational use or inventory.  Items classified as investments and financed with Procurement appropriations include those whose system unit cost exceeds $250K; all centrally managed end items not purchased from Defense Working Capital Funds, regardless of unit cost (e.g., handguns); purchases from the Defense Working Capital Fund furnished as part of a system acquisition, system modification, major service life extension program and initial spares.  With certain limited exceptions, the cost of fabricating and installing additions or modifications to existing end items is also funded with procurement appropriations.  
     
    The O&M category is also composed of many appropriation account titles, e.g., Operation and Maintenance Army, Operation and Maintenance Marine Corps Reserve, Operation and Maintenance Air National Guard, etc.  O&M appropriations traditionally do not finance investments, but rather those things whose benefits are derived for a limited period of time, i.e., expenses.  Examples of costs financed by O&M funds are headquarters operations, civilian salaries and awards, travel, fuel, minor construction projects of $750K or less, expenses of operational military forces, training and education, recruiting, depot maintenance, purchases from Defense Working Capital Funds (e.g., spare parts), base operations support, and assets with a system unit cost less than the current procurement threshold ($250K). 

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