Equipment Replacement Problems at Navy Industrially Funded (NIF) Research, Development, Test and Evaluation (RDT and E) Activities.
NAVAL POSTGRADUATE SCHOOL MONTEREY CALIF
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For many years the Navy industrially funded NIF Research, Development, Test and Evaluation RDTE activities have been forced to utilize appropriated funds as the primary resource for replacement of general purpose equipment. In recent years, the budget review process has been such that these funds have been drastically reduced, creating a management problem for the activities. The equipment is becoming obsolete, and difficult as well as expensive to repair. There is a need to upgrade quality and capability, which in turn would result in lower costs to the customers of the NIF RDTE activities. Recent trends indicate a growing acceptance, even pressure, to expand the authority of managers by allowing the capitalization of equipment. Statements by the General Accounting Office, the Defense Audit Agency and the OSD Assistant General Counsel indicate that capitalization of equipment is indeed a valuable management tool. The writer recommends that the Navy obtain authority to capitalize general purpose equipment at the NIF RDTE activities, as a tool necessary for the accomplishment of their respective missions. Author
- Administration and Management
- Economics and Cost Analysis