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This document outlines the funding justification for the Navy Foreign Materiel Program and the Maritime Domain Awareness Program, emphasizing the acquisition of foreign manufactured equipment and
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How to fill out Exhibit R-2, RDT&E Budget Item Justification

01
Start by gathering all relevant project documentation and objectives.
02
Identify the specific RDT&E budget items that need justification.
03
Complete the header section including the project title and fiscal year.
04
Provide a description of the capability being developed and its importance.
05
Detail the funding requirements for each budget item, breaking it down by category.
06
Include the anticipated milestone schedule and deliverables.
07
Justify requested funds with historical data and projected outcomes.
08
Review the completed form for accuracy and completeness before submission.

Who needs Exhibit R-2, RDT&E Budget Item Justification?

01
Program managers responsible for Research, Development, Test, and Evaluation (RDT&E).
02
Financial analysts and budget office personnel.
03
Defense acquisition stakeholders and decision-makers.
04
Government agencies funding and overseeing RDT&E projects.
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Remember, all costs must be reasonable, allowable, and allocable: Allowable refers to costs that may be charged to a grant or contract. Allocable refers to costs that are necessary for the success of the project. Reasonable refers to actions a prudent business person would employ.
Budget justifications indicate how and why the proposed expenses listed in the budget help to meet the project aims. A budget that is adequately and appropriately justified is the best way to ensure a productive cost analysis by the sponsor.
The budget justification is a categorical description of the proposed costs. Generally, it explains staffing and supply/service consumption patterns, the methods used to estimate/calculate (including escalation or inflation factors) and other details such as lists of items that make up the total costs for a category.
Zero-based budgeting is an approach to budgeting where all expenses must be justified at the start of each new budgeting period.
The budget justification/narrative should: Be written in everyday language. Conform to sponsor requirements for line items that require justification. Use the sponsoring agency's template when possible. Be organized in the order of the items in the detailed budget. Follow sponsor text formatting requirements.
Draft the bulk of your proposal. Start by defining the document, its audience(s) and what you expect to achieve. Then describe the project, its proposed costs and its benefits. Finally, summarize how your proposal has delivered what you outlined at the start.
Budget exhibits are prepared by the DoD Components to support requests for appropriations from Congress. Budget exhibits supporting requests for Procurement appropriations are called "P-Forms," while those supporting requests for Research, Development, Test, and Evaluation appropriations are known as "R-Forms."

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Exhibit R-2, RDT&E Budget Item Justification, is a document that provides detailed justification and description of Research, Development, Test, and Evaluation (RDT&E) budget items for federal budgeting purposes.
Federal agencies involved in the Research, Development, Test, and Evaluation of projects are required to file Exhibit R-2, RDT&E Budget Item Justification.
Filling out Exhibit R-2 involves providing comprehensive details such as the item’s rationale, objectives, funding requirements, and expected outcomes, ensuring that all sections are adequately addressed according to the guidelines provided by relevant authorities.
The purpose of Exhibit R-2 is to provide transparency and justification for RDT&E funding requests to Congress and other stakeholders, helping to ensure the effective allocation of resources for defense projects.
The information that must be reported on Exhibit R-2 includes project title, budget request details, funding history, performance metrics, and any other necessary descriptive information relevant to the funding justification.
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