Meaning of program cost categories
Appropriations. There are five major Program cost categories: (a) Research, Development, Test, and Evaluation (RDT&E) appropriations fund the efforts performed by contractors and Government activities, including the procurement of End Items, materials, and services required for the Development of equipment, material, and Computer application software, and developmental and Initial Operational Test and Evaluation. RDT&E also funds the operation of dedicated R&D installations, (b) Procurement appropriations fund those Acquisition Programs that have been approved for Production, and all Costs integral and necessary to deliver a useful end item intended for operational use or inventory upon delivery, (c) Operations and Maintenance (O&M) appropriations fund Expenses such as civilian salaries, travel, minor construction projects, operating military forces, training and education, Depot Level Maintenance, stock funds, and base operations support, d) Military Personnel appropriations fund the costs of salaries and other compensation for active and retired military personnel, and reserve forces based on end strength, and, (e) Military Construction appropriations fund major projects such as bases, schools, missile storage Facilities, maintenance facilities, medical/dental clinics, libraries, and military family housing.
Source: http://www.sceaonline.org/prof_dev/CEBoK-Glossary.xls
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