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This Technical Memorandum is a continuation of previous efforts to develop the necessary rationale and methodology needed in order to construct historical inflation indices, in the Research and Development (R&D) area, relative to Army aircraft. The R&D historical indices, and the sub-indices from which they are derived, are presented in the appendices to this report for the period FY68 through FY81. These indices are appropriate for updating statistical reports that formerly utilized the OSD forecasting indices; for initial use in bringing a cost in prior years to a present-year dollar value; and for evaluating inflation actually experienced. A computer program is utilized to make the necessary mathematical calculations. Data sources for this report were the Office of Personnel Management (OPM) and the Bureau of Labor Statistics (BLS). OPM supplied data on government salaries. BLS furnished data on industry salaries and thirteen different materials. The computer program prints the R&D historical inflation indices and subindices by fiscal year as shown in Appendices C through G of this report.