This paragraph shall apply even though the project is to be carried out using funds made available to enhance the deployment and mobility of military forces and supplies. (b) Approval and Congressional Notification.-(1) An unspecified minor military construction project costing more than $1,000,000 may not be carried out under this section unless approved in advance by the Secretary concerned. However, if the military construction project is intended solely to correct a deficiency that is life-threatening, health-threatening, or safety-threatening, an unspecified minor military construction project may have an approved cost equal to or less than $4,000,000.
(2) An unspecified minor military construction project is a military construction project that has an approved cost equal to or less than $3,000,000.
#OMA CONSTRUCTION CODE#
The threshold amount of O&M that can be used for Minor Construction comes from Title 10 US Code (USC) 2805 (see 2(c): A system is comprised of a number of components that are part of and function within the context of a whole to satisfy a documented requirement. The concept of a system must be considered in evaluating the procurement of an individual end item. This criterion is applied on the basis of the unit cost of a complete system rather than on individual items of equipment or components that, when aggregated, become a system. Assemblies, spares and repair parts, and other items of equipment that are not designated for centralized item management and asset control and which have a system unit cost less than the currently approved dollar threshold of $250,000 for expense and investment determinations. Maintenance, repair, overhaul, rework of equipment.į. Supplies and materials designated for supply management of the Defense Working Capital Funds.Į. Rental charges for equipment and facilities.ĭ. Labor of civilian, military, or contractor personnel.ī. The following guidelines shall be used to determine expense costs:Ī. Military personnel costs are an exception to this rule. When costs generally considered as expenses are included in the production or construction of an investment item, they shall be classified as investment costs. Expenses are costs of resources consumed in operating and maintaining the Department of Defense. The following criteria will be used to distinguish those types of costs to be classified as expenses from those to be classified as investments for budgeting purposes:ġ. Procedures for Determining Expenses Versus Investments.
Items procured from the Defense Working Capital Funds will be treated as expenses in all cases except when intended for use in weapon system outfitting, government furnished material (GFM) on new procurement contracts, or for installation as part of a weapon system modification, major reactivation, or major service life extension.ĭ. Costs budgeted in the Research, Development, Test and Evaluation (RDT&E), Base Realignment and Closure (BRAC), and Family Housing appropriations include both expenses and investments.ĭefinitions for costs within the Defense Working Capital Funds are provided in Chapter 9 and in Section 010214.Ĥ. Costs budgeted in the Procurement and Military Construction appropriations are considered investments. Costs budgeted in the Operation and Maintenance (O&M) and Military Personnel appropriations are considered expenses. Cost definitions for accounting purposes are contained in Volume 1.ģ. The cost definition criteria contained in this policy are only applicable to the determination of the appropriation to be used for budgeting and execution. The Financial Management Regulation (FMR) 7000.14-R addresses the uses of O&M based on the determination of an expense or investment, see below::Ģ. Due to the lack of clarification from the questioner, below is the guidance from the Financial Management Regulation (FMR) 7000.14-R Volume 2A Chapter 1. The question revolves around the use of Operation and Maintenance, Army, funds for labor and ODE's.
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