FINANCIAL MANAGEMENT POLICY MANUAL

ehabilitating, or installing permanent or temporary public works,
including land acquisition, site preparation, appurtenances, utilities, and
equipment.
2. APPROPRIATION LANGUAGE.
The Department of Defense Military Construction Act provides language
for MCON as follows:
"For acquisition, construction, installation, and equipment of
temporary or permanent public works, naval installations, facilities,
and real property for the Navy as currently authorized by law,
including personnel in the Naval Facilities Engineering Command and
other personal services necessary for the purposes of this appropriation
$_____, to remain available until September 30, 20___: Provided,
that of this amount, not to exceed $_____ shall be available for study,
planning, design, architect and engineer services, as authorized by
law, unless the Secretary of Defense determines that additional
obligations are necessary for such purposes and notifies the
Committees on Appropriations of both Houses of Congress of his
determination and the reasons therefore."
3. LIMITATIONS
a. Authorizing Legislation.
As specified in par. 10 U.S. Code 114, authorizing legislation is
required for the Navy and Marine Corps military construction
program. Accordingly, the annual appropriations request is presented
on a program year basis for projects which may reasonably be
expected to start during the budget year and for which authorization is
requested concurrently. All projects included in the annual budget
request should reflect, as a minimum, a 35 percent design stage or be
based on a parametric planning estimate. Congress established the 35
percent criteria not only to ensure a good price estimate but also to
ensure that design would progress sufficiently to enable contract award
soon after appropriation of funds.
b. Time Limitations.
(1) Administrative.
A military construction projects authorization remains available for
2 fiscal years and is repealed on 30 September of the third calendar
year of availability of the MCON appropriation unless obligations
have been established to indicate commencement of construction
or a Congressional extension of availability has been obtained. An
obligation target is established for the design budget activity for
each program year starting 1 October of each fiscal year. This
limitation on the period of fund availability for obligation purposes
Financial Management Policy
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