FINANCIAL MANAGEMENT POLICY MANUAL

Congress, SECNAV must report to Congress regardless of the amount
involved.
d. Operation and Maintenance Limitation.
Projects approved at a cost of $750,000 or less and undertaken within
the authority for appropriations available for operation and
maintenance to finance minor construction projects are constrained in
total cost by 10 U.S. Code 2805(c). Accordingly, if during execution
it appears that an approved project will exceed the limitation, no work
may proceed which will create obligations on behalf of the
Government in an amount in excess of the limitation. Immediate
notification to CNO or CMC is required in order to obtain the
necessary authorization to proceed, dependent upon the revised
estimated cost. Title 10 U.S. Code 2805(c)(1)(A) increased the
threshold to $1.5 million for projects to correct a deficiency that is life,
health or safety threatening.
4. BUDGET ACTIVITY 3, PLANNING AND DESIGN.
This budget activity finances the necessary design of construction projects,
including engineering, plans and specifications, and land appraisals, to
develop the most economical engineering solution for facility
requirements in advance of submission of proposed major and minor
construction projects to the Congress. Since costs for design are excluded
for construction project cost estimates, the work to be financed is budgeted
on a program year basis starting with 1 October of each fiscal year.
5. BUDGET ACTIVITY 4, SUPPORTING ACTIVITIES.
a. General.
This budget activity provides general authorizations for all other
activities in support of the military construction program and financed
from this appropriation. The number and type of programs funded in
this budget activity often vary from one budget year to the next, but
the most common have been Access Roads and Minor Land
Acquisition, which are discussed in subpars. b and c.
b. Access Roads.
The access roads program includes construction, relocation and other
work necessary to provide access roads to Navy and Marine Corps
installations or stations. Access road projects are required for
replacement or relocation of public highways necessitated by
construction of new or expansion of existing Navy or Marine Corps
activities. Such projects are also vital for relocation of highways to
satisfy airway-highway or explosive-clearance criteria. Highways
located within the boundaries of a military reservation are not eligible
for financing from these funds, nor are projects in the Federal Aid
Financial Management Policy
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