FINANCIAL MANAGEMENT POLICY MANUAL

Similarly, the description of a construction project for an existing facility
includes all costs necessary to produce a complete and usable
improvement, conversion, and rehabilitation.
3. BUDGET ACTIVITY 2, MINOR CONSTRUCTION.
a. General.
This budget activity provides funds for projects within a cost not to
exceed $1.5 million and not otherwise provided by law. A minor
construction project is a single undertaking at a military installation,
which includes all construction work, land acquisition, and installation
of equipment necessary to produce a complete and usable facility or a
complete and usable improvement to an existing facility. If a minor
construction project funded in the military construction appropriation
is to correct a deficiency that is life, health or safety threatening, the
project may have an approved cost of not more than $3 million.
Paragraph 3d addresses minor construction projects funded in the
operation and maintenance accounts.
b. Approval Levels.
The Committees on Armed Services and on Appropriations of the
Senate and House of Representatives must be notified in writing of the
intended execution of all unspecified minor construction projects
costing over $750,000. The project may be carried out only after the
end of a 21-day period, beginning on the date notification is received
by Congress, unless an objection has been made. Such notice applies
only to unspecified minor construction projects and is not required for
projects specifically authorized and appropriated by Congress. For
projects which cost $750,000 or less, approval authority has been
delegated to the Chief of Naval Reserve and the Commanding
General, Fourth Marine Division. Projects which cost $750,000 or
less are eligible for financing from appropriations available for
operation and maintenance. Approval authority for this category of
minor construction has been delegated to the major claimants.
c. Cost Increases.
The approved amount for a minor construction project may not be
increased above $1.5 million without the approval of the Military
Construction Subcommittees of the Appropriations Committees of the
House and Senate. Congressional approval is required if the project
costs go above $1.5 million, because in effect, the project moves from
a minor construction project to a major construction project at this
dollar threshold and reprogramming action is required to approve the
resulting major construction project.
Financial Management Policy
2-87