FINANCIAL MANAGEMENT POLICY MANUAL

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 of the Government in an
amount in excess of the limitation. Immediate notification to CNO or
CMC is required in order to obtain necessary authorization, 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
from construction project cost estimates, the work to be financed is
budgeted on a program year basis starting with 1 October of each fiscal
year.
(Change 67)
074522 BUDGET ACTIVITY SUBHEADS
The first subdivision under the appropriation is the budget activity, which is
identified in the account structure by a separate subhead. The MCNR
appropriation four-digit subhead numbering system identifies the following
data elements.
First two digits - Administering office
Third digit - Fiscal year program
Fourth digit - Budget activity
(Change 62)
074523 ADMINISTRATION
1. APPORTIONMENT.
Project proposals are developed by Navy and Marine Corps field activities
and submitted via command chain to claimants, who, in turn, submit their
command-approved projects requests to the Chief of Naval Operations
(N095) for consideration in development of the annual Military
Construction Reserve Program. N095 coordinates the preparation and
Financial Management Policy
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