FINANCIAL MANAGEMENT POLICY MANUAL

2275) also issued, as appropriate;
Debt Payment - Allotment/Suballotment Authorization (NAVCOMPT
Form 372) issued to the Deputy Director of Programs and
Comptroller, NAVFAC.
2. EXECUTION.
a. Construction.
(1) New Construction. Reprogramming criteria for all new family
housing construction projects, repair, and improvement projects
should be consistent with the new requirements for military
construction projects. All improvement projects over $1.5 million
are to be included in this procedure. If the new cost estimate
exceeds the old by 25 percent or $2.0 million, whichever is less,
the Department must submit a reprogramming request for approval
to both the House and Senate Military Construction Appropriations
Subcommittees. However, the requirement for reprogramming
approval will be waived in certain cases involving costs associated
with environmental hazard remediation. (The following guidance
was provided in U.S. Senate Report 103-312: "To provide the
individual services the flexibility to proceed with construction
contracts without disruption or delay, the costs associated with
environmental hazard remediation such as asbestos removal, radon
abatement, lead-based paint removal or abatement, and any other
legislated environmental hazard remediation may be excluded,
provided that such remediation requirements could not be
reasonably anticipated at the time of budget submission. This
exclusion applies to projects authorized in the budget year as well
as projects authorized in prior years for which construction
contracts have not been completed.") The request must be prepared
by OASN (FM&C) and submitted 30 days prior to the date on
which action is required. Additional details on Congressional
funding and reprogramming limitations that apply to the Family
Housing appropriation are provided in pars. 074500 and 074503.
(2) Post Acquisition Construction and Improvements. All
improvement projects costing over $1.5 million in which the new
cost estimate exceeds the old by 25 percent or $2.0 million,
whichever is less, are governed by the reprogramming procedures
and criteria for military construction projects. However, the
requirement for reprogramming approval will be waived in certain
cases involving costs associated with environmental hazard
remediation. (The following guidance was provided in U.S. Senate
Report 103-312: "To provide the individual services the flexibility
to proceed with construction contracts without disruption or delay,
the costs associated with environmental hazard remediation such as
asbestos removal, radon abatement, lead-based paint removal or
Financial Management Policy
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