FINANCIAL MANAGEMENT POLICY MANUAL

and charge funds available for base closure for such costs. However,
stabilized rates or other fully-burdened rates are not to be used.
Instead, rates on which costs are recovered should be based on actual
labor and other costs which are specifically incurred for base closure
efforts.
b. Available appropriations.
While a closing NWCF activity is continuing to perform work for
customers, it must distinguish between specific base closure costs and
NWCF operating costs. During this phase of continuing business
operations, the activity will continue to be a NWCF-financed activity,
and consider all non-BRAC costs as NWCF operating costs unless
specifically categorized as not being in support of producing goods or
services for customers. A NWCF activity reaches its mission cease
date when the activity has completed its final assigned customer work.
Once this has occurred and the activity is no longer incurring direct or
indirect costs related to its NWCF mission, the activity ceases to be a
NWCF activity and all obligations incurred from that time, including
caretaker costs, are considered costs of base closure and are funded
from funds available for base closure. These costs should not be
reported as part of NWCF operating results.
c. Operating losses.
Operating losses that can no longer be financed through rates, because
there is no longer new customer work, will be financed as a passthrough
from the Operation and Maintenance (O&M) account of the
management command in the year the rates would normally have been
adjusted.
3. IMPLEMENTATION COSTS FUNDED BY OTHER APPROPRIATIONS.
The BRAC appropriations are the primary source of funding for all nonrecurring
costs necessary to close or realign any military installation
specified in the BRAC Commission actions. In addition to funds provided
through a BRAC appropriation, authority also exists to cite funds
appropriated to the Department of the Navy (DON) for use in planning
and design, minor construction, or operation and maintenance.
Accordingly, if there is insufficient BRAC funding available at a
claimancy, the appropriate portions of the following appropriations may
be used for base closure costs: Operation and Maintenance
appropriations, Military Construction appropriations, Family Housing,
Navy and Marine Corps, and Research, Development, Test and
Evaluation, Navy. However, the BRAC appropriations are the only source
of funding for some closure and realignment costs, including
environmental restoration, procurement, military personnel permanent
change of station, and major construction requirements. This guidance
Financial Management Policy
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