FINANCIAL MANAGEMENT POLICY MANUAL

increased cost must be submitted by SECNAV for MCON projects to the
appropriate committees of Congress. For MCNR projects, the notification
will be submitted by NAVFAC. Without specific congressional approval,
21 days must elapse from the date of submission before approval can be
assumed.
4. PROJECT SCOPE VARIATION.
A military construction project may not be placed under contract if, based
upon bids received, the scope of work for the project, as approved by
Congress, is proposed to be reduced by more than 25 percent. Exceptions
can only be provided by Congress through the notification/approval
process, as provided for project cost variations.
(Change 62)
075385 CONTINUING AUTHORIZATIONS
1. RESTORATION OF DAMAGED OR DESTROYED FACILITIES
a. MCON Projects.
Under the authority of 10 U.S. Code 2854, continuing authority exists
for the use of military construction funds, for repair, restoration, or
replacement of facilities damaged or destroyed. When a decision is
made to carry out construction under 10 U.S. Code 2854 and the cost
is greater than the maximum amount for a minor construction project,
SECNAV must notify in writing the appropriate committees of
Congress of the decision, the justification for the project, the current
cost estimate, the source of funds and justification for carrying out the
project under 10 U.S. Code 2854. Without specific congressional
approval, 21 days must elapse after the notification has been received
by the committees before approval can be assumed. Funding for
approved restoration projects which meet the appropriate criteria may
be obtained either by submission in an annual appropriations request if
time permits or reprogramming of appropriated funds. Urgency is
generally a precondition for reprogramming.
b. MCNR Projects.
The lump sum authorization as provided in 10 U.S. Code 18233 allows
the guard and reserve components to construct their highest priority
projects within the total amount authorized and appropriated. If a
damaged facility is to be replaced or repaired using MCNR funds, a
project is inserted into the program through a reprogramming action
and 21 days notification to the appropriate committee of Congress.
Funds to be used are derived from savings accrued or the deferral of a
project in the overall MCNR program.
Financial Management Policy
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