FINANCIAL MANAGEMENT POLICY MANUAL

and maintenance, with approval from the Chief of Naval Reserve or
Commanding General, Fourth Marine Division as appropriate.
b. Minor construction includes any urgently required construction
project not otherwise authorized by law having a cost equal to or less
than $1.5 million. However, if the military construction project is
intended solely to correct a deficiency that is life-threatening, healththreatening,
or safety-threatening, a minor military construction
project may have an approved cost equal to or less than $3 million.
Minor construction projects costing more than $750,000 may not be
carried out unless 10 U.S. Code 2805 requirements are met. This
includes advance approval by SECNAV and the 21-day notification to
the Congress. An unspecified minor construction project intended
solely to correct a deficiency that is life-threatening, healththreatening,
or safety-threatening, up to $1.5 million may be funded
from operation and maintenance accounts.
2. SUSTAINMENT, RESTORATION AND MODERNIZATION PROJECTS.
a. Sustainment has the effect of merely keeping the facility in the
customary state of operating efficiency without expectation of added
future benefits. Thus, sustainment of a real property facility is
classified as an expense. This includes the replacement of facility
components, including that equipment which is installed or built-in as
an integral part of the facility (included within Class 2 property).
b. Restoration of a facility is also classified as an expense. Under 10
U.S. Code 2811, facility repair projects costing more than $5 million
must be approved by the Secretary of the Navy in advance. The
following criteria should be considered when categorizing facility
repair projects:
(1) -Sustainment means the recurring, day-to-day, periodic or
scheduled work required to preserve the real property in such
condition that it may be used for its designated purpose.
(2) -Restoration means the restoration of real property to such a
condition that it may be used for its designated purpose.
Restoration includes repair or replacement work to restore facilities
damaged by inadequate sustainment, excessive age, natural
disaster, fire, accident, or other causes.
(3) -Modernization means the alteration or replacement of
facilities solely to implement new or higher standards, to
accommodate new functions, or to replace building components
that typically last more than 50 years (such as the framework or
foundation).
Financial Management Policy
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