FINANCIAL MANAGEMENT POLICY MANUAL

2. MILITARY CONSTRUCTION.
Military construction applies to the erection, installation, or assembly of a
new facility; the addition, expansion, extension, alteration, conversion, or
replacement of an existing facility; or the relocation of a facility from one
place to another. Construction includes acquisition of land, facilities, and
other fixed improvements, and equipment installed in, and made part of,
such facilities and related site preparation, excavation, filling, and
landscaping or other land improvements.
3. MINOR CONSTRUCTION.
Minor construction includes associated architectural and engineering
services and applies to erection, addition, expansion, alteration, conversion
or replacement of an existing facility; the relocation of a facility, provided
that the cost of such construction does not exceed the limits of minor
construction, as enumerated in paragraph 075386. (As noted above, with
prior approval of OASN (FM&C), APF is authorized for all categories for
restoration of facilities destroyed by acts of God, fire, or terrorism.)
Policies expressed in this section apply equally to minor construction
projects.
4. TYPE OF FUNDS TO USE FOR MWR CATEGORIES
a. Category A:
Mission Sustaining Activities. Appropriated funds should be used for
all construction projects in support of Category A activities or
programs.
b. Category B:
Basic Community Support Activities. Child development centers and
overseas youth centers, including courts and playing fields may utilize
appropriated funds for construction projects. All other activities and
programs in Category B should utilize nonappropriated funds for
construction.
c. Category C:
Business Activities. Generally, business activities must utilize
nonappropriated funds for construction. Exceptions include exchange
facilities required in areas of military conflict, or constructed in
conjunction with an appropriated funded military construction project,
such as an air terminal, hospital, housing or other construction project;
exchange logistical facilities outside the U.S. and all storage and
maintenance facilities, laundry and dry cleaning plants, bakeries,
dairies, and similar facilities operated by an exchange in support of the
Financial Management Policy
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