Army Fiscal Law Part 2

RM/Comptroller/G-8

1. Estimated procurement cost
2. Conservative estimate of contingent liabilities

1. Fixed price
2. Cost reimbursement

[a financial liability] which is not now fixed and absolute, but which can become so in case of the occurence fo some future and uncertain event

estimated conservatively to be sufficient to cover the additional obligations that probably will materialize based upon judgement and experience.
- with sufficient detail to facilitate an audit.

1 Initiation
2. Commitment/Certification of funds
3. Obligation of funds
4 Recording of obligations
5. Disbursement

1. Internal to agency
2. Subjective - conservative estimate
3. Conservative estimate of the contingent liability
4. Certify at some time before award
5. Specific act by certifying office

1. Promise to external entity
2. Objective - amount promised, definite and certain
3. Do not obligate while liability is contingent
4. Occurs upon award
5. Records soon after
6. Occurs when promise is made

Firm Fixed Price [contract]

Blanket Purchase Agreement

Indefinite Delivery / Indefininte Quantity

Indefinite Delivery / Definite Quantity

Generic Base + Options contract

natural breaking points in a contract

liabilities

No

Yes

the guaranteed minimum

bona fide need for the guaranteed minimum

1. Not a contract
2. Anticipating repetitive orders for goods and services
3. An agreement to agree
4. Each individual order under contract

Firm Fixed Price with Economic Price Adjustment

Fixed Price with Award Fees

Fixed Price Incentive

Cost-Plus-Percentage of Cost
ILLEGAL

Cost Sharing

Cost-Plus-Fixed-Fee

Cost-Plus-Award-Fee

cost ceiling

Going back to make adjustments using expired funds

unanticipated new requirement

anticipated small increase to original contract

the Purpose statute.

statuatory authority to do so.

1. Economy Act
2. Project Order Statute
3. Other Non-economy Act

a last resort, only if no other specific statutory authority is available.

1. Improve efficiency
2. Obtain economies of scale
3. Utilize existing expertise (e.g. buying ships)

actual costs, not fees.

Military Interdepartmental Purchase Request
DD forms 448 and 448-2
to document Interagency Acquisition transactions.

Orders for approved projects for government owned establishments are considered obligations in the same manner as in commerical contracts.

Government Owned Government Operated

1. DoD owned and operated
2. 50% of work done in house

1. Non-serverable
2. Production, overhaul, maintenance, research of weapons, vehicles, ammo, clothing
3. Some engineering and construction

1. No D&F required
2. Process using MIPR
3. Specific, definite, certain
4. Starts w/o delay at acceptance (w/in 90 days)
5. P-T-A

1. Reimbursable basis only
2. Obligated when order accepted
3. De-obligation generally not required

use it, instead of the Economy Act.

1. GETA - Gov't Employees Training Act
2. Required sources (GSA Advantage, etc.)
3. Clinger-Cohen Act
4. Franchise Funds

GWACs (Gov't Wide Acquisition Contract) for IT purchases.

charge fees.
Makes gov't operate more like a business.
Support services

False

spending the government's money the right way.

how to acquire stuff.

1. Requires a failed or failing state
2. Different from construction

can be funded with O&M.

Life, Health, and Safety
Raises construction funding threshold

Unspecified Minor Military Construction
$750K - 2mil

$2mil

1. Below $750K - O&M
2. $750K - 2mil - UMMC
3. Over $2mil - Specified
4. Contigency Construction (e.g. Afghanistan)
5. RDT&E

ILLEGAL
to keep parts under funding threshold

ILLEGAL
to build interdependent parts sequentially to keep under funding threshold

interrelated

interdependent

DPW (Facility Engineer)

compared to relevant thresholds.

added to funded costs to determin the total project cost.

Relocatable Building
Personal Property, not construction

If 80% of a building is recoverable, it's an RLB

1. Define the scope of the project
2. Classify the work (construction, maintenance, repair)
3. Determine funded/unfunded costs
4. Select proper appropriation
5. Identify proper approval authority

fiscal law

This is how you can spend the money we've given you.

DoD Appropriations Act

draws from the Treasury
as opposed to an authorization

Interoperability Training for foreigners
Narrow in scope
Exception to foreign assistance

Security Assistance Training
More formal
More oversight

1. Who benefits?
2. What is involved?
3. When is the obligation?
4. Where is the performance?
5. Why are we performing (purpose)?

Logistics, Support, Supply, Services

Acquisition & Cross Servicing Agreements
Foreign countries

Acquisition Only Authority

Significant Military Equipment (SME)

Significant Military Equipment

Payment In Kind

Replacement In Kind

Equal Value Exchange

Afghan Security Forces Fund

Commanders Emergency Response Program
Afghanistan

Overseas Humanitarian, Disaster and Civic Aid

Humanitarian & Civic Assistance

1. OHDACA
2. O&M
3. Unit O&M

Security Assistance Management Manual

on a Space Available basis.

Foreign Disaster Assistance

is prohibited as voluntary services
and and ADA violation.

previous appropriation expires without a new one,
or continuing resolution.

continue unimpeded.

1. Mulit-year/No-year funds
2. Statutes that expressly permit obligations in advance of appropriations.
3. Things implied by other laws
4. Things necessary and incident to the execution of constitutional powers

appropriation act that provides budget authority for federal agencies, specific activities, or both to continue in operation when Congress and the President have not completed action on the regular appropriation acts by the beginning of the fiscal year.
- Stop gap measure
- No new authority
- Amount based on last year's authority

for judgements against an agency
Treasury pays
Unlimited

administrative determination that disposes of a claim

agreement by parties based on mutual concessions.

a decision issued by a court

a decision issued by a board

settlements (except DoJ Compromise Settlements).