Ask A Professor (AAP) is a Department of Defense resource for asking acquisition and logistics questions concerning policies and practices.
Types / colors of money
9/18/2017 10:18:00 AM
Question: I'm trying to find information about the different types / colors of money? All the links and references that I found in my search were old and lead nowhere. I'm looking for a single sheet/chart (or 2) that summarizes this information
Answer: Below is a chart with the different Department of Defense Major Appropriation Categories (updated based on the latest guidance): ...(More)
Funding Policies for Modifications
9/7/2017 10:18:00 AM
Question: Does the unit cost refer to the end item that the modification is being done to? Or does the unit cost refer to the cost of the parts used in the modification? Or, is the unit cost the complete cost of the modification including labor and parts?
Answer: Response: The Department of Defense Financial Management Regulation (DoD FMR 7000.14-R, June 2017), Vol. 2A, Ch. 1, 010201 provides criteria for determining expense and investment costs. Paragraph B provides the basic distinctions between expense and investment costs: 1. Expenses are the costs incurred to operate and maintain the organization, such as personal services, supplies, and utilities. 2. Investments are the costs that result in the acquisition of, or ...(More)
What constitutes an ADA on a reimbursable order?
9/6/2017 12:27:00 PM
Question: Historically, we have had issues with customers requesting services from our offices prior to their resource management providing funding. This has been a big issue and there have been cases of never receiving the funds to cover our services. Per the Red Book, intra-agency reimbursement is 'an exception to 31 USC 1301(a) by implicitly authorizing the performing agency to temporarily use its own funds to do the ordering agencies work..The statute requires that payment be made 'promptly'.' Does working prior to receipt of funds constitute an ADA? If they later provide funding, what time period fulfills the promptly requirement? If they fail to ever provide funding, does that constitute an ADA? Is an agreement to perform the work required prior to performance (MIPR)? Finally, requesting work without authority from a contractor or Federal service provider outside of an existing contract or agreement should be an Unauthorized Commitment. Is there a way for the provider to require the ratification process to be carried out on the requesting side to force them to stay within the bounds of existing agreements?
Answer: Since there are multiple questions involved in this AAP, we will look at each one separately. Does working prior to receipt of funds constitute an ADA? The answer is ...(More)
Six year timebar
9/6/2017 12:34:00 PM
Question: Should we have released the money? My position was to not release it due to the time bar expiring and the fact that I knew DCAA would also question the same cost associated with this issue. Was it correct to release the money after the time-bar (the deficiency was never resolved)? Is their any regulation that would have prevented us from releasing the money after the time-bar?
Answer: Since you withheld money from the contractor for having a deficiency in their purchasing system I am assuming the clause DFARS 252.242-7005 was included in the contract. This clause gives the authority to withhold ...(More)
Using AF-WCF to fund CLS managed product improvement projects
8/25/2017 10:13:00 AM
Question: Can AF -Working Capital Fund be used to fund product improvement projects even though the items are managed by the OEM? In addition, if these items were transferred to AF management, would this be a candidate for AF-WCF product improvement as well?
Answer: Before reading, I highly recommend you consult with a law/legal expert as much of this is based on what can be found in the legal record/published law. What you are referencing started in the FY08 NDAA (Public Law 110-477), Section 330 authorized the use of Working Capital Funds for Certain Product Improvements for the Army. It excluded product improvements that ...(More)
Paying for State Water Board for Services
8/24/2017 4:41:00 PM
Question: Because these services are for a period that is past (not under contract) , how is the payment processed? For example the period of the bill is for 1 Jan 2016 to 31 Dec 2016, the bill is received in February 2017. Since no contract was in place and we have to pay for a services received, is it a ADA or is there a special provisions that allow for these situations?
Answer: The issue is not if a contract was in place or not. This issue regards the status of your appropriation from which this obligation was made. It appears that this is a services contract, so I presume this would have been from an O&M type of appropriation. The status of the appropriation funding is "Current" for 1 year, "expired" for ...(More)
RDTE 2 year limit exception
8/22/2017 12:22:00 PM
Question: Is there any exception to work and billings of RDT&E funds past expiration of funds? FMR 7000.14-R Vol2A Para 01214 mentions allowable expense of investment and upgrades but unable to find support even though funds were allowed to be use for construction the limits of RDT&E are still 2 years it appears.
Answer: Assuming that RDT&E funds were the correct appropriation for the work being done, you are correct in that the funds have a 2-year obligation life (considered current funds). After the 2 year period, the funds become expired and are available for expenditures and obligation adjustments. This would run for ...(More)
Who decides which programs get listed?
8/21/2017 12:39:00 PM
Question: Who decides what programs get listed in the Future Years Defense Program (FYDP)? What is the process used to make that determination?
Answer: Your question revolves around the Future Years Defense Program (FYDP), who decides programs that are in the FYDP, and the process. The FYDP is ...(More)
O and M Funds and Bona Fide Need Exceptions
8/8/2017 3:59:00 PM
Question: Would this service still be exempt from Bona-Fide Rule if it is funded with O&M funds?
Answer: The question you have asked revolves around the use of O&M funds ...(More)
Use of Appropriations
8/7/2017 4:28:00 PM
Question: Can we use SCN funds for this effort?
Answer: The question revolves around the use of Shipbuilding and Conversion Navy to incorporate changes to a tool that would allow the ability to easily document crew phasing planning in support of the Virginia class ship(s). I am making the assumption that the tool is an automated information System tool. The Financial Management Regulation (FMR) 7000.14 - R Volume 2A Chapter 1 states: ...(More)
APF versus Fund Raising type purchases
8/2/2017 3:05:00 PM
Question: 1. What supply and material can be used to purchase APF funds for a training event? 2. What supplies and material can be used to purchase with fund raised from ticket sale?
Answer: Unfortunately, this question provides exceptionally little detail about what the organization is trying to fund. Therefore, I am left wondering if the question is referring to two separate events, a training event and a separate event to which tickets are being sold, or is this a single training event to which tickets are being sold to either participate in, or spectate at. In addition, there is no ...(More)