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  • Question

    What is the reference for who is responsible for intitial Organic Depot Stand-up Funding and and what it intels?


    Answer

    Ultimately, the responsibility belongs to the Program Manager.  Initial buys for depot equipment are purchased through appropriated procurement funds. The reference for this is the DoD Financial Management Regulation 7000.14-R.  Volume 2B, Chapter 9 provides rules for use of the Defense Working Capital Fund DWCF.  Paragraph 090103.C.5 lists items the DWCF specifically excludes and must be financed by “Appropriated Funds”, with sub-paragraph “e” stating: 
    “Equipment initially procured and usually furnished as part of a weapons system and/or support system. This includes initial common support equipment for depot maintenance support of new weapons systems.”

    Paragraph 9.b of the same section goes on to state:
    “The appropriate procurement account will continue to fund the purchase and installation costs for the initial procurement of depot maintenance capital equipment unique to newly introduced platforms or weapon systems. The capital equipment becomes the property of the depot when it is transferred to or otherwise capitalized by the depot. The depot will treat the equipment as a capital asset, depreciating it and funding subsequent replacement and maintenance of the equipment in DWCF capital and operating budgets.”

    While these references do not specifically mention the program manager, it is the program management office’s responsibility to insure the required appropriated funds for a weapon system are placed into the budget as part of the PPBE process.

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