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  • Question

    Under what general circumstances can material/software with a unit price exceeding $250k be purchased using O&M funding? Can we use O&M to purchase the SW license renewal though it exceeds $250k?


    Answer

    One of the first resources you should consult is the Financial Management Regulation (DoDI 700014-R).  Volume 2A, Chapter 1, paragraph 1010212, Budgeting for Information Technology and Automated Information Systems, provides insights on a variety of methods for funding software with Operations and Maintenance (O&M) funding. For instance: Information Technology and Automated Information Systems that are not embedded in weapons systems and/or major end item procurements are budgeted according to the investment and expense criteria (see 010201) and the appropriation or fund’s purpose. 

    Similarly, your agency may have limitations that are more restrictive than the DoD.  Since there are a host of issues that are embedded in your question, you should the details of this matter with your general counsel and your budget office.



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