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?
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.
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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.