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    Can this requirement be purchased as construction? For instance, can the Government select a construction vendor for this project using a 1442 and O&M funded construction while requiring the pre-engineered structure be delivered to a separate US Government location for USAF forwarding to the contingency location? The construction tasks would be performed at the remote contingency location.


    Answer

    A review of the Army Regulation 420–1 Facilities Engineering Army Facilities Management reveals the following:
     
    Section IV
    Personal Property Relocatable Buildings
    6–13. Overview
    a. This guidance establishes Army policy and procedures for the authorization, acquisition, use, sustainment, and disposition of relocatable buildings acquired as personal property. It applies to relocatable buildings on Army controlled property, purchased or leased as personal property, regardless of the source of funds.
     
    6–14. General policy
    a. Interim requirement. A short-term, urgent requirement due to transitory peak military missions, deployments, military contingency operations, disaster relief requirements, or pending approval and construction of real property facilities via normal military construction programs. The short term requirement must have an approved exit plan to dispose of the building(s).
    b. Relocatable building. Personal property used as a structure that would have a building category code if it was real property, designed to be readily moved, erected, disassembled, stored, reused, and meets the 20 percent rule.
    Personal property is managed as equipment.
    (1) The sum of building disassembly, repackaging, and non-recoverable building components, including typical foundation costs must not exceed 20 percent of the purchase cost of the relocatable building. If the percentage is greater than 20 percent, then the facility must be acquired as real property and follows real property project approval authorities. Typical foundations include blocking, footings, bearing plates, ring walls, and slabs that are an integral part of the relocatable building. Foundations do not include construction cost of real property utilities, roads, sidewalks, parking, force protection, fencing, signage, lighting, and other site preparation (clearing, grubbing, ditching, drainage, filling, compacting, grading, and landscaping). Slabs that are Real Property and not part of the actual building are not counted in the 20 percent.
     
    c. Site preparation project approval.
    (1) Site preparation costs are classified as construction because the items installed are permanent in nature and become Real Property-foundations, utilities, parking, and so forth. Projects for Site Preparation are subject to the statutory approval limitations for new construction. A construction project must result in a complete and usable facility.
    In the case of site preparation projects, the “complete and usable facility” is the prepared site. Accordingly, for project approval purposes, the work to prepare each distinct site is a project. Generally, in order to be “distinct,” a site is characterized by the following:
    (a) Independent of work at any other site to be “complete and usable.”
    (b) Independent of mission function at any other site to be “complete and usable.”
    (c) Site preparation work on no other site is dependent on it.
    (2) Site preparation costs must be combined into one project for approval purposes for sites that are interdependent, but may be separately approved for sites that are inter-related. Inter-related contiguous sites are considered distinct and separate as long as each site is prepared as a complete and useable independent project.
     
    Your question stated that the relocatable building "box" was already owned by the Army, so there would be no purchase costs. Even so, based on Section 6-14 (c) (above), the "site preparation costs are classified as construction."
     
    Caution: Before proceeding further, recommend you confirm this answer with your fiscal office and/or your agency counsel.
     


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