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    Can you use procurement funds to pay for civilian salary?


    Answer

    No, civilian salaries are chargeable to operations and maintenance accounts. Here's the standard definitions:
     
     
    Appropriation Categories are categories of government funding that group funds into areas of interest.  The main appropriation categories and their number designation are listed below: [2]
     
     
    *  Research, Development, Test and Evaluation (RDT&E) <http://acqnotes.com/acqNote/research-development-appropriation> : appropriations fund the efforts performed by contractors and government activities required for the Research and Development (R&D) of equipment, material, computer application software, and its Test and Evaluation (T&E) to include Initial Operational Test and Evaluation (IOT&E) <http://acqnotes.com/acqNote/initial-operational-test-and-evaluation-iote>  and Live-Fire Test and Evaluation (LFT&E) <http://acqnotes.com/acqNote/live-fire-test-and-evaluation> . RDT&E also funds the operation of dedicated R&D installations activities for the conduct of R&D programs.
     
      *  Available two (2) Years.
     
    *  Procurement: appropriations fund those acquisition programs that have been approved for production (to include Low-Rate Initial Production (LRIP) <http://acqnotes.com/acqNote/low-rate-initial-production>  of acquisition objective quantities), and all costs integral and necessary to deliver a useful end item intended for operational use or inventory upon delivery.
     
      *  Available three (3) Years.
     
    *  Operation and Maintenance (O&M) <http://acqnotes.com/acqNote/operation-maintenance-appropriations> : appropriations fund expenses such as civilian salaries, travel, minor construction projects, operating military forces, training and education, depot maintenance, stock funds, and base operations support.
     
      *  Available one (1) Year.
     
    *  Military Personnel (MILPERS): appropriations fund costs of salaries and other compensation for active and retired military personnel and reserve forces based on end strength.
     
      *  Available one (1) Year.
     
    *  Military Construction (MILCON): appropriations fund major projects such as bases, schools, missile storage facilities, maintenance facilities, medical/dental clinics, libraries, and military family housing.
     
      *  Available five (5) Years.
     
    The GAO has also said that using procurement funds for civil service salaries is an invalid use of appropriated funds. In 38 Comp. Gen. 316 (1958), the Commerce Department wanted to treat the salaries of [federal] employees performing administrative and engineering services on highway construction projects as part of the construction contract costs. Under this procedure, the anticipated expenses of the employees, salaries included, would be recorded as an obligation at the time a contract was awarded. However, the Comptroller General held that this would not constitute a valid obligation under 31 U.S.C. § 1501.

     

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