If ready to begin install at site #4, can the WCF activity contract for site support items (i.e. office trailer, dumpsters, lift equipment, etc.) in 2QFY19 even though the customer's original funding has expired?
A Project Order is a specific, definite and certain order issued under the authority contained in 41 U.S.C. 6307 which, when placed with and accepted by a separately managed DoD establishment, serves to obligate appropriations in the same manner as orders or contracts placed with commercial enterprises. Project Orders must meet a rigid set of requirements and are favorite areas for comptroller scrutiny and auditor review. Implementation of a Project Order is in accordance with the Financial Management Regulations Volume 11A Chapter 2. There are three tests that must be satisfied for this action to be considered a Project Order:
- It must be a non-severable effort therefore the request must be for a specific, identifiable thing (supply, material, equipment, work or service). Deliverables must be clearly defined.
- A significant constraint on the use of this document is that at least 51% of the funds must be used to support in house effort with no more than 49% going to other activities or contractors. The organization that receives the project order must be capable of performing the requested action
- The work must be started within 90 days of acceptance or by the first of January of the following year.
Project orders shall be fully financed by the ordering DoD Component from obligational authority current at the time the project order is issued and accepted. A Project Order can be used to extend the expiration date of an appropriation since it’s issued to support a specific task or support effort that is event driven vice calendar driven. However extending the life of the appropriation cannot be the primary reason to use a Project Order. If the Project Order meets the criteria above, the expiration date of the customer’s original funding does not impact the receiving activity's ability to complete the work. However, the expiration date of the project order may not extend beyond the point in time in which the ordering appropriation will be canceled. The determination on purpose, time, and amount are typically the responsibility of the requesting activity and would have been made when the Project Order was issued.
Based on the information provided that shows the original schedule of the Project Order was 1QFY14 to 4QFY19 and assuming that all other criteria was met, use of expired FY14 procurement funding would be appropriate to complete the FY19 installation work and associated costs. You are encouraged to talk to your local Comptroller or Council on policy for your Command.