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  • Question

    Initially, we funded with PROCUREMENT BP10 funding. In order to work alternative funding strategies, we will need to know the what appropriation should be used for Life of Type buys for sustainment purposes. APN 1 (BP-10) is used for production purpose but there appears to be differing thoughts as to whether APN 6 (BP-16), APN 1 (BP-10), O&M or RDT&E, AF should be used for sustainment purposes. I can't find a regulation in the FAR or FMR referencing what type of funds to use for sustainment of these obsolescence parts.

    Answer

    The Financial Management Regulation (FMR) 7000.14-R Volume 2A Chapter 1 section 010201 speaks to expenses and/or investments.  An expense would have a value of less than $250K total unit cost so Operation and Maintenance would be the correct Appropriation.   An investment would have a value of greater than $250K total unit cost so Procurement would be the correct Appropriation to use.  RDT&E is not normally used for sustainment and Life of Type buys.

    I would strongly suggest that you contact your Comptroller or Business Financial Manager to provide additional guidance.

     

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