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    The question I have: Is there currently any other organization that you are aware of that processing credit card transactions to this magnitude? Are there any IT systems within the government are currently being used by agencies that automate this process? Would like to have a system that can track this from beginning to end JUST like the Defense Travel System. Thanks for your time.


    We strongly suggest you consult the Business Financial Manager (BFM) and/or Legal Office for additional guidance on this situation.

    First you refer to repair, based on the situation described and the definitions found in the Financial Management Regulation (FMR) 7000.14-R Volume 2A Chapter 1 - this is either: (1) Facility Restoration which is the restoration of real property to such a condition that it may be used for its designated purpose. Restoration includes repair or replacement work to restore facilities damaged by inadequate sustainment, excessive age, natural disaster, fire accident, or other causes; or (2) Facility Sustainment which is the maintenance and repair activities necessary to keep an inventory of facilities in good working order. Examples include regular roof replacement, refinishing of wall surfaces, repair and replacement of heating and cooling systems, and replacement of tile and carpeting; or (3) Facility Modernization which is the alteration or replacement of facilities solely to implement new or higher standards, to accommodate new functions, or to replace building components that typically last more than 50 years (such as the framework or foundation).

    In the FMR 7000.14-R Volume 2B Chapter 8 there is guidance on how to budget for facilities sustainment and restoration/modernization projects (specifically Section 2.1.4).


    Another important law to review is Title 10 US Code Section 2811 - Repair of Facilities. This law states: 

    (a)Repairs Using Operations and Maintenance Funds.—

                   Using funds available to the Secretary concerned for operation and maintenance, the Secretary concerned may carry out repair projects for an entire single-purpose facility or one or more functional areas of a multipurpose facility.


    (b)Approval Required for Major Repairs.—

                   A repair project costing more than $7,500,000 may not be carried out under this section unless approved in advance by the Secretary concerned. In determining the total cost of a repair project, the Secretary shall include all phases of a multi-year repair project to a single facility. In considering a repair project for approval, the Secretary shall ensure that the project is consistent with force structure plans, that repair of the facility is more cost effective than replacement, and that the project is an appropriate use of operation and maintenance funds.


    (c)Prohibition on New Construction or Additions.—

                   Construction of new facilities or additions to existing facilities may not be carried out under the authority of this section.


    (d)Congressional Notification.—

                   When a decision is made to carry out a repair project under this section with an estimated cost in excess of $7,500,000, the Secretary concerned shall submit, in an electronic medium pursuant to section 480 of this title, to the appropriate committees of Congress a report containing—

                   (1)the justification for the repair project and the current estimate of the cost of the project, including, in the case of a multi-year repair project to a single facility, the total cost of all phases of the project;

                   (2)if the current estimate of the cost of the repair project exceeds 75 percent of the estimated cost of a military construction project to replace the facility, an explanation of the reasons why replacement of the facility is not in the best interest of the Government; and

                   (3)a description of the elements of military construction, including the elements specified in section 2802(b) of this title, incorporated into the repair project.


    (e)Repair Project Defined.—In this section, the term “repair project” means a project—

                   (1)to restore a real property facility, system, or component to such a condition that it may effectively be used for its designated functional purpose; or

                   (2)to convert a real property facility, system, or component to a new functional purpose without increasing its external dimensions.

    Since you have provided limited information, you will need to conduct additional research to determine if Operations and Maintenance (O&M) funds can be used. Regardless of the usage of O&M funds the Secretary of the Air Force will have to approve in advance if the amount is greater than $7.5million.

    Using O&M funds rather than requesting Military Construction funding has a lot of gray areas, so do your due diligence in speaking with the BFM and/or Legal Office before making any obligations or writing a contract.


    Be sure for threshold purposes that these are three separate, discreet projects and that you are bundling them for administrative purposes.  Have a clear memo for record in your file.

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