Veteran Affairs Acquisition AcademyVAAA CON 090 C Scenario 3 BSD’s customer, Fort Outpost, has identified the need for a new aircraft painting facility

Veteran Affairs Acquisition AcademyVAAA CON 090 C

Scenario 3

BSD’s customer, Fort Outpost, has identified the need for a new aircraft painting facility. Because of the intense competition for limited MILCON funds and the length of time required to obtain approval for a MILCON project, it has been decided to pursue the use of (O&M funding for the project. Two contracts will be awarded: one to construct the new facility and another to purchase the fixtures that will be housed in the new facility. The estimated cost of the building structure is $1,725,000. The estimated cost of the capital equipment to be installed as permanent fixtures in the facility is $280,000.

Conrad assures me we don’t have to combine the two purchases into one contract. Even if he is correct from a contractual perspective, I am not sure this plan is allowable from a fiscal law perspective. Conrad is ready to move forward because he recalls one scenario where we were able to use O&M funds for a construction project that was over $2 million. I hope he is right; I sure don’t want us to violate any fiscal laws.

1. What fiscal laws would potentially be violated if this plan is improper? Explain.
2. Can separate contracts be awarded?
3. If your answer to Question 2 is “yes,” can they both be funded out of the O&M appropriation?