1. MILITARY CONSTRUCTION
SHOW SLIDE 1: IDENTIFY KEY FINANCIAL ROLES AND MISSIONS OF MILITARY CONSTRUCTION
SECTION I. : Military Construction
ADMINISTRATIVE DATA
All Courses Including This Lesson
Course Number Version Course Title
01 Planning Programming Budget & Execution Course (PPBE)
Task(s) Task Number Individual
Taught (*) or
Academic Hours
The academic hours required to teach this lesson are as follows:
Resident
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Academic Hours/Method
0.0 hrs Introduction/Conference Discussion
0.0 hrs Conference Discussion
0.0 hrs Summary
0.0 hrs Total Time
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Testing (to include test review)
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Prerequisite Lesson(s)
Lesson Number
Lesson Title
Identify the Military Construction Appropriations
Security Level: Unclassified
Requirements: There are no clearance or access requirements for the lesson.
Foreign Disclosure Restrictions
FD5. This product/publication has been reviewed by the product developers in coordination with the Fort Jackson Soldier Support Institute foreign disclosure authority. This product is releasable to students from all requesting foreign countries without restrictions.
Instructor Requirements
Must meet physical qualifications IAW AR
Materials Required
Instructor Materials:
Lesson plan slides and Manpower Management Summary Sheet
Student Materials:
Manpower Management Summary Sheet
Classroom, Training Area, and Range Requirements
General Purpose Classroom - 25 Seats
Instructional Guidance
Note: Before presenting this lesson, instructors must thoroughly prepare by studying this lesson and identified reference material.
Also, provide the students with situational awareness of the Operational Environment (OE) variables and actors.
Proponent Lesson Plan Approvals
Name Rank Position Date
Harris, Norman CTR Writer/Developer xx-xxx-xxxx
Bonig, Reid GS-12 Chief - FMITD xx-xxx-xxxx
Davis, Bobby LTC FM-DOT xx-xxx-xxxx
Zellars, Eric COL Commandant xx-xxx-xxxx
NOTE: Incorporate the political, military, economic, social, information, infrastructure, and physical environment and time (PMESII&PT) into each lesson and classroom work as appropriate. Instructor will illustrate them with appropriate examples from the Current Operating Environment (COE) as it pertains to the lesson.
Motivator: As a resource manager, it is important to know where and how your organization fits into Planning, Programming, Budgeting and Execution process.
To succeed, you must know the DoD, DA, and ASA(FM&C) organization structures. Knowledge of these structures will enhance your understanding of how resources are allocated and how resource management structures influence or facilitate resource allocation.
Out of necessity the Department of Army has become one of the largest owners of land, buildings, and other facilities. In addition to maintaining, and repairing this real property, it is occasionally necessary to build new facilities. In order to pay for these facilities Congress enacted separate Military Construction (MILCON) Appropriations. As a resource manager you must be aware of the various sources of funds, statute or administrative limitations, and the responsibilities associated with military construction.
Lets talk about what you saw when you entered through the main gate -
Brand new PX / gas station
What is the name of the road - Strom Thurmond Blvd
Off to your right was the Strom Thurmond Welcome / inprocessing center
Brand new CAC - community activity center
This building was built in 1994 and you also have the Strom Thurmond Burger King
Anyone think MILCON is political?
Who do you think was a senator on the Senate Appropriations Committee?
When it comes to MILCOM we usually we get more money than what we ask for - Senator taking care of their own district. (After the fact - build this child care center in my district)
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FINANCIAL MANAGEMENT SCHOOL

2. Terminal Learning Objective
Action:
Conditions:
Standard:
Identify the Military Construction Appropriations (MCA) and the policies, procedures and personnel that govern them.
Given a summary sheet containing AR , AR , AR , and slides.
With 80% accuracy:
Identify and recognize Military Construction Appropriation and the Policies, Procedures and Personnel that Govern them.
SHOW SLIDE 2: Terminal Learning Objective
Safety Requirements:  Everyone is responsible for safety. A thorough risk assessment must be completed prior to every mission or operation.
Risk Assessment Level: Low
Environmental Considerations: NOTE: It is the responsibility of all Soldiers and DA civilians to protect the environment from damage.
Environmental protection is not just the law but the right thing to do. It is a continual process and starts with deliberate planning. Always be alert to ways to protect our environment during training and missions. In doing so you will contribute to the sustainment of our training resources while protecting people and the environment from harmful effects.
Evaluation: Students will take a comprehensive test at the end of Week 1. Students must score 80% or higher and International officers must score 70% or higher.
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FINANCIAL MANAGEMENT SCHOOL

3. Military Construction
Installation or assembly of a new facility
Addition, expansion, extension, alteration, conversion or replacement of an existing facility
Relocation of a facility
Two categories:
Major Construction > $1.5 Million*
Minor Construction < $1.5 Million**
* Can start at .5 million if specified as a separate line item
** Up to 4 million for health & safety reasons
SHOW SLIDE 3: Military Construction
Military Construction covers new buildings, renovations or replacement of existing facilities, and relocation of facilities.
The different sources the resource manager looks to for funding are - Major and Minor Construction:
Major construction
- > $1.5 M or is specified (listed straight on the appropriation)
- Ex - you have $4m to build this child care center - can only build the child care center with the money
Minor construction
- < $1.5 M and is unspecified
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FINANCIAL MANAGEMENT SCHOOL

4. Military Construction Appropriations
Military Construction, Army...
Military Construction, Army National Guard………………...
Military Construction, Army Reserve…………………………
Army Family Housing………..
Operations & Maintenance (OMA, OMAR, OMNG)*……
2050
2085
2086
7020
2020, 2065, 2080
SHOW SLIDE 4: Military Construction Appropriations
The Military Construction Appropriation Act is an annual Congressional action that provides multiple year appropriations which are available for obligation for five years
These are the Milcon Appropriations
States can add money for their ARNG units
- When add - after the Army dishes it out
* Projects <$1,000,000
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FINANCIAL MANAGEMENT SCHOOL

5. FINANCIAL MANAGEMENT SCHOOL
Maintenance
Recurrent work to prevent deterioration.
Work required to preserve or maintain a facility in such a condition that it may be used for its designated purpose.
SHOW SLIDE 5: Maintenance
Read bullets
Ex - tar roof every 3 years (OMA)
miles change your oil
KEEP IN SHAPE!
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FINANCIAL MANAGEMENT SCHOOL

6. FINANCIAL MANAGEMENT SCHOOL
Repair
The restoration for use for a designated purpose by overhauling, reprocessing, or replacing parts or materials that have deteriorated by action of the elements or by wear and tear in use, and which have not been corrected through maintenance.
SHOW SLIDE 6: Repair
Read bullet
Ex - don’t change your oil every 3000 miles - instead wait until 10,000 miles or don’t even change it at all
Which do you think is cheaper - yes maintenance is cheaper
PUT BACK IN SHAPE!
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FINANCIAL MANAGEMENT SCHOOL

7. Military Construction Limitations/Approval Authorities
TYPE OF $ APPROVAL FUNDING FUND
PROJECT AMOUNT AUTHORITY SOURCE CERT.
MAJOR > 1.5M* CONGRESS MILCON D. ENGR
MINOR < 1.5M* to SecArmy/ MILCON D. ENGR
> 1M ASA(I&E)
< 1M Installation Cdr O&M Inst. DRM
RPMA Installation Cdr O&M Inst. DRM
SHOW SLIDE 7: Military Construction Limitations/Approval Authorities
Major military construction are those projects:
- With funded costs greater than $1.5 million or
- Listed as a separate line item in the Army's Military Construction budget
Congress is the approval authority, its funding source is MCA, and the fund certifier is the District Engineer. “Ex - build 245 housing units at Ft. Hood”
Minor military construction are those projects with funded costs up to $1.5 million
- For projects with funded costs between $1 million - $1.5 million
- The Secretary of the Army is the approval authority
- May be delegated to the Assistant Secretary of the Army for Installations and Environment (ASA I&E).
What happens - the Sec of Army gets money for Milcon (called “Unspecified Mil Construction)
- He chooses what to fund.
- You submit your request for funding - he decides what he will fund.
Projects costing < 1 million
- Approval authority - Inst CDR, Funding source - OMA, fund certifier - Inst DRM
Do people attempt to abuse this? yes - Temptation to break up costs so that they can avoid getting approval or if they get denied (ex: airstrip or in Honduras - above ground water reservoir (swimming pool))
RPMA - Real Property Maintenance Activity (Approval - Inst CDR, Funding - OMA, Certifying DRM)
* Exceptions exist
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FINANCIAL MANAGEMENT SCHOOL

8. FINANCIAL MANAGEMENT SCHOOL
Funded Costs
Materials and supplies for the project
Labor (except for Military Personnel)
Military Personnel TDY costs
Maintenance and operation of government equipment
Purchase of new land
Portion of installation overhead attributed directly to project
SHOW SLIDE 8: Funded Costs
What costs are included in MCA
Bullet 1 - Ie - electricity
Bullet 2 - Not military because already funded through MPA - people think free labor but not really
Bullet 4 - Ie - fuel to run equipment
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FINANCIAL MANAGEMENT SCHOOL

9. FINANCIAL MANAGEMENT SCHOOL
Unfunded Costs
Salaries for military personnel
Cost of fees, permits, and licenses IAW environmental regulations
Depreciation of government equipment
Planning and design costs
Nonappropriated funds used in the project
SHOW SLIDE 9: Funded Costs
Bullet 2 - Separate pot of money - helps keep MCA from being used as a cover-up
- I remember at Fort Hood - early 90’s getting nuked for environmental fees - When we left a field site we had to get inspected
Bullet 4 - Done prior to approval - “Corps of engineers” themselves receive planning and design $
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FINANCIAL MANAGEMENT SCHOOL

10. FINANCIAL MANAGEMENT SCHOOL
Director Public Works
“City Engineer”
The principal staff officer for all installation Real Property Maintenance Activities (RPMA), environmental compliance and MILCON issues
Operates on a reimbursable or revolving fund account
No direct funding for RPM work
SHOW SLIDE 10: Director Public Works
Bullet 2
Tenants funded - No direct funding - Funding comes from customer (reimburses work)
Operate as a working capital fund
The DPW is the Executive Secretary and a voting member of the Installation Planning Board
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FINANCIAL MANAGEMENT SCHOOL

11. Installation Planning Board
Guides the development of the installation Master Plan
Top advisory group to the installation commander on all aspects of MILCON
Implements coordination with other parties (installations, federal and local agencies)
Formulates and justifies installation construction programs (DD1391)
SHOW SLIDE 11: Installation Planning Board
The installation CDR has a group of people that assist him in making construction decisions
Responsible for guiding the construction program at the installation over the next 20 years
They also meet to evaluate and prioritize construction and coordinate with outside agencies
Last bullet (Tng Aid - I have a copy of a DD 1391)
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FINANCIAL MANAGEMENT SCHOOL

12. Installation Planning Board Members
Commander/Chief of Staff (Chair)
Director of Public Works (Executive Secretary)
Other directorate level staff (Directorate of Resource Management (DRM), Directorate of Logistics (DOL), etc.)
Tenant unit commanders
Representative of the District Engineer
Representative of the MACOM commander
SHOW SLIDE 12: Installation Planning Board Members
CDR is the Chairman - remember he is the approval authority for minor construction projects < $750,000
Tenant unit CDR’s sit on the board - so that their requests are heard and considered
- Like Hospital, Commissary, Dental
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FINANCIAL MANAGEMENT SCHOOL

13. FINANCIAL MANAGEMENT SCHOOL
District Engineer
Provides technical engineer support
Administers military construction contracts and certain service contracts
Performs maintenance & repair of off-post facilities (user centers)
Holds fund certification authority for MCA funds.
SHOW SLIDE 13: District Engineer
Acts as the Project Manager for construction in his district
Bullet 1
Bullet 4
If you look at the plaque when you entered the walkway - it says - Corps of Engineers - Savannah District
He didn’t actually build it but he fund certified it
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FINANCIAL MANAGEMENT SCHOOL

14. Chief of Engineers (COE)
Member of the Army Staff and key advisor to the SecArmy and CSA on MILCON issues
Commander of USACE
DoD Construction Agent responsible for design & construction (MILCON)
Manages design, construction, real estate activities for Army, USAF, DoD, NAF, others
Reviews DD1391s
SHOW SLIDE 14: Chief of Engineers (COE)
Bullet 1- He is the senior spokesman for MCA issues at Army level
Bullet 2 (Corps of Engineers)
Last Bullet - DD Form 1391 Processor System – Automated system used to develop project justifications and produce MILCON budget books for submission to Congress.
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FINANCIAL MANAGEMENT SCHOOL

15. Assistant Chief of Staff for Installation Management (ACSIM)
Prepares MILCON planning and programming guidance & budget estimates
Responsible for:
Base support & RPMA
MILCON, AFH, BRAC & environmental
Compliance with policies and regulations
Holds release authority to USACE for designs
Chairs CRRC
SHOW SLIDE 15: Assistant Chief of Staff for Installation Management (ACSIM)
Bullet 1 - Writes the MILCON part of the PBG and the Army MILCON budget request
Gaining power with the new design of the Army - Base Support, RPMA
Bullet 3
Chairs the CRRC (Construction Requirements Review Committee)
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FINANCIAL MANAGEMENT SCHOOL

16. Construction Requirements Review Committee (CRRC)
Chaired by ACSIM
Recommends construction funding levels for POM/FYDP
Reviews projects to ensure requests are aligned with TAP guidance
Helps formulate construction programs
Prioritizes all projects for the Army Budget Estimate Submission
Justifies MILCON budget requests
SHOW SLIDE 16: Construction Requirements Review Committee (CRRC)
The final checkpoint in the MCA program at DA level
Reviews / evaluates / prioritizes MILCON projects
Looks at all the DD1391’s Army wide for submission to Congress and makes recommendations and prioritizes them
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FINANCIAL MANAGEMENT SCHOOL

17. FINANCIAL MANAGEMENT SCHOOL
Funding Violations
Project splitting
Exceeding $ amounts
Cost overruns/“project creep”
Change of scope
Purpose and funds used:
Maintenance, repair, construction?
SHOW SLIDE 17: Funding Violations
Different ways that you can get in trouble using MILCON
Bullet 1 - Splitting projects up so that the individually fall under the $1M limit
Bullet 3 - Not realizing how much it is costing and soon your over $1M
Bullet 4 - Using the money for something else than what it was approved for during the building (adding things)
Last bullet - color of money?
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FINANCIAL MANAGEMENT SCHOOL

18. Check On Learning
What type of funding is usually used to fund construction projects < $1 M?
What type of funding is usually used to fund construction projects >$1 M?
Who approves funding for construction projects >$1M but < $1.5M?
Who certifies the funds for Major Construction Projects? .
O & M
MILCON
Sec Army / ASA (I&E)*
District Engineer 18

19. Check On Learning
True / False. If a construction project using MILCON funding requires the purchase of land, this purchase can be funded with MILCON.
True / False. The cost of fees, permits and licenses IAW environmental regulations can be funded with MILCON.
True / False. Military Personnel TDY costs related to a construction project are NOT considered as an unfunded cost for MILCON.
True / False. The District Engineer administers military construction contracts & certain service contracts.
True
False
True
True 19

20. Terminal Learning Objective
Action:
Conditions:
Standard:
Identify the Military Construction Appropriations (MCA) and the policies, procedures and personnel that govern them.
Given a summary sheet containing AR , AR , AR , and slides.
With 80% accuracy:
Identify and recognize Military Construction Appropriation and the Policies, Procedures and Personnel that Govern them.
SHOW SLIDE 18: Terminal Learning Objective
Instructor note: Restate TLO and solicit questions
11/15/2018
FINANCIAL MANAGEMENT SCHOOL