Side-by-Side Comparison

Previous vs. Revised BUMED Policy.
The text in red highlights the changes made to the previous BUMED policy. To return to the Summary of Update's table click Back

Previous BUMED Policy
Revised BUMED Policy
2.5.1.1. Investment Equipment.
Items of equipment having a unit price of $100,000 or more and a useful life of two years or more are procured with funds from the Other Procurement, Navy (OPN) or Other Procurement, Defense Health Program (OP, DHP) appropriations.  NOTE: Equipment items not meeting the $100,000 threshold are classified as expense equipment and are procured with funds from the Operations and Maintenance accounts. The threshold has changed several times during recent years. A review of the applicable threshold by fiscal year should be conducted prior to executing procurement contracts.  

2.5.1.1. Investment Equipment.
Items of equipment having a unit price of $100,000 or more and a useful life of two years or more are procured with funds from the Other Procurement, Navy (OPN) or Other Procurement, Defense Health Program (OP, DHP) appropriations. NOTE: Equipment items not meeting the $100,000 threshold are classified as expense equipment and are procured with funds from the Operations and Maintenance accounts. The threshold has changed several times during recent years. A review of the applicable threshold by fiscal year should be conducted prior to executing (or extending prior year) contracts. A chronology of the changes in the expense/investment criteria is provided in table 4.1.

Table 4.1. Chronology of Expense/Investment Rules.

TIME PERIOD LIMITATION AUTHORITY
10/1/80 - 11/7/85 $ 3,000 MSG R 132200ZNOV80
11/8/85 - 9/30/86 $ 5,000 P.L. 99-145, SECTION 303
10/1/86 - 12/3/87 $ 3,000 NO STATUTE; REVERT TO MSG NOV 80
12/4/87 - 9/30/89 $ 15,000 P.L. 101-180, SECTION 303
10/1/89 - 11/28/89 $ 5,000 P.L. 101-180, SECTION 303
11/29/89 - 9/30/93 $ 15,000 P.L. 101-189, SECTION 315, REPEALED P.L. 101-180, SECTION 303. SEE ALSO DOD 7110-1-M, MAY 1990, P.241-7
10/1/93 - 9/30/94 $ 25,000 P.L. 103-139, SECTION 8092
10/1/94 - 9/30/94 $ 50,000 P.L. 103-335, SECTION 8076
12/01/95 - PRESENT $100,000 ANNUAL APPROPRIATIONS ACT

NOTE: Expense equipment items, while having a lower unit cost than investment equipment items, usually constitute a larger aggregate value than the total represented by investment equipment. For this reason, it is important that management provide equal levels of attention to the expense and investment equipment programs. Budgeting for expense equipment is an important issue since the equipment requirements are competing with other priorities such as salaries, supplies, utilities, maintenance, and training funds. Clearly, planning and justification are essential to receiving the funds desired.