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101-189, SECTION 315, REPEALED P.L. 101-180, SECTION 303.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. |
2.5.1.1.
Investment Equipment.
Items
of equipment having a unit price of $250,000 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 $250,000 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
5.
Table
5. 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
- 9/30/95 |
$
50,000 |
P.L.
103-335, SECTION 8076 |
| 12/01/95
- 02/19/03 |
$
100,000 |
ANNUAL
APPROPRIATIONS ACT |
| 02/20/03
- PRESENT |
$
250,000 |
P.L.
108-7, SECTION 106 |
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.
|
