Conditions: You are assigned as a Contingency Contracting Officer (CCO) and have access to current acquisition regulations, local procedures, and required automation and office supplies. You have been assigned to explain the USACE-peculiar funding process.
Standards: Explained the USACE funding process, different “colors of money,” who is responsible for requesting funds, and the congressional notification process.
Performance Steps:
1. Explain the steps of the funding process for construction contracts:
a. Receive Project Number and Labor Code from the Project Manager (PM).
b. Receive Current Working Estimate (CWE) with solicitation package from the PM in order to advertise. (Refer to Task 1-6, Step 7 for a discussion on the CWE.)
c. The Independent Government Estimate (IGE) needs to be provided to the Contract Specialist
“at the earliest practicable time for each proposed contract and for each contract modification anticipated to exceed the simplified acquisition threshold” (FAR 36.203(a)) Typically in USACE the IGE is provided by Cost Engineering prior to proposal closing date.
d. Receive DA Form 3953 Purchase Request and Commitment (PR&C) with funding or Subject to Availability of Funds (SAF) Letter from PM signed by Resource Management (RM). You must have a certified PR&C with the proper type and amount of funds prior to contract award. In addition, obtain a copy of the Military Interdepartmental Purchase Request (MIPR), DD 448, if it is a reimbursable transaction, to ensure the correct Treasury Account Symbol (TAS) is used on the Federal Procurement Data System (FPDS) Contract Action Report (CAR.)
e. Once the contract is awarded the Contracting Officer (KO) needs to record the obligation of funds in the Corps of Engineers Financial Management System (CEFMS). The legal obligation of funds is the KO signature on the contract action either by hand or electronically. In Contingency environments it is often necessary to sign a hard copy document to execute the action because automated systems are not available. Be sure to record the obligation in the automated systems (SPS/CEFMS) as soon as the systems are available.
2. Explain the purpose of a Funding Authorization Document (FAD)
NOTE: FADs (DA 1323) are the official documentation through command channels for direct funds as appropriated for the district. A USACE site can receive Civil, Military, and Revolving Fund FADs.
NOTE: The budget analyst in the Resource Management Office (RMO) must be granted the FUNDING CREATOR role in the CEFMS in the Role Maintenance Screen 10.16.
NOTE: Direct funds are received through the RMO, Budget Branch (RM-B) from Headquarters USACE via the Program Budget Accounting System (PBAS). To ensure that funds are received in a timely manner, RM-B checks PBAS daily. The budget analyst in RM-B is required to enter both program (work allowance or annual funding program) and funding authority/funding register (apportionment or allotment) in CEFMS. RM-B provides centralized management of FADs. The nature of program, funding authority and funding register requires careful attention upon input and monthly reconciliation of the funding detail with PBAS. A separate FAD is sent for each appropriation/year. Once the FAD is entered in CEFMS,
RM-B will send an email to the responsible employee notifying them that funds are available in CEFMS, and a hardcopy of the FAD will be sent to them.
3. Explain the different funding programs used in USACE construction contracting.
NOTE: The Funding Program is located in Section A of the FAD. The funding program is identified by project and/or subprogram level depending on the appropriation.
a. Military FADS: The funding program defines management structure code, the previous balance, increase/decrease, and the revised net amount. The remarks section further defines the management structure code. The funds are posted using the management structure code in the remarks section.
b. Civil FADS: The civil FAD is different from the Military FAD in that a work allowance number is referenced (in Section A). The work allowance identifies the funding program. A separate work allowance report is received for each civil FAD. The work allowance identifies the project, management structure codes, and funding changes.
4. Explain the purpose of the Budget Authority and Funding Register (Section B of FAD).
NOTE: The funding authority authorizes the amount available for obligation.
NOTE: The funding register establishes authority to commit and obligate by subprogram and/or project as defined by the management structure code. It distributes the funding authority from the appropriation level down to the individual management structure code. There is a separate funding register for each management structure code that receives funds for a specific appropriation. The funding register amount for military projects is established manually. For civil and revolving fund appropriations the funding register is automatically created or updated when the funding program record is created. The only exceptions are civil projects that are cost shared with a Local Sponsor. Cost shared projects must be registered manually. RM-B personnel establish the funding program, authority, and register. The responsible employees or their alternates establish funding accounts.
5. Explain the purpose of the Funding Account.
NOTE: The funding account ties the funding program, authority and register to a specific work item.
Funds are considered undistributed and are not available to commit and obligate until the register is linked to the work item through the funding account process. The responsible employee (or alternate) for the work item is responsible for distributing the funds into the funding account. There is a separate funding account for each funded work item. The responsible employee determines the amount of funding authority that is distributed to each funding account. If funds are being received for a new project, the responsible employee will be responsible for creating a parent work item. The responsible employee (or alternate) must also create a resource plan for each work item in order to establish the funding account.
The responsible employee (or alternate) has the ability to move funds among work items (funding accounts) on the same funding register.
Evaluation Preparation and Guidance: Ensure Soldier is aware of the funding requirements needed to support USACE projects. Have someone in RM-B go over a military FAD, and if available a civil FAD to acquaint them with the purpose and content of the form.
Performance Measures: GO NO-GO
1. Explain what a project number and labor code is and where you get it. _____ ______
2. Explain what a CWE is and when you get it. _____ ______
Chapter 2, p 68
3. Explain what an IGE is and when you get it. _____ ______
4. Explain the USACE PR&C process. _____ ______
5. Explain the FAD process. _____ ______
References: (See DVD for References)
Open the NCO Contracting website at https://kme.usace.army.mil/CoPs/Contracting/default.aspx.
Accessing this site first will allow the hyperlinks to open.
1. DA 1323, Funding Authorization Document
2. DD 448 Military Interdepartmental Purchase Request 3. DD 448-2 MIPR Acceptance
4. FAR 36.203 / EFARS 36.203, Government Estimate of Construction Costs 5. FM 1-06 Chapter 1, Financial Management
Task 2-14