(b) SECNAVINST 5430.92B (c) SECNAVINST 7043.5B (d) CNICINST 7043.1
(e) DoD Instruction 1330.09 of 7 December 2005 (f) DoD 4500.36-R of 16 March 2007
(g) NAVFAC P-300, Management of Civil Engineering Support Equipment of Sep 03
(h) CNICINST 5890.1 (i) OPNAVINST 11010.20G
301. Management Control and Prevention of Fraud, Waste and Related Improprieties. Per references (a) and (b), the same management controls and fraud prevention measures apply to morale, welfare and recreation (MWR) property, equipment, supplies, and vehicles as to other Navy activities. 302. Procurement
a. Policy and procedures for the procurement/contracting of Fleet and Family Readiness (FFR)/MWR supplies, equipment, or services with non-appropriated funds (NAF) are contained in references (c) and (d).
b. Individuals designated with contracting and procurement responsibilities by REGCOMs Installation COs or their designated representatives must complete mandatory training courses to
become NAF contracting officers and qualify for a warrant issued by CNIC HQ Support Services (N94).
c. The NAF Purchase Card program provides a fast and convenient method of purchase or as means of payment under a contract for all requirements under the micro-purchase
threshold. The micro-purchase threshold for NAF is $5,000 for resale and non-resale supplies; $2,500 for services; and $2,000 for construction. A warranted NAF contracting officer may use the card up to the limit of his or her warrant, but not to exceed a $25,000 single purchase limit ($50,000 for resale).
303. Physical Inventory Requirements. The following minimum physical inventory requirements shall apply:
a. Fixed Assets and Minor Property: Annually
b. Resale Inventory, Consignment tickets, and Prepaid Tickets: Monthly
304. Purchase of Foreign Goods by NAFIs. The following merchandise procurement guidance is provided:
a. General Merchandise, Not for Resale. Specific guidance is set forth in reference (d) for NAFIs located in the U.S. and its possessions or Puerto Rico; guidance is set forth in
reference (e) for NAFIs located overseas.
b. Resale Merchandise. DoD policy promotes the sale of U.S. items in overseas NAF activities. Restrictions are set forth in reference (e).
305. Overseas Transportation of Continental U.S. (CONUS)
Procured Merchandise. Overseas NAF activities will comply with shipping procedures in reference (d) to secure the most
economical and expeditious overseas transportation of CONUS- procured merchandise.
306. Disposition of Property. Whenever possible, activities are strongly encouraged to redistribute serviceable NAF property to commands with a need for the equipment. It is recommended that excess MWR NAF property be first redistributed within the Navy MWR NAF community prior to using alternate means of
disposal. The following disposition guidance is determined by the category of property:
a. Excess MWR Appropriated Funds (APF) Property
(1) MWR property, including vehicles purchased with
APFs, will be transferred to the Defense Reutilization Marketing Office (DRMO) for disposal.
(2) Items purchased with APF through the Uniform Funding Management process, or obtained from DRMO, are to be returned to the servicing DRMO when no longer needed or if they have
exceeded their useful service life.
(3) APF vehicles obtained from surplus sources at no cost remain government owned (APF) property, regardless of any NAF expended to repair the vehicle. When no longer required, these vehicles will be turned into the nearest DRMO with a statement that they were obtained from APF sources and that no
part of the proceeds from the sale or other disposition will be returned to the NAF activity.
(4) When property is acquired from DRMO, the acquiring activity must assume the original source of funding was APF unless specific NAF documentation exists. Absent NAF property documentation, at the end of the property service life, disposal is required through turn-in to DRMO.
b. Excess MWR NAF Property
(1) MWR NAF property, including vehicles, boats,
trailers, campers, and other equipment purchased with NAF and deemed excess to requirements or beyond economical repair may be turned into DRMO, traded-in, or sold at auction regardless of the original purchase price. All auctions of MWR property must conform to the provisions of this instruction. This does not apply to demilitarized firearms or ammunition.
(2) Auction may include bidders from the civilian sector, i.e., non-DoD civilians. Auction proceeds will be retained by the local or regional MWR fund, as appropriate. This policy pertains only to excess or unserviceable MWR NAF property.
(3) Vehicle Title applications (SF-97) will be provided by CNIC HQ Facilities & Acquisition (N944) when state
registration (i.e. title) is required.
(4) Adequate controls should be established to safeguard against NAF liability for NAF property being acquired by others. Executed hold harmless agreements and acknowledgment of risk
forms, approved by the local Staff Judge Advocate (SJA) or
servicing General Counsel who can consider local liability laws, should be retained on file at the MWR activity for any NAF
property sold at public auction. To further reduce liability risk, any NAF property that is unserviceable, but in repairable condition, should have its condition specifically listed on all sales documentation including the bill or sale, and the
inventory/property record. Property should be sold in an “As Is” condition and all documentation should reflect that fact. Additionally, MWR shall disclose to prospective bidders any safety precautions that may apply to use of the equipment item. (5) MWR activities should obtain the services of a commercial auctioneer who will be paid a flat fee in lieu of a commission for services rendered. It should also be explicitly
understood by all parties that the sale of NAF property through public auction is final and no items may be returned.
(6) FFR employees, APF or NAF, and their family members are prohibited from purchasing MWR NAF property disposed of at an auction.
(7) In no instance will property purchased with APFs or NAFs be donated to any individual or non-Navy organization.
(8) Serviceable NAF property shall not be donated or offered as a condition of transfer to commands identified for Base Realignment and Closure. Serviceable FFR/MWR NAF property will be identified by the sponsoring region for Navy retention and redistribution and will not be eligible for inclusion in any Community Reuse Plans, etc.
(9) Unserviceable NAF property may be cannibalized for the purpose of servicing other FFR/MWR equipment.
(10) Proceeds from the sale of property owned by NAF activities will be deposited to an installation level account under the Budget Clearing Account (Suspense), 17F3875. Upon receipt of the remaining amount due, appropriate action shall be taken to transfer the funds to the proper account of the
activity that made the sale.
c. Abandoned Personal Property
(1) MWR may retain proceeds from the sale of abandoned personal property that has been disposed of in accordance with the provisions of 10 U.S.C. §2575.
(2) 10 U.S.C. §2575 permits the sale of personal property which has been lost, abandoned, or unclaimed on a military installation. Property so identified will be turned over to the official designated by the Installation CO to
receive such property. The designated official may not dispose of the property until diligent effort has been made to find the owner (or heirs, next of kin, or legal representative of the owner). The diligent effort to find any of these parties shall begin, to the maximum extent practicable, not later than seven days after the date on which the property comes into the custody or control of the designated official. The period for which that effort is continued may not exceed 45 days.
(3) For property in excess of $300 market value, if the owner or owner’s representative is determined but not found, the property may not be disposed of until 45 days after the date notice was given that the property has been found. The notice must be sent by certified or registered mail to the individual’s last known address and must give the time and place of the
intended sale or other disposition. When diligent effort to determine the rightful successor in interest is unsuccessful, property of a market value of $300 or less may be disposed of without delay. Funds remaining after deducting costs enumerated below may be distributed to MWR.
(4) In no case may property of fair market value in
excess of $300 be disposed of until 45 days after the date it is received by the designated official.
(5) In the case of lost, abandoned, or unclaimed
personal property found on a military installation, the proceeds from the sale of the property found shall be credited to the operation and maintenance account of that installation or region and used as follows:
(a) to reimburse the installation for any costs incurred to collect, transport, store, protect, or sell the property; and
(b) to support local MWR activities, to the extent that the amount of the proceeds exceeds the amount necessary for reimbursing all costs.
(6) The owner, heirs, next of kin, or legal
representative of the owner of personal property that has been credited with proceeds to a military installation, may file a claim with the Secretary of Defense for the proceeds less costs, when the proceeds have been retained at the local installation or regional account. An amount to satisfy the claim shall be drawn from the MWR account of the installation or region that received the proceeds. If the proceeds have been transferred to the Treasury, the claimant shall file a claim against the
Secretary of Defense.
(7) Unless a claim is filed under this subsection within five years after the date of property disposal, the claim may not be considered.
(8) The following is an example of a release statement that may be used at installations where items are stored in MWR
storage areas. This statement does not apply to abandoned property for which there was no storage agreement:
“In consideration of being permitted to store my ____(Name of stored item)____ with the FFR/MWR Department of ____(Installation Name)____, I hereby agree that if I abandon my ___(Name of stored item)_ __, it may be disposed of in accordance with applicable regulations or local base procedures. Abandonment is determined to occur 45 days after estimated pickup date, unless I notify __(Title or Name of person to notify)__ of any changes in pick-up dates. I further agree that because of convenience and other consideration I, my heirs, executors, and
administrators, release and forever discharge the United State Navy, the United States, the MWR Fund of
___(Installation name)___ from liability for damages of any sort including but not limited to personal injury or
property damage, arising from use of said area. I further waive my rights for myself, my heirs, executors, and
administrators under 10 U.S.C §2572 to property abandoned by me that is subject to this release for which MWR has retained any funds due to the sale of my abandoned
property. I specifically waive the right to claim any
excess funds above the actual costs incurred by MWR and the actual accumulated storage fees that I have not paid as consideration for entering into this agreement. This release extends to the owner(s) heirs or assigns, which might assert such claims or demands as a result of the disposal of the property so entrusted to MWR.”
(9) The local OGC or SJA legal representative should be consulted before establishing storage agreements or any
procedure for disposal of abandoned property.
307. MWR Vehicles. An MWR vehicle is a self-propelled motor vehicle or any towable trailer intended for use on public roads, which includes on-base and off-base, and is used for the
movement of supplies, equipment, and personnel that is being conducted on official MWR business. A Special Purpose
Equipment/Vehicle is a vehicle/rolling equipment not otherwise classified above. Such vehicles may have been modified for specific purposes that would prohibit them from being used for any other purpose, e.g., golf ball pick-up tractor, golf carts, tractors, riding mowers, cement mixers, snowmobiles, go-carts, power cycles, trucksters, loaders, graders, segways, forklifts, cranes, aerators, and similar types of equipment. Vehicle
movement restriction to on-base areas does not by itself qualify the items identified as special purpose equipment.
308. Policy on Use of MWR NAF Vehicles
a. NAF may be used to procure vehicles for Navy MWR
purposes according to provisions in this manual and references (c) and (d). Official MWR business implies travel and
transportation for authorized MWR purposes and programs.
b. Prestige vehicles will not be procured or financed with NAF.
c. The purchase of 15 passenger vans is not authorized. If a special requirement arises, written approval must be obtained in advance from CNIC HQ (N944).
d. Ships, staffs and other commands, squadrons, units or detachments of the operating forces of the Navy that leave MWR vehicles behind during periods when they are absent from their home ports or other places where vehicles are located, will turn over control of the vehicles to the nearest MWR activity ashore for custody and use while they are away from their home port. e. NAF vehicles are depreciated over either a five or eight year time period. The actual useful life may be different
according to local conditions. For DRMO purposes, the
anticipated life expectancy for new MWR vehicles is established as a minimum of six years from manufacture or 72,000 miles. Vehicles obtained from DRMO or other sources will also follow the above criteria.
309. MWR NAF Vehicle Inventory and Registration. A central inventory of all NAF vehicles will be maintained by CNIC HQ (N944) through mandatory vehicle registrations. The MWR
inventory will be updated continually through coordination with designated regional representatives. Regional representatives shall ensure registration, fuel, and maintenance information for all NAF vehicles is entered into the Base Support Vehicle and Equipment Management Information System (BSVEMIS). Fuel and maintenance information must be entered in to BSVEMIS quarterly to meet the mandated annual data reporting requirements of
Executive Order 13423 and Energy Policy Act (EPAct) 2005. 310. Prohibited Use of MWR Vehicles. The use of MWR vehicles is prohibited for the following:
a. Transportation when APF vehicles are adequate or economical commercial transportation is available.
b. Transportation between domicile and place of employment. c. Transportation for private business or personal
engagements of military or civilian personnel, members of their families, or others.
d. Transportation for official Navy business not associated with MWR programs.
e. Any purpose that could be construed as competitive with private enterprise, for example the use of MWR buses or vans for a purpose that is not a MWR event or organized program.
311. Government-Owned APF Procured Vehicles. MWR may be
permitted no-cost use of APF vehicles for official MWR business when approved by the Installation CO. Bus service in support of authorized MWR programs may be provided when such transportation can be made available without detriment to the mission of the activity and when funds are available. This service may be provided as outlined below.
a. MWR APF transportation may be provided on a non- reimbursable basis for the following categories:
(1) MWR functional staffs engaged in routine direct administration support of MWR activities.
(2) Teams composed of personnel who are officially representing the installation in scheduled competitive events. (3) DoD personnel and family member spectators attending local events in which a command or installation sponsored team is participating.
(4) Entertainers, guests, supplies, and equipment essential to FFR/MWR programs.
(5) Civilian groups transported to DoD installations in the interest of community relations when invited by the head of the installation or other authorized command authority.
(6) MWR activities, such as recreational tours and
trips, youth activities, etc., when fees are not levied upon the passengers (except fees made to cover the cost of the driver
when not available from base transportation) and when approved by the Installation CO.
(7) MWR transportation can be provided for special activities such as scouting programs and private organizations as outlined in reference (f). Such service will be accomplished on a reimbursable basis covering all operations and maintenance costs of providing that service.
(8) MWR transportation may be used for “official” Navy functions such as change of command or retirement ceremonies. b. Information regarding APF vehicle/equipment allowances is found in reference (g).
312. MWR NAF Vehicle Allowance Lists. MWR NAF vehicle
allowance lists are established by the Installation CO or Region FFR Director. Supplemental APF vehicle support will be limited to minimum needed to carry out effective MWR programs.
Allowance lists are not required for special purpose equipment/vehicles.
313. MWR Vehicle Administration, Operation, and Maintenance a. The administration and operation of all MWR vehicles is a command function and must be administered under the direct supervision of MWR.
b. Reference (g) provides standards of maintenance,
operation, and safety of vehicles. Many states offer vehicle inspections at no cost to the government. Such inspections are highly recommended.
c. MWR NAF vehicles should normally be fueled and serviced, when appropriate, using public works department facilities on a reimbursable basis, fleet fuel cards, or NAF purchase card. APF vehicles use APF gas cards, as applicable.
314. MWR NAF Vehicle Procurement and Disposition a. General Purpose MWR Vehicles
(1) Local procurement of new vehicles from commercial sources should be supported with justification, including
mileage and number of vehicles, with Navy registration numbers, to be replaced and cost to put the vehicles back in operation. A description of the desired replacement vehicle, including
accessory equipment and purchase price will be provided.
Government sources should be documented prior to procuring from commercial sources to ensure optimum savings to the activity. (2) The procurement of vehicles by prudent selection from surplus sources is encouraged provided the additional
vehicles do not exceed the authorized vehicle allowance and the other provisions of this instruction are met.
(3) The approval of the Installation CO or Region FFR Director is required before leasing a vehicle. The request
should contain, but not be limited to the period of lease; cost; type of vehicle to be leased; reasons why the leased vehicle is required; and cost analysis of lease versus purchase. This provision does not apply to short-term vehicle rental, three months or less, to accomplish a specific purpose.
(4) A long-term vehicle and equipment-leasing program, vice purchase, has been implemented within Navy through General Services Administration (GSA). Careful consideration should be given to the leasing of vehicles through GSA prior to new
acquisition. GSA numbers assigned to leased vehicles shall be used for vehicle registration in the NAVFAC BSVEMIS vehicle database. This number must remain with the vehicle throughout the term of the lease. For other leased vehicles/equipment, a 400000 series number will be assigned by CNIC HQ (N944). In all cases, a Motor Vehicle Master Record must be submitted to CNIC HQ (N944) for registration in the BSVEMIS database.
(5) In no instance will NAF owned vehicles be given or sold to any individual or non-Navy organization without prior and specific approval of the regional FFR director.
(6) Disposal of excess, serviceable vehicles procured with NAF will follow the provisions of section 306 above. (7) Registration numbers shall be canceled using the procedures in section 315.
(8) NAF vehicles are not titled by State governments. SF 97, U.S. Government Certificate of Release, should be
provided to the purchaser of any NAF vehicle sold via sealed bid procedures. This form will enable the purchaser to apply for State title and tags. CNIC HQ (N944) provides this form upon request from a command or regional representative.
b. Special Purpose MWR Vehicles. Special purpose NAF
vehicles may be purchased by local commands based on documented