Under what cost threshold is the use of operating and maintenance (O&M) funds for construction allowed?

Under what cost threshold is the use of operating and maintenance (O&M) funds for construction allowed?

• A. <$2M
• B. 4M or less
• C. >$4M
• D. Never

Answer: (B)

O&M funds can be used for construction only when the project is considered minor and its cost falls within a specific ceiling. The established ceiling is four million dollars or less. This allows small, non-major improvements to be funded from operating funds without tying up MILCON appropriations. If a project would exceed four million, it generally must be funded through MILCON or another appropriate appropriation, not O&M. The other options either set the threshold too low, imply funding is never allowed, or suggest a higher limit than the policy allows.

O&M funds can be used for construction only when the project is considered minor and its cost falls within a specific ceiling. The established ceiling is four million dollars or less. This allows small, non-major improvements to be funded from operating funds without tying up MILCON appropriations. If a project would exceed four million, it generally must be funded through MILCON or another appropriate appropriation, not O&M. The other options either set the threshold too low, imply funding is never allowed, or suggest a higher limit than the policy allows.