Operation & Maintenance (O&M) Appropriations funds the cost of operating and maintaining equipment at a state of readiness. It covers expenses such as civilian salaries, travel, minor construction projects, operating military forces, training and education, depot maintenance, stock funds, and base operations support.
Operation & Maintenance (O&M) appropriations are used to finance the following efforts:
- Operation and maintenance
- Training, organization, and administration
- Repair of facilities and equipment
- Hire of passenger motor vehicles
- Travel and transportation
- Care of the dead
- Procurement of services, supplies, and equipment
- Depot maintenance
- Purchases from Defense Working Capital Funds (e.g., spare parts)
- Base operations support
Operation & Maintenance (O&M) Budget Activities
Each O&M appropriation is subdivided into four budget activities (BAs):
- BA-1 Operating Forces
- BA-2 Mobilization
- BA-3 Training and Recruiting
- BA-4 Administrative and Service-wide Activities
Available for new obligations for one fiscal year.
Annualized (1 Year)
Types of Costs
May NOT Fund
These funds may not be used for efforts that are integral to a developmental, production or modification program/effort and any other costs more appropriately funded by other specific appropriations.
- More detailed definitions for O&M Budget Activities are contained in DoD Financial Management Regulation 7000.14-R, Volume 2B, Chapter 5.
- As of 1 October 2002, 10 U.S.C. 2805 (c) permits minor construction projects costing than less than $750,000 to be funded with O&M appropriations.
AcqLinks and References:
- Financial Management Overview
- DoD Instruction 7000.14 “DoD Financial Management Policy and Procedures” – 15 Nov 92
- DoD Instruction 7000.14-R “DoD Financial Management Policy and Procedures” – Volume 2A
- Website: DoD Comptroller: DoD 7000.14R – (Most Updated Versions)