Operation & Maintenance Appropriations

Operation & Maintenance (O&M) Appropriations fund 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.

Definition: Operation and Maintenance (O&M) appropriations are used to finance “expenses” not related to military personnel or Research, Development, Test, and Evaluation (RDT&E) efforts.

See Appropriations Categories

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
Communications
Recruiting
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

Time Limitation

Available for new obligations for one fiscal year.

Funding Policy

Annualized (1 Year)

Types of Costs

Expense costs

Acquisition Phase

Operations and Support (O&S) Phase

Quantities

N/A

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.

AcqTips

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:

Updated: 6/20/2021

G: 1