Financial Management
Operation & Maintenance AppropriationsOperation & 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:
- 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)
Updated: 6/20/2021
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