Department of the Army

Pamphlet *** **

Facilities Engineering

Project

Definition and

Work

Classification

Headquarters

Department of the Army

Washington, DC

** ***** ****

UNCLASSIFIED

SUMMARY of CHANGE

DA PAM 420 11

Project Definition and Work Classification

This administrative revision, dated 18 March 2010--

o Add glossary terminology to include a definition for models, replicas, and

simulations (app B).

o Makes administrative changes (throughout).

This major revision, dated 13 January 2010--

o Combines maintenance and repair into one classification category (para 2-2).

o Adds paragraph explaining funded and unfunded costs (para 2-9).

o Adds additional information on how to calculate the facility replacement

value (para 3-4).

o Updates terminology (throughout).

o Clarifies the work classification examples to conform to current definition

of repair (throughout).

o Adds guidance governing the classification of work associated with Equipment-

in-Place and Information Management equipment in repair projects

(throughout).

o Adds examples from AR 420-1 on work classification of pavements and railroads

(throughout).

o References AR 420-1 and deletes old references (throughout).

o Makes administrative changes (throughout).

*Department of the Army

Headquarters

Pamphlet 420 11

Department of the Army

Washington, DC

18 March 2010

Facilities Engineering

Project Definition and Work Classification

Applicability. This pamphlet applies to commander or senior leader of the requ-

the Active Army, the Army National esting activity and forwarded through

Guard/Army National Guard of the United their higher headquarters to the policy

States, and the U.S. Army Reserve, unless proponent. Refer to AR 25 30 for specific

otherwise stated. It also applies to all Ac- guidance.

tive Army installations, sub-installations,

Suggested improvements. Users are

assigned activities, and includes Govern-

ment-owned and contractor-owned invited to send comments and suggested

facilities. improvements on DA Form 2028 (Recom-

mended Changes to Publications and

Proponent and exception authority.

Blank Forms) directly to Assistant Chief

The proponent of this pamphlet is the As-

of Staff for Installation Management

sistant Chief of Staff for Installation Man-

(DAIM ODF), 600 Army Pentagon,

agement. The proponent has the authority

Washington, DC 20310 0600.

to approve exceptions or waivers to this

pamphlet that are consistent with control-

Distribution. This pamphlet is available

ling law and regulations. The proponent

in electronic media only and is intended

History. This publication is an may delegate this approval authority, in

for command levels C and D for the Ac-

administrative revision. The portions writing, to a division chief within the pro-

affected by this administrative revision are tive Army, the Army National Guard/

ponent agency or its direct reporting unit

listed in the summary of change. Army National Guard of the United

or field operating agency, in the grade of

States, and the U.S. Army Reserve.

colonel or the civilian equivalent. Activi-

Summary. This pamphlet provides guid-

ties may request a waiver to this pamphlet

ance to Army installations in the areas of

by providing justification that includes a

project definition and performance of

full analysis of the expected benefits and

work classification. Procedures are ex-

must include formal review by the activi-

plained to promote uniform interpretation

ty s senior legal officer. All waiver re-

on the classification of work Armywide.

quests will be endorsed by the

Contents (Listed by paragraph and page number)

Chapter 1

Introduction, page 1

Section I

General, page 1

Purpose 1 1, page 1

References 1 2, page 1

Explanation of abbreviations and terms 1 3, page 1

Section II

Work Classification Concepts, page 1

General 1 4, page 1

Why work classification is important 1 5, page 1

Definitions 1 6, page 2

Work classification applications 1 7, page 3

*This pamphlet supersedes DA Pam 420 11, dated 13 January 2010.

DA PAM 420 11 18 March 2010 i

UNCLASSIFIED

Contents Continued

Chapter 2

Work Classification Examples, page 9

General 2 1, page 9

Work classification - buildings and transportation systems 2 2, page 9

Work classification - grounds 2 3, page 12

Work classification - utilities 2 4, page 13

Work classification - landfills 2 5, page 15

Work classification - asbestos 2 6, page 16

Work classification - Defense Environmental Restoration Program 2 7, page 16

Work classification - equipment classification 2 8, page 17

Work classification - funded and unfunded project costs 2 9, page 28

Chapter 3

Project Documentation, page 29

General 3 1, page 29

Establishment of official project files 3 2, page 30

Integrated undertaking 3 3, page 32

Facility replacement value 3 4, page 32

Safeguarding information 3 5, page 32

Appendixes

A. References, page 33

B. Tables, page 36

Table List

Table 2 1: Funding for Information System Support Components of Real Property Projects, page 22

Table 3 1: Blotter Record, page 30

Table B 1: Steps in development of a project or projects, page 36

Table B 2: Outline of work classification, page 36

Glossary

ii DA PAM 420 11 18 March 2010

Chapter 1

Introduction

Section I

General

1 1. Purpose

The purpose of this pamphlet is to promote Armywide uniform interpretation on classification by presenting examples

of maintenance, repair, and minor construction projects and policy and guidance governing the classification of work.

AR 420 1, chapter 2, Management of Public Works Activities, identifies the Director of Public Works (DPW) as the

installation staff officer responsible for work classification and contains basic work classification policy and guidance.

1 2. References

Required and related publications and prescribed and referenced forms are listed in appendix A.

1 3. Explanation of abbreviations and terms

Abbreviations and special terms used in this pamphlet are explained in the glossary.

Section II

Work Classification Concepts

1 4. General

a. Real property facility (RFP) projects are described by words such as sustainment, restoration, modernization,

upgrade, maintenance, repair, construction, revitalization, improvement, and demolition. These words have a variety of

meanings conveying different concepts to different people. Because work classification is the process of fitting real

property undertakings into the structure of statutes and Army policy, wording must be precise so that everyone

understands exactly what is being done. Real property facility projects constitute the basis for essentially all of the

facilities engineer activities. The management of real property facility projects is one of the most critical duties of the

facilities engineer. Because of the large amount of funds utilized in facilities engineering operations, the complexity of

the work, and the size of the workforce, the DPW is constantly required to interpret various regulatory restrictions on

the utilization of funds and personnel. Many of these restrictions are in the form of statutory limitations enacted by

Congress, while other restrictions are regulatory or administrative in nature. Moreover, the determination of the proper

source of appropriated funds to use on a specific project is governed by statutory and regulatory restraints and is

subject to legal review. In any case, violations of these rigid statutory and regulatory limitations are a serious offense.

Therefore, a clear distinction must be made between maintenance, repair, and construction work. Maintenance and

repair are defined in AR 420 1, chapter 2. Minor construction is defined in AR 420 1, chapter 4, while construction

for family housing, including incidental improvements and line item improvements, is defined in chapter 3. Soldiers

working on real property facilities must comply with the policies contained in AR 420 1, chapters 2 4.

b. Work classification definitions and rules apply to all facilities engineering work, regardless of who performs it

and how it is funded. Work classification also determines what is a funded project cost and what is an unfunded project

cost. Funded project costs define where the approval authority for a real property project is located. The approval

authority, however, is approving only the real property portion of the undertaking. Unfunded project costs are approved

separately by various other means. Unfunded project costs are the least understood of the funding categories. It

contains all the items that are not part of the real property or items that can not be touched such as design, and permits.

It also contains equipment-in-place (EIP); pieces of equipment that the user of the building needs to do his job but are

not part of the real property. Both funded and unfunded project costs are covered in detail in AR 420 1, chapter 2. The

total project cost is the sum of funded and unfunded project costs.

1 5. Why work classification is important

a. While the current definition of a minor construction project in AR 420 1 chapter 4 (as stated in para 1 6c)

appears simple in concept, its application is often difficult. Misclassification of construction as maintenance and repair

and errors in defining minor construction projects may result in a statutory violation of the Anti-Deficiency Act (see

DFAS IN 37 1 Regulation).

b. Antideficiency statutes state that any officer or employee of the United States who makes or authorizes an

expenditure or obligations exceeding an amount available in an appropriation or fund for the expenditure of an

obligation shall be subject to appropriate administrative discipline, including, when circumstance warrant, suspension

from duty without pay or removal Title 31, United States Code, Section 1341(a) (31 USC 1341(a)) and 31 USC 1349.

Those convicted of a knowing and willful violation shall be fined not more than $5,000, imprisoned for not more than

2 years, or both (31 USC 1350 and 31 USC 1519).

c. Antideficiency violations are serious and affect the Army s credibility. The DOD and DA policy calls for

disciplinary action in Antideficiency violation cases. A violation that was not willful does not constitute a crime, but it

DA PAM 420 11 18 March 2010 1

may still warrant disciplinary action. Circumstances such as a heavy workload at year-end or an employee s past

exemplary record or an urgent need to provide mission support, generally are relevant only in determining the

appropriate level of discipline, not in determining whether discipline should be imposed. In view of this, care must be

taken to ensure that the Army does not violate the Antideficiency Act. The DPWs are encouraged to seek guidance

from the Installation Management Command (IMCOM) Region, IMCOM headquarters, or the Assistant Chief of Staff

for Installation Management (ACSIM) (DAIM ODF) on questionable rulings.

1 6. Definitions

a. Repair. Repair means "to restore a real property facility, system or component to such a condition that it may

effectively used for its designated functional purpose."

(1) When repairing a facility, the components of the facility may be repaired by replacement, and the replacement

can be up to current standards or codes. For example, heating, ventilation, and air conditioning (HVAC) equipment can

be repaired by replacement, can be state-of-the-art, and provide for more capacity than the original unit due to

increased demand/standards. Interior rearrangements (except for load-bearing walls) and restoration of an existing

facility to allow for effective use of existing space or to meet current building code requirements (for example,

accessibility, health, safety, or environmental) may be included as repair.

(2) Correction of deficiencies in failed or failing components of existing facilities or systems to meet current Army

standards and codes where such work, for reasons of economy, should be done concurrently with restoration of failed

or failing components. When the facility is in an overall failing condition corrective work may involve increases in

quantities or capacities and inclusion of systems or components not previously present in the facility.

(3) A utility system or component may be considered failing if it is energy inefficient, or technologically obsolete,

provided

(a) The utility system or component of such a system exists and is, in fact, energy inefficient or technologically

obsolete;

(b) The system/component to be replaced has been in service for a minimum of 3 years; and

(c) The project is estimated to have a payback period of about 10 years or less.

(4) Major work (for example, building interior gutting and replacement) required to restore a generally deteriorated

facility to such a condition that it may be effectively used for its designated purpose. Multipurpose facilities are

repaired as a single unit without regard to separately identified areas.

(a) Building components. Such an undertaking may include, under the classification of repair, the relocation or

reconfiguration of building components such as partitions, windows, and doors. The inclusion of greater quantities of

components or systems is acceptable to provide for effective use of the facility for its designated functional purpose.

(b) Utility systems. Such an undertaking may include, under the classification of repair, the relocation and recon-

figuration of utility systems into arrangements to meet current standards and current code requirements.

(c) Failed or failing systems. In case of failed or failing systems or components, such an undertaking may also

incorporate additional components, if based on good engineering practice and to meet current code or system

requirements, to permit the efficient and safe use of the replacement system.

(5) Repair. Repair does not include increases in quantities of components nor extension of utilities or protective

systems to areas not previously served for functional reasons or to meet codes or standards, when the condition of the

systems and components do not support calling a facility as failed or failing. Increases in exterior building dimensions,

are usually construction.

(6) Additions, new facilities, and functional conversions. Additions, new facilities and functional conversions must

be done as construction. A construction project which is complete and usable by itself, may be accomplished

concurrent with a repair project.

(7) Complete replacement. Complete replacement of a RPF is construction, not repair. (See para 1 7j for further

guidance.)

(8) Maintenance is a subcategory of repair. It means the work required to preserve and maintain a RPF in such

condition that it may be effectively used for its designated functional purpose. Maintenance includes cyclic work done

to prevent damage which would be more costly to restore than to prevent. Maintenance includes work to sustain

components. Examples include renewal of disposable filters, painting, caulking, refastening loose siding, and sealing

bituminous pavements. Painting done in connection with repair work (that is, as a result of the repairs) is properly

classified as repair.

b. Construction. A military Construction project includes any construction, development, conversion, or extension of

any kind carried out with respect to a military installation, whether to satisfy temporary or permanent requirements. It

includes all military construction work, or any contribution authorized in 10 USC Chapter 169, necessary to produce a

complete and usable facility or a complete and useable improvement to an existing facility (or to produce such portion

of a complete and useable facility or improvement as is specifically authorized by law). (Note: Construction projects

greater than the current statutory Operations and Maintenance (O&M) funding limit (10 USC 2805) must be funded

from the Military Construction Appropriations). Examples of construction are:

(1) The erection, installation, or assembly of a new facility either temporary or permanent.

2 DA PAM 420 11 18 March 2010

(2) The addition, expansion, extension, alteration, conversion (in the sense of facility modification caused by a

change in functional purpose), or complete replacement of an existing facility.

(3) The relocation of a real property facility from one installation to another.

(4) Installed building equipment made a part of the facility.

(5) Related site preparation, excavation, filling, landscaping, or other land improvements.

(6) Foundations, site work and utility work associated with the setup of relocatable buildings, in accordance with

AR 420 1, chapter 6.

c. Facility. A facility is a building, structure, or other improvement to real property.

d. Undertaking. An undertaking encompasses the entire effort put forth by a garrison to support work on a facility.

It may include any one or all of the following projects: maintenance and repair; construction; and, the installation of

EIP.

e. Sustainment, restoration, and modernization. Sustainment, restoration, and modernization (SRM) are budgetary

terms used to describe work performed on real property. Sustainment may contain maintenance and repair. Restoration

may contain repair or construction. Modernization is mostly construction, but can contain repair if replacing compo-

nents that normally last more than 50 years.

(1) Sustainment means the maintenance and repair activities necessary to keep an inventory of facilities in good

working order. It includes regularly scheduled adjustments and inspections, preventive maintenance tasks, and emer-

gency response and service calls for minor repairs. It also includes major repairs or replacement of facility components

(usually accomplished by contract) that are expected to occur periodically throughout the life-cycle of facilities. This

work includes regular roof replacement, refinishing of wall surfaces, repairing and replacement of heating and cooling

systems, replacing tile and carpeting, and similar types of work. It does not include environmental compliance costs,

facility leases, or other tasks associated with facilities operations (such as custodial services, grounds services, waste

disposal, and the provision of central utilities).

(2) Restoration means the restoration of real property to such a condition that it may be used for its designated

purpose. Restoration includes repair or replacement work to restore facilities damaged by inadequate sustainment,

excessive age, natural disaster, fire, accident, or other causes.

(3) Modernization means the alteration or replacement of facilities solely to implement new or higher standards, to

accommodate new functions, or to replace building components that typically last more than 50 years (such as, the

framework or foundation).

f. Recapitalization. Recapitalization means the major renovation or reconstruction activities (including facility

replacements) needed to keep existing facilities modern and relevant in an environment of changing standards and

missions. Recapitalization extends the service life of facilities or restores lost service life. It includes restoration and

modernization of existing facilities. Recapitalization encompasses both renovation and replacement of existing facilities

and essentially resets the Army s sixty-five year life-cycle period for the facility.

g. Relocatable buildings. A relocatable building is defined as

(1) An arrangement of components and systems designed to be transported over public roads with a minimum of

assembly upon arrival and a minimum of disassembly for relocation. A relocatable building is designed to be moved

and reassembled without major damage to floor, roof, walls, or other significant structural modification.

(2) The costs for disassembly, repackaging, any exterior refinishing (for example, brick fa ade, and so on) and any

interior work (for example, electrical systems, fire suppression systems, walls or ceilings, and so on) including labor

applied to the building after site delivery to make the relocatable building useable, and non-recoverable building

components, including foundations, may not exceed 20 percent of the purchase price of the relocatable building.

(Foundations include blocking, footings, bearing plates, ring walls, and concrete slabs. When concrete slabs are used as

relocatable building foundations or floors the entire cost of the slab will be included in the foundation cost.) Non-

recoverable building components are components that cannot be used again in the reassembly of the subject building.

(3) Relocatable buildings are not real property, they are equipment and accounted for as equipment. In the Integrated

Facility System (IFS) relocatable buildings are noted by the letter R.

h. Tents. Tents are not considered relocatable buildings. A tent is a temporary or semipermanent portable shelter

consisting of sheets of fabric or other material draped over or attached to a frame of poles. It is easy to assemble and

disassemble. Tents may be attached to the ground with stakes, lines, or ropes. They are accounted for as equipment,

personal property. Tension fabric shelters are not considered tents.

1 7. Work classification applications

The garrison DPW, or for U.S. Army Reserve the Regional Support Command, as the Work Classification authority,

makes all work classification actions based on good faith, sound judgment and in conformance with all regulatory

requirements and limitations (for example, AR 420 1). The decision making process should be supported by clear

explanations in the project file. When doubt exists, clarification should be requested from the IMCOM Region,

IMCOM headquarters, or the ACSIM (DAIM ODF).

a. There are two principal considerations when determining work classification.

DA PAM 420 11 18 March 2010 3

(1) Strict adherence to the prohibition against incrementing or fragmenting construction or repair for the purpose of

circumventing approval authority limitations.

(2) For construction an honest assessment of what constitutes a complete and usable facility(ies) or a

complete and usable improvement to existing facility(ies) must be made. Consider the following examples:

(a) Example A. An airfield exists and is in use. There are concurrent requirements for a new control tower and an

addition to the hangar. Each is properly a separate project, since each is independently complete and usable upon

completion.

(b) Example B. A new airfield is to be constructed where none now exists. Assume the requirements for the airfield

consists of a control tower, hangar, landing strip and taxiways. Classification of each facility as a separate project

would be improper. While each may be complete, such interrelated facilities are not independently usable .

(c) Example C. An administrative building exists and is in use. There are concurrent but unrelated alteration

requirements in the basement s mechanical room and in the headquarters area of the facility. Each is properly a

separate project, since each is independently complete and usable upon completion.

(d) Example D. A new commissary is to be established at an installation where none now exists. The installation is

planning on using three existing vacant collocated buildings and the surrounding paved area for parking. The three

buildings and parking area require repairs and improvements in order to convert the buildings into a complete and

usable commissary facility. Classification of each building as a separate construction project would be improper. While

each may be complete, such interdependent facilities are not independently usable until all four components of the

commissary are completed, that is, the sales store, the dry storage, the cold storage and the parking lot. In this case,

there should be a repair project for each building; a repair project for the parking; and one associated minor

construction project which contains all necessary construction for the four facilities needed to establish the commissary.

(e) Example E. An administrative facility is found to need a fire suppression system. No fire suppression system

exists in the building and current code requirements state that administrative facilities will have suppression systems.

There is an audible fire alarm system that is considered to be in a failing condition. A requirement also exists for the

fire alarm to alarm both in the building and at a supervised panel so that fire response may be initiated. It is decided

that the fire alarm must be repaired. The repair must be made to code. Thus, the repair will be made by replacing the

current system with an audible fire alarm system that alarms not only in the building but also at the fire station. The

additional equipment for alerting the fire station is proper for a repair project to bring the alarm system up to code. The

addition of a fire suppression system in this case would not be proper. If, however, there were enough failed or failing

components and systems in the facility to justify repair of the entire failing facility, the facility repair should properly

include a fire suppression system. Key to this is that the fire suppression is not being installed as an act to just bring

the facility up to code but as part of a larger undertaking to repair the facility and make it useable for its intended

purpose.

b. The guidance in AR 420 1, chapter 2, defining a maintenance and repair project is more general than the

definition of construction in AR 420 1, chapter 4. A maintenance and repair project is defined in part by AR 420 1,

chapter 2, as a single undertaking (that is, an activity which would be readily and separately identified as a logical

task). The undertaking may embody a maintenance and repair project, a construction project and the installation of EIP,

each of which could be funded as a separate project.

(1) A single undertaking could range from repairing one block in a sidewalk to all work required to repair a

building. Its scope is dependent upon need for accomplishment, economical contracting practice, and good engineering

judgment. Also, the scope may be limited by fund availability.

(2) When a finite project is to be funded (phased) over a number of years the entire project must be approved at one

time.

(3) Project scope must be based on reason or logic that could not in any way be interpreted as intending to

circumvent dollar approval levels. For example, it would be inappropriate to divide the work required to repair a

building into separate projects on systems and components to keep the repair of the facility within local approval

authority when the entire building is in need of repair. Breaking the repair project into many smaller projects rather

than developing one repair project for the entire failing facility in essence makes the addition of systems and

components that are currently not present (but which are required by codes and standards) construction. Part of the

analysis on a repair project is the calculation of a repair to replacement ratio expressed as a percentage. The numerator

of the repair to replacement ratio consists of the sum of all repair work on the facility to be accomplished on the

facility and adding any associated construction. The denominator is the calculated cost to replace the facility. This

calculation is a part of each repair record with a funded cost greater than $750,000.

(4) Repair projects are further defined as involving a finite scope. This could be repairing only the deteriorated

wallboard in one building or repairing many items. If many items are of equal priority in the same facility, and good

engineering judgment indicates that they should be accomplished simultaneously, they should be considered as a single

undertaking of finite scope and therefore one project.

(5) When maintenance and repair, and minor construction are to be done at the same time, maintenance and repair,

and minor construction work are treated as two separate projects (see table B 1).

c. The definition of an individual repair project in AR 420 1, chapter 2, contains the phrase, one or more real

4 DA PAM 420 11 18 March 2010

property facilities. Therefore, only one real property facility need be included in the scope of a project. Two or more

real property facilities may be included in a project if they fit the term "single undertaking" and for repair, finite

scope. Following the general criteria outlined above, the facility engineer examines the particular case and determines

the scope of a project based on

(1) Good engineering practices.

(2) Operational or administration considerations.

(3) Economical contracting practices.

(4) Rules applicable to family housing.

(5) Statutory guidance provided in 10 USC 2805 and 10 USC 2811.

d. An analysis of work classification and project scope is essential in determining project approval authority and

adhering to statutory and regulatory requirements and limitations. The scope of a contract may include one or more

projects or one project may be divided into several contracts. Project approval levels do not apply in so far as the

packaging of contracts is concerned. A contract s scope must be determined on the basis of good engineering

principles, operational and administrative considerations, and contracting practices that are in the best interest of the

government. It is important when contracting maintenance and repair, construction, and EIP in the same contract that

clear audit trails be maintained for each category of work.

e. The availability of funds does not affect approval levels or what must be combined into a project. Additionally,

the type or source of funds does not affect the work classification rules or project scope determinations; however,

approving officials must consider limitations when other than Operation and Maintenance, Army (OMA) funds are

being used. Similar type repair work need not be combined into a single project or a repair project need not satisfy a

total requirement. Maintenance and repair projects that are single undertakings, of finite scope, and/or satisfy specific

requirements, may stand alone. Work must not, however, be divided into a number of projects solely to keep the

projects within an approval authority.

f. Repair means that the facility or facility component or facility system has failed, or is in the incipient stages of

failing, or is no longer performing the functions for which it was designated. Repair may sometimes include work that

under other circumstances would be considered as construction. The following are examples

(1) A wall relocated solely to provide a better interior arrangement would be an alteration (construction). The same

wall, if relocated during a repair project, would be properly classified as repair, even if the wall itself did not need

repair. Interior rearrangements (except for load-bearing walls) of an existing facility to allow for effective use of

existing space is repair when done in conjunction with a restoration of the components that define the existing space.

(2) The installation of code requirements such as fire detection and suppression and isolation systems would be an

addition (construction). The same fire systems if included in a major repair project of a failed or failing facility would

be repair. In a barracks that has been declared to be failed or failing, entire floor layouts may be rearranged. In

barracks that contain central latrines and shower facilities (or have these systems in outlaying buildings), the latrines

and showers may be relocated and reconfigured into arrangements to meet current standards. Such work may be

classified as repair provided the existing utility systems and latrines are in a failed or failing condition. The work may

result in increases in overall quantities of fixtures and piping and other materials. The rearrangement includes the

reconfiguration of partitions, doors, windows, and utility systems and must include the inclusion of code requirements

such as fire detection and suppression and isolation systems. The installation of such systems and increases in

quantities of materials would be properly classified as repair when included into the major repair project (see table

B 2).

g. Repair also means that something exists which needs to be repaired or restored. For example, replacing a leaking

four-gallon fire extinguisher with an automatic sprinkler system is not repair. Neither is replacing a long deteriorating

electrical extension cord with conductors in conduit considered repair. In both examples, replacing EIP with real

property systems or components would be an addition and thus construction.

h. In the case of component replacement, the repairs do not need to be in kind and it does not preclude use of

improved materials, equipment, methods, or arrangements. As a matter of general policy, all repairs are made to code

and to current standards. Further, energy and water saving materials should be used in repair projects whenever

feasible. An economic analysis should be a routine decision making tool in the selection of materials or methods of

maintenance and repair. As part of repair, constituent utilities systems that need to be replaced within a facility (for

example, electrical, plumbing, heating, and ventilation are categorized as installed building equipment (IBE)) may be

increased in capacity to accommodate accumulated growth, expected growth, or to meet current codes or modern

accepted engineering standards. For example, a failing air conditioning system within an existing facility may be

replaced with a larger system and in determining the replacement capacity of the air conditioner (AC), future growth in

heat load will be considered. Further, the AC system may be extended to areas not previously served to allow for

effective use of existing space or to meet current building code requirements.

i. Standards change, and the Army will comply with current practices, standards, and codes when executing repair

projects. An existing incandescent street light that is destroyed by accident, nature, or has failed to the point of

requiring complete replacement, may be replaced with a more modern type, such as mercury vapor, sodium vapor (high

or low pressure), or high-intensity-discharge street light. A broken 4 inch sewer line may be replaced with a 6 inch

DA PAM 420 11 18 March 2010 5

line because the latter size is the current minimum standard permitted. Replacement of a sewer line in good condition,

however, with a larger size to provide additional capacity to serve a new proposed facility would be construction.

Likewise, replacement of the broken 4 inch sewer line with an 8 inch line may be accomplished as repair when it is

known that the additional capacity will be needed to serve a new facility which is planned in the area.

j. Complete replacement of a facility is construction. Partial replacement may be repair as long as the replaced

components are failed or deteriorating and as long as the facility is not being completely replaced and the architectural

appearance has not been significantly altered.

k. For work classification purposes, a RPF is a separate and individual building, structure, utility system, or other

real property improvement identifiable in the three-digit Category Codes (CATCDs) listed in DA Pam 415 28. An RPF

may contain one functional area. A multipurpose RPF may contain more than one functional area. During a repair of

an entire failed or failing facility, the areas are considered against the overall function of the facility and individual

areas may increase in size or decrease in size and new functional areas may be added and functional areas may be

removed to accommodate the overall facility function. Examples are as follows:

(1) Buildings.

(a) One enlisted personnel barracks (CATCD 721) represents a single RPF. A barracks facility damaged by fire may

be repaired if the foundation and walls still exist, and do not require total replacement.

(b) A Starship training barracks (CATCD 721) may contain various other functional areas such a as battalion

headquarters, a company headquarters, a dining facility, class-rooms, an arms rooms, and storage rooms all of which

represent a single RPF. A starship barracks that is damaged by inadequate sustainment, excessive age, natural disaster,

fire, accident, or other causes can be considered failed or failing. It may be repaired without regard to the individual

constituent functional areas. These functional areas may be increased or decreased. Additionally, new functional areas

may be added and old ones removed to allow for effective use of existing space or to meet current building code

requirements as long as the overall use of the buildings remains a training barracks. This concept applies to other

multiuse facilities.

(2) Utilities. A single (physically or geographically identifiable) system for any of the following: generation and

supply of electric power; treatment or supply of water; collection or treatment of wastewater; generation or supply of

steam, hot water, and chilled water; or supply of natural gas.

(a) A real property utility system includes the equipment, fixtures, structures, and other improvements utilized in

connection with a system referred to in paragraph (2), above. Associated real property, easements, and rights-of-way

are included as part of the real property utility system.

(b) For example, a water supply system will contain several identifiable CATCDs. It includes the pipes, valves,

pumps, storage tanks, and wells needed to maintain pressure and supply the water. Therefore, category group 840

defines the water supply utility. A failing water storage facility, which has a CATCD 841XX, may be completely

replaced as repair since it is considered a component part of a RPF. Another example, a failing electrical switching

station (813) may be completely replaced as it is considered a component of the electrical utility system.

(3) Surfaced areas. Linear real property facilities, roads streets, walks, and parking are grouped into the facilities

that reflect their construction. These facilities include the signs, signals, safety barriers, bridges, and other appurte-

nances necessary for a safe efficient road, sidewalk, and parks. When calculating the replacement facility cost for

surfaced areas the following defines the facility:

(a) All the paved roads and streets on an installation whether paved with bituminous material, concrete, paving

block, cobblestone, or gravel/tar within the three digit CATCD 851 are a single RPF. The facility may be one large

facility consisting of all roads and streets or grouped into geographical areas.

(b) All unpaved roads and streets on an installation listed under the three digit CATCD 851 are another single RPF.

The facility may be one large facility consisting of all roads and streets or grouped into geographical areas.

(c) All the paved sidewalks, parking, staging areas, marshaling areas, pads and pedestrian bridges on an installation

whether paved with bituminous material, concrete, paving block, cobblestone, or gravel/tar within the three digit

CATCD 852 are a single RPF. The facility may be one large facility consisting of all roads and streets or grouped into

geographical areas.

(d) All the unpaved sidewalks, parking, staging areas, marshalling areas, pads, and pedestrian bridges on an

installation within the three digit CATCD 852 are a single RPF. The facility may be one large facility consisting of all

roads and streets or grouped into geographical areas.

(e) All the paved training roads, trails and streets on an installation whether paved with bituminous material,

concrete, paving block, cobblestone, or gravel/tar within the three digit CATCD 857 are a single RPF. The facility may

be one large facility consisting of all roads and streets or grouped into geographical areas.

(f) All the unpaved training roads, trails and streets on and within the three digit CATCD 857 are a single RPF. The

facility may be one large facility consisting of all roads and streets or grouped into geographical areas.

(g) All contiguous airfield pavements, that is, runways, taxiways, aprons, category code 110, represent a single RPF.

The airfield pavement facility includes all signs, lights signals, and other appurtenances necessary for safe and efficient

airfield operations.

l. In the case of major facility restoration, for example, interior gutting and removal where building components

6 DA PAM 420 11 18 March 2010

such as partitions, windows, doors, or utilities need to be replaced, such work is repair even though replacement items

may be installed in a different location or configuration within the building than the original components. Major facility

repairs or restoration projects are approved as a single project and not by component or system.

(1) Interiors may be rearranged and components and systems may be added to the extent that they are meeting

established standards and codes or to make effective use of the existing space. Any increase in the exterior building

dimensions is construction except those to meet codes and standards (that is, placing a ramp at the entrance of the

facility or an elevator on the exterior to allow for handicapped access is repair).

(2) Undertakings on facilities that consist of many small individually approved projects put together may not include

the addition of systems that currently do not exist as repair. The addition of systems in this case is construction. To be

considered a major facility repair or restoration the maintenance and repair project must be approved in its entirety as a

single project; this allows the inclusion of the needed systems, which currently do not exist but are required by codes

and standards, as part of the overall repair.

m. As stated above, repair means that the facility or facility component has failed, or is in the incipient stages of

failing. A utility system or utility system component may be considered failed or failing when that item is energy

inefficient, technologically obsolete, and the replacement project has a simple payback of 10 years or less when using

energy savings, demand reduction and maintenance reductions parameters. The treatment facility may be considered

failing that is technically obsolete when a law has been enacted that will require levying a fine if compliance with new

standards are not met. Projects that may qualify under technological obsolescence include the following examples:

(1) Demand Side Management (DSM) agreements with private utility companies such as

(a) Replacing T 12 fluorescent lamps (F40T12) and electromagnetic ballast with T 8/T 5 fluorescent lamps with

electronic ballast or light emitting diode (LED) lamps.

(b) Replacing incandescent lamps with compact fluorescent or LED lamps.

(c) Replacing motors with premium efficiency motors.

(d) Replacing air conditioning/heat pump units with >15 seasonal energy efficiency rating (SEER) rated equipment.

(2) Replacing uncooled boiler water collection lines with sample coolers.

(3) Replacing toilets, faucets and showerheads with Ultra low-flow aerated fixtures or waterless urinals.

(4) Replacing boilers/furnaces with high efficiency condensing boilers/furnaces > 92 percent annual fuel utilization

efficiency (AFUE) rating.

(5) Bringing a utility system into compliance with local, state, or Federal laws to avoid fines.

n. Energy Savings Performance Contracting (ESPC) Guidance.

(1) The ESPC is a contracting procedure in which a private contractor evaluates, designs, finances, acquires, installs,

and maintains energy savings equipment for an agency, and receives compensation based on the performance of that

equipment. The conditions of the contract determine the level of compensation to the contractor, with the remainder of

the savings retained by the agency. This type of contracting provides an alternative method of implementing energy

savings projects, when installation resources such as manpower, technical expertise, or funding are not available.

(2) Determination of project viability is based on such factors as utility rates and costs, availability of conservation

opportunities, projected building use requirements, ability for savings performance verification and support of the base

contracting, engineering and legal personnel. Typically, large facilities or large groups of facilities with older energy

consuming systems (with large utility bills) are good ESPC candidates. A preliminary technical and economic analysis

must be conducted to determine if a proposed energy conservation measure has ESPC potential, which will be based on

both the agency s ability to achieve a reduction in operating costs, and the contractor s ability to obtain an acceptable

return on investment.

(3) Examples of ESPC projects include the following:

(a) Propane/Air Mixing Plant. The mixing plant provides the installation with natural gas peak shaving capability.

The plant allows the installation to purchase interruptible gas in lieu of firm gas. When the installation natural gas

supply is interrupted, propane is mixed with air and piped into the natural gas distribution system. The installation

benefits from the cost advantage offered by interruptible gas but is not inconvenienced by the interruptions.

(b) Lighting retrofits. Existing inefficient light fixtures are replaced by higher efficiency light fixtures. The installa-

tion benefits from the lower electrical usage and the reduced maintenance.

(c) Mechanical equipment. The Government has a large energy hog chiller which is old and inefficient. A contractor

replaces the chiller and the Government pays the contractor with the reduced utility bill differential. The installation

benefits from the cost advantage of lower maintenance cost from the newer high efficiency chiller and pays the

contractor with utility funds he would have paid to run the inefficient chiller if it was still installed but avoided the

large initial capital cost.

o. Conversion is construction.

(1) Conversions are usually made from excess facilities to facilities that are in shortage. In most cases the Garrison

Commander will not have the authority to make the conversion. Therefore, the first step is always obtaining an

approval to make the conversion. The request to make conversions should always come through the real property office

in ACSIM Operations. Only after the conversion has been approved can the DPW execute a construction project to

DA PAM 420 11 18 March 2010 7

physically make the facility useable for the new usage. The DPW should be careful not to use a repair project to make

a conversion. This is because conversion is construction by law.

(2) In all cases of conversion, systems and components that were failed or failing under the old use CATCD are

considered to be failed or failing under the new use. Any new systems or components that are required by the new use

must be installed as construction.

p. Life-threatening, health-threatening, or safety-threatening (LHS) minor construction projects are defined as con-

struction projects that are intended solely for an urgent requirement whose sudden emergence could not have been

anticipated and when the requirement poses so immediate a threat to the life, health, or safety of personnel that the

correction cannot wait until the next appropriation cycle. The LHS projects are limited to a funded project cost of

$1,500,000 using funds available for operation and maintenance or current threshold per 10 USC 2805. In order to

qualify as a LHS project the following questions must be answered in sufficient detail to allow auditors to follow the

logic.

(1) The answers to the following questions must be fully addressed in the approval documents.

(a) Did the requirement exist during the previous fiscal year? If the requirement existed during the last or previous

fiscal years then the execution of a project under this authority can not be authorized.

(b) Is the deferral acceptable? If the project can be deferred until it can be programmed under a different execution

method, then execution of a project under this authority can not be authorized.

(c) Is there a work-around to mitigate risk? If there are work-arounds then why the work-around is not acceptable

must be fully explained; otherwise, execution of a project under this authority can not be authorized.

(d) Can the deficiency be corrected by other means? If there is another legal way to accomplish the objective of the

project then execution of a project under this authority can not be authorized.

(e) Is the primary purpose to correct an immediate threat to the life, health, or safety of personnel? The answer to

this question must be yes to have a valid LHS project.

(2) When the undertaking consists of a LHS construction project and a non-LHS construction project for a single

facility, the approval limit for the construction portion of the undertaking (the sum of the two projects) is equal to the

approval amount authorized for a LHS construction project. Of this amount, the funded cost of the non-LHS project

must not exceed the approval amount authorized for a non-LHS construction project.

q. Final scoping decisions on major construction projects and unspecified minor construction projects are made by

ACSIM. Until the ACSIM places a project into the project book, the scope may be corrected by the work classification

authority with the approval of the garrison commander. The scope may be amended by deletions or additions as

dictated by the work classification authority. However, this is not to be taken as authority to improperly split or phase

projects properly classified as construction.

r. Minor construction prohibitions include

(1) No project will be subdivided in order to reduce costs for purposes of approval.

(2) Planned Phasing of Construction on an existing facility, a new facility, or in connection with a new or existing

interdependent group or complex of facilities is not permissible. Phasing is the process of breaking a complete

project into sequential tasks such as foundation, superstructure, and finish work. One phase is no good without

companion phases as far as producing a completed project. Phasing has meaning only in reference to the construction

sequence or perhaps the funding process. A single phase of a project should never be requested for authorization.

(3) Planned Incremental Construction on an existing facility, a new facility, or in connection with a new or existing

interdependent group or complex of facilities is not permissible. Incrementing is the segmenting of a complete

project into usable increments. For example, a project to construct an airfield could be broken into increments of

runways, taxiways, aprons, control tower, and hangars, each of which are complete and usable; but the total project is

not complete until all increments are complete and the total requirement is satisfied.

(4) Minor construction authority (10 USC 2805) normally will not be used to begin or complete major construction

projects contained in the annual Military Construction Authorization Act. It will not normally be used as a basis to

complete projects financed under other authorizations when available funding is lacking. In rare instances, a minor

Military Construction (MILCON) project may precede a major MILCON project when it meets a specific need during

a specific time frame. A minor project may follow a major project when new mission requirements arise following

project approval.

(5) How construction projects relate to one another can be used to determine what should be considered a single

undertaking.

(a) Interdependent projects are considered a single undertaking. The projects construct those facilities which are

mutually dependent in supporting the function(s) for which they were constructed and therefore must be planned as a

single project. For example, a new airfield for which the runways, taxiways, ramp space and lighting are mutually

dependent to accomplish the intent of the construction project. Each facility can be a separate project but because of

their interdependence they must be considered as a single unit.

(b) Interrelated projects do not need to be considered as a single undertaking. These projects construct those

facilities having a common support purpose but are not mutually dependent and are therefore funded as separate

projects. For example, billets are constructed to house Soldiers with the subsequent construction of recreation facilities.

8 DA PAM 420 11 18 March 2010

Their common purpose to support health, welfare, and morale creates an interrelationship. Neither facility, however, is

necessary for the operation of the other. Only if mission requirements or stationing require all the facilities at the same

time they could be considered a single undertaking.

(6) The following may constitute a statutory violation and is prohibited.

(a) Planned acquisition or improvement of real property facilities through a series of minor construction projects.

(b) The subdivision of a construction project to reduce costs to a level that meets a statutory limitation or the

splitting or incrementing of the costs of a project to reduce costs below an approval threshold.

(c) Development of a minor construction project solely to reduce the cost of an active MILCON project below the

level at which Congress would be informed of the cost variation.

(d) Leasing a relocatable building, then purchasing the relocatable building, as part of a lease buyout option, and

then placing the relocatable building on real property records without Deputy Secretary of the Army (DASA) approval

may result in an Antideficiency Act violation. When using the relocatable building as construction materials, the cost

of the relocatable building is part of the construction cost for the real property project and the approval must include all

costs incurred including site preparation, lease costs, and purchase costs.

(7) Nonappropriated funds (NAF) or private funds may be used with appropriated funds for construction when it can

be clearly shown that the construction projects are intended for different purposes. The combination of funding sources

is not to be used to increment the project or to circumvent limitations. Construction projects having a total combined

cost of $750,000 or less may be approved by the Army Command, Army Service Component Command, or Direct

Reporting Unit as applicable. Construction projects that have a total combined cost in excess of $750,000 are

considered unspecified minor military construction (UMMCA) or Military Construction, Army (MCA) and must be

submitted to the ACSIM for review and approval. Separate and identifiable projects having different funding sources

may be combined for contracting purposes without prior approval; however, the costs for each type of project must be

clearly identifiable (see AR 215 1 and AR 420 1).

(8) No minor construction projects will be done until the terms of the National Environmental Policy Act (PL

91 190) have been met (AR 200 1 and AR 420 1). This includes base realignment or closure actions.

(9) The Secretary of the Army (SA) or his designee must approve any proposed minor construction project.

Regardless of cost, that Congress previously denied.

(10) Project cost limitations (10 USC 2805) in effect at the time of approval of a minor construction project remain

in effect throughout the life of the project. Any subsequent change in project cost limitations cannot be applied to

previously approved minor construction projects, unless the project is subm

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