7 Aug 1991
REVISED on 10 Sentember 1993
STANDARD OPERATING PROCEDURES (SOPS) FOR THE
ADMINISTRATION AND CONTROL OF FUNDS GRANTED TO OICC FAR
( a ) Military Construction Financial Management Handbook
(NAVSOP-1570) par. 3203 (Commitments)
( b ) Federal Acquisition Regulation (FAR) Subpart 43.105
( A v a i l a b i l i t y of Funds)
This SOP establishes responsibility, prescribes
procedures, a n d provides information regarding the
a d m i n i s t r a t i o n and control of funds granted to OICC Far East
i n accordance with references (a) and (b).
OICC Far East consists of OICC Far East
Headquarters (HQ) (Yokosuka, Japan) and seven subordinate
OICCs/ROICCs located throughout Japan and Korea (see
Because of this, t h e administration and
A t t a c h m e n t (1)).
c o n t r o l of funds granted to OICC Far East becomes very
critical to ensure that adequate funds are available for the
e x e c u t i o n / c o m p l e t i o n of authorized projects.
s t a t e s that a commitment is a reservation of funds to indicate
a n amount administratively earmarked for future obligations
b a s e d upon procurement directives, orders, requisitions or
r e q u e s t s , or other documents of procurement, which have the
effects of directing or causing obligations to be incurred or
EFD controlled commitments Will be
c r e a t e d in the future.
i s s u e d for contract work , collateral works and other purposes
a s required by using the Obligation Authority (OA) (NAVFAC
Form 7300/12). R e f e r e n c e (a) further states that the OA when
properly approved becomes the authority for officials within
t h e EFD to prepare obligation documents for signature without
f u r t h e r approval and that the use of the OA is an important
step in assuring the availability of funds. Reference (b)
states that the contracting officer shall not execute a
c o n t r a c t modification that causes or will cause an increase in
funds without having first obtained a certification of fund
T h e provisions of this SOP apply to all: (a)
p e r s o n n e l authorized to incur commitments, obligations, and
e x p e n d i t u r e s against authorized funds, and (b) funds in OICC
Far East " E " file in support of contracts to be awarded by
OICC Far East.
V a r i o u s types of funds are granted to
E x c e p t for funds received as Other Direct Cite
OICC Far East.
(ODC), PACNAVFACENGCOM Director, Programs and Budget (Code
E n c l o s u r e (2)