A.    Introduction

Effective fiscal year (FY) 2003, Area offices must obtain approval from Headquarters to use construction authorities for new small buildings or alterations to existing facilities expected to exceed $25,000.

B.    Authorities

The Agricultural Research Service (ARS) Salaries and Expenses (S&E) appropriation language contains a number of authorities either limiting the number of buildings, or the amount of program funds that can be spent on them. Funding for major planning, design, modernization, and construction of ARS facilities is provided under the Building and Facilities Appropriation Act.

The provisions addressing buildings and expenditures in the S&E Act have been historically maintained to limit funding for brick and mortar activities within the annual research program account. In recent years both the Agriculture Committees and the Subcommittees for Agriculture Appropriations have expressed interest and concern regarding the funding ARS commits under these various authorities. Currently this information is not coordinated or consolidated at the Agency level. In this regard, ARS is requesting that any plans involving these authorities be submitted to Headquarters to ensure they are applied consistently throughout the Agency; and that Agency wide commitments for such funding are identified for review and approval by the Administrator's Office.

The ARS annual appropriation provides the authority to construct small buildings or alter facilities using Agency program funds as follows:

• Unlimited Small Buildings (USB): This is a construction authority to design and construct an unlimited number of small buildings at a cost not to exceed the authorized limitation identified in the applicable annual appropriation act language. Each building or additional wing physically attached to an existing building must serve to further enhance, pursue, and conduct immediate research program needs. As of FY 2003, this limitation is $375,000 per USB.
  
  
• Ten Small Buildings (TSB): This is a construction authorization to design and construct or improve not more than TSB throughout the Agency at an individual cost not to exceed the authorized limitation identified in the applicable annual appropriation act language. Each building or additional wing physically attached to an existing building must serve to further enhance, pursue, and conduct the immediate research program needs. As of FY 2003, this limitation is $750,000 per TSB.
  
  
• Headhouse or Greenhouse (HH or GH): This is a construction authority to design and construct an unlimited number of headhouses and/or greenhouses, at a cost not to exceedthe authorized limitation identified in the applicable annual appropriation act language. As of FY 2003, this limitation is $1.2 million per HH or GH.
  
  
• 10 Percent Alteration (TPA): This is a construction authority to design and construct an alteration to any one ARS building at a cost not to exceed 10 percent of the building replacement value or the dollar limitation specified in the applicable annual appropriation act language, whichever is larger. As of FY 2003, this limitation is $375,000 per TPA.

Detailed descriptions of the authorities are outlined in Policies and Procedures 242-2, Facilities Construction Authorities.

In an effort to ensure authorities are consistently applied throughout the Agency and to provide an accurate accounting of funds spent, approval from Headquarters will be required to use any building authority in excess of $25,000 listed above.

C.     Procedures

Effective FY 2003, the following procedures will apply:

• Areas will submit a written request (memorandum or e-mail) to the Facilities Division (FD) Director.
  
  
• The request should include a justification; description and scope of proposed facility; the schedule; source of funds; estimated design, construction, and replacement costs; realty interest; and the accounting code that will be established for the project. NOTE: Each facility project must be tracked in a separate accounting code.
  
  • 1.     The format for the accounting code is as follows:
    
    X01LLLL###, where X = the budget fiscal year; LLLL = the 4^th level location mode code, and ### = sequential number assigned by the Area Budget and Fiscal Officer (ABFO).
    
  • 2.     When establishing the accounting code, use the unique Program Type that corresponds to appropriate construction authority as follows:
    
    
    Program Type        Construction Authority
    
        71        Unlimited Small Buildings
        72        Ten Small Buildings
        73        Headhouse/Greenhouse
        74        10 Percent Alteration
    
  • 3.     In the event that an approved facility project is funded by more than 1 budget fiscal year, a Program Class Code (previously referred to as the Project Number) will need to be assigned by the ABFO. This will allow summarization of cost data from all accounting codes for a project.
    
• FD will review the Area request and provide a recommendation to the Budget and Program Management Staff (BPMS) and the National Program Staff (NPS), as appropriate.
• The Office of the Administrator will provide FD with concurrence or nonconcurrence.
• FD will provide Areas with the final decision/action.

A sample format is enclosed for your use in submitting a request.

The Financial Management Division will develop a standard report that can be generated from the Foundation Financial Information System Financial Data Warehouse by Construction Authority; i.e., by Program Type, and Program Class, if applicable. FD will generate these reports periodically to monitor the fund status of each project including the budgeted amount, obligations/expenditures to date, and balance.

Should you have any questions, please contact Patrick Barry, Director, FD, on 301-504-1151.

Patrick G. Barry
Director
Facilities Division