Army--Availability of Army Procurement Appropriation for Logistical Support Contractors, B-303170, April 22, 2005

B-303170 Apr 22, 2005 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights The U.S. Medical Research and Materiel Command (Command) has requested our decision concerning the availability of the Other Procurement, Army (Procurement) appropriation to hire contractors to provide logistical support for medical equipment items acquired using the Procurement appropriation. Memorandum from Colonel Denise M. McCollum, Deputy, Resource Management, U. S. Army Medical Research and Materiel Command, to Anthony H. Gamboa, General Counsel, GAO, May 14, 2004. (McCollum Memorandum). As explained below, the Command should use the Army Operation and Maintenance (O&M) appropriation, and not the procurement appropriation, to fund the logistical support of the acquisitions at issue here. View Decision B-303170, Army--Availability of Army Procurement Appropriation for Logistical Support Contractors, April 22, 2005 Matter of: Army--Availability of Army Procurement Appropriation for Logistical Support Contractors File: B-303170 Date: April 22, 2005 DIGEST The Other Procurement, Army (Procurement) appropriation is not available to pay for logistical planning and plan implementation services related to medical equipment items acquired using the Procurement appropriation. Because the activities are not procurement activities, and consistent with its past practice and guidance, the Army should charge the Army's Operation and Maintenance appropriation for such services. DECISION The U.S. Medical Research and Materiel Command (Command) has requested our decision concerning the availability of the Other Procurement, Army (Procurement) appropriation to hire contractors to provide logistical support for medical equipment items acquired using the Procurement appropriation. Memorandum from Colonel Denise M. McCollum, Deputy, Resource Management, U. S. Army Medical Research and Materiel Command, to Anthony H. Gamboa, General Counsel, GAO, May 14, 2004. (McCollum Memorandum). As explained below, the Command should use the Army Operation and Maintenance (O&M) appropriation, and not the procurement appropriation, to fund the logistical support of the acquisitions at issue here. BACKGROUND The Command is responsible for, among other things, the acquisition and logistics management of medical equipment. A subordinate agency of the Command, the U.S. Army Medical Materiel Agency, is responsible for purchasing medical equipment; the agency uses the "Other Procurement, Army" appropriation for this purpose. When Congress enacted the Army's fiscal year 2004 Other Procurement, Army appropriation, the conference report identified three combat medical support equipment items for acquisition that the Army had not listed in its budget request. [1] The Command has acquired these three items, and has hired two contractors to provide logistical support for the three items that it had not planned to purchase. Under the terms of their logistical support contracts, the two contractors will develop Integrated Logistics Support Plans for this equipment, implement these plans, and assist Command project managers in day-to-day operation of the equipment. Statement of Work for Integrated Logistics Support of U.S. Army Medical Research and Materiel Command (April 28, 2004). An Integrated Logistics Support Plan explains the proper use of equipment, the required operating supplies, proper maintenance procedures, and training requirements for maintenance personnel, among other things. McCollum Memorandum. The two contractors also will assist the project manager and staff in writing, developing, revising, organizing, distributing, filing, and maintaining documentation; obtaining manufacturer literature from various sources; and developing and maintaining a product reference file and library. To cover the costs of these logistical support contracts the Command obligated its O&M appropriation. The Command's use of its O&M appropriation is consistent with its use of this account to pay the civilian government employees who provide support services for its other medical equipment programs. ANALYSIS The Command asks whether the procurement appropriation is available for integrated logistics support contract services for the equipment acquired using the procurement appropriation. [2] The procurement appropriation at issue, entitled "Other Procurement, Army," was enacted as part of the Department of Defense Appropriations Act for fiscal year 2004. The appropriation provides4,774,452,000 for procurement and a number of other purposes not relevant here. The provision reads, in part, as follows: "Other Procurement, Army "For construction, procurement, production, and modification of vehicles, ... communications and electronic equipment; other support equipment; . . .