COMDTINST 5240.4
10 DEC 1991
3.
b.
Responsibilities. Both the customer and the Yard have responsibilities some distinct,
some shared. Teamwork is fundamental and critical. The customer must establish need
for the work, clearly identify the requirements, and properly fund the work. The Yard's
focus is on the needs of the customer. The Yard must provide its customers with high
quality work that is delivered on-time and within budget. The Yard also has a
responsibility to keep customers informed of the true status of their projects. Customers
and the Yard must focus on the proper and effective execution of each of the individual
processes involved: project initiation, preparation of work requests, cost estimating,
project acceptance procedures, project start-up, project status reporting, project
amendment procedures, project close-out, and workload projections.
c.
Bona Fide Need. The customer must establish that a bona fide need exists for the work.
The bona fide need rule states that a fiscal year's appropriation may be obligated only to
meet a legitimate, or bona fide, need arising in the fiscal year for which the appropriation
was made. This rule does allow for work to start in one fiscal year and extend into a
subsequent fiscal year. However, it does not allow for a small amount of work to be
started in one fiscal year for the purpose of protecting funds that are expiring at the end of
the fiscal year. The bona fide need rule applies to multiple-year as well as single fiscal
year appropriations.
d.
Obligation. Funds which accompany a request for work are deposited in the Yard Fund.
The Yard Fund is a revolving fund which finances Yard work. Funds are considered
obligated at the time of acceptance by the Yard provided a bona fide need exists and a
constructive start is both required and made in the fiscal year in which the funds are
obligated.
e.
Constructive Start. When a project is funded by an appropriation that will expire at the
end of a fiscal year and this project will extend into the next fiscal year, a constructive
start must be made in the fiscal year in which the funds are appropriated. In other words,
the project must start before the fiscal year ends in order for it to be a valid obligation.
However, it is important to realize the project must also need to start before the end of the
fiscal year in order for it to be accomplished in accordance with the established and
required needs of the service.
Co-mingled Funds. Project funds shall not be from different appropriations. Funds from
3.
f.
different appropriations (e.g., OE and AC&I) must not be mixed on the same project
order. It may be acceptable to accomplish OE work during an AC&I project as long as
the work accomplished is not part of the AC&I project. In all cases separate projects
must be established for the work or else funds are considered co-mingled.
4.
PROCEDURES.
a.
Detailed Procedures. The Commanding Officer, Coast Guard Yard shall publish
procedures that describe in detail the process of establishing, managing, and closing-out
work at the Yard.
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