Funding Documents

Funds are provided to the procuring activity on a variety of funding documents. Each of these documents has its advantages and disadvantages which can greatly affect the execution of a given project. When discussing funds flow with the fund grantor (or, perhaps, a receiving activitiy to which we may be passing funds), cognizant IPT members need to be aware of the constraints associated with each funding document option. The following is a brief discussion of some of the more common documents received at NAWCTSD. Note that with all of these forms there is a responsibility for the receiving/performing activity to comply with all of the constraints included on the document, not the least of which is to not exceed the amount of funding authorized.

The NAVCOMPT Form 2275, Order for Work and Services ("work request"), can provide either expense or investment funds on a "reimbursable" basis. That is, the funds are customer funds, sent for a specific purpose, to reimburse the receiving activity for effort performed and materials procured. A significant constraint on the use of this document is that at least 51% of the funds must be used to support in house effort with no more than 49% going to other activities or contractors. A unique feature of the 2275 is that it can be used to extend the expiration date of an appropriation when issued as a “project order.” Project orders are issued to support a specific task or support effort that is event driven vice calendar driven. Project orders must meet a rigid set of requirements and are favorite areas for auditor reviews.

In contrast to the work request is the NAVCOMPT Form 2276, Request for Contractual Procurement (RCP). As the name implies, funding passed on an RCP is strictly for contractual action with commercial enterprises. No in house effort can be charged and no funds can be passed to other activities. If the project will require in house labor, travel or supply system items to be charged, separate funds must be issued on a work request.

To overcome the two major constraints of the work request and RCP, a relatively new document is available for passing funds between Navy activities. The NAVCOMPT Form 2276A, Order for Work and Service/Direct Citation, combines the features of both the work request and RCP. This document provides funding for both in house effort and commercial contracting, when issued as a "WX or PX." If only contractual funding is required, the form can be issued in lieu of a RCP as an "RX." The major advantages of the 2276A are that only one funding document is required and the receiving activity can decide how much of the total funding received will be required for in house effort (labor, travel, etc.) and how much will be required for commercial contracting. With the approval of the fund grantor, the receiving activity can make adjustments to the funding "split" between reimbursable and direct citation as required.

Other funding documents commonly received at NAWCTSD include:

Over the years, NAWCTSD has been very flexible about accepting and executing funding documents. Any questions about whether or not a particular document/format will achieve the desired goals should be addressed to the cognizant Business Financial Manager, Program Analyst or Budget Analyst.

Last Update: 15 August 2013