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Explain how the 75% Rule affects work classification.
Explain how the 75% Rule affects work classification.
The rule ensures that investments in facilities are prudent, not spending more on repair than the cost to replace. If costs exceed 75%, the work is classified as facility replacement.
What is the definition of Minor Construction?
What is the definition of Minor Construction?
Work classified as Construction under the O&M UMC or UMMC programs, less than $6M.
What is the definition of Construction?
What is the definition of Construction?
To build, develop, or extend real property systems or components, including various forms of facility enhancement.
What is the classification of work to install a new addition to the base education center, enlarging the facility?
What is the classification of work to install a new addition to the base education center, enlarging the facility?
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What is the classification of the work to install new Ground-Fault-Current-Interrupter (GFCI) electrical outlets in a facility?
What is the classification of the work to install new Ground-Fault-Current-Interrupter (GFCI) electrical outlets in a facility?
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What is the classification of the work to replace an aged and worn-out main ventilation unit in an aircraft hangar?
What is the classification of the work to replace an aged and worn-out main ventilation unit in an aircraft hangar?
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What is the classification of the work to replace an old flat roof system with a pitched roof system?
What is the classification of the work to replace an old flat roof system with a pitched roof system?
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What is the classification of the work to reseed an embankment along the main base road?
What is the classification of the work to reseed an embankment along the main base road?
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What is the classification of the work to demolish an old, decayed heavy equipment pole barn?
What is the classification of the work to demolish an old, decayed heavy equipment pole barn?
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Study Notes
75% Rule
- Ensures investments in facilities are prudent by capping repair costs at 75% of replacement value.
- Defined by 10 USC 2811, it limits repair and associated costs to below 75% of military construction replacement estimates.
- Costs exceeding this threshold classify the work as facility replacement, categorized as construction.
Minor Construction
- Defined as construction work in the O&M Unspecified Minor Military Construction (UMC) or Unspecified Military Minor Construction (UMMC) P-341 program.
- Projects with costs under $6 million fall under this classification.
Construction
- Encompasses building, developing, or extending real property and systems, including land acquisition.
- Includes erecting, installing, expanding, or relocating facilities with costs exceeding $6 million.
Installation of Facility Addition
- Classified as Minor Construction (EEIC 529) for a funded cost of $570,000 and a facility replacement value of $5 million.
- Facility enlargement involves creating new footprint or volume.
Installation of GFCI Outlets
- Classified as R&M Repair (EEIC 522) for GFCI outlets in a Squadron Operations facility, funded at $60,000 with a facility value of $2 million.
- Installation for code compliance is defined as repair, even if features didn't exist before.
Replacement of Ventilation Unit
- Identified as Sustainment Repair (EEIC 524) for a $200,000 project replacing an aged ventilation unit in an aircraft hangar valued at $10 million.
- Component replacements below 75% of facility value qualify as repair, especially when part of life-cycle considerations.
Roof System Replacement
- Classed as Sustainment Repair (EEIC 524) for replacing a flat roof with a pitched system, funded at $730,000 against a $12 million facility value.
- Repair remains valid despite upgrades for efficiency as long as it fulfills life-cycle requirements; code-driven replacements may alter classification.
Reseeding for Erosion Control
- Classified as Maintenance (EEIC 521) for a $55,000 project aimed at preventing erosion along a base road, valued at $5 million.
- Seeding activities are intended to preserve land as part of routine maintenance.
Demolition of Decayed Pole Barn
- Considered No Class Work for demolishing an isolated, decayed pole barn, funded at $170,000 with a value of $600,000.
- Independent demolition not linked to other projects is categorized as "No Class Work"; connections to other projects would change its classification.
Replacement of Electrical Feeder
- Pending classification details for replacing an old electrical feeder in the facility electrical distribution system.
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Description
Test your knowledge on the 75% Rule and its impact on work classification related to military construction projects. Understand how prudent investment guidelines shape facility management and repair costs.
