Handbooks

Handbook F-66 Revision: Projects Requiring a Justification of Expenditure

Effective November 22, 2007, Handbook F-66, General Investment Policies and Procedures, is revised to update Exhibit 1.1, Projects Requiring a Justification of Expendi­ture (JOE). The revised exhibit changes the field investment policy regarding JOEs.

Handbook F-66, General Investment Policies and Procedures

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1 Introduction

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Exhibit 1.1 Projects Requiring a Justification of Expenditure (JOE)

[Revise exhibit 1.1 to read as follows:]

 

Project Type

Size of Project

Expense Equipment and Non-routine Service Contracts1

Over $25,000 (no upper limit)

Capital Equipment

$25,000 to $100,000

Research & Development Projects

$25,000 to $100,000

Material Handling2

All projects up to $100,000

Repairs/Alterations

$25,000 to $1 million

New Lease of Existing Facility/Non-Fixed Price Renewal Options/Land Leases/Alternate Quarters3

$25,000 annual rent to $500,000 annual rent/not to exceed $5.0 million total lease cost4

Other Facility Projects4

$25,000 to $500,000

Postal Support

Less than $ 5 million


Notes:


JOEs for expense equipment and non-routine service contracts up to $250,000 do not require a formal project review, but must be approved by the appropriate official. For non-routine service contracts, the threshold applies to the life of the contract (total undiscounted cost of the contract).

All material handling (fixed mechanization) projects must be authorized by Headquarters Engineering and approved by the vice president of Engineering.

For the definition of total lease cost, see Handbook F-66C, chapter 3. If either the annual or total cost limit is exceeded, a DAR is required.

Other facility projects include the purchase of existing buildings and building expansions. Note that all new space projects (whether leased or owned) must be documented with a Facility Field Decision Analysis Report for projects under $5 million. If the project cost exceeds $5 million, a Major Facility Decision Analysis Report that follows the Handbook F-66A format is required. The approval document for a new lease of an existing facility up to $25,000 is still eBuy. Whenever possible, retention of an existing facility is supported to sustain the operation.

For a more detailed discussion of JOEs, including samples in the recommended format, refer to Handbook F–66C.

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We will incorporate these revisions into the next printed edition of Handbook F-66 and into the next online update available on the Postal Service™ PolicyNet Web site:

(The direct URL for the Postal Service™ PolicyNet Web site is http://blue.usps.gov/cpim.)