Handbook F-66 Revision: Exhibit 1.1, Projects Requiring a Justification of Expenditure

Effective December 20, 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 funding thresholds for projects that require a JOE.

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 as shown below:]

 

Project Type	Size of Project
Expense Equipment and Non-routine Service Contracts1	Over $25,000 (no upper limit)
Capital Equipment	$25,000 to $250,000
Research & Development Projects	$25,000 to $250,000
Material Handling and Fixed Mechanization2	All projects up to $250,000
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	From $25,000 to $250,000
Postal Support	Less than $5 million

Notes:

1 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).

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

3 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.

4 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 DAR for projects under $5 million. If the project cost exceeds $5 million, a Major Facility DAR is required that follows the Handbook F-66A format. 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.

• Go to http://blue.usps.gov.
• Under “Essential Links” in the left-hand column, click on References.
• Then click on HBKs.

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

— Capital and Program Evaluation,
Finance, 12-20-07