BSD's customer, Fort Outpost, has identified the need for a new aircraft painting facility. Because of the intense competition for limited MILCON funds and the length of time required to obtain approval for a MILCON project, it has been decided to pursue the use of (O&M funding for the project. Two contracts will be awarded: one to construct the new facility and another to purchase the fixtures that will be housed in the new facility. The estimated cost of the building structure is $1,725,000. The estimated cost of the capital equipment to be installed as permanent fixtures in the facility is $280,000. Conrad assures me we don't have to combine the two purchases into one contract. Even if he is correct from a contractual perspective, I am not sure this plan is allowable from a fiscal law perspective. Conrad is ready to move forward because he recalls one scenario where we were able to use O&M funds for a construction project that was over $2 million. I hope he is right; I sure don't want us to violate any fiscal laws.

Questions

2. Can separate contracts be awarded?