SEC. 6. CODIFICATION OF OFFICE OF MANAGEMENT AND 
BUDGET CRITERIA. 
The Secretary of Defense shall implement the fol-
lowing criteria in requests for overseas contingency oper-
ations: 
(1) For theater of operations for non-classified 
war overseas contingency operations funding, the ge-
ographic areas in which combat or direct combat 
support operations occur are: Iraq, Afghanistan, 
Pakistan, Kazakhstan, Tajikistan, Kyrgyzstan, the 
Horn of Africa, Persian Gulf and Gulf nations, the 
Arabian Sea, the Indian Ocean, the Philippines, and 
other countries on a case-by-case basis. 
(2) Permitted Inclusions in the Overseas Con-
tingency Operation Budget: 
(A) Major Equipment: 
(i) Replacement of losses that have 
occurred but only for items not already 
programmed for replacement in the Future 
Years Defense Plan (FYDP), but not in-
cluding accelerations, which must be made 
in the base budget. 
(ii) Replacement or repair to original 
capability (to upgraded capability if that is 
currently available) of equipment returning 
from theater. The replacement may be a 
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similar end item if the original item is no 
longer in production. Incremental cost of 
non-war related upgrades, if made, should 
be included in the base. 
(iii) Purchase of specialized, theater- 
specific equipment. 
(iv) Funding for major equipment 
must be obligated within 12 months. 
(B) Ground Equipment Replacement: 
(i) For combat losses and returning 
equipment that is not economical to repair, 
the replacement of equipment may be given 
to coalition partners, if consistent with ap-
proved policy. 
(ii) In-theater stocks above customary 
equipping levels on a case-by-case basis. 
(C) Equipment Modifications: 
(i) Operationally required modifica-
tions to equipment used in theater or in di-
rect support of combat operations and that 
is not already programmed in FYDP. 
(ii) Funding for equipment modifica-
tions must be able to be obligated in 12 
months. 
(D) Munitions: 
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(i) Replenishment of munitions ex-
pended in combat operations in theater. 
(ii) Training ammunition for theater- 
unique training events. 
(iii) While forecasted expenditures are 
not permitted, a case-by-case assessment 
for munitions where existing stocks are in-
sufficient to sustain theater combat oper-
ations. 
(E) Aircraft Replacement: 
(i) Combat losses by accident that 
occur in the theater of operations. 
(ii) Combat losses by enemy action 
that occur in the theater of operations. 
(F) Military Construction: 
(i) Facilities and infrastructure in the 
theater of operations in direct support of 
combat operations. The level of construc-
tion should be the minimum to meet oper-
ational requirements. 
(ii) At non-enduring locations, facili-
ties and infrastructure for temporary use. 
(iii) At enduring locations, facilities 
and infrastructure for temporary use. 
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(iv) At enduring locations, construc-
tion requirements must be tied to surge 
operations or major changes in operational 
requirements and will be considered on a 
case-by-case basis. 
(G) Research and development projects for 
combat operations in these specific theaters 
that can be delivered in 12 months. 
(H) Operations: 
(i) Direct war costs: 
(I) 
Transport 
of 
personnel, 
equipment, and supplies to, from and 
within the theater of operations. 
(II) Deployment-specific training 
and preparation for units and per-
sonnel (military and civilian) to as-
sume their directed missions as de-
fined in the orders for deployment 
into the theater of operations. 
(ii) Within the theater, the incre-
mental costs above the funding pro-
grammed in the base budget to: 
(I) Support commanders in the 
conduct of their directed missions (to 
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include Emergency Response Pro-
grams). 
(II) Build and maintain tem-
porary facilities. 
(III) Provide food, fuel, supplies, 
contracted services and other support. 
(IV) Cover the operational costs 
of coalition partners supporting U.S. 
military missions, as mutually agreed. 
(iii) Indirect war costs incurred out-
side the theater of operations will be evalu-
ated on a case-by-case basis. 
(I) Health: 
(i) Short-term care directly related to 
combat. 
(ii) Infrastructure that is only to be 
used during the current conflict. 
(J) Personnel: 
(i) Incremental special pays and al-
lowances for servicemembers and civilians 
deployed to a combat zone. 
(ii) Incremental pay, special pays and 
allowances for Reserve Component per-
sonnel mobilized to support war missions. 
(K) Special Operations Command: 
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(i) Operations that meet the criteria 
in this guidance. 
(ii) Equipment that meets the criteria 
in this guidance. 
(L) Prepositioned supplies and equipment 
for resetting in-theater stocks of supplies and 
equipment to pre-war levels. 
(M) Security force funding to train, equip, 
and sustain Iraqi and Afghan military and po-
lice forces. 
(N) Fuel: 
(i) War fuel costs and funding to en-
sure that logistical support to combat oper-
ations is not degraded due to cash losses 
in the Department of Defense’s baseline 
fuel program. 
(ii) Enough of any base fuel shortfall 
attributable to fuel price increases to main-
tain sufficient on-hand cash for the De-
fense Working Capital Funds to cover 
seven days disbursements. 
(3) Excluded items from Overseas Contingency 
Funding that must be funded from the base budget: 
(A) Training vehicles, aircraft, ammuni-
tion, and simulators, but not training base 
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