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FY08/09 Budget Request

Ms. Barbara Heffernan – 9 May 2007

PPBE DOCUMENT – FOR OFFICIAL USE ONLY – PREDECISIONAL – CLOSE HOLD

Assistant Chief of Staff for Installation Management

Providing World Class Flagships of Readiness To support America’s Soldiers and their Families

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• FY08-13 POM/BES

• FY08/09 President’s Budget

• FY08/09 President’s Budget – BOS/SRM

Agenda

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FY08-13 POM/BES

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FY08/09 President’s Budget

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Army Posture Statement indicates…

- Provide Relevant & Ready Landpower

- Train and Equip Soldiers

- Sustain the All-Volunteer Force

- Provide Infrastructure and Support

- Grow the Army

Installations as Flagships of Readiness

“Our installations support an Expeditionary Force where Soldiers train, mobilize, and deploy to fight and are sustained as they reach back for support. Soldiers and their families who live on and off the installation deserve the same quality of life as is afforded the society they are pledged to defend.”

…Installations are Force Multipliers

GEN Schoomaker

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Army Challenges

Which requires a fully integrated approach that…• Supports soldiers, families, and civilians where they live and work

• Maintains the current facility inventory

• Provides a key component of the Army’s strategy to recruit and retain the All Volunteer Force

• Implements BRAC / GDPR / Army Transformation as it relates to stationing and installation management

…allows for predictable levels of installation funding.

AC/RC Rebalance Army Modularity GDPR (50k) BRAC OIF/OEF plus Surge Grow the Army Reset / Modernization Business Transformation

A set of complex challenges06 07 08 09 10 11 12 13

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Religious Services

Continuing Education Services

ISR SERVICES

Public Affairs

Sports, Recreation, and Libraries

Army Community Services

Child and Youth

Refuse Removal

Anti-Terrorism Services

Law Enforcement Services

Food Services

Water/Waste Water Services

Electrical Services

Retaining the All Volunteer Force

RCI

1916-1981"3 Hots and a Cot”

“Army Strong"

2006

“Be All You Can Be”1981-2001

Physiological

elonging)Esteem

SelfActualization

Safety / Security

Social (Belonging)

Ego

What are the Essential Installation Services for Retention?

“An Army of One”2001-2006

If the Army wanted you to have a wife, they would have issued you one.”

9-11

Mapping the ISR services coupled withAVF sampling will highlight the gaps

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WHAT WE KNOW TODAY

Soldier Needs (Essential Elements)• Quality of Army Life (culture, environment,

society)• Work life balance• Duty assignment• MOS flexibility

• Quality of Life Programs/Services (Child Care, Fitness, Family Readiness, Relocation, Sponsorship)

• Housing and work facilities• Medical & Dental Services• Pay• Commissaries• Training• Equipment• Education• Technology

Why They Serve• Military Lifestyle (Patriotism)• Job Benefits• Growth Opportunity• Education and Training• Challenge• Travel

Why They Leave• Family Separation• OPTEMPO/PERSTEMPO• Long Work Hours• Deployment Uncertainty• Earning Losses (Reserve Component)• Inability to change MOS• Generational preferences (value gap)• Leadership• Pay

Retaining the All Volunteer Force

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Installations are Big Business

Army Budget (FY08) BOS $ 8.13B

(Active, Army Reserve & National Guard) SRM/Demo $ 2.74B

ER,A $ 0.44B

MCA, MCAR, MCNG $ 4.56B

BRAC/GDPR $ .72B

BRAC $ 3.29B

AFHO $ 0.74B

AFHC $ 0.42B

$ 21.04B

• Would rank #8 in comparison to the total defense budgets of all countries worldwide – approximately equal to that of South Korea ($21.1B)

• Would rank #102 on the Fortune 500 list of largest companies between 3M and Liberty Mutual Insurance

• Would rank #10 of Federal agency budgets between Energy ($23.6B) and Agriculture ($19.7B)

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ARMY BOS / SRM BUDGET OVERVIEW

FY08

(Millions) Request Funded Request

BOS – OMA 5,235.5 6,857.9 6,802.3BOS – OMAR 528.3 523.1 502.7BOS – OMNG 631.8 746.2 828.4

BOS Subtotal 6,395.6 8,127.2 8,133.4Sustainment – OMA 1,742.4 1,742.4 1,845.2Sustainment – OMAR 206.9 215.6 217.2Sustainment – OMNG 382.0 382.0 468.3R&M – OMA 52.7 52.7 170.6R&M – OMAR 0.0 0.3 4.7R&M – OMNG 0.0 0.0 14.9Demo – OMA 15.7 15.7 15.4Demo – OMAR 9.0 0.0 1.0Demo – OMNG 5.9 5.9 3.2

SRM Subtotal 2,414.6 2,414.6 2,740.5Total 8,810.2 10,541.8 10,873.9

FY07

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Base Support Framework (OMA)

FY 08 Request*(milliions)

Sustainment, $1,845.2

Family Programs $403.0

Demolition$15.4

Restoration & Modernization*

$170.6

Base Operations$5,131.7

Force Protection $580.3

Base Commo$245.9

Environmental Quality$441.5

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7943

5348

6498

7922

5236

6858 6689 6802

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

FY06 FY07 FY08

Essential Needs* Budget Request Executed/Funded

Base Operations Support (BOS)

Millions

PB 08 For FY08, the Army goal was to meet Essential Needs

Essential Needs include adjustments for operational efficiencies as well as stationing efficiencies

Must Funds FY08- Utilities 1,144- Force Protection 580- Real Estate Leases 483- Environmental Quality 441- Defense Finance and Accounting 245- Food Services 208- Pentagon Rent and Renovation of Army Space 154- Municipal & Transportation Services, Materiel Maint. 559- Fire and Emergency Services 204- Base Communications 189- BOS Direct Civilian Pay (not in programs listed above) 1,427

Total 5,634 M$

Funding and Requirements Profile

Components of BOS include: BASOPS,Family Programs, Environmental Quality, Force Protection, and Base Communications/Audio Visual

* FY 06 and 07 Requirements

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Base Operations (BASOPS)

Millions

BASOPS are essential services that keep an installation operating, similar to operating a city. These include:

Municipal Services (e.g., trash collection, ground’s maintenance, pest control, and recycling)

Utilities, Real Estate Leases, Public Works, Fire and Emergency Services, Unaccompanied Personnel Housing furnishings

Morale, Welfare and Recreation (Sports, Library and Fitness) Logistic Services (Transportation and Materiel Maintenance,

Army Food Services, Laundry) Installation Command and Control, Personnel Support,

Resource Management Operations

PB 08 Fully funds leases and increased utilities costs caused by higher prices for natural gas and electricity. In addition, Army utility systems are being privatized and several of these require capital upgrades to bring them up to industry standards. These upgrades are paid for in the utility account. Funding increases for municipal services, facilities engineering services, and fire and emergency services above the PB 07 levels improve the Army’s ability to resource these programs. Base Operations funding levels, although significantly improved from PB 07, provide installation operations at essential needs level

Funding and Requirements Profile

5387

3760

5193 5333

3654

51964910

5132

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

FY06 FY07 FY08

Essential Needs* Budget Request Executed/ Funded

* FY 06 and 07 Requirements

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Family Programs

Millions

Family Programs consists of three components:

Army Community Services – promotes self-reliance and satisfaction with military life through prevention, education, and training which aids in Soldier retention, readiness, morale and family preparedness.

Child Development Services – operates Installation Child Care and off-post partnership agreements for Army sponsored community based child care.

Youth Services – provides Installation Youth Programs and off-post partnership agreements for Army-sponsored community based youth services.

PB 08 Family Center increases support Army essential needs to meet family deployment needs, improve responses to family violence, support financial readiness, address relocation issues, and promote self-reliance and satisfaction with military life. Child Care increase restores and sustains program capacity to meet 65% of demand in FY08. DOD/Army Standard is 80% of demand by FY13. Youth Program increases allow program capacity to meet 18% of demand. DOD/Army Standard is 35% of eligible youth by FY13.

Funding and Requirements Profile

483

303 324

519

307 316

421 403

$0

$100

$200

$300

$400

$500

$600

FY06 FY07 FY08

Essential Needs* Budget Request Executed/ Funded

* FY 06 and 07 Requirements

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Environmental Quality

Millions

Environmental Quality Program consists of three components:

Compliance: actions to attain and sustain compliance with Federal, state, and local laws and regulations and overseas Final Governing Standards for environmental quality and management

Conservation: actions to conserve and preserve natural and cultural resources on Army lands

Pollution Prevention: actions to implement cost-effective approaches to reduce the quantity of hazardous, toxic, or industrial pollutants through source reduction or material process change

PB 08 The Environmental Quality Program is adequately funded to meet state and Federal statutory and regulatory obligations as well as OCONUS regulations. Overseas environmental compliance program will become increasingly important due to growing environmental awareness and demands of current and future Host nations.

Funding and Requirements Profile

573

467432

552

445462 466 441

$0

$100

$200

$300

$400

$500

$600

FY06 FY07 FY08

Essential Needs* Budget Request Executed/ Funded

* FY 06 and 07 Requirements

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Force Protection

Millions

Force Protection Program consists of four components: Law Enforcement and Installation Provost Marshal Services - protect

people and property, enforce laws, and preserve good order and discipline. Manages the military working dog program, liaison to civil law enforcement agencies, and special event enforcement.

Physical Security – preserves the commander’s combat power by protecting the personnel, equipment, supplies, and supporting real property required to effectively wage war. Includes the Contract Security Guards Program and maintains a viable physical security program that exists to protect Army installations and facilities.

Installation Preparedness for WMD - supports installation preparedness and response for mitigating the consequences of a terrorist incident involving the use of Chemical, Biological, Radiological, Nuclear, and Conventional High-Yield Explosive or WMD.

Antiterrorism - applies defensive measures used to reduce the vulnerabilities of individuals and property including antiterrorism management, antiterrorism training and awareness efforts, protection of designated high-risk targets and the protection of High Risk Personnel.

PB 08 Fully funds Force Protection essential needs to support the implementation of Army wide access control standards. Changes in requirements include:

– Right-sized guard requirements as determined through a comprehensive Force Protection study

– Centralized contracts to reduce Force Protection overhead

– Implementation of automated access control points to reduce guard requirements

Funding and Requirements Profile

1142

661

327

1162

650 644 583 580

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

FY06 FY07 FY08

Essential Needs* Budget Request Executed/ Funded

* FY 06 and 07 Requirements

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Base Communications / Audio-Visual

Millions

Base Communications – supports the operation and maintenance of Army non-tactical, installation communications facilities and equipment systems.

Provides O&M of telephone cable infrastructure and network, leased communications from local vendors, common-user telecommunications equipment (faxes, telephones, radios), and the Army Land Mobile Radio.

Services include local phone calls, commercial long distance calls, contract maintenance support, and maintenance of telecommunications equipment.

Audio-Visual – provides a variety of multimedia / visual information products and services including:

Enterprise Multimedia/Visual products and services Multimedia Presentations and high end graphics Video Productions and video on demand Web based work requests Enterprise managed Work Order / Work Flow application

PB 08 Current funding level allows improved service delivery and response time for telecommunications (telephones, cable plant repair, fire/safety emergency circuits) and increased quantities of Visual Information products

These services directly impact enhanced mission readiness, mobilization capability and mission support to the warfighter on Army installations.

Funding and Requirements Profile

355

157

223

354

180

240

308

246

$0

$50

$100

$150

$200

$250

$300

$350

$400

FY06 FY07 FY08

Essential Needs* Budget Request Executed/ Funded

* FY 06 and 07 Requirements

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143 122311

88 53 53196 171

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

FY06 FY07 FY08

Essential Needs Budget Request Executed/ Funded

18991679

1869 19361742 1742

20511845

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

FY06 FY07 FY08

Essential Needs Budget Request Executed/ Funded

Sustainment, Restoration, and Modernization (OMA)(S/RM – Active Army)

Millions Sustainment Restoration and Modernization

Demolition

Millions

Sustainment Provides for maintenance and repair necessary to keep facilities in

good working order Current funding levels slow the rate of, but do not stop deterioration

of Army facilities

Restoration and Modernization (R&M) Necessary to restore degraded facilities to working condition or

upgrade facilities to new standards or functions The majority of R&M funding (94%) is executed through MILCON

Demolition Controls the expansion of inventory through disposal or demolition of

excess and obsolete facilities (OMA) and one-for-one disposal of existing facilities (MILCON)

The Army continues to aggressively reduce real property by eliminating excess and obsolete facilities

23.4 24.1 24.3

20.0

15.7 15.7 15.4 15.4

$0

$5

$10

$15

$20

$25

FY06 FY07 FY08

Essential Needs Budget Request Executed/ Funded

Millions

MIL

CO

N / B

RA

C

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Army FY08/09 Budget Themes

Win the Long WarSustain the All-Volunteer Force with Improved

Quality of LifeBuild Readiness for Today and Tomorrow’s

ChallengesAccelerate the Future Force Modernization

Strategy and ImplementationRe-station Army Forces in Line with the Global

Defense Posture Realignment and BRAC/MILCON Strategy

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Installation Management Transformation

Transforming to support an Army at War . . .

“As our Army transforms, so must we, to provide continuous support to our expeditionary Army as it reshapes, grows, and changes into a modular force . . .”

- LTG Robert WilsonCG, IMCOM

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Backup Slides

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Force Protection •MDEP QLPR, QPSM, VTER, VIPP PE 131075

($M) FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY08-13

PB0809 Essential Needs 1,324.6 758.5 809.8 830.4 752.2 828.5 774.5 7,753.9

PB0809 Funding 775.0 743.9 813.8 800.5 753.1 822.9 783.4 4,717.6

% Funded 59% 98% 100% 96% 100% 99% 101% 99%

•Used PB0809 Lock file

•Limited to OMA, OMAR, OMNG