headquarters u.s. air force fly – fight – win ms kathleen ferguson deputy assistant secretary of...
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Headquarters U.S. Air ForceFly – Fight – Win
Ms Kathleen Ferguson
Deputy Assistant Secretary of the Air Force
Installations
Association of Defense Communities Brief
Our Air Force….Our Future
1
Fly – Fight – Win
Meeting real-world requirements Doing right by our people
Reducing excessBeing more efficient
Squeezing costsSetting priorities and sticking to them
Making tough choices
DoD Priorities
2
“…we launched a comprehensive effort to reduce the department’s overhead expenditures. The goal was, and is, to sustain the U.S. military’s size and strength over the long term by reinvesting those
efficiency savings in force structure and other key combat capabilities.”
Robert M. Gates, Secretary of Defense Statement on Department Budget and Efficiencies, January 06, 2011
Fly – Fight – Win
Continue to Strengthen the Nuclear Enterprise
Partner with the Joint and Coalition Team to Win Today’s Fight
Develop and Care for Airmen and Their Families
Modernize Our Air, Space and Cyberspace Inventories, Organizations and Training
Recapture Acquisition Excellence
Air Force Priorities
3
“…our approach has been, and remains, to ensure we balance investments across our core functions, and focus on the combat and enabling capabilities necessary for joint and coalition warfighting at any
point across the potential spectrum of conflict.”
Michael B. Donley, Secretary of the Air Force“State of the Air Force”, September 13, 2010
…by reducing overhead and support functions and shifting resources to warfighter and readiness programs
Fly – Fight – Win 4
Efficiencies and Enhancements
Efficiencies• Reduce Overhead/Support Functions
• Numbered Air Force/Air Operations Center Consolidations• Weapon System Sustainment• Reduce Energy Consumption• Information Technology• Reduce Personnel Overhead
• Streamline Logistics• CAF Flying Training Review• Program Management Administration/Knowledge-Based
Contractors • Facility Sustainment Restoration and Modernization
• Buy More Efficiently • Evolutionary Acquisition for Space Efficiency • Evolved Expendable Launch Vehicle
Enhancements• Force Structure, Modernization, Readiness
• Long Range Strike Family of Systems • Normalize MC-12W• Sustained Procurement of Reapers• Economical Production of EELV• F-15 Radar Modernization• F-35 Simulators• Recapitalizing MC-130H/W• Improving B-52 Computer Infrastructure
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - • Increased Cost of Operations
• Pay and Allowances• Weapon System Sustainment Requirements
Growth• Fuels
Reduce Excess Overhead Costs and Apply Savings to Force Structure, Modernization, and Readiness
Efficiencies FY12 FYDP
AF Initiated $3.4B $33.3B
Dept Wide Total $2.8B $10.0B
Dept Wide (Blue) $1.5B $7.8B
Dept Wide (Non-Blue) $1.3B $2.2B
Total $6.2B $43.3B
Fly – Fight – Win
The Air Force Budget
FY11 PB FY12 PB
$170.8B $166.3B
MILPERS
O&M
MILCON, BRAC & MFH
RDT&E
Procurement
$119.6BBlue
Baseline
$119.0BBlue
Baseline
5
Numbers may not add due to rounding
Fly – Fight – Win
FY12 PB Request – Blue $
6
Numbers may not add due to rounding
O&M$45.3B -- 38%
MILCON, BRAC & MFH$2.0B -- 2%
RDT&E$19B -- 16%
MILPERS$30.2B -- 25%
PROCUREMENT$22.5B -- 19%
MILPERS
O&M
MILCON, BRAC & MFH
RDT&E
PROCUREMENT
NON-BLUE
OCO
Excludes Non-blue and OCO
$166.3B
Day-to-Day Ops63%
Fly – Fight – Win
Military Construction, BRAC & Military Family Housing
99 87
Numbers may not add due to rounding
Supporting Weapon System Beddown While Meeting COCOM Needs & Taking Care of Airmen
($B)FY11
PBFY12
PB DeltaMilitary Construction 1.3 1.4 0.1BRAC 0.3 0.1 (0.2)Military Family Housing 0.6 0.5 (0.1)Total $2.2 $2.0 ($0.2)
• MILCON: $97M increase over FY11 PB
• Eight projects focusing on replacing lowest quality & BMT recruit dorms
• Projects for initial beddown of F-35 (Nellis, Luke) & F-22 (Hill & Hickam); aircraft realignment beddown projects for B-52 (Minot), F-16 (Holloman)
• Ten facility/infrastructure improvement projects supporting commanders’ most critical needs
• Supports COCOMS highest priorities: STRATCOM HQs, TRANSCOM air freight terminal (Guam), CENTCOM dorm complex (QATAR); three joint base barracks projects
• Continues Global Posture emphasis – three Guam Strike/aircraft maintenance projects
• BRAC focus now environmental clean-up for 28 Legacy BRAC closures and 6 2005 BRAC closures
• MFH: Improves 1,300 units in Japan & United Kingdom; maintains/oversees owned, leased & privatized units; will privatize 100% of CONUS, Hawaii, & Alaska homes
Fly – Fight – Win
• Focuses resources on new / emerging requirements and funds on-going missions• Implements Secretary of Defense Efficiencies Initiatives moving support into mission• Continues increasing Irregular Warfare capability for today’s fight – builds on progress made in
FY11 to reach 65 CAPs by end of FY13• Supports 1.2M flying hours; sustains fleet of over 5.5K aircraft
• Continues to optimize flying hour program through simultaneous submission of OCO and baseline budget – balances peacetime training and contingency operations
• Weapon System Sustainment supports aircraft availability – funded at 65% (84% w/ OCO)• Pay and benefits for 182K civilian personnel – no pay raise in FY11 or FY12
• Holds end-strength at FY10 levels – with limited exceptions• * Transfers 1.8K positions to RDTE
• Ensures day-to-day operations at 80 major installations -- facilities sustainment funded at 80%• Includes operations at 2 space lift ranges – Patrick AFB and Vandenberg AFB
Operation & Maintenance
($B)FY11
PBFY12
PB DeltaCivilian Pay 11.7 11.1* 0.6Flying Operations 16.0 16.6 0.6Mobility Forces 1.1 1.2 0.1Space/Other Combat Forces 6.1 6.0 (0.1)Training & Recruiting 1.2 1.2 (0.0)Logistics Ops & AF Wide Support 2.6 2.3 (0.3)Installation Support & FSRM 7.1 6.9 (0.2)Total $45.8 $45.3 ($0.5)
99 88Reinvesting Efficiencies to Enhance Warfighter Capabilities
Numbers may not add due to rounding
Fly – Fight – Win
The Future:Managing Our Assets w/ Integrated Approach
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Real Property as a Foundation - Adopted industry best practices - Space Optimization –CBRE/JJL - Streamlined demolition process - Enhanced Use Leasing
CE and Infrastructure Energy Strat Plans
Streamlined Work and Project Mgt - Activity Management Plan Concept - IT supports new business processes - Facility Condition Index/Mission Dependency Index to prioritize assets
Global Energy Stewards - Renewable Energy Sources - Metering - Alternate Fuels - Enhanced Use Leasing - Improve Infrastructure/UP
Centers of Expertise & Strategic Sourcing - Centralized MILCON /MFH/ERA - Facility Energy Center - O&M Reach back & Readiness services - Strategic Sourcing Division at AFCESA
NextGen IT: FOC 2012 -Centralized IT Mgt- Enterprise database- Transparent data- Enterprise architecture- BEA compliant
Fly – Fight – Win
20/20 by 2020Reduction Goals
20/20 by 2020 Goals 20% net reduction in AF physical plant by 2020 20% reduction in operating cost for remaining portfolio
by 2020 FY06 20/20 by 2020 baseline = 401 MSF
Net reduction goal = 80 MSF 20/20 by 2020 in perspective
80 Major installations in AF Average installation size = 4.8 MSF
Langley 5.3 MSF Hurlburt Field 4.3 MSF
Net SF reduction equivalent to ~16
installations to be spread across entire AF
10
Fly – Fight – Win
Housing Privatization: Goal is 100 %
Awarded/Under Const: 28,799 units
ACC II (Davis-Monthan, Holloman), AETC Group I (Altus,
Luke, Tyndall, Sheppard), AETC Group II (Columbus, Goodfellow, Laughlin, Maxwell, Randolph, Vance), AFSPC Tri-Group (Peterson, Los Angeles, Schriever), AMC East (Andrews, MacDill), BLB (Barksdale, Langley, Bolling), Hickam I & II, Hill, McGuire/Fort Dix, Nellis, Offutt, Robins II, Vandenberg, USAFA, AMC West (Tinker, Travis, Fairchild), McChord (w/ Ft Lewis – Army lead), Falcon Group (Patrick, Moody, Little Rock, Hanscom), Lackland II
In Concept Development: 16,586 units Wright-Patterson II Western Group: FE Warren / Malmstrom / Whiteman / Beale Southern Group: Shaw / Arnold / Charleston / Keesler Northern Group: Minot / Mountain Home / Cavalier / Grand
Forks / Ellsworth / Cannon Continental Group: Seymour Johnson / Hurlburt / Eglin /
McConnell / Edwards / Eielson Joint Base Elmendorf-Richardson ACC III: Second phases Dyess/Moody
Privatization Status to Date
Closed37,851units
(27 projects / 44 bases)
Inadequates Eliminated through Award
35,153
Demolition Complete 18,938
Construction Complete 15,520
Renovations Complete 8,189
% Privatized 69%
In Acquisition16,586 units
(7 projects / 24 bases)
69%
100%
Completed Projects: 9,052 units
Buckley, Dyess I, Elmendorf I & II, Kirtland, Lackland I, Robins I, Wright-Patterson I, Dover, Scott
Fly – Fight – Win
Enhanced Use Lease
12
Current Project Pipeline Values
Category Project Type Value
Energy
Solar $ 242.0M
Coal $ 118.0M
Waste-to-Energy $ 82.0M
Cogeneration $ 40.0M
Real Estate
Mixed Use $ 166.1M
Industrial $ 48.1M
R&D $ 64.0M
Hospitality $ 22.0M
Medical $ 1.5M
Real Estate$301.3M38%
Energy$482.0M62%
A:Current Pipeline ~$.78B
Targeted Project Strategy Values
Target Approach Example
Focused on hot market, high revenue, and vastly available land bases with high EUL success to date to generate surge of revenue
AFMC: Edwards, Hill (Solar, Geothermal)
B:Mid-term~$3.6B
Portfolio Expansion Strategy Values
Innovation Strategies Description
Focused ExecutionDiversity portfolio with right mix of projects
Reinvestment and Cost Avoidance Dividends
Re-invest EUL proceeds into installation requirements generating cost avoidance and cost savings measures
New Assets
Natural Infrastructure and resources, equipment with excess capacity, available real property
New Execution ModelsMAJCOM IDIQs, PPA/EUL, Fence to Fence EUL, Performance-driven support (RESS)
New Technologies Nuclear, cogeneration, algae
Energy30%
Traditional Real Estate
10%
Innovation60%
C: Long-term~$3.7B
Fly – Fight – Win
QUESTIONS?