Overseas Contingency Operations Supplemental Process Brief Pr

Document Sample
Overseas Contingency Operations Supplemental Process Brief Pr Powered By Docstoc
					Overseas Contingency Operations
     Supplemental Process
   Professional Development Institute

               May 2009

      Mr. Rick McKutchin/FMB-11
                                        Office of Budget

–   Overseas Contingency Operations (OCO)
     • Estimate cost of continuing Contingency Operations (CONOPS)
        – Operation Enduring Freedom (OEF)
        – Operation Iraqi Freedom (OIF)
–   Recapitalization (Reset)
     • Restore equipment returning from OIF/OEF
     • Equipment replacement
     • Sustainment to include munitions and consumables backfill
–   Other
     • Transportation surcharges
     • Equipment to counter emerging threats
     • Over-Strength
−   Current FY 2009 and FY 2010 amounts reflect integrated BSO estimates and current COST
    model projections as approved by OSD/OMB

                                                                              Office of Budget   2
Each year presents different challenges associated with
Supplemental funding.

    2001 / 2002                       2003                       2004                       2005
• Defense Emergency            • Included all             • Originally               • Funded all OIF/OEF
                               OIF/OEF combat
Response Fund (DERF)                                      premised on post-war       combat ops
                                                          sustainment level of
created to respond to          • All incremental          support
                                                                                     • Restored equip
                                                                                     returning from
9/11 attack                    costs funded
                                                          • Situation changed        OIF/OEF
• Operation Enduring                                      for OIF-2, where
                                                                                     • Funded: higher
                                                          Marine Corps and
Freedom                                                                              baseline fuel and WCF
                                                          Navy personnel
                                                                                     cash drawdown; USMC
                                                          rotated in to replace
• “No-year” funds                                         Army units mid-year
                                                                                     Force Structure Change
                                                                                     – 2 add’l rifle BNs
          $3.8B DON                                       • Absorbed $1.6B
                                                                                     •Noble Eagle
      $3.8B Navy (DERF)                                   GWOT costs from
                                                                                     (Homeland Defense)
       $27M USMC (DERF)                                   baseline
                                                                                     funded in baseline
                                    $11.5B DON                  $6.0B DON
          $2.8B DON              Operations - $7.6B USN     Operations - $2.9B USN
                                 Investment - $0.5B USN     Investment - $0.3B USN        $13.3B DON
      Operations -$2.0B USN
                                Operations- $3.3B USMC     Operations - $2.5B USMC     Operations - $4.2B USN
      Investment - $0.5B USN
                                Investment- $0.1B USMC     Investment - $0.3B USMC     Investment - $1.3B USN
     Operations - $0.3B USMC
     Investment – 3.5M USMC                                                           Operations - $4.3B USMC
               2002                                                                   Investment - $3.5B USMC

                                                                                                Office of Budget   3
Each year presents different challenges associated with Supplemental

        2006                       2007                       2008                 Requested     2009
 Request approved by         FY07 included surge          Original Request           Request based on
 OSD based on similar         force requirement           based on similar         similar OPTEMPO as
  OPTEMPO as 2005                                        OPTEMPO as 2007,          2008, excluding surge
                            •Addresses Navy reset         excluding surge
• Did not support                                                                 • Maintains current
NECC/ GWOT                  • Support for NECC         • Continues to address     level of effort
initiatives                 initiatives                DON reset
                                                                                  • Continues to address
• Funded: MilPers and       • Includes fuel and        • Amended Supp             DON reset
O&M full request and        utility re-pricing         Request addressed
                                                       accelerated Navy reset     •Reflects initial shift
higher baseline fuel.       •Funded OSD/
                                                       and surge extension        from Iraq to
• Large initial request     Congressional baseline
to fund USMC reset          OPTEMPO reductions
costs (vehicles & weps)

                                                                                        $17.0B DON
                                                                                    Operations - $7.4B USN
                                                                                    Investment - $1.4B USN
      $16.8B DON                 $24.6B DON                 $25.5B DON             Operations - $5.6B USMC
   Operations - $6.2B USN     Operations - $7.7B USN     Operations - $7.8B USN    Investment - $2.6B USMC
   Investment - $1.0B USN     Investment - $4.0B USN     Investment - $6.2B USN
  Operations - $4.8B USMC    Operations - $5.6B USMC    Operations - $6.5B USMC
  Investment - $4.7B USMC    Investment - $7.4B USMC    Investment - $5.0B USMC    Bridge Received   $7.3B
                                                                                   Remaining Request $9.7B

                                                                                                Office of Budget   4
Each year presents different challenges associated with
Supplemental/Request funding.

               Requested      2010                    TBD      2011
              Relatively steady-state              OCO funding expected
                    OPTEMPO                          to continue at a
                                                      reduced level
              • Maintains current
              overall level of effort
              • Continues to address
              DON reset with
              •Continues assumed
              Iraq drawdown and
              increased OPTEMPO
              in Afghanistan

                    $15.3B DON                          $ TBD DON
                 Operations - $7.4B USN              Operations - $ TBD USN
                 Investment - $1.6B USN              Investment - $ TBD USN
                Operations - $4.5B USMC             Operations - $ TBD USMC
                Investment - $1.7B USMC             Investment - $ TBD USMC

                                                                              Office of Budget   5
Guidance through FY 2009
•DoD Financial Management Regulations (Vol 12, Chap 23): Supplemental funding may be
requested to cover costs resulting from unanticipated events
   - “DoD Components normally do not budget for contingency operations…”
•Prior Year OUSD(C) Guidance:
   - In FY 2005, “the Department will identify the unfunded incremental requirements in support of
     OIF, Operation Noble Eagle (ONE), and OEF.” Did not forward ONE request to Congress.
   - In FY 2006, “emergency supplemental request for *CONOPS+ address the incremental costs above
     the baseline funding needed to support specific forces and capabilities required to execute OIF and
     OEF.” Does not include funding for ONE.
•OUSD(C) guidance for the FY 2007 through FY 2009 Supplemental submission:
   - “This supplemental will address only those incremental costs which are “emergency” in nature
     and are specifically required to prosecute mission objectives during FY 2007. Costs that can be
     deferred without immediate operational impact will not be included.”
   - Supplemental to include:
       • “…incremental costs above the baseline funding needed to support specific forces and capabilities required to
         execute OIF, OEF, and Operation Jump Start (OJS).”
       • “…requested construction projects must be in Iraq or Afghanistan and be in direct support of OIF/OEF.”
   - The request for supplemental funds will not:
       • “Restore program funding reduced to finance GWOT costs”
       • “Restore Congressional reductions”

                                                                                                         Office of Budget   6
Guidance for FY 2010 and FY 2011*

•Guidance for FY 2010
  - Geographic area/Theater of Operatuions = Iraq and Afghanistan
     • Persian Gulf; Gulf Nations, Pakistan, Kazakhstan, Tajikistan, the Horn of Africa,
       Arabian Sea, the Indian Ocean
  - Major Equipment: Replacement only for items not programmed for
    replacement in the FYDP; must be executable within 12-months
  - Aircraft replacement: Combat losses occurring in theater of operations
  - Munitions: Replenishment of munitions expended in combat if existing
    stock are inadequate
  - Operations: Within theater direct incremental costs
  - Exclusions: Training equipment; SLEPS; Family Support Initiatives;
    personnel above the level requested in the President’s Budget

•Guidance for FY 2011
  - PR-11 Guidance: *Move items not directly related to operations in Iraq /
    Afghanistan / Horn of Africa into the baseline TOA

                                                                                Office of Budget   7
How Estimates are Formed (O&M / MILPERS)

•Budget Submitting Offices Provide estimates via PBIS and OP-5’s

•FMB-1 Contingency Branch models the annual cost using the
Contingency Operations Support Tool (COST) Model
  - Fleet schedule inputs, both afloat and ground based units (ie SEABEE)
  - Estimates for the number of personnel filling IA positions
  - OPTEMPO standardized with OSD guidance
  - Navy requirements are incremental to baseline

•Comparison made between COST and BSO estimate

•Changes or overrides to COST made as needed.

                                                                      Office of Budget   8
Contingency Operations Support Tool

•Sponsored by OUSD (Comptroller)

•COST Team
  - Comptroller
  - Joint Staff
  - Army, Navy, Air Force, Marines
  - Institute for Defense Analysis (IDA)
  - Office of Management and Budget (OMB)

                                            Office of Budget   9
COST Business Rules

•Incremental Costs

•No Munitions

•No Procurement

•Credit Peacetime OPTEMPO

•Special Pays for Active Duty Personnel

•Full Pay plus Special Pays for Reserve Personnel

•Credit Reserve Drill and Training

•Transportation by Category, Mode and Route

                                                    Office of Budget   10

•Definition: “Actions taken to restore units to a desired level of combat capability
commensurate with the units’ future mission. It encompasses maintenance and
supply activities that restore and enhance combat capability to unit and pre-
positioned equipment that was destroyed, damaged, stressed, or worn out beyond
economic repair due to combat operations by repairing, rebuilding, or procuring
replacement equipment. These maintenance and supply activities involve Depot
(Sustainment) and Field Level (e.g., Organizational and Intermediate)
repairs/overhauls centrally managed to specified standards. Included are
Procurement, RDT&E, and Operation and Maintenance funded major
repairs/overhauls and recapitalization (Rebuild or Upgrade) that enhances existing
equipment through the insertion of new technology or restores selected equipment
to a zero-miles/zero-hours condition.”

                                                                            Office of Budget   11

             Office of Budget
How Estimates are Formed (Investment)

•Budget Submitting Offices provide estimates
   - Input spreadsheet - “Color Top” (i.e. “Green Top”)
   - Narrative Justifications

•N80 Reset list

•Naval Expeditionary Command Enterprise input

•MIP/NIP program manager input

•Emergent technologies


                                                          Office of Budget   13
N80 Reset List (Examples)

   - USN New Aircraft: F/A-18, MH-60R, C-40
   - USN Upgrades: F-18, P-3, EA-6B
   - USMC New Aircraft: V-22, KC-130J, H-1
   - USMC Upgrades: AV-8B, F/A-18, C-130, helos

   - USN: Tomahawk, MK38 Gun mount mods, JSOW
   - USMC: LAV upgrades, HIMARS launchers and rockets, Javelin, TOW missiles,
     Hellfire, Pioneer

   - USN/USMC: Small Arms/Landing Party ammo, Airborne Rockets

•Other Equipment
   - USN: Construction Equipment, Tactical Vehicles, Night Vision Equipment
   - USMC: Unit Ops Centers, Radios, Night Vision Equipment, Tactical Vehicles, Littoral
     Battlespace Sensing, Al Asad Facility Transfers, EOD Systems, Construction
                                                                               Office of Budget   14

• Vehicles
  -   MRAP
  -   HMMWV
  -   Passenger Carrying Vehicles

• Construction Equipment
  -   Earth Moving Equipment
  -   Cranes
  -   Miscellaneous Construction Equipment

• Standard Boats
  -   7m Rigid Inflatable Boat (RIB)
  -   Riverine Multi-mission Craft
  -   Riverine Command and Control craft
  -   Force Protection (small and large)

                                             Office of Budget   15
Emergent Technologies

•Mine Resistant Ambush Protected (MRAP) Vehicles

 CAT I Representatives CAT II Representatives      CAT III

         HMMWV after IED                MRAP After IED

                                                             Office of Budget   16
MILCON (Examples)

•Horn of Africa – Infrastructure Camp Lemonier, DJIBOUTI
   -   Electrical Power Production
   -   Water Production
   -   HQ Dining Facility
   -   Fuel Farm
   -   Full Length Taxiway

•Grow the Force (FY 09 and prior)
   - Support for Blount Island
   - Intel Battalion
   - JIEDDO Battle Courses

•Child Development Centers

•FY 2010 = 0

                                                           Office of Budget   17
Cost of War Reporting

Importance of accurate and timely reporting

What is information used for?

•To monitor current year OCO funding execution

•Justify future requirements through validation of program execution

Who needs it?

DON; OSD; DFAS ; OMB and Congress

•Due to FMB-1 – 8th of each month

•Due to DFAS – 16th of each month

                                                                Office of Budget   18
Cost of War Improvement Project

•Cost of War Improvement Team established to analyze the OCO CoW
estimation and reporting methodologies

•Implementation Complete
   - Conducted site visits to both Navy Fleets and their subordinate operating units,
     personnel commands, acquisition commands, and regional commands
   - Also conducted site visits to USMC systems commands and expeditionary units
   - Issued guidance in September 2008 to Department of the Navy activities
      • Summarize best practices and data commonalities
      • Standardize cost reporting and modeled methodologies
      • Ensure reliable, repeatable, and defendable output

•Compliance Validation / Testing Underway Now
   - Ensure BSO’s have implemented proper procedures to capture CoW accounting data
   - Preliminary Findings will be presented to Senior Navy leadership

                                                                                  Office of Budget   19
Amended FY 2009/FY 2010/2011


                               Office of Budget   20