Base Realignment and Closure II, III and IV
BRAC I No additional funds are requested for Base Realignment and Closure I. The Department will continue related cleanup efforts using available FY 1993 and prior funds. All operational closure actions have been completed.
BRAC II - Base Realignment and Closure II costs have been revised and reflect a decrease in the number of major and minor closures and realignments remaining to be completed. Of the 36 bases covered by BRAC II, 26 completed closure or realignment by the end of FY 1995, with the remaining completing closure within the timeframe of the law.
BRAC II - Base Realignment and Closure costs reflect the closure or realignment of over 90 Naval facilities. The Department is committed to make closing facilities available to community reuse groups as fast as possible within fiscal constraints, while reducing associated shore support structure. áThe Department has completed an exhaustive, thorough review, only budgeting what could usefully be applied to this effort. While the BRAC III budget represents a large initial investment, the DON gains over $1 billion per year in steady-state savings. In FY 1997, BRAC funds have been allocated to fund environmental clean-up actions associated with specific reuse plans that will be ready to be executed in FY 1996. A total of 30 Environmental Baseline Surveys are underway or completed at BRAC III bases and environmental compliance efforts have been increased to support compliance and restoration projects for properties that are ready for transfer to the local community or have reuse plans in place. The BRAC III budget request represents the minimum funding required to implement closures and realignments.
BRAC IV - The BRAC IV budget was developed to achieve cost savings at maximum speed while minimizing disruption to Navy operations. BRAC IV actions will close eight major Naval installations. Significant closures include NSY Long Beach; NAWC, Indianapolis; NSWC, Louisville; NSWC White Oak; NAWC Warminister; SRF Guam; NAF Adak; and NAS South Weymouth. Overall, sixty Naval facilities will be closed or realigned. The Department used the lessons learned in the previous BRAC actions to ensure that funds are provided to effect operational closure as quickly as practicable. The initial investment will result in annual savings of approximately $600 million by FY 2000. áThe funding request provides the initial planning and design funding and appropriate civilian transition/separation costs to relocate NAWC Indianapolis and NSWC Louisville functions to other Naval facilities. However, until the privatization option studies have been completed, additional funds have not been requested. The budget also funds the major redirects of NTC Orlando, NAS Cecil Field, NAS Miramar, and NAVSEA Headquarters and reflects the resultant savings/cost avoidance.
The BRAC budgets have been structured to reflect appropriate caretaker and environmental restoration costs in subsequent BRAC iterations after the BRAC funding period ends.
Table 18 reflects anticipated costs for FY 1996 and FY 1997 for Base Closure II, III and IV. A summary of these costs and savings are shown in the same table.
| Table 18 | |||
| Department of the Navy | |||
| Base Realignment and Closure Accounts | |||
| (In Millions of Dollars) | |||
| COSTS | FY 1995 | FY 1996 | FY 1997 |
| BRAC II | 321 | 423 | 103.3 |
| BRAC III | 1433 | 1570 | 942.6 |
| BRAC IV | - | 509 | 399 |
| Total | $1,754.6 | $2,502.8 | $1,455.9 |
| FY 1997 | Annual | |
| SAVINGS | Savings | Steady State |
| BRAC II | 574 | 574 |
| BRAC III | 985 | 1360 |
| BRAC IV | 410 | 613 |
| Total | $1,969 | $2,547 |
DEFENSE BUSINESS OPERATIONS FUND (DBOF)
The Department of the Navy (DON) currently operates activities within seven business areas of the DBOF. However, on 1 October 1996 the Printing and Publications business area (Defense Printing Service) will be transferred to the Defense Logistics Agency (DLA). This action will transfer to DOD from Navy the only remaining DBOF activity Éwith a defense-wide mission currently managed by a single service.
The remaining six business areas under DON management are structured in this submission to execute assigned DON and Department of Defense (DOD) programs at reduced costs to the Department. Industrial overhead and supply operating costs at DON DBOF activities decline by $402.8 million between FY 1996 and FY 1997. This reduction is a result of Base Closure and other streamlining initiatives. For the industrial business areas, which make up two-thirds of the DON's volume of business in DBOF, this represents a ratio of overhead to total costs of 27 percent. It should be noted that to achieve these efficiencies, a reduction of 8,474 civilian personnel will be required via a combination of early retirements, separation incentives, and, when necessary, reductions in force. All costs for personnel reductions and relocations have been included in budget Éestimates.
Of material assistance in achieving better economies has been the base closure process. Over this budget period, four of the eight shipyards and three of the six aviation depots cease their industrial missions. In addition, four of the ten supply centers close, several R&D activities are closed, restructured, and/or consolidated, and two public works centers significantly downsize (one for closure, one for workload). The overall result of BRAC's II through IV is the elimination of inefficiencies associated with excess infrastructure; the DBOF budget submission reflects this improved cost profile.
Where prudent, capital investment has been slightly increased in FY 1997 over the FY 1996 level. Capital investment equals a modest 1.5 percent of total business volume for FY 1997, and is considered the minimum level of investment to ensure mission capability and cost-effective operations.
Defense Management Review Decision 926 directed the transfer of Service managed consumable items to the Defense Logistics Agency (DLA). In compliance with this decision, the Department has transferred approximately 258,000 line items of consumable inventory since FY 1992. This is 98% of the original Phase I plan scheduled to be completed in FY 1996. Continuing the Phase II transfer will result in an additional 34,000 line items moving from Navy to DLA management by the close of FY 1997.
Table 19 reflects obligations for the Supply business area, cost of operations for industrial business areas and capital investment requirements for all Department of the Navy DBOF activities.
| Table 19 | |||
| SUMMARY OF DBOF COSTS | |||
| (In Millions of Dollars) | |||
| FY 1995 | FY 1996 | FY 1997 | |
| COST | |||
| Supply (obligations) | 5681.2 | 5372.2 | 4924.4 |
| Depot Maintenance | 6234 | 5027.2 | 4219.8 |
| Transportation | 1069.4 | 1191.9 | 1179.2 |
| Research and Development | 8204.2 | 7780.9 | 7512.2 |
| Information Services | 370.8 | 241.6 | 249.7 |
| Printing and Publication | 402.1 | 400 | - |
| Base Support | 2005.2 | 1941.6 | 1904.5 |
| TOTAL | $23,967.0 | $21,955.4 | $19,989.8 |
| CAPITAL INVESTMENT | |||
| Supply Operation | 17.8 | 38.2 | 36.8 |
| Depot Maintenance | 52.8 | 93.5 | 148.3 |
| Transportation | 4.8 | 6 | 2.8 |
| Research and Development | 83.3 | 104 | 112.2 |
| Information Services | 1.1 | 0.5 | 0.8 |
| Printing and Publication | 7.6 | 8.4 | - |
| Base Support | 19.3 | 15.2 | 18.2 |
| TOTAL | $186.7 | $265.8 | $319.1 |
CIVILIAN PERSONNEL
The Department of the Navy budget includes the following civilian end strength and Éworkyear estimates:
FY 1995
Actuals FY 1996 FY 1997
End Strength 248,999 239,961 226,632
FTE Workyears 259,284 246,230 230,621
Civilian Personnel levels in the Department are at the lowest level since before World War II. The budget reflects the continued downward trend of the civilian work force as a result of base closures, reductions in force structure, and management efficiency.
Fifty-one percent of the Department's civilians work at DBOF funded activities supporting depot level maintenance and repair of ships, aircraft, and associated Éequipment, development of enhanced warfighting capabilities at the Warfare Centers of Excellence, and direct fleet communications, supply, and public works support. This budget reflects a functional transfer of 1,800 civilians from Navy to Defense for the Printing Service. A significant number of the civilians funded directly by operations appropriations provide direct fleet support at Navy and Marine Corps bases and stations. The balance provide essential support in functions such as training, medical care, and the engineering, development, and acquisition of weapons systems, all of which have a definite, although longer range impact on readiness.
In this budget, the Department has reduced DBOF overhead workyears and reapplied a portion to direct Fleet support at bases and stations as well as increasing support for child care and quality- of-life initiatives for the Department's military members and dependents. Overall, the budget for civilian personnel declines by over 22,000 end strength between FY 1995 and FY 1997 and by over 46,000 end strength by FY 2001. A reduction of almost 33,000 civilians through FY 2001 results from BRAC II, III, and IV decisions. At bases where an earlier closure is feasible within funding constraints, the Department has accelerated the closure date resulting in earlier personnel reductions paralleling Éinfrastructure decline.
In addition to infrastructure downsizing, civilian personnel levels in FY 1997 - FY 2001 are reduced to reflect efficiencies and savings as a result of the Department's implementation of National Performance Review recommendations and re-engineering processes which will improve the way we do business in the future.
A summary display of total DON Civilian Personnel resources is provided as Table 20.
Chart 7 - Civilian Personnel
| Table 20 | |||
| Department of the NavyCivilian Manpower | |||
| End Strength | |||
| FY 1995 | FY 1996 | FY 1997 | |
| Total - DON | 248999 | 239961 | 226632 |
| By Service | |||
| Navy | 230580 | 221311 | 208074 |
| Marine Corps | 18419 | 18650 | 18558 |
| By Type of Hire | |||
| Direct | 238595 | 229242 | 215904 |
| Indirect Hire, Foreign National | 10404 | 10719 | 10728 |
| By Appropriation/fund | |||
| Operation and Maintenance. Navy | 87686 | 89710 | 86645 |
| Operation and Maintenance, Navy Reserve | 2677 | 2608 | 2393 |
| Operation and Maintenance, Marine Corps | 16043 | 16555 | 16613 |
| Operation and Maintenance, Marine Corps | |||
| Reserve | 139 | 161 | 161 |
| Total - Operation and Maintenance | 106545 | 109034 | 105812 |
| Total - DBOF | 137881 | 125871 | 115287 |
| Military Construction, Navy | 2600 | 2968 | 3389 |
| Research, Development, Test & Evaluation, | |||
| Navy | 1875 | 1986 | 2042 |
| Military Assistance | 98 | 102 | 102 |
| Total - Other | 4573 | 5056 | 5533 |
| Special Interest Areas | |||
| Fleet Activities | 30352 | 30453 | 29687 |
| Shipyards | 32360 | 25767 | 22543 |
| Aviation Depots | 15049 | 12994 | 11850 |
| Supply/Distribution/Logistics Centers | 9149 | 7133 | 6658 |
| Warfare Centers | 47388 | 45326 | 43118 |
| Defense Printing | 2116 | 2099 | - |
| Engineering/Acquisition Commands | 24848 | 28008 | 27015 |
| Medical | 12252 | 11391 | 11195 |
| Administration | 19253 | 19001 | 19493 |