Transcript Headquarters U.S. Air Force Fly – Fight – Win Association of Defense Communities Brief Our Air Force…. Our Future Ms Kathleen Ferguson Deputy Assistant Secretary of.

Headquarters U.S. Air Force
Fly – Fight – Win
Association of Defense Communities Brief
Our Air Force….
Our Future
Ms Kathleen Ferguson
Deputy Assistant Secretary of the Air Force
Installations
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DoD Priorities
“…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
Meeting real-world requirements
Doing right by our people
Reducing excess
Being more efficient
Squeezing costs
Setting priorities and sticking to them
Making tough choices
Fly – Fight – Win
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Air Force Priorities
“…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
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
…by reducing overhead and support functions and shifting resources to warfighter and
readiness programs
Fly – Fight – Win
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Efficiencies and Enhancements
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
$6.2B
$43.3B
Total
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
• 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,
and Readiness
Fly –Modernization,
Fight – Win
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The Air Force Budget
$170.8B
$166.3B
MILPERS
O&M
$119.6B
Blue
Baseline
$119.0B
Blue
Baseline
MILCON, BRAC & MFH
RDT&E
Procurement
FY11 PB
FY12 PB
Fly – Fight – Win
Numbers may not add due to rounding
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FY12 PB Request – Blue $
$166.3B
OCO
NON-BLUE
MILPERS
$30.2B -- 25%
O&M
$45.3B -- 38%
MILPERS
O&M
MILCON, BRAC & MFH
RDT&E
PROCUREMENT
PROCUREMENT
$22.5B -- 19%
MILCON, BRAC & MFH
$2.0B -- 2%
Numbers may not add due to rounding
RDT&E
$19B -- 16%
Excludes Non-blue and OCO
Fly – Fight – Win
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Military Construction, BRAC
& Military Family Housing
($B)
Military Construction
BRAC
Military Family Housing
Total
FY11
PB
FY12
PB
Delta
1.3
0.3
0.6
$2.2
1.4
0.1
0.5
$2.0
0.1
(0.2)
(0.1)
($0.2)
Numbers may not add due to rounding
•
MILCON: $97M increase over FY11 PB
•
Eight projects focusing on replacing lowest quality & BMT recruit dorms
•
Projects for initial beddown of F-35 (Nellis, Luke) & F-22 (Hill & Hickam); aircraft realignment
beddown projects for B-52 (Minot), F-16 (Holloman)
•
Ten facility/infrastructure improvement projects supporting commanders’ most critical needs
•
Supports COCOMS highest priorities: STRATCOM HQs, TRANSCOM air freight terminal (Guam),
CENTCOM dorm complex (QATAR); three joint base barracks projects
•
Continues Global Posture emphasis – three Guam Strike/aircraft maintenance projects
•
BRAC focus now environmental clean-up for 28 Legacy BRAC closures and 6 2005 BRAC closures
•
MFH: Improves 1,300 units in Japan & United Kingdom; maintains/oversees owned, leased &
privatized units; will privatize 100% of CONUS, Hawaii, & Alaska homes
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Supporting Weapon System Beddown
Meeting
FlyWhile
– Fight
– COCOM
Win Needs & Taking Care of Airmen
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Operation & Maintenance
($B)
Civilian Pay
Flying Operations
Mobility Forces
Space/Other Combat Forces
Training & Recruiting
Logistics Ops & AF Wide Support
Installation Support & FSRM
Total
FY11
PB
11.7
16.0
1.1
6.1
1.2
2.6
7.1
$45.8
FY12
PB
Delta
11.1*
16.6
1.2
6.0
1.2
2.3
6.9
$45.3
0.6
0.6
0.1
(0.1)
(0.0)
(0.3)
(0.2)
($0.5)
Numbers may not add due to rounding
•
•
•
•
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
Reinvesting Efficiencies
Enhance
Warfighter Capabilities
Fly –toFight
– Win
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The Future:
Managing Our Assets w/ Integrated Approach
Real Property as a Foundation CE and Infrastructure Energy Strat Plans
- Adopted industry best practices
- Space Optimization –CBRE/JJL
- Streamlined demolition process
- Enhanced Use Leasing
Streamlined Work and Project Mgt
- Activity Management Plan Concept
- IT supports new business processes
- Facility Condition Index/Mission
Dependency Index to prioritize assets
Centers of Expertise & Strategic Sourcing
- Centralized MILCON /MFH/ERA
- Facility Energy Center
- O&M Reach back & Readiness services
Fly
– Fight
– Win
- Strategic
Sourcing
Division
at AFCESA
Global Energy Stewards
- Renewable Energy Sources
- Metering - Alternate Fuels
- Enhanced Use Leasing
- Improve Infrastructure/UP
NextGen IT: FOC 2012
-Centralized IT Mgt
-Enterprise database
-Transparent data
- Enterprise architecture
- BEA compliant
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20/20 by 2020
Reduction 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
Fly – Fight – Win
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Housing Privatization:
Goal is 100 %

Completed Projects: 9,052 units


Awarded/Under Const: 28,799 units

69%

Buckley, Dyess I, Elmendorf I & II,
Kirtland, Lackland I, Robins I, WrightPatterson I, Dover, Scott
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
100%
Forks / Ellsworth / Cannon
 Continental Group: Seymour Johnson / Hurlburt / Eglin /
McConnell / Edwards / Eielson


Privatization Status to Date
Closed
37,851units
(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 Acquisition
16,586 units
(7 projects / 24 bases)
Joint Base Elmendorf-Richardson
ACC III: Second phases Dyess/Moody
Fly – Fight – Win
Enhanced Use Lease
Current Project Pipeline
Values
Targeted Project Strategy
Values
Portfolio Expansion Strategy
Values
A:Current Pipeline
~$.78B
B:Mid-term
~$3.6B
C: Long-term
~$3.7B
Energy
$482.0M
62%
Real Estate
$301.3M
38%
Energy
30%
Innovation
60%
Traditional
Real Estate
10%
Innovation Strategies
Category
Energy
Real
Estate
Project Type
Value
Solar
$
242.0M
Coal
$
118.0M
Waste-to-Energy
$
82.0M
Cogeneration
$
40.0M
Mixed Use
$
166.1M
Industrial
$
48.1M
R&D
$
64.0M
Hospitality
$
22.0M
Medical
$
1.5M
Target Approach
Example
Focused on hot
market, high
revenue, and vastly
available land bases AFMC: Edwards, Hill (Solar,
with high EUL
Geothermal)
success to date to
generate surge of
revenue
Fly – Fight – Win
Focused Execution
Description
Diversity portfolio with right mix of
projects
Re-invest EUL proceeds into
Reinvestment and Cost installation requirements generating
Avoidance Dividends cost avoidance and cost savings
measures
Natural Infrastructure and
resources, equipment with excess
New Assets
capacity, available real property
MAJCOM IDIQs, PPA/EUL,
New Execution Models Fence to Fence EUL, Performancedriven support (RESS)
Nuclear, cogeneration, algae
New Technologies
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QUESTIONS?
Fly – Fight – Win