O&M,N Overview
Presented by
FMB-1
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Overview
• Midyear wrap up
• Preparation of the OP-5 Exhibit
- Budget Responsibilities
- Anatomy of an OP-5
- Improving Increase/Decrease Statements
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FY10 Midyear - Baseline Issues
•
Unfunded Submissions - $551M. Scrubbed:
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$130M - Non emergent requests or programmatic revisits
$ 89M - Items Contained in Submitted Reprogrammings
$ 68M - Items Contained in PY Upward Obligation Package
$ 24M - Requirements Scrub
$ 59M - Low Priority Emergent Issues
Remaining Unfunded Submissions - $181M
 $ 54M - Administrative Must Fund (PSI)
 $ 46M - Post FY Administrative Must Fund (NMCI Incentives)
 $ 38M - Emergent Issues (Enterprise Inact, COCOMs, PASS/ID)
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($6M of which funded in FY11 and out)
 $ 24M - CNO Reserve Candidates (LCS Early Deploy, Winter Storm Damage, etc)
 $ 19M – BSO Source Issues per PBCG (Prompt Pay, HR Support, Mass Transit)
Recommend
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•
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Fund Admin Must Funds on OMNIBUS
Defer Post FY Must Funds
Fund Emergent Requirements from FMB Reserve
Refer BSO’s to CNO Reserve Process for CNO Reserve Candidates
Fund PBCG-directed Issues via BSO Sources
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Deferred Issues – Funding Risk
Historical Unobligated Blances
500
450
400
350
5th Qtr
Risk
250
200
150
FY06
FY07
100
FY06
FY07
FY08
FY09
16
66
16
Foreign
Currency
Transfers
243
189
FY08
FY09
50
Fe
b
ec
D
ct
O
Au
g
Ju
n
Ap
r
Fe
b
ec
D
ct
O
Au
g
Ju
n
Ap
r
Fe
b
ec
D
ct
O
Au
g
Ju
n
Ap
r
Fe
b
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D
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-
O
$M
300
Month
Based on Historical Data, $46M of Risk is Manageable
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FY06 accommodated transfers out of $243M
FY07 funding of $16M for NMCI Incentives and transfers out of $189M
FY08 experienced over $130M in upward obligations for USS Enterprise, $66M in NMCI & PSI risk
FY09 carried $16M in NMCI Incentive risk
At no point in any of the last four fiscal years have unobligated funds dipped below $68M – even after
funding the risk and transfers above
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Budget Responsibilities
•Financial Management and Budget Office (FMB)
- Present the most defendable budget as possible to both the Secretary of
Defense and to Congress
- Prepares briefs and answers Congressional inquiries throughout the budget
cycle.
•Budget Submitting Offices (BSOs)
- Prepare budget exhibits that defend their programs
- Maintain good working relationships with their Program Executive Offices
and Program Managers
- Understand programs, and be prepared to answer FMB inquiries as needed
Good
BSO
Exhibits
Thorough
FMB Review
and
Preparation
A Sound
Budget
Submission
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Anatomy of an OP-5
•
The OP-5 is comprised of six sections:
I. Description of Operations Financed
II. Force Structure Summary
III. Financial Summary
IV. Performance Criteria and Evaluation Summary
V. Personnel Summary
VI. OP-32 Line Items as Applicable
•
OP-5 requirements are located in DoD Financial Management
Regulation (FMR) Volume 2A, Chapter 3. The FMR can be linked to
from the FMB webpage.
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Section I: Description of Operations Financed
•This section should contain a detailed description of the programs
funded in the line item.
•BSOs can (and are encouraged) to provide complete descriptions of
each program. FMB will revise the descriptions to an appropriate size
before submitting to OSD or Congress.
•Important! Be sure to review this section with each submission as
programs begin and end every year. There is nothing worse than to get
a Congressional question regarding a program that ended years ago but
is still described in the OP-5.
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Section I: Description of Operations Financed (continued):
•Examples of program descriptions:
Physical Security Program (4B2N/25):
The Physical Security program provides funding to develop and update AntiTerrorism and Force Protection (AT/FP) planning and design criteria for Naval
facilities. The program provides resources for physical security design guides
and studies are geared toward the Department of Defense lock program (Navy
is DoD's Executive Agent for this program), electronic security systems,
protection against forced entry and direct fire weapons, development of safe
havens, design to resist acoustic emanations, design and shielding against
electronic emanations, etc. The criteria developed will reduce the vulnerability
of personnel and assets to increasing worldwide terrorist threats. Products
developed will include Unified Facilities Criteria (UFC) and Unified Facilities
Guide Specifications (UFGS). The program also provides training and
information management tools to assist facility engineers in the application of
the criteria and in keeping abreast of changing requirements, tools, and
products. All DOD agencies, Department of Homeland Security personnel, and
government contractors will use the products and services developed.
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Section II: Force Structure Summary
•This section should contain an explanation of the force structure supported by
funding in this line item.
•Examples:
This sub-activity group provides for the operation or support of various logistic
and technical programs. Specific organizations that are funded include the Navy
International Programs Office, the Department of Navy Chief Information
Officer organization, and the Naval Acquisition Career Center. Naval Air
Systems Headquarters, which manages and supports approximately 500 aviation
programs/projects, is funded in this sub-activity group as well as related
Program Executive Offices. The Naval Supply Systems Command funds the
Naval Operational Logistics Support Center, the Navy Exchange Service
Command, and the Fleet and Industrial Supply Centers which provide
automated logistics systems development. (4B3N)
This sub-activity group supports the Recruit Training Command located at Great
Lakes, IL. (3A2J)
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Section III: Financial Summary
The Financial Summary justifies funding from the current year through the
budget year. This section consists of three subsections:
A. Sub-Activity Group Total
• Summary of funding from Prior Year to Budget Year
B. Reconciliation Summary
• Summary of changes within the current year and between the current year
and budget year
C. Reconciliation of Increases and Decreases
• Itemize and justify the major program changes in each year.
• Justification should clearly explain programmatic changes in resource
levels including why increases are required or decreases occur.
• Justification should relate cost to force structure changes, performance
criteria, workload and manpower data, as well as identify the impact if
requested changes are not funded
• Each statement should end with a baseline amount in parenthesis for
that program. Baseline amounts for Fact-of-Life Changes should equal
the amount of the change. If a line item contains only one program, use
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the entire line item amount for the baseline.
Improving Increase/Decrease Statements
Original needing improvement:
Submarine Operations and Safety - Fast Attack Submarine Fleet Support PR 05 Issue 19047 (PMW VA System Support), PR 05 Issue 19886
(Technical Correction for VA Class), PR 07 Issue 60393 (BRAC Create
Naval Int. Weapons and Arm Res) - Increase support the Operations
and Maintenence Support, Acoustic trials, Technical Authority Support,
Environmental, ILS product Maintenance, ILS COTS VLS PSE,
Modernization, technology Upgrades.
Well written:
Increase to reach and sustain required inventory levels for submarine
propellers and refurbishment of Submarine Advanced Equipment
Repair Program items as a result of increased equipment failure rate
due to aging equipment and submarine operational tempo; increase in
USS VIRGINIA (SSN 774) Class technical and logistics support is
required to establish and bolster technical authority and technical
product changes for unique systems as SSN 774 Class submarines are
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delivered to the Fleet.
Improving Increase/Decrease Statements (continued)
Original:
POM 11 Issue 74508 (OSD Contract Services Adjustment). This issue, a
part of RMD 802, represents OSD directed adjustments to BOCs. The
Command does not have a final strategy for in-sourcing.
Well written:
The Department of the Navy (DON) continues to implement the FY 2010
plan to improve the oversight of contractor services, acquire those
services more effectively, and in-source contractor services where it is
more appropriate and efficient to do so. This reflects the change to
contractor support.
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Section IV: Performance Criteria and Evaluation Summary
• The Performance Criteria and Evaluation Summary (OP-5, Part IV)
must provide supporting detail sufficient to demonstrate how the
budgeted resources for each sub-activity group contribute to the
Department’s mission Performance Criteria should be divided by
programs when possible.
• Example showing dollars and units (4B6N):
• Changes in the Performance Criteria, whether by dollar or by unit cost,
should reflect changes in the OP-32 as well as changes shown in the
Reconciliation of Increases and Decreases.
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Section V: Personnel Summary
• Personnel Summary provides the Military End Strength (E/S) and
Civilian Full Time Equivalent (FTE) information for the line item. The
following items are included:
- Active Military End Strength (E/S)
- Reserve Drill Strength (E/S)
- Reservist on Full Time Active Duty (E/S)
- Civilian End Strength
- Direct Hire (US/Foreign National)
- Indirect Hire
- Active Military Average Strength (A/S)
- Reserve Drill Strength (A/S)
- Reservist on Full Time Active Duty (A/S)
- Civilian FTE
- Direct Hire (US/Foreign National)
- Indirect Hire
- Annual Civilian Salary Cost
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Section VI: OP-32 Line Items as Applicable
• The OP-32 summarizes BOCS data. PBIS Controls and BOCS totals
should match.
• As a reminder, program growth in the OP-32 should tie directly to the
Performance Criteria and to the Reconciliation of Increases and
Decreases.
• In recent years FMB has undergone increased Congressional scrutiny to
justify growth in particular ICCs. BSOs should therefore understand
why they are using an ICC and be prepared to answer inquiries.
• Example (4B1N):
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Section VI: Outyear Summary
•For the OSD submission, an additional section of the OP-5 is required
•This section becomes Section VI and the OP-32 becomes Section VII
•The Outyear Summary shows data for the remainder of the FYDP
•Example (4B2N):
VI. Outyear Summary
O&M ($ in Thousands)
Officers (USN)
Enlisted (USN)
Direct Hire, U.S.
FY 2010 FY 2011 FY 2012 FY 2013
240,095 258,749 275,263 283,888
840
840
840
840
202
202
202
202
954
954
954
954
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The OP-5
Questions?
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