Budget Highlights Book - DON FM&C Website - U.S. Navy

February 2010Revitalizing the Force AshoreNAVY WORKING CAPITAL FUND (NWCF)The NWCF is a revolving fund which finances Department of the Navy activitiesthat provide products and services on a reimbursable basis, primarily for othergovernment entities. The revolving fund structure creates a customer‐providerrelationship between operating units and support organizations. After customersreceive annual appropriations, funded orders are sent to the NWCF providers whofurnish the services or products, pay for incurred expenses, and bill the customers,who in turn authorize payment. Unlike profit‐oriented commercial businesses,working capital fund activities strive to break even in prices charged to customers.NWCF activity groups are essential enablers and support elements that are critical tothe success of the DON and many DoD organizations across a number of DoDcapability portfolio areas. They provide a wide range of goods and services tosupport the Department’s ongoing operations to maintain overall military readinessand in support of OCO. There are five NWCF activity groups: SupplyManagement, Depot Maintenance, Research and Development, Base Support, andTransportation. The total annual cost of goods and services to be delivered byNWCF activity groups to their customers in FY 2011 is approximately $27 billion.No major changes to the business base are expected in FY 2011 over FY 2010 levels.Supply ManagementSupply Management performs inventory management functions that result in thesale of aviation and shipboard components, ship’s store stock, and consumables to awide variety of customers. A key component of the logistics capability area, SupplyManagement is the central element to assuring that DON and DoD operating forcesand their equipment are supported with the necessary availability of supplies, spareparts, and components to conduct OCOengagements, various types of training, andany potential contingencies, whether of anirregular nature or of a more conventionalscope. Additionally, contracting, resale,transportation, food service, and otherquality of life programs are also supported.Costs related to supplying material tocustomers are recouped through stabilizedrate recovery elements such as prior yeargains and losses, inventory maintenance, repair costs including attrition, and localFY 2011 Department of the Navy Budget 6‐11