Navy Working Capital Fund - DON FM&C Website

Business Area Capital Investment Justification($ in Millions)A. Fiscal Year (FY) 2012 Budget EstimatesB. Component/Business Area/Date C. Line# and Description D. Site IdentificationDepartment of the Navy, Research and Development, Naval SurfaceWarfare Centers, February 2011Non ADP1 - Non ADP -ReplacementFY 2010 FY 2011 FY 2012Unit TotalTotalQtyCostCost Qty Unit CostCost Qty Unit CostReplacement 16 7.896 11 8.673 9 5.909Total 16 7.896 11 8.673 9 5.909TotalCostReplacement Equipment:Non-ADP equipment investments support the replacement of mission essential research, development, test and evaluation equipment that is unsafe, beyond economicalrepair, technically obsolete, or otherwise unusable. Replacement equipment supports Warfare Center Core Equities including ship/ship systems, shipweapon systems, ship combat systems, ordnance, and littoral combat systems. Equipment supporting this mission includes explosive detection equipment, ship hull testequipment, and test and evaluation equipment for various surface ship systems. Based on useful life guidance provided by OMB circular A-94, allinvestments replace equipment beyond the original intended life cycle.Benefit:Replacement of research and development equipment that is unsafe, beyond economic repair, or unusable. Mission essential research and development equipment mustoperate at optimal efficiency to achieve proper test and evaluation results. Equipment is replaced with modern reliable equipment to support the researchand development mission of the Naval Warfare Centers.Impact of not Funding:The Naval Surface Warfare Center activities are responsible for new product testing as well as system In-Service-Engineering. The ability of the SurfaceWarfare Centers to provide mission essential research and development for new systems mission essential investments for replacement of equipment will not be maderesulting in work that produces obsolete results to the scientific community, economically inefficient operation, and possible risk to human life.Economic Analysis: There are 6 projects with an individual cost greater than or equal to $1000K. An economic analysis was performed on all individual projects greaterthan the DOD capitalization threshold. The useful life for these projects is 10 years and the average payback period is 2.5 - 5.1 years.Exhibit Fund-9B, Capital Investment Justification