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 -ProductivityFY 2010 FY 2011 FY 2012Unit TotalTotalQtyCostCost Qty Unit CostCost Qty Unit CostProductivity 20 9.383 20 10.650 13 9.069Total 20 9.383 20 10.650 13 9.069TotalCostProductivity Equipment:These investments increase the productivity of surface warfare research and development activities by procuring non-ADP equipment that reduces overall operatingcosts. Operating costs are reduced by reducing labor, reducing energy consumption, eliminating inefficiencies or duplicate processes, developing testplatforms that more closely emulate conditions at sea, or providing advancements that increase the technological capability.Benefit:Productivity investments reduce costs by establishing remote operation, running automatically, and reducing ship board testing. These investments increase theoperational efficiency of the research and development mission by procuring equipment that is equipment that results in a reduction of the operating costs.Productivity investments also lower operating costs through efficiency achieved by reducing energy consumption, reducing operational test time, reducing floorspace required, and replacing inefficient test processes with a single specialized asset.Impact:These investments support the Sea Power 21 initiatives for surface ships and their systems. Investments provide for test results that are accurate and emulate shipboardenvironments eliminating the need to schedule ship board testing and speeding the retest of ships systems.Economic Analysis:There are 8 projects equal to or greater than $1000K in budgeted cost. An economic analysis was performed on all individual projects greater than the DODcapitalization threshold. All non-ADPE productivity projects have an estimated useful life of 10 years and an average payback period of 3.4 - 4.5 years.Exhibit Fund-9B, Capital Investment Justification