Navy Working Capital Fund - DON FM&C Website

DEPARTMENT OF THE NAVYNAVY WORKING CAPITAL FUNDRESEARCH AND DEVELOPMENTNAVAL UNDERSEA WARFARE CENTERFISCAL YEAR (FY) 2012 BUDGET ESTIMATEFEBRUARY 2011operating mechanism since NSLC receives most of its work through reimbursable orders from avariety of customers with whom NSLC has continuing buyer-seller relationships.Efficiencies and Cost ReductionsThis budget is NUWC’s financial operating plan for FY 2010 through 2012. NUWCs goal is thesustainment and development of critical core capabilities that support legacy and emergingsystems in the Fleet. This budget includes overhead reductions of $10M in FY 2012. NUWCplans to reduce overhead by consolidating overhead support functions and minimizinginfrastructure expenses to include: reducing amount of contractor support of corporateoperations, reducing energy consumption, reducing travel expenses, and reducing mandatorytraining requirements.Financial Profile:Revenue/Expense/NOR/AOR/($M) FY 2010 FY 2011 FY 2012Revenue $1,138.7 $1,180.7 $1,243.9Expense $1,143.2 $1,179.1 $1,259.4Operating Results ($4.5) $1.6 ($15.5)Other Changes Affecting AOR $1.4Accumulated Operating Results (AOR) $13.8 $15.5 $0.0In order to ensure achievement of zero AOR in FY 2012, the correct computation of rates, andthe proper resourcing of customer accounts, NWCF budget and manpower estimates have beenupdated from the FY 2011 President’s Budget to reflect all known pricing andprogram/workload assumptions.Revenue/Expense: Revenue and cost estimates have increased from the FY 2011 President’sBudget level. Estimates for FYs 2010-2012 are in line with our anticipated customer workload,and results in NUWC achieving a zero AOR by FY 12.Operating Results: NUWC completed FY 2010 with a NOR of -$4.5M. This is $6.1M better thanthe President’s budgeted NOR level of -$10.5M. In FY 2011, NUWC is budgeting for a NORgain of $1.6M, which is $12.1M higher than the President’s budget level. In FY 2012 NUWC willhave a $15.5M loss to achieve a zero AOR balance.