Navy Working Capital Fund - DON FM&C Website

DEPARTMENT OF THE NAVYNAVY WORKING CAPITAL FUNDRESEARCH AND DEVELOPMENTSPACE AND NAVAL WARFARE SYSTEMS CENTERSFISCAL YEAR (FY) 2012 BUDGET ESTIMATESFEBRUARY 2011and Closure (BRAC) actions.Significant Changes since FY 2011 President's Budget:There are no significant changes in the activity group or composition since the FY 2011President’s Budget.Navy Enterprise Resource Planning (Navy ERP):The SSCs were at the forefront of implementing Navy ERP, coming on-line 1 October 2009. Asuccessful transition, the SSCs were able to meet all external financial reporting requirementsat FY 2010 year end. The transition involved a full scale effort to• convert existing data to the Navy ERP construct,• modify processes to ensure compliance with Navy ERP business rules, and• train more than 7,000 potential usersNot without its challenges, the transition yielded a full suite of tools through which the SSCscan perform their financial and acquisition functions. As a result of implementing Navy ERP,the SSCs retired six legacy systems.Productivity Initiatives and Other Efficiencies:The SSCs’ FY 2012 budget estimates reflect the impact of a number of efficiency efforts,overhead cuts, and other cost reductions to include: limiting facilities sustainment costs toeighty percent of requirements, curtailing cell phone/personal digital assistant costs, partneringwith a local utility provider to improve energy efficiency, reducing the number of contractguards via security gate automation, garnering savings from capital investmentimprovements, and enabling direct efficiencies whereby customers will receive direct workwith fewer direct labor hours, and thus at reduced cost. The impact of these efficiencies / costreductions on current budget estimates is a reduction of $5.9 million in FY 2011 and FY 2012and an additional $31.3 million in FY 2012, for cumulative savings of $43.1 million that werereapplied to the Department’s force structure and modernization requirements.Base Realignment and Closure (BRAC):This submission incorporates the impact of the Base Realignment and Closure (BRAC) Vrecommendation to consolidate Maritime Command, Control, Communications, Computers,Intelligence, Surveillance and Reconnaissance (C4ISR) and create multifunctional andmultidisciplinary Centers of Excellence. There are no significant changes in this BRAC actionas depicted in the FY 2011 President’s Budget.