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 2011Financial Profile:Revenue/Expense/Operating Results($Millions) FY 2010 FY 2011 FY 2012Revenue $2,469.5 $2,611.2 $2,528.2Cost of Goods and Services $2,458.5 $2,645.7 $2,540.8Operating Results $11.0 -$34.5 -$12.6Other Changes Affecting AOR $0.1 -$6.1 -$4.7Accumulated Operating Results (AOR) $58.0 $17.4 $0.0In order to ensure achievement of zero AOR in FY 2012, the correct computation of rates, andthe proper resourcing of customer accounts, NWCF budget and manpower estimates havebeen updated from the FY 2011 President’s Budget to reflect all known pricing andprogram/workload assumptions.Revenue and Cost of Goods and ServicesChanges from year to year are primarily the result of updated new orders estimates, pricingadjustments, and productivity initiatives.Operating ResultsThe FY 2011 and FY 2012 operating results include rate surcharges for Capital InvestmentProgram (CIP) increases that are higher than depreciation.Workload:Reimbursable Orders ($Millions) FY 2010 FY 2011 FY 2012Current Estimate $2,450.9 $2,582.7 $2,508.7Reimbursable OrdersThe decline in reimbursable orders between FY 2011 and FY 2012 reflects the impact of variousoverhead reductions and efficiency efforts as well as expected reductions in workload directlyrelated to operations in Iraq and Afghanistan. Regardless of these reductions, the SSCcustomer base is expected to remain strong.Direct Labor Hours (000) FY 2010 FY 2011 FY 2012Current Estimate 8,602 8,883 8,906