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 2011Direct Labor HoursThe SSC’s current direct labor hour estimates are above projections in the FY 2011 President’sBudget to support increases across multiple customer programs, to include: Intelligence,Surveillance, and Reconnaissance; logistics/Fleet support, Other Procurement Navy programssuch as: Information Assurance Afloat installs, Global Command and Control Systems, NavalTactical Command Support System, Distributed Common Ground System Navy (DCGS-N),Integrated Shipboard Network Systems, Common Submarine Radio Room; and Research,Development, Test, and Evaluation, Navy programs such as Joint Tactical Radio Systems andDCGS-N. The SSCs also support non-Navy customers such as the Federal Bureau ofInvestigation and the Department of Veterans Affairs in the areas of information technologyand information assurance.Approximately two-thirds of this increase results from taking previously contracted work inhouse.Reductions in workload directly supporting operations in Iraq and Afghanistan arepredominantly contractual, and have only minor impact on organic direct labor.Cash Collections, Disbursements, and Net Outlays:Collections/Disbursements/Outlays($Millions) FY 2010 FY 2011 FY 2012Collections $2,204.6 $2,618.5 $2,533.2Disbursements $2,445.8 $2,675.4 $2,517.8Net Outlays $241.2 $56.9 -$15.4Current net outlay projections reflect changes in workload, updated operating estimates,completion of the initial Navy Enterprise Resource Planning (ERP) deployment, and the BRACrealignment of C4ISR research and development functions.Performance Indicators:The Centers outputs are scientific and engineering designs, developments, tests, evaluations,analyses, installations, and fleet support for systems in the SSC's mission areas. The measurefor these outputs is the direct labor hour worked for a customer. Customers are charged apredetermined stabilized billing rate per direct employee hour worked. The rate includes thesalary and benefits costs of the performing employee (direct labor costs) and a share of theoverhead costs of the SSC’s, both general and administrative support and the uniqueproduction overhead costs of the performing employee's cost center. Non-labor, non-overheadcosts, such as customer required material and equipment purchases, travel expenses,