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 2011Capital Investment Program (CIP):CIP Authority ($Millions) FY 2010 FY 2011 FY 2012Equipment, Non-ADP/Telecommunications $3.0 $2.0 $0.8Equipment, ADPE/Telecommunications $3.1 $2.7 $1.3Software Development $1.4 $0.0 $0.0Minor Construction $4.3 $11.9 $11.5Total $11.7 $16.5 $13.5The SSC’s modest investment in capital assets will acquire affordable and technically efficientcapabilities to support customer requirements. Minor construction includes projects meetingthe criteria of the Defense Laboratory Revitalization Program. The projects will replace agingtemporary buildings and upgrade and expand lab capability to accommodate workload growthand increase efficiency.Carryover Compliance:As evidenced in the table below, the SSCs exceeded their carryover ceiling in FY 2010, but areexpected to execute within the assigned ceilings in FY 2011 and FY 2012. Over-execution of theFY 2010 carryover ceiling is an anomaly, driven in large part by the learning curve and systemschallenges associated with implementation of Navy ERP. Although the SSCs data conversionwas completed in the first quarter FY 2010, it took several more months to fully identify andcorrect data corruption associated with the new release. This situation, combined with thelearning curve and automation issues commonly found with any system transition of this size,lead to a slow start toward obligating and expending customer orders and ultimatelycontributed to over-execution of the carryover ceiling in FY 2010.The SSCs future carryover performance will remain below ceiling as has been the case formany years prior to FY 2010. The SSCs’ transition to Navy ERP has been successfullycompleted and all of the necessary tools are in place to preclude over-execution in future years.The SSCs are leveraging Continuous Process Improvement techniques and Rapid ImprovementEvents to realize efficiencies and improvements in planning and executing carryover.Combined with Integrated Process Teams, the mechanisms are now in place to ensure that theSSCs will once-again be compliant with carryover policy.