Navy Working Capital Fund - DON FM&C Website

DEPARTMENT OF THE NAVYNAVY WORKING CAPITAL FUNDTRANSPORTATION‐MILITARY SEALIFT COMMANDNARRATIVEFISCAL YEAR (FY) 2012 BUDGET ESTIMATESFEBRUARY 2010Unit Cost FY 2010 FY 2011 FY 2012NFAF 96,824 104,622 108,008SMS 23,701 26,290 50,757APF‐N 66,821 71,829 72,632MSC operates under three distinct unit cost goals ‐ one for each of the programs. All programs havecost/per day as the unit cost basis (costs include only per diem expenses in the annual operatingbudget (AOB) as per OSD guidelines.) Ship mix (e.g. class of ships and operating status) impacts unitcost levels. Changes in all years are primarily a function of approved escalation, fuel, CIVMARsalaries, ship mix, Capital Hire, and M&R.Stabilized / Composite Rates FY 2010 FY 2011 FY 2012NFAF 3.0% 7.5% 3.1%SMS 4.0% 6.0% N/AAPF‐N 11.4% 8.6% 17.2%FY 2010 and FY 2011 rates reflect the President’s budget approved program. Rates for FY 2012 reflectrecoupment of AOR.SMS: As the DoD sealift manager, commencing in FY 2012 MSC will provide tug services to CNIC ona reimbursable basis. The one‐time 91.1% rate increase has negligible impact on customer TOA.Staffing:Civilian/Military ES & Workyears FY 2010 FY 2011 FY 2012Civilian End Strength 6,335 6,465 6,390Civilian Workyears (Straightime) 8,166 8,083 7,815Military End Strength 386 413 324Military Workyears 359 405 319Civilian Personnel: Changes relate mainly to new ships coming on line ( e.g., T‐AKE‐12), offset bydeactivations (e.g., SHASTA) and manning changes. End strength numbers vary due primarily to adecreasing lapse rate. In prior years lapse rate was higher as MSC went through its Transformationinitiative. Total overall requirements have increased to some degree due to Joint High Speed Vessel(JHSV), Conservation Program, Load Management, and various mandates such as INFOCON3,SECNAV/OPM Diversity Initiatives.Narrative