Navy Working Capital Fund - DON FM&C Website

CAPITAL INVESTMENT JUSTIFICATION($ in Thousands)Department of the Navy / Base Support / FacilitiesEngineering CommandsFISCAL YEAR (FY) 2012 BUDGET ESTIMATESFEBRUARY 2011#004 - Minor Construction ($100K - $750K) Facilities Engineering CommandsFY 2010 FY 2011FY 2012Minor ConstructionQuantUnitCostTotalCost QuantUnitCost Total Cost Quant Unit CostTotalCostReplacement Equipment 7 413 2,890 7 572 4,006 1 200 200Productivity Equipment 6 428 2,567 7 374 2,616 10 581 5,808New Mission Capability 6 563 3,379 9 228 2,050 9 419 3,769Environmental Capability 0 0 0 0 0 2 299 598Total 19 8,836 23 8,672 22 10,375Justification:Minor Construction ($100 Thousand - $750 Thousand) - FY 10/11/12 Requirements:FEC minor construction projects represent the ful range of public works facilities requirements for transportation, utilities, storage, and maintenance. The proposed projectsare limited to and strickly controlled by the Capital Investment Program (CIP) thresholds. None of the projects in this budget exceed current MILCON thresholds. Budgetedprojects are for constuction, expansion, or improvement of a complete and useable building, structure, or other real property.Each FEC has conducted a comprehensive business review of its facilities needs and determined an optimal economic approach to cost containment, while ensuring thathealth and safety requirements are met and minimizing service interruptions. The proposed project priorities are determined by economic analyses which are based on costeffecitve payback solutions which produce the fastest return on investment. Generally, FEC projects have a payback on the initial investment of 5 years or less. Completionof health/safety and environmental compliance projects will provide for cost avoidance resulting from elimination of potential hazmat situations.The proposed budget is essential to providing planned cost control and service reliability of the FEC plant account. If proposed projects are not approved, substantialopportunity to provide safe, environmentally compliant, and cost effective services at the least cost to the Navy will be lost.Exhibit Fund-9B Capital Purchase Justification