Navy Working Capital Fund - DON FM&C Website

DEPARTMENT OF THE NAVYNAVY WORKING CAPITAL FUNDBASE SUPPORT - NAVAL FACILITIES ENGINEERING SERVICE CENTER (NFESC)FISCAL YEAR (FY) 2012 BUDGET ESTIMATESFEBRUARY 2011Revenue and Expense:Revenue and expenses are expected to remain fairly constant through the budget period,consistent with customer requirements.Operating Results:NFESC’s FY 2010 and FY 2011 operating results have only changed slightly from levels approvedin the FY 2011 President’s Budget submission.Workload:Reimbursable Orders ($Millions) FY 2010 FY 2011 FY 2012Current Estimate $87.0 $105.2 $102.5Reimbursable orders are based on projected customer requirements.Direct Labor Hours (000) FY 2010 FY 2011 FY 2012Current Estimate 578 538 535Direct labor hours reflect the Center’s efforts to maintain the correct level of organic expertise tomeet recurring customer demand.Collections/Disbursements/OutlaysOutlays ($Millions) FY 2010 FY 2011 FY 2012Collections $89.0 $114.1 $115.8Disbursements $100.1 $113.5 $113.5Net Outlays $11.0 -$0.7 -$2.4Net Outlays are projected to remain relatively stable over the course of this budget.Performance Indicators:The primary performance indicator is unit cost. Unit cost measures total direct labor andoverhead costs per direct labor hour. Changes in unit cost are primarily due to price/escalationfactors and adjustments in customer requirements.Unit Cost FY 2010 FY 2011 FY 2012Total Stabilized Cost ($M) $56.5 $49.3 $52.6Workload (DLHs) (000) 577.709 537.826 534.699Unit Cost (per DLH) $97.87 $91.67 $98.31Exhibit Narrative