Navy Working Capital Fund - DON FM&C Website

DEPARTMENT OF THE NAVYNAVY WORKING CAPITAL FUNDSUPPLY MANAGEMENT ‐ NAVYFY 2012 BUDGET ESTIMATESFEBRUARY 2011The Obligation increase from FY 2010 to FY 2012 is $876.4M. Of that figure, $384.0M isattributable to Defense Business Management System (DBMS) deobligations in FY 2010,$244.5M is attributable to guidance escalation for FY 2011 and FY 2012, leaving $247.9M ofprogram growth.Wholesale: Major drivers (over and above escalation)F/A‐18 A‐D, $75.0M: Aging aircraft (beyond original planned life limits) driving higherdemand.Engines, $74.3M: Procurement driven by increased attrition due to tired iron on threeitems: F402 Hot Nozzle, Bare Duct, and T64 Exhaust Fan. Repair driven by increasedrequirements for F402 and T64, and by increase in Engine population used on the F/A‐18E‐G from 662 to 814.H‐60, $68.5M: Increase in ‘R’ and ‘S’ model population from 200 to 276, drivingoutfitting requirements and reduced life limits due to increased aircraft weight.H‐53, $67.7M: Operations Tempo in Afghanistan and Iraq resulted in increasedcorrosion and wear due to sand infiltration from desert operations, which is resulting inboth increased attrition and repair.Retail: Obligation increases attributable to CIT and inflation.Operating: FY 2010 obligations were impacted by prior year de‐obligations associated withDBMS cleanup/ERP implementation. FY 2011 and FY 2012 reflect changes in obligationsattributable to functional transfers and inflation.Cash Management:As a primary consideration of this budget, NAVSUP has carefully balanced concerns of NWCFsolvency, impacts of potential changes to customer rates, and customer support effectiveness.Collections/Disbursement/Outlays ($M) FY 2010 FY 2011 FY 2012Collections 6,071.1 6,295.0 6,418.5Disbursements 6,087.5 6,310.8 6,496.7Transfers (CIT Reimbursement) 48.0 60.0 78.0Outlays (Incorporates CIT) ‐31.6 ‐44.2 0.2