Navy Working Capital Fund - DON FM&C Website

DEPARTMENT OF THE NAVYNAVY WORKING CAPITAL FUNDRESEARCH AND DEVELOPMENTNAVAL AIR WARFARE CENTERFISCAL YEAR (FY) 2012 BUDGET ESTIMATESFEBRUARY 2011Mission Statement / OverviewThe Naval Air Warfare Center (NAWC) budget submission includes the AircraftDivision (AD) and the Weapons Division (WD). The NAWCAD mission is to remain theNavy’s principal RDT&E, engineering and Fleet support activity for naval aircraftengines, avionics, aircraft support systems and ship/shore/air operations. The scope ofthe Aircraft Division mission includes the acquisition and in-service support of mannedand unmanned air vehicles (UAVs), and training simulation as well as air operationsashore and afloat. The NAWCWD mission is to be the Navy’s full spectrum research,development, test, evaluation, and in-service engineering center for weapons systemsassociated with air warfare (except antisubmarine warfare systems), missiles and missilesubsystems, aircraft weapons integration, and assigned airborne electronic warfaresystems, and to maintain and operate the air, land, and sea Naval Western Test Rangecomplex. NAWC receives Major Range Test Facility Base funding (RDT&E,Nappropriation) to maintain and support designated range facilities.Financial Highlights/Assumptions• The Budget reflects workload changes as indicated from NAWC customers. Theincrease of workload over the FY 2011 President’s Budget required increases todirect workforce, direct costs, and revenue.• Cash management continues to be a high priority within NAWC. NAWC hasestablished realistic and sustainable treasury cash balances.• Carryover estimates are within the allowable ceilings. Management of carryovercontinues to be a high priority of the NAWC.Activity Group Composition:The NAWC is comprised of two business units, the Aircraft Division (AD), with theprimary location at Patuxent River, MD, and the Weapons Division (WD), with theprimary location at China Lake, CA.Significant Changes Since the FY 2011 President’s Budget:There are no significant changes within the activity group composition since the FY 2011President’s Budget.Efficiencies and Cost Reductions:NAWC’s FY 2012 budget estimates reflect the impact of a number of efficiency efforts,overhead cuts, and other cost reductions, such as reduction of overhead by $23M in FY2012, which will result in reduced customer rates. Other overhead savings initiativesinclude reduction of Facility Sustainment expenses by $1.3M and $1.8M in FY 2011 and