DoD Infrastructure Programs
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1 DoD Infrastructure Programs Patricia L. Coury Deputy Director Facilities Investment & Management Office of the Assistant Secretary of Defense (Energy, Installations and Environment)
2 2 DoD Real Property Portfolio 562,600 Facilities 284,458 buildings ($484B Plant Replacement Value) 191,309 owned; 7,519 leased; 85,630 other 2.18B sq ft 176,931 Structures 101,211 Linear Structures 24.7M Acres 98% in U.S. 523 Installations 4,855 DoD Sites (86% in U.S.) (Data as of Sep 2014)
3 Base Realignment & Closure (BRAC) DoD has requested BRAC authority the past three years 2004 DoD capacity assessment indicated 24% aggregate excess 2015 Budget testimony: Air Force - 30% excess capacity Army - 18% excess capacity BRAC 2005 reduced just 3.4% of DoD s infrastructure as measured in Plant Replacement Value (PRV) BRAC 2005 focused primarily on transformation rather than efficiency Transformation recommendations cost $29B for $1B annual savings Efficiency recommendations cost $6B for $3B annual savings Subsequent force structure reductions point to additional excess capacity Large private companies would not retain excess capacity DoD Options Limited 3
4 European Infrastructure Consolidation (EIC) Holistic, joint review completed Jan 2015 ROI Focused on reducing our European footprint while continuing to support operational requirements and strategic commitments Used a BRAC-like process to review capacity, requirements, military value, cost, and diplomatic dynamics 26 recommendations Expected $800M cost to construct facilities at receiving sites Anticipated $500M annual, recurring savings once all actions implemented Majority of $800M in construction supports: RAF Mildenhall - restationing of 3200 U.S. personnel elsewhere Offset slightly by 1,200 personnel that will support F-35s being stationed at nearby RAF Lakenheath Consolidation of Joint Intelligence Analysis Facilities at RAF Croughton 4
5 European Reassurance Initiative (ERI) President s initiative to: Reassure allies of U.S. commitment to their security and territorial integrity as members of the NATO alliance Provide near-term flexibility and responsiveness to evolving ally and partner concerns in Europe Help increase the capability and readiness of U.S. allies and partners Pursuing selective improvements subject to final agreement with Host Nations FY 2015 enacted - $985M; FY 2016 request - $789.3M Funds multiple thrusts: * Increased Presence * Enhanced Prepositioning * Improved Infrastructure * Building Partner Capacity * Additional Bilateral & * ERI Transfer Fund Multilateral Exercises 5
6 Asia-Pacific Rebalance DoD continues to pursue investments critical to implement the Asia-Pacific Rebalance, to include: Selective hardening, resilience & dispersal of U.S. operating bases FY 2015 NDAA lifted restrictions on the relocation of Marines from Okinawa to Guam DoD can begin executing the Guam Master Plan in earnest Plan to execute >$500M of combined U.S.-Japanese funds in FY 2016 Four of the largest MilCon efforts since Cold War are underway in Asia: Realignment of U.S. Forces on Korean peninsula Realignment U.S. Marines from Okinawa to Guam Relocation efforts on Okinawa Expansion of airfield and associated facilities at Marine Corps Air Station Iwakuni 6
7 Facilities Sustainment Sep 2013 Facility Condition Assessment Policy Standardized DoD-wide facility inspection process using DoD Sustainment Management System (SMS) software suite (e.g., BUILDER) Requires completed inspections using SMS by Sep 2017 Requires qualified technical personnel Supports FCI data necessary to inform programming & budgeting decisions Apr 2014 Facility Sustainment & Recapitalization Policy Reiterates DoD goal to budget sustainment at > 90% of modeled requirement Established DoD Component inventory-wide average FCI program/budget goals with minimum average FCI > 80% Established DoD Component annual business plans for assets with FCIs < 60% 7
8 Alternative Financing Public-Private Partnerships examples: Military Housing Privatization Initiative (10 USC ) Enhanced Use Leases (10 USC 2667) Energy Savings Performance Contracts (ESPCs) (42 USC 8287 & 10 USC 2913) Utility Energy Service Contracts (UESCs) (10 USC 2913) Public-Public Partnerships Section 331, NDAA 2013 (10 USC 2679) Installation Support Services using Intergovernmental Support Agreements DoD Fully Supports the Use of Third Party Financing 8
9 Questions? For more information: 9
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