ECONOMIC IMPACT ANALYSIS
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1 ECONOMIC IMPACT ANALYSIS 30 September 2016 Offutt Air Force Base, Nebraska Home of the Fightin Fifty-Fifth
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5 Table of Contents History of Offutt Air Force Base 1-2 Mission Descriptions of Large Associate Organizations 3-5 Aircraft Assigned 6 Description of Real Estate Assets 7-8 Other Assets, Inventories, Retail Sales, and Expenditure 9 Personnel Assigned 10 Military and Civilian Payroll 11 Zip Code Distribution of Military Active Duty Personnel and Payroll 12 Summary of Construction, Service Contracts, and Other Federal Expenditures 13 Computation of Secondary Jobs Created and Total Economic Impact 14 Contributions, Charity Fund Drives, and Special Community Events 15 Acknowledgments 16 Attachment 1: Attachment 2: Attachment 3: Economic Impact FY16 Small Business Contract Award by States Large Business Contract Award by States ii
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7 History of Offutt Air Force Base Offutt Air Force Base s (AFB) great heritage began with the construction of Fort Crook between 1894 and 1896, some 10 miles south of Omaha and two miles west of the Missouri River. The new fort s namesake was Major General George Crook, a renowned Civil War hero and frontier soldier. Many of the original structures built on the post are still in use today. On 20 June 1896, the 22nd Infantry assumed command of Fort Crook. Other U.S. Army Infantry units shared command of the fort as each rotated tours in Cuba, the Philippines, and the Texas-Mexican border. On 10 September 1918, the 61st Balloon Company became the first air unit to command the post. In the spring of 1921, a field was built suitable for frequent takeoffs, landings, and refueling of military and government aircraft on crosscounty flights. In 1924, this field was dedicated in memory of Omaha s first air casualty in World War I, Lt. Jarvis J. Offutt. In late 1940, the Army Air Corps chose Offutt Field as the site for a new bomber plant. The plant s construction included two mile-long concrete runways, six large hangars and a huge 1.2 million square foot aircraft assembly building. The Glenn L. Martin Nebraska Company plant reached full-scale production in June A total of 531 B-29 Superfortresses and 1,585 B-26 Marauders were built by the end of World War II. These aircraft included the Enola Gay and Bockscar, the B-29s that dropped the atomic bombs at Hiroshima and Nagasaki, Japan. Production ended 18 September
8 History of Offutt Air Force Base In 1946, the post was transferred from the Army to the Army Air Forces. Offutt Field, including the Martin Bomber Plant, was transferred to the Air Materiel Command for an industrial reserve program. On 12 June 1946, the 431st Army Air Forces Base Unit was organized and the entire installation was renamed Offutt Field. On 13 January 1948, Offutt Field was re-designated Offutt AFB and officially transferred to the new Department of the Air Force. Ten months later, on 9 November 1948, Offutt AFB gained international prominence when the Strategic Air Command (SAC) Headquarters was established in the Martin-Nebraska complex. Offutt AFB underwent startling changes in the Cold War years following World War II. Operations included the basing of alert tankers in the late 1950s and 1960s, support for intercontinental ballistic missile (ICBM) sites in Nebraska and Iowa in the 1960s, and worldwide reconnaissance from the mid-1960s to the present. Offutt AFB s population and facilities grew dramatically to keep pace with the increased operational demands. Headquarters SAC moved from the Martin- Nebraska complex to Building 500 in late 1956 and new base facilities in the 1960s and 1970s included a commissary, hospital, main exchange, and library. Several new dormitories and over 2,000 family housing units were built in the late 1950s and 1960s. Additional housing and dormitories were added in to replace some of the earlier outdated buildings. With the end of the Cold War in the early 1990s, the military underwent reorganization. SAC was disestablished on 1 June 1992 and the United States Strategic Command (USSTRATCOM), a unified command, was activated the same day. With this historic change, operational control of Offutt AFB became the responsibility of Air Combat Command (ACC), another one of the Air Force s new commands. The current USSTRATCOM resulted from the 1 October 2002 integration of two previous unified commands: United States Space Command and the former USSTRATCOM. The Army outpost, once hard-pressed to support a few hundred soldiers, continues to play a vital role in national defense in the 21st century with the resources and facilities to accommodate a combined military and civilian work force of some 10,000 while supporting over 20,000 dependents
9 Mission Descriptions of Large Associate Organizations 55th Wing Host Unit The 55th Wing is the largest wing in Air Combat Command. Operating on four continents, the Wing supports six diverse flying missions. The "Fightin' Fifty-Fifth" provides global reconnaissance, real-time intelligence gathering, command and control, information warfare, electronic attack, treaty verification and combat support to national leaders and agencies as well as Air Force and joint warfighters. Additionally, the 55th Wing provides Offutt Air Force Base infrastructure supporting 52 associate units including Headquarters U.S. Strategic Command, 557th Weather Wing, 595th Command and Control Group, and the Defense POW/MIA Accounting Agency CONUS Annex. The wing's support functions include: base mobility; manpower; logistics; aircraft and vehicle maintenance; civil engineering; contracting; personnel administration and education; law enforcement; resource security; morale, welfare and recreation; medical and dental care; and local as well as global command, control, and communication capabilities. The wing performs staff requirements to include: administration; legal services; comptroller; public affairs; history; inspection; plans and programs; ground and flight safety; protocol; inspector general; chaplain services; sexual assault prevention and response; and equal opportunity functions for both military and civilian members. In closing, the hardworking men and women of the 55th Wing can proudly lay claim to the fact that, truly "the sun never sets on the Fightin' Fifty- Fifth." United States Strategic Command U.S. Strategic Command, one of nine unified combatant commands of the Department of Defense, is responsible for detecting, deterring and preventing strategic attacks against the U.S., its allies and partners, and is prepared to deliver warfighting capability to defend the nation. USSTRATCOM responds to today s complex, dynamic and uncertain global security environment with an integrated organization. The command executes a diverse set of global responsibilities in coordination with other combatant commands and appropriate U.S. government agencies that directly contribute to national security. Including components, the command employs more than 5,300 people, representing all four military services, Department of Defense civilians and contractors, who oversee the command s global operations 24 hours a day, 7 days a week. A functional combatant command with trans-regional areas of responsibility, USSTRATCOM has evolved from a single focus on nuclear war-planning to an integrated portfolio of dynamic strategic capabilities to successfully redefine global deterrence and confront the full range of national security challenges with timely, effective and precision effects. As of December 2016, USSTRATCOM is charged with nine mission areas as assigned by the Unified Command Plan: strategic deterrence; space operations; cyberspace operations; joint electronic warfare; integrated missile defense; intelligence, surveillance and reconnaissance; global strike; analysis and targeting; and combating weapons of mass destruction. These mission areas are critical to deterring strategic attack against the United States and providing assurance to our allies; to providing the nation with a safe, secure, effective and ready nuclear deterrent force; to delivering comprehensive warfighting solutions; to addressing challenges in space and cyberspace with capability, capacity and resilience; to building, sustaining and supporting partnerships; and to anticipating change and confronting uncertainty with agility and innovation. While the USSTRATCOM headquarters focuses primarily on command and control, strategic-level integration and advocacy for these missions, day-to-day planning and execution for the primary mission areas are performed by service-specific component commands, including Air Force Global Strike Command, Barksdale AFB, La., U.S. Army Forces Strategic Command, Redstone Arsenal, Ala., Fleet Forces Command, Naval Support Activity Hampton Roads Norfolk, Va., Marine Corps Forces U.S. Strategic Command, Offutt AFB, Neb., and Air Force Space Command, Peterson AFB, Colo.; joint functional component commands; task forces; and centers that train, equip and resource the forces necessary to carry out USSTRATCOM s global missions. These organizations leverage the expertise and operational capabilities within their ranks to support all combatant commands, making maximum use of all resources against emerging threats. As of December 2016, the major USSTRATCOM components include one subunified command for cyberspace, four joint functional component commands, and two centers
10 Mission Descriptions of Large Associate Organizations 343d Recruiting Squadron The 343d Recruiting Squadron, with its headquarters located on Offutt, is the active duty recruiting squadron charged to find, engage, inspire, and recruit the brightest, most competitive and diverse men and women for service in America s Air Force. The 343 RCS covers 370,000 square miles of the upper Great Plains and Midwest regions. Its area of responsibility encompasses 7 states including Nebraska, Iowa, South Dakota, North Dakota, Minnesota, Wisconsin, and Michigan. The 343 RCS is responsible for all active duty Air Force enlisted and OTS accessions for its respective area. 20th Intelligence Squadron Assigned to Air Combat Command's Air Force 363d ISRW, located at Langley AFB in Virginia, the 20th Intelligence Squadron (20 IS) was originally activated as the 20th Photographic Mapping Squadron in In these early years, the unit worked under many different names and was stationed all over the world from Sydney, Australia, to Colorado Springs, to Yokota, Japan. They participated in the Pacific air offensive and the occupation of Japan until inactivation in The 20 IS was reactivated in 1954 as the 20th Tactical Reconnaissance Squadron. In following years, it supported low-level, high-speed reconnaissance over Cuba during the Cuban Missile Crisis, and over North Vietnam during the Vietnam War, until it was deactivated in The unit was reactivated as the 20th Air Intelligence Squadron at Offutt AFB in 1992, and re designated the 20th Intelligence Squadron in The unit provides tailored geospatial and precision targeting intelligence to combatant commanders and war fighting forces. The 20th is also home to the Air Force's target coordinate mensuration training and certification program, as well as the Air Force's collateral damage estimation training. Strategic Communications Wing One Detachment The Strategic Communications Wing One (SCW-1) Detachment at Offutt AFB accomplishes USSTRATCOM's Airborne Command Post (ABNCP) mission. Dedicated Sailors provide security, maintenance, administration, and logistic support for the Navy's E-6B "Mercury" aircraft. Take Charge and Move Out (TACAMO) Sailors have over 40 years of experience communicating with submerged ballistic missile submarines. TACAMO Sailors have over fifteen years experience with command and control of submerged ballistic missile submarines, Air Force Bombers, and land-based missile silos. With the assumption of the ABNCP mission in 1998, TACAMO Sailors are fulfilling their role in USSTRATCOM's global mission of strategic deterrence through a joint-service team of motivated, vigilant men and women using the most advanced technological strategic forces in the world. The TACAMO Detachment also has complete responsibility for the daily operation of the Campisi Alert Facility at Offutt AFB and care of the TACAMO alert crew and ABNCP Battlestaff crew
11 Mission Descriptions of Large Associate Organizations 557th Weather Wing The 557th Weather Wing embraces a proud heritage of maximizing America s military power through the exploitation of timely, accurate and relevant weather information anytime and everywhere on the globe. the 557th Weather Wing provide environmental information superiority to joint commanders to make the right decisions at the right time across the full spectrum of operations to achieve Air Force, Army, and joint battlespace success. Through the 1st and 2d Weather Groups of the 557th, we integrate leadingedge threat-based weather forecasts and warnings, as well as climatological and solar monitoring expertise, into all operational phases. Headquartered at Offutt Air Force Base, Nebraska, the 557th is comprised of nearly 1,450 personnel, 11 squadrons, five detachments and five operating locations. Eighteen of our units/offices are geographically separated and strategically placed to optimize our long-standing joint, combatant command, coalition, allied and interagency partnerships to achieve our nation s objectives. The 557th capitalizes on leading-edge science and technology for today and tomorrow. USAF Heartland of America Band The United States Air Force Heartland of America Band is a 16-member operating location of the USAF Heritage of America Band at Joint Base Langley-Eustis in Virginia. The Heartland Band is dedicated to providing innovative, professional musical support for events that enhance military morale and esprit de corps, foster public support and trust, aid recruiting initiatives, and promote our national interests at home and abroad. The band serves United States Strategic Command, the 55th Wing, the 557th Weather Wing, and other tenant units at Offutt; performs a wide variety of community outreach missions throughout Nebraska and the Omaha- Council Bluffs metropolitan area; and is world-wide deployable. Individual musicians and various groups perform more than 150 missions annually and reach thousands more through radio and television appearances
12 Aircraft Assigned 2016 Aircraft Hours Sorties Aircraft Mission Assigned FY 16 FY 16 E-4B NAOC 4 1, RC-135S Cobra Ball 3 1, RC-135U Combat Sent RC-135V/W Rivet Joint 17 10, ,456 TC-135W Rivet Joint Trainer 3 2, OC-135B Open Skies WC-135C/W Constant Phoenix EC-130H* Compass Call 15 7, ,473 Totals 48 25, ,494 * Aircraft located at Davis-Monthan AFB, Arizona 6
13 Description of Real Estate Assets 2016 Land Acres Fee Owned, From Purchases 1,499 Fee Owned, From Condemnation 1,600 Easement, Restrictive 314 Donated, From Private Sector 188 Easement, Right of Way 32 Total 3,633 Paved Surfaces Square Yards Main Runway (11,700 linear feet in length) 321,246 Airfield Pavement 837,937 Parking, Driveways, and Sidewalks 1,361,251 Roads 449,500 Total 2,969,934 Buildings Number Square Feet Aircraft and Systems Maintenance ,967 Base Supply and Warehouse ,453 Civil Engineering ,740 Administration 31 1,515,100 Commissary Facilities 1 129,886 Base Exchange Facilities 8 211,212 Morale, Welfare, and Recreation ,664 Medical Facilities 9 286,241 Total 154 4,604,263 The Offutt AFB STRATCOM Gate - 7 -
14 Description of Real Estate Assets 2016 Military Family housing was privatized and turned over to America First Communities (AFC) on 15 September During the 5-8 year Initial Development Phase (IDP), AFC had the flexibility to place families throughout the community to increase occupancy. Currently with all new homes built, renovations completed, and a portion of homes demolished, the current inventory is 1,941 out of the original 2,600 homes turned over in September The renovation and new construction is now complete; the 1,941 unit breakdown is below. Family Housing Enlisted Grade Homes Officer Grade Homes E1-E6 1,461 O1-O3 130 E7-E8 179 O4-O5 128 E9 10 O6 14 O7 and above 19 Totals 1, Number of Personnel Transient Quarters Quarters Capacity Visiting Officer and Airmen Quarters (41 rooms out of service) Temporary Lodging Facilities 16 (1 used for Housekeeping) Totals
15 Other Assets, Inventories, Retail Sales, and Expenditures 2016 Other Assets Capital Assets: Amount Totals Equipment: Land, Building, and Real Property $765,014,138 Appropriated Fund $225,657,602 Nonappropriated Fund $1,684,294 Base Exchange $35,670,839 $263,012,735 Total $1,028,026,873 Inventories Defense Working Capital Funds: (Represents Base and Medical Supply Gross Sales) Materiel Support $116,830,411 General Support $9,977,710 Medical & Dental $13,501,739 $140,309,860 Retail Sales Facilities: Base Exchange $26,408,105 Commissary $1,323,616 Nonappropriated Fund Activities $106,979 $27,838,700 Total $168,148,560 Retail Sales Base Exchange (includes food) $29,840,391 Commissary $32,876,947 Nonappropriated Fund Activities $2,192,688 Total $64,910,026 Expenditures Total Operations and Maintenance $428,803,
16 Personnel Assigned Category of Personnel Number Totals AF Military Members: Assigned to Offutt AFB 5,576 5,576 Appropriated Fund Civilians: 2016 Air Force 2,582 Defense Intelligence Agency 178 Department of Defense (Other) 74 2,834 Other Civilians Employed on Base: Nonappropriated Funds 240 Base Exchange 151 Contractor Personnel 6,665 SAC Federal Credit Union 9 7,065 Military Dependents (AF 11,497 + All Other 794) 12,291 Military Retirees Residing within 75 mile radius of Offutt AFB 26,000 Total 53,766 55th Wing Military Members Assigned Outside Nebraska and Iowa 1,073 55th Wing Civilian Members Assigned Outside Nebraska and Iowa 23 1,096 Military Members and Appropriated Fund Civilians By Major Organization Military Other Civilian Total Organization Members Members Employees Assigned 55th Wing * 4,464-1,037 5,501 55th Wing (ECG - Davis Monthan AFB, AZ) th Wing Overseas (RAF Mildenhall, Kadena AB, NSA Souda Bay) United States Strategic Command ** ,163 2, Weather Wing th Intelligence Squadron Air Force Heartland Band of America Defense Intelligence Agency Other Associate Units/Programs Department of Defense Other Totals 6, ,857 9,880 * 55th Wing Combined Total 5,537 ** Includes Air Force, Army, Navy, and Marines 10
17 Military and Civilian Payroll 2016 Category Amount Totals Military Members - All Services: $416,248,014 $416,248,014 Appropriated Fund Civilians: Air Force $253,457,136 Defense Intelligence Agency $18,173,000 Department of Defense (Other) $3,099,363 $274,729,499 Other Civilian Employees: Nonappropriated Funds $4,651,580 Base Exchange $4,260,280 SAC Federal Credit Union $324,569 $9,236,429 Total Payroll $700,213,
18 Zip Code Distribution of AF Military Active Duty Personnel and Payroll 2016 Zip Code Community Members Gross Pay* Bellevue, Southwest 1,748 $122,285, Offutt Air Force Base 1,490 $104,236,898 Various All others and Out of State 864 $60,443, , 68128, Papillion, LaVista 608 $42,534, Bellevue, Central 215 $15,040, , Omaha, Midtown 195 $13,641, , Bellevue, Northwest 92 $6,436, Plattsmouth 59 $4,127, , Omaha, West 53 $3,707, , 68118, 68124, Omaha, Northwest 36 $2,518, , , Omaha, North 32 $2,238, , 68134, Lincoln 70 $4,897, Ralston 13 $909, Glenwood 11 $769, Council Bluffs 20 $1,399, Sioux City 19 $1,329, Chalco 16 $1,119, , Millard 18 $1,259, Omaha, South 4 $279, Pacific Heights 5 $349, Gretna 8 $559,661 Totals: 5,576 $390,083,853 * Gross pay by zip code equals the number of members times the average salary of active duty personnel 12
19 Summary of Construction, Service Contracts, and Other Federal Expenditures 2016 Construction Amount Totals STRATCOM new building $147,907,795 Maintenance and Repair of Structures and Facilities $19,794,921 Architect & Engineering $4,997,008 $172,699,724 Service Contracts* Utilities $9,031,553 Manufacturing $30,181,931 Wholesale Trade $146,281 Retail Trade $4,192,557 Transportation and Warehousing $56,228 Information $7,337,962 Real Estate and Rental and Leasing $383,426 Professional, Scientific, and Technical Services $278,336,144 Administrative and Support $23,054,409 Education Services $664,879 Health Care and Social Assistance $10,789,466 Arts, Entertainment, and Recreation $154,474 Accommodation and Food Services $1,445,656 Other Services (except Public Administration) $803,527 Public Administration ($2,498) $366,575,995 Other Federal Expenditures Base Exchange Purchases for Resale $35,191,960 Health (TRICARE, Active Duty, Ret and Dependents) $53,293,851 Commissary Purchases for Resale (Estimate) $32,876,947 Other Materials, Equipment, and Supplies $9,500,772 Education (Impact Aid) $1,356,171 Education (Tuition Assistance) $2,490,886 Temporary Duty Expenditures $2,695,605 $137,406,192 Total $676,681,911 * Includes all contracts negotiated by 55th Wing Contracting personnel 13
20 Computation of Secondary Jobs and Total Economic Impact 2016 Estimate of Number and Dollar Value of Indirect Jobs Created Type of Personnel Number of Base Jobs Multiplier Number of Indirect Jobs Active Duty Military - All Services 5, ,440 Appropriated Fund Civilians 2, ,559 Nonappropriated Fund Civilians Contract Civilians 6, ,666 Totals 15,689 7,796 Estimated Number of Indirect Jobs Created: 7,796 Estimated Annual Pay for the Local Community: $43,653 Estimated Annual Dollar Value of Jobs Created: $340,317,541 Total Annual Economic Impact Estimate Annual Payroll: $700,213,942 Annual Expenditures: $676,681,911 Estimated Annual Dollar Value of Jobs Created: $340,317,541 Grand Total $1,717,213,394 14
21 Contributions, Charity Fund Drives, and Special Community Events s OPEN HOUSE The 2016 Offutt Defenders of Freedom Open House and Air Show brought more than 110,000 people to base on July. The show featured the U.S. Air Force Thunderbirds as well as the U.S. Navy VFA-122 Super Hornet demonstration team, U.S. Special Operations Para-Commandos and a whole host of vintage warbirds. In addition, attendees enjoyed more than 60 ground displays and static aircraft displays. NE OFFICIAL VETERAN S DAY PARADE The 17th annual Veteran s Parade, with a theme of Defenders of Freedom, took place on 5 November with more than 10,000 attendees. Organized by the Greater Bellevue Area Chamber of Commerce, it showcased 100 floats and included the participation of over 400 active duty military members. 55 TH WING BIRTHDAY BALL At the 55th Wing Birthday Ball on 21 May, the 55th Wing celebrated 75 years as a wing; 50 years at Offutt and 25 years of being continuously deployed. More than 800 people attended the 38th annual event and the wing's largest annual formal social function of the year. NE ADOPT-A-HIGHWAY PROGRAM OFFUTT APPRECIATION DAY PICNIC The 21st annual Offutt Appreciation Day Picnic took place on 3 June with more than 9,000 attendees. Sponsored by the Offutt Advisory Council, all of the food, entertainment and prizes are provided by corporate or private donations totaling more than $60,000. AIR FORCE ASSITANCE FUND A total of $115,833 was donated by the members of Offutt AFB for the FY 2016 campaign. The donations raised from the Air Force Assistance Fund go directly to four separate Air Force Charities: Air Force Aid Society, Air Force Villages, Air Force Enlisted Village and the General and Mrs. Curtis E. LeMay Foundation. Many of the organizations on Offutt AFB participate in this bi-annual event to help clean and maintain major highways in the local area. The 20th Intelligence Squadron cleans a major portion of Cornhusker Road. The Air Force Sergeants Association, 55th Wing, Top 3, and USSTRATCOM clean sections of Hwy 75. The 343rd Recruiting Squadron is responsible for keeping Hwy 66 clean. COMBINED FEDERAL CAMPAIGN Offutt AFB members contributed more than $182,200 for the FY 2016 campaign. More than 2,500 national, state and local agencies benefited from the donations
22 ACKNOWLEDGMENTS The Financial Management Analysis Flight of the 55th Comptroller Squadron prepared this publication. It was developed by compiling input from the major units listed below to provide unclassified key information concerning select missions, resources, and the economic impact of Offutt Air Force Base on its surrounding community. United States Strategic Command 55th Operations Group 55th Mission Support Group 55th Medical Group 55th Wing Staff Agencies 557 Weather Wing Army and Air Force Exchange Service Defense Commissary Agency Defense Finance and Accounting Service Offutt Tenant Units America First Communities SAC Federal Credit Union 55th Comptroller Squadron Financial Management Analysis 106 Peacekeeper Drive, Suite 2N3 Offutt Air Force Base, Nebraska DSN: Commercial: (402)
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24 ATTACHMENTS Attachment 1: Economic Impact FY16 Attachment 2: Small Business Contract Award by States Attachment 3: Large Business Contract Award by States
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26 Offutt AFB Contracts Economic Impact FY16 $35.8 $19.8 $335.6M Performance at Offutt & Bellevue $212.1 $123.5 LB performance other than Offutt & Bellevue SB performance at Offutt & Bellevue LB performance at Offutt & Bellevue SB performance other than Offutt & Bellevue Small Business $159.3M, Large Business $231.9M--Total $391.2M Mission-People-Pride 1
27 Offutt AFB Contracts SB Awards by States FY16 Total $123.5M $64.5 $59.0 Companies located in Nebraska Companies outside Nebraska Principal place of performance Offutt &Bellevue Mission-People-Pride 2
28 Offutt AFB Contracts LB Awards by States FY16 Total $212.1M $31.0 $83.9 Companies located in Nebraska $97.2 Virginia Owned Companies All Others Companies Principal place of performance Offutt &Bellevue Mission-People-Pride 3
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