DEPARTMENT OF THE ARMY

Transcription

1 Fiscal Year (FY) 2007 Budget Estimates JUSTIFICATION BOOK FEBRUARY 2006 VOLUME I

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3 TABLE OF CONTENTS VOLUME I Section I Section II PBA-19 Introductory Statement (PBA-19, Appropriation Highlights)...1 O-1 O&M Funding by Budget Activity/Activity Group/Subactivity Group...10 O-1A O&M Funding by Budget Activity/Activity Group/Subactivity Group...13 OP32 Appropriation Summary of /...16 OP32A Appropriation Summary of /...20 PB31R Personnel Summary...24 PB31D Summary of Funding Increases and Decreases...25 OP5 Operation and Maintenance Detail by Subactivity Group(SAG) Divisions...35 SAG 112 Corps Combat Forces...47 SAG 113 Corps Support Forces...58 SAG 114 EAC Support Forces...68 SAG 115 Land Forces Operations Support...78 Section III SAG 111 SAG 121 Force Readiness Operations Support...87 SAG 122 Land Forces Systems Readiness...98 SAG 123 Land Forces Depot Maintenance SAG 131 Base Operations Support SAG 132 Sustainment, Restoration and Modernization SAG 133 Management and Operational Headquarters SAG 134 Unified Commands SAG 135 Additional Activities SAG 211 Strategic Mobility SAG 212 Army Prepositioned Stocks SAG 213 Industrial Preparedness SAG 311 Officer Acquisition SAG 312 Recruit Training SAG 313 One Station Unit Training SAG 314 Senior Reserve Officers' Training Corps SAG 321 Specialized Skill Training SAG 322 Flight Training SAG 323 Professional Development Education SAG 324 Training Support SAG 331 Recruiting and Advertising SAG 332 Examining SAG 333 Off-Duty and Voluntary Education SAG 334 Civilian Education and Training i

4 SAG 335 Junior Reserve Officers' Training Corps SAG 411 Security s SAG 421 Servicewide Transportation SAG 422 Central Supply Activities SAG 423 Logistic Support Activities SAG 424 Ammunition Management SAG 431 Administration SAG 432 Servicewide Communications SAG 433 Manpower Management SAG 434 Other Personnel Support SAG 435 Other Service Support SAG 436 Army Claims SAG 437 Real Estate Management SAG 441 International Military Headquarters SAG 442 Miscellaneous Support of Other Nations ii

5 FY 2007 BUDGET ESTIMATES PBA-19 APPROPRIATION HIGHLIGHTS ($ in Millions) Appropriations Summary FY 2005 FY 2006 FY 2007 Operation and Maintenance, Army $60,327.1 $1, $38,292.9 $23,733.5 $704.1 $464.8 $24,902.4 Description of Operations Financed: The Army is at war and transforming. We are committed to supporting the combatant commanders as they execute their full range of strategic commitments -- to include the Global War on Terrorism. Deployments have become a way of life for Army Soldiers and their families. To meet present and potential challenges, the Army must provide relevant and ready land power to combatant commanders in support of a unified joint force. The Operation and Maintenance, Army appropriation contributes directly to the combat readiness of these relevant forces by providing: tough, realistic training; equipment maintenance (organizational, intermediate, and depot level); responsive logistical support; facilities maintenance; and adequate base support for the well-being of Soldiers and their families. The Army is determined to achieve its overarching strategic goal - to remain the world's preeminent combat force in order to provide the combatant commanders with the capabilities needed to dominate across the full spectrum of military operations. The FY 2007 Budget Estimate provides for program growth of $464.8 million in the Operation and Maintenance, Army accounts over the FY 2006 Appropriation level. However, this budget also accounts for $704.1 million of pricing adjustments (e.g. inflation, fuel, and pay raises). The Army Modular Force initiative remains the driving force of realigning and restructuring our units. Modular conversion enables brigades to be more powerful, flexible, and deployable. It also establishes a larger rotational pool of deployable units, thus relieving stress on the force by allowing units and Soldiers to remain at home station for longer periods of time prior to their next deployment. To maintain the vitality of the All Volunteer Force while supporting the combatant commanders over the next few years, this submission addresses and accomplishes four inter-related strategies: To remain relevant and ready, our Soldiers must be trained, educated, experienced and provided with special capabilities. Training strategies are changing to better prepare Soldiers, leaders, and units in accomplishing their mission. We also continue to offer various programs for the development and enhancement of our workforce. As our Soldiers and their families stay committed to the Army, we are duty-bound to provide quality of life programs that match the quality of their service. Facilities, both here in America and overseas, must be sufficiently maintained. s such as child care, medical support, and schools must continue to be available to Soldiers and their families. The combination of Integrated Global Presence and Basing Strategy (IGPBS), BRAC, and Army Modular Force will eventually lead to stabilized units that will keep Soldiers' and their families at the same installation for four to five years as opposed to two to three years. Degraded facilities will negatively impact the quality of life and ultimately affect recruiting and retention. We continue to train and equip our Soldiers to serve as warriors; and prepare our officers and non-commissioned officers to be adaptive leaders. No matter what the technology, Soldiers on the ground must be fully-prepared to employ their experience and capabilities to accomplish the mission. FY 2006 excludes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 1 Exhibit PBA-19 Appropriation Highlights

6 FY 2007 BUDGET ESTIMATES PBA-19 APPROPRIATION HIGHLIGHTS ($ in Millions) The Army will invest in its infrastructure - from motor pools to housing - to ensure success in fulfilling its strategic roles and missions. Overall Assessment: The FY 2007 Budget Estimate supports balanced priorities for Army forces simultaneously at war and transforming to a modular force. However, it does not finance the incremental costs of the Global War on Terrorism (e.g. additional end-strength, resetting the force, and contingency operations) or other potential future operations. In FY 2005, increases in world fuel market prices, along with the impact of hurricane damage on the U.S. refining industry, necessitated a significant price change, and drove an increase to the current stabilized rate of $84.00 per barrel. The FY 2006 budget, however, only reflected funding to meet an overall composite rate of $61.74 per barrel. Due to this significant increase in cost, the Department is requesting $2.6 billion in the FY 2006 Global War on Terror Supplemental to fund the price growth. As a result, the FY 2007 budget requests funding to reflect the increase from $61.74 to $ The budgeted increase is reflected as price growth, since the customer's budget does not include the funding necessary to meet the stabilized price of $84.00 per barrel in FY Additionally, we do not anticipate major changes in our wartime posture in the near future. Based on this reality, the Army's peacetime budget has been converted to a base budget: supporting needs of Soldiers as they prepare to fight and win our Nation's wars. FY 2006 excludes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 2 Exhibit PBA-19 Appropriation Highlights

7 FY 2007 BUDGET ESTIMATES PBA-19 APPROPRIATION HIGHLIGHTS ($ in Millions) Budget Activity FY 2005 FY 2006 FY 2007 Operating Forces (BA-01) $48,467.7 $1, $35,624.8 $14,218.8 $493.0 $318.3 $15,030.1 Budget Activity 1: Operating Forces (BA-01) - Significant Changes Operating Forces budget activity consists of three activity groups: Land Forces, Land Forces Readiness, and Land Forces Readiness support. The Land Forces activity group provides resources for distinct facets of the operating forces (e.g., divisions, corps combat forces, corps support forces, and echelon above corps forces) and special force related training activities (i.e., Combat Training Centers (CTCs)). The Land Forces Readiness activity group supports key activities essential to operational readiness, such as depot maintenance, training enablers, participation in joint exercises, and combat development. Finally, the Land Force Readiness Support activity group provides for infrastructure maintenance and support management headquarters, unified command support, and special activities. The Army continues to use a Major Command (MACOM) unique training strategy to take into account distinctive MACOM missions and geographical peculiarities (availability of maneuver areas, ranges and Combat Training Centers (CTC) as well as the availability of simulators such as the Close Combat Tactical Trainer (CCTT) and the Unit Conduct of Fire Trainer (UCOFT). The Army has been redefining its training strategy considering the current threat, the changing Army force structure and doctrine. The ground training strategy is designed from a combination of actual miles driven for home station training (HST) and CTC rotations as well as virtual miles associated with using simulators, such as the CCTT and UCOFT. The mileage metrics based on the Army's Combined Arms Training Strategy (CATS) for the active component are: Live (HST and CTC) - 809, Virtual (CCTT and UCOFT) - 90, totaling 899 miles. The Flying Hour (FHP) metric based on the CATS for the active component is an average of 14.5 hours per crew per month. The Army continues to remove dollars from the base budget OPTEMPO and related funding for units participating in Operation Iraqi Freedom (OIF) and Operation Enduring Freedom (OEF), since units that are preparing to deploy, will be deployed, or are recovering from deployment engage in programmed training events less frequently. At the same time, the Army remains committed to fully executing its OPTEMPO strategy for those units not committed to OIF/OEF. In recognition of the uncertainties inherent in this highly dynamic period of rotational deployments, the Army continues to take some funding risk in this budget. OPTEMPO increases reflect the realignment of units required to execute HST based on the revised OIF/OEF deployment schedule. The Army will evaluate the units' execution of the CATS during the execution year to reassess and mitigate risks to readiness as necessary. This budget represents a rigorous annual program of tough, realistic combat training at the Army's three ground CTCs and the Joint Air Ground Center of Excellence (JAGCE), as well as participation in Department of Defense (DoD) Joint National Training Capability (JNTC) events. JNTC builds on the success of Army Title X training by adding appropriate joint context to the training at Army CTCs in order to address Joint and Service-interoperability training deficiencies. It combines live, virtual and constructive training in order to increase joint participation in current exercises without significantly increasing deployment demands on Army units. As a result, joint tasks standards were created to streamline and unify joint performance. FY 2006 excludes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 3 Exhibit PBA-19 Appropriation Highlights

8 FY 2007 BUDGET ESTIMATES PBA-19 APPROPRIATION HIGHLIGHTS ($ in Millions) As a result of a one time Congressional offset entitled Depot Maintenance Peace Time Work Load Adjustment, the Depot Maintenance increases by over $188.1 million from FY 2006 to FY Army weapon systems and equipment continue to be flown and driven harder, further, and under more realistic conditions. This higher level of operating tempo has a direct impact on the quantity of items requiring depot maintenance and on the amount of work performed on individual pieces of equipment. increases of $333.4 million support items such as overhauls for two additional helicopters (a MH-47E helicopter, and an AH-64D helicopter), 135 Shop Shelters part of the Recapitalization, 365 M872 trailers of various configurations, 25 Bradley Fighting Vehicles Systems (BFVS) of various configurations, 32 additional M1A1/M1E1 Abrams Integrated Management (AIM) recapitalization vehicles, the overhaul of 184 additional Mobile Subscriber Equipment (MSE) major assembly overhauls, and a new program of 15 Crash Damaged MSE Shelters. Additional increases fund watercraft overhauls required to meet U. S. Coast Guard requirements and support various Post Production Software Support (PPSS) programs. decreases of $179.7 million primarily reflect reductions in anticipated funding in support of 9 Aircraft Crash Damages associated with AH-64D, Helicopters, CH- 47D, F and MH-47E Helicopters, UH-60A and MH-60K Helicopters. Additionally, based upon fund availability 13 UH-60 Helicopters under the Recapitalization are being decreased. There is also a slight (-$2.2 million) net decrease to the total Patriot Missile (both to the Recapitalization and non-recapitalization). Our installations are an essential factor in maintaining the premier Army in the world. Our installations are the platforms from which we rapidly mobilize and deploy military power and sustain our military families. Installation commanders are finding innovative solutions to support additional Soldiers training and living on our installations. The Installation Management Agency's (IMA) current short-term focus is on four essential tasks: (1) Posturing crucial installations as power projection platforms with robust reach-back capabilities; (2) Adjusting installation support to meet the needs of an Army at War; (3) Providing the required infrastructure to support training and mobilization of Active Duty and Reserve Component Soldiers; and (4) Supporting the well-being of Soldiers and their families. The Army's long-term focus is on making installations quality information hubs; combat preparation and sustainment support centers; deployment platforms; and secured holistic communities. Base Operations Support (BOS), and Sustainment, Restoration and Modernization (SRM) are part of the Land Forces Readiness Support and are critical components to operate and sustain our installation infrastructure and the environment. Each installation has unique requirements to support and sustain the Army's new modular force structure. The Army is using existing facilities when available and making renovations and modifications, where feasible. BOS resources go toward the day-to-day operation of Army installations, while SRM resources pay for the sustainment, renovation and modernization of Army facilities. Both BOS and SRM are comprised of a network of integrated support services that directly impact Soldier readiness and quality of life. Some of the significant changes in the FY 2007 President's Budget for Land Forces Readiness Support are: Base Operations Support (BOS): decrease $ million due to Army dramatically changing its business processes for supporting installations. Resources are streamlined to support equitable standards and improve delivery of services to commanders, Soldiers and their families. Additional Activities: total decrease $ million. $-11.9 million reflects the reduction of costs associated with the initial fielding of the last 11 Civil Support Teams; $-11.1 million reflects reduced requirements for vulnerability assessments, training awareness efforts, antiterrorism exercises, and procurement and maintenance of mass notification equipment; and an $-83.3 million decrease due to the IED Defeat Mission FY 2006 reprogramming. FY 2006 excludes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 4 Exhibit PBA-19 Appropriation Highlights

9 FY 2007 BUDGET ESTIMATES PBA-19 APPROPRIATION HIGHLIGHTS ($ in Millions) Budget Activity FY 2005 FY 2006 FY 2007 Mobilization (BA-02) $424.8 $14.0 -$79.5 $359.3 $26.5 -$116.9 $268.9 Budget Activity 2: Mobilization (BA-02) - Significant Changes The FY 2007 budget request of $269 million supports funding for three subactivity groups (SAG): Strategic Mobilization, Army Prepositioned Stocks (APS), and Industrial Preparedness. Strategic Mobilization provides the capability to immediately deploy a combat capable brigade along with a warfighting division and associated force structure to any emergency crisis worldwide. This SAG includes the activation and upload of Large, Medium Speed Roll-On/Roll-Off (LMSR) ships for the preposition afloat set and container procurements. It also funds the Oman Access and the Bahrain Lease for critical storage space. The APS SAG represents the Army's capability to power project brigade and unit sets, operational projects and sustainment supplies immediately from CONUS, Europe, Southwest Asia, South Korea, Japan, Hawaii and trouble spots anywhere in the world. Industrial Preparedness finances industrial analysis to help the Army obtain end item and repair part support (excluding ammunition), and weapon system acquisition. Overall, Strategic Mobilization decreases by $71.8 million in FY This program decrease is primarily the result of the rescheduled reconfiguration of one Heavy Brigade Combat Team (HBCT). Also, the Army Prepositioned Stocks decreased by $34.0 million due to reduced cost for Care of Supplies in Storage (COSIS) and reduced cyclic maintenance cycles of ships. Industrial Preparedness Operations decreased by $11.1 million due to the elimination of civilian pay costs for this program which will be terminated in FY FY 2006 excludes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 5 Exhibit PBA-19 Appropriation Highlights

10 FY 2007 BUDGET ESTIMATES PBA-19 APPROPRIATION HIGHLIGHTS ($ in Millions) Budget Activity FY 2005 FY 2006 FY 2007 Training and Recruiting (BA-03) $3,245.2 $88.6 $83.7 $3,417.5 $94.8 $102.2 $3,614.5 Budget Activity 3: Training and Recruiting (BA-03) - Significant Changes The FY 2007 budget request of $3,614 million for the Training and Recruiting budget activity supports three activity groups: Accession Training; Basic Skill and Advanced Training; and Recruiting, Other Training and Education. Accession Training produces trained Soldiers and officers to meet force structure requirements. Basic Skill and Advanced Training generates technically competent leaders. Recruiting, Other Training and Education ensures we are able to recruit quality Soldiers and provide continuing education for Soldiers and civilians. This budget request supports our ability to recruit and train the force, to enhance the Army's relevant and ready Land Force capability, and to provide educational opportunities for Soldiers and civilians. The institutional training base directly supports the Army's readiness and the Global War on Terrorism (GWOT) by graduating technically competent leaders and trained Soldiers -- able to respond as required to defend the American people, our national interests, and our homeland. In FY 2007, $4.3 million was transferred to subactivity group 432 to consolidate resources for the Global Information Grid Bandwidth Expansion (GIG-BE) billing methodology for long haul communications into one centralized account. A transfer of $5.6 million was made to the Aircraft Procurement, Army appropriation for procurement of Light Utility Helicopters (LUH). In FY2007, the United States Military Academy (USMA) anticipates implementation of its Language Immersion program which will prepare cadets for leadership in complex foreign environments. This budget request supports implementation of this program and invests in the IT, equipment, and academic upgrades and enhancements necessary to ensure that USMA remain competitive with other academic institutions and military academies. This budget request also supports expansion of the Defense Language Institute's Translator Aide and finances information technology equipment for all 1,645 JROTC schools. It also supports the national imperative to maintain an all volunteer force by investing in Army's Recruitment and Advertising initiatives. Some of the significant changes in Training and Recruiting are: - Increases funds for Officer Acquisition which supports implementation of the Language Immersion at the United States Military Academy. ($14.1 million) - Increase funds for Recruit Training ($7.7 million) - Increases funds for One Station Training ($10.3 million). - Increases funds for Recruiting and Advertising Initiatives ($35.5 million). FY 2006 excludes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 6 Exhibit PBA-19 Appropriation Highlights

11 FY 2007 BUDGET ESTIMATES PBA-19 APPROPRIATION HIGHLIGHTS ($ in Millions) - Increases funds for Education and Training s ($20.8 million). - Increases funds for all 1,645 JROTC schools in order to purchase school supplies and upgrade information technology equipment ($6.6 million). - Increases funding for Specialized Skill Training and the expansion of the LDI's Translator Aide ($6.3 million) - Increase funds for Military Entrance Processing Command ($10.6 million) FY 2006 excludes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 7 Exhibit PBA-19 Appropriation Highlights

12 FY 2007 BUDGET ESTIMATES PBA-19 APPROPRIATION HIGHLIGHTS ($ in Millions) Budget Activity FY 2005 FY 2006 FY 2007 Administration and Servicewide Activities (BA-04) $8,189.3 $ $2,672.0 $5,738.0 $89.8 $161.1 $5,988.9 Budget Activity 4: Administration and Servicewide Activities (BA-04) - Significant Changes The FY 2007 budget of $5,989 million for Administration and Servicewide Activities supports the Army's global-reach, servicewide infrastructure. Four activity groups (Security s, Logistics Operations, Servicewide Support, and Support of Other Nations) finance the administration, logistics, communications, and other support functions required to secure, equip, deploy, transport, and sustain the Army to protect our homeland and defeat terrorism around the world. The Security s budget supports intelligence and security efforts through the National Foreign Intelligence, Joint Military Intelligence, Security and Intelligence Activities, Personnel Security Investigations, and Arms Control Treaty Implementation. Logistics Operations resources support movement of Army materiel worldwide, and manage end items, ammunition, and logistics support activities. The Servicewide Support activity group supports Army Management Headquarters Activities, the Army Claims, the Defense Finance & Accounting System (DFAS), telecommunications, information systems, personnel programs, and the Commissary. The Support of Other Nations activity group fulfills our commitment to the North Atlantic Treaty Organization (NATO) and supports combatant commander's security cooperation strategies. This budget supports an array of centralized and consolidated systems essential to the Army's agenda of moving troops from their Cold War footing to new strategic locations and approaches. Efforts include transitioning the Army to a Modular Force. This budget activity also addresses peacetime, business-like initiatives that include supporting emerging democracies, contracting centralization, electronic commerce, auditable books, security concerns, outsourcing, and the application of technologies to generate efficiencies across the Army. The transition from a Cold War to a global posture changed the Army's mission. Current deployments are being sustained over greater distances, simultaneously, in multiple locations, at a faster pace over a longer period of time. These operations require a "virtual" combat support infrastructure that is based in the Continental United States (CONUS), to provide real-time support to Active, National Guard, and Reserve units, operating in a joint/secure environment, out of enemy reach. Centralized programs funded under this budget sub-category are the essential elements of this CONUS-based support infrastructure. Communication and automation/connectivity play a larger role as the Army reduces its presence overseas and becomes a CONUS-based organization. In war, the Army must ensure its CONUS reach-back capability. The push for interoperability and maneuverability, essential to the success of the Army Modular Force, is based on communication and connectivity. Satellite communications, Long Haul Communications, the expansion of the Grid-Bandwidth, Connect the Logistician, Army Knowledge On-line, computer security and consolidation initiatives such as the Defense Information System Network (DISN) billing process, are key readiness enablers, not only to the current war effort, but to the knowledge-based future force. In peace, communication and automation must reduce the number of Army automated systems, yield efficiencies associated with electronic commerce, facilitate compliance with the Government Performance and Results Act, and produce the Army's network-centric environment of the 21st Century. Upcoming efforts include the certification and accreditation of Army systems to ensure the service meet its information technology and security requirements. FY 2006 excludes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 8 Exhibit PBA-19 Appropriation Highlights

13 FY 2007 BUDGET ESTIMATES PBA-19 APPROPRIATION HIGHLIGHTS ($ in Millions) Key Army logistics programs covered in this budget submission like Second Destination Transportation (SDT), Systems Sustainment Technical Support (SSTS) and Ammunition Management present down trends related to the temporary deferral of workload, as a consequence of current deployment actions. These programs provide vital services like, land and over-ocean transportation that enables equipment rebalancing, retrograde of equipment/ammunition from overseas locations, and support the Army's Transformation effort. SSTS is the only engineering and technical support program to address weapon systems post-production issues. This service is already a major readiness factor, preventing costly repairs and delivering the latest technology to the battlefield at a faster pace. The Ammunition Management program handles Conventional Ammunition and the Chemical Stockpile and Material Storage, supporting combat and training requirements related to the integration and missions assigned to National Guard, Reserve, and active Army combat support units. The Army's intense management of the total Army workforce is the main component of Army Transformation. Military to civilian conversions reflected in this budget submission, is backed by changes in the civilian personnel system and the continuing utilization of contractors as a force multiplier. The new National Security Personnel System (NSPS) will provide the tools to enhance productivity and improve the Army's management of its civilian workforce. Dollars under this budget request continue the efforts to outsource non-core competencies, allowing military personnel and civilians to focus on their core missions. The Army contracting and audit agencies funded under this sub-activity continue to provide the necessary checks and balances to ensure contractors deliver, and that the goods and services provided to the Service are consistent with maximum utilization of the Army's limited resources. Finally, the U.S. Army Claims Service continues to adjudicate and negotiate payments to other governments as environmental cleanups are completed and the bills are presented to the Army. This request includes anticipated increases in claim payments related to the Army's drawdown in Europe, as well as injury compensation claims. Significant changes in the Administration and Servicewide Activities include increases in funding for Servicewide Communications to ensure CONUS reach-back capability. Funding supports satellite communications, Long Haul Communications, the expansion of the Grid-Bandwidth, and the Army's portion of the Defense Communications System ($136M). Also included, is an increase in funding to the Logistic Support Activities, for the implementation of the Joint Unique Identification. This program will ensure that all tangible property and equipment procured by the Army is assigned a unique identification number for inventory management purposes ($21M). The FY 2007 budget funding level request for this budget activity plays a critical role in meeting the Army's objective of providing an integrated global joint operational support that reduces major overseas build-ups, improves the global positioning of Army assets, facilitates total Army operations abroad, and transitions the current force into Army Modular Force, while achieving maximum value per dollar appropriated at home. FY 2006 excludes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 9 Exhibit PBA-19 Appropriation Highlights

14 FY 2007 BUDGET ESTIMATES O-1 ($ in Thousands) Operation and Maintenance, Army FY 2005 FY 2006 FY 2007 Budget Activity 01: Operating Forces Land Forces 4,384,816 3,435,261 3,884, A 111 Divisions 1,564, , , A 112 Corps Combat Forces 369, , , A 113 Corps Support Forces 405, , , A 114 EAC Support Forces 1,023, , , A 115 Land Forces Operations Support 1,021,498 1,200,705 1,189,294 Land Forces Readiness 4,960,653 4,394,787 3,517, A 121 Force Readiness Operations Support 1,786,583 1,816,966 1,971, A 122 Land Forces Systems Readiness 532, , , A 123 Land Forces Depot Maintenance 2,641,903 2,056, ,354 Land Forces Readiness Support 39,122,260 27,052,894 7,627, A 131 Base Operations Support 6,238,634 5,226,135 5,235, A 132 Sustainment, Restoration and Modernization 1,473,412 1,814,297 1,810, A 133 Management and Operational Headquarters 231, , , A 134 Unified Commands 118, , , A 135 Additional Activities 31,060,179 19,703, ,469 TOTAL, BA 01: Operating Forces 48,467,729 34,882,942 15,030,100 Budget Activity 02: Mobilization Mobility Operations 424, , ,877 FY 2006 includes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 10 Exhibit O-1

15 FY 2007 BUDGET ESTIMATES O-1 Operation and Maintenance, Army FY 2005 FY 2006 FY A 211 Strategic Mobility 260, , , A 212 Army Prepositioned Stocks 148,410 97,814 66, A 213 Industrial Preparedness 15,732 15,518 4,700 TOTAL, BA 02: Mobilization 424, , ,877 Budget Activity 03: Training and Recruiting ($ in Thousands) Accession Training 392, , , A 311 Officer Acquisition 101,418 96, , A 312 Recruit Training 28,130 30,251 38, A 313 One Station Unit Training 38,359 33,940 45, A 314 Senior Reserve Officers' Training Corps 224, , ,430 Basic Skill and Advanced Training 1,659,908 1,894,876 1,939, A 321 Specialized Skill Training 447, , , A 322 Flight Training 532, , , A 323 Professional Development Education 109, , , A 324 Training Support 570, , ,743 Recruiting and Other Training and Education 1,192,620 1,494,430 1,205, A 331 Recruiting and Advertising 526, , , A 332 Examining 132, , , A 333 Off-Duty and Voluntary Education 248, , , A 334 Civilian Education and Training 149, , , A 335 Junior Reserve Officers' Training Corps 135, , ,215 TOTAL, BA 03: Training and Recruiting 3,245,212 3,817,536 3,614,507 FY 2006 includes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 11 Exhibit O-1

16 FY 2007 BUDGET ESTIMATES O-1 ($ in Thousands) Operation and Maintenance, Army FY 2005 FY 2006 FY 2007 Budget Activity 04: Administration and Servicewide Activities Security s 956,690 1,147, , A 411 Security s 956,690 1,147, ,719 Logistics Operations 2,554,577 2,161,316 1,628, A 421 Servicewide Transportation 1,272, , , A 422 Central Supply Activities 496, , , A 423 Logistic Support Activities 428, , , A 424 Ammunition Management 356, , ,552 Servicewide Support 4,308,850 2,806,519 3,223, A 431 Administration 1,517, , , A 432 Servicewide Communications 726, , , A 433 Manpower Management 258, , , A 434 Other Personnel Support 251, , , A 435 Other Service Support 1,412, , , A 436 Army Claims 84, , , A 437 Real Estate Management 57,808 43,562 48,934 Support of Other Nations 369, , , A 441 International Military Headquarters 308, , , A 442 Miscellaneous Support of Other Nations 61,048 42,266 43,781 TOTAL, BA 04: Administration and Servicewide Activities 8,189,311 6,445,966 5,988,896 Total Operation and Maintenance, Army 60,327,095 45,505,704 24,902,380 FY 2006 includes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 12 Exhibit O-1

17 FY 2007 BUDGET ESTIMATES O-1A ($ in Thousands) Operation and Maintenance, Army FY 2005 FY 2006 FY 2007 Budget Activity 01: Operating Forces Land Forces 4,384,816 3,435,261 3,884, A 111 Divisions 1,564, , , A 112 Corps Combat Forces 369, , , A 113 Corps Support Forces 405, , , A 114 EAC Support Forces 1,023, , , A 115 Land Forces Operations Support 1,021,498 1,200,705 1,189,294 Land Forces Readiness 4,960,653 3,124,787 3,517, A 121 Force Readiness Operations Support 1,786,583 1,816,966 1,971, A 122 Land Forces Systems Readiness 532, , , A 123 Land Forces Depot Maintenance 2,641, , ,354 Land Forces Readiness Support 39,122,260 7,658,714 7,627, A 131 Base Operations Support 6,238,634 5,226,135 5,235, A 132 Sustainment, Restoration and Modernization 1,473,412 1,814,083 1,810, A 133 Management and Operational Headquarters 231, , , A 134 Unified Commands 118, , , A 135 Additional Activities 31,060, , ,469 TOTAL, BA 01: Operating Forces 48,467,729 14,218,762 15,030,100 Budget Activity 02: Mobilization Mobility Operations 424, , , A 211 Strategic Mobility 260, , ,583 FY 2006 excludes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 13 Exhibit O-1A

18 FY 2007 BUDGET ESTIMATES O-1A Operation and Maintenance, Army FY 2005 FY 2006 FY A 212 Army Prepositioned Stocks 148,410 97,814 66, A 213 Industrial Preparedness 15,732 15,518 4,700 TOTAL, BA 02: Mobilization 424, , ,877 Budget Activity 03: Training and Recruiting ($ in Thousands) Accession Training 392, , , A 311 Officer Acquisition 101,418 96, , A 312 Recruit Training 28,130 29,951 38, A 313 One Station Unit Training 38,359 33,940 45, A 314 Senior Reserve Officers' Training Corps 224, , ,430 Basic Skill and Advanced Training 1,659,908 1,883,876 1,939, A 321 Specialized Skill Training 447, , , A 322 Flight Training 532, , , A 323 Professional Development Education 109, , , A 324 Training Support 570, , ,743 Recruiting and Other Training and Education 1,192,620 1,105,730 1,205, A 331 Recruiting and Advertising 526, , , A 332 Examining 132, , , A 333 Off-Duty and Voluntary Education 248, , , A 334 Civilian Education and Training 149, , , A 335 Junior Reserve Officers' Training Corps 135, , ,215 TOTAL, BA 03: Training and Recruiting 3,245,212 3,417,536 3,614,507 FY 2006 excludes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 14 Exhibit O-1A

19 FY 2007 BUDGET ESTIMATES O-1A ($ in Thousands) Operation and Maintenance, Army FY 2005 FY 2006 FY 2007 Budget Activity 04: Administration and Servicewide Activities Security s 956, , , A 411 Security s 956, , ,719 Logistics Operations 2,554,577 1,663,316 1,628, A 421 Servicewide Transportation 1,272, , , A 422 Central Supply Activities 496, , , A 423 Logistic Support Activities 428, , , A 424 Ammunition Management 356, , ,552 Servicewide Support 4,308,850 2,806,519 3,223, A 431 Administration 1,517, , , A 432 Servicewide Communications 726, , , A 433 Manpower Management 258, , , A 434 Other Personnel Support 251, , , A 435 Other Service Support 1,412, , , A 436 Army Claims 84, , , A 437 Real Estate Management 57,808 43,562 48,934 Support of Other Nations 369, , , A 441 International Military Headquarters 308, , , A 442 Miscellaneous Support of Other Nations 61,048 42,266 43,781 TOTAL, BA 04: Administration and Servicewide Activities 8,189,311 5,737,966 5,988,896 Total Operation and Maintenance, Army 60,327,095 23,733,524 24,902,380 FY 2006 excludes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 15 Exhibit O-1A

20 FY 2007 BUDGET ESTIMATES OP-32 ($ in Thousands) FY 2005 FC Rate Diff CIVILIAN PERSONNEL COMPENSATION 0101 EXECUTIVE GENERAL SCHEDULE 5,908, % 163, ,592 5,942, % 145,704 32,639 6,120, WAGE BOARD 449, % 9, , , % 9,229 1, , FOREIGN NATIONAL DIRECT HIRE (FNDH) 109, % 2,165-34,270 78,135 2, % 2, , SEPARATION LIABILITY (FNDH) 2, % , % , BENEFITS TO FORMER EMPLOYEES 3, % 0-1,985 1, % , SEPARATION INCENTIVES 19, % 0-19, % UNEMPLOYMENT COMP 15, % 0 5,360 20, % 0-2,255 18, DISABILITY COMP 97, % 0 7, , % 0 3, , TOTAL CIVILIAN PERSONNEL COMPENSATION 6,606, % 175, ,315 6,502,088 2, % 157,038 35,719 6,696,960 TRAVEL 0308 TRAVEL OF PERSONS 3,678, % 88, ,864 2,932, % 64,514-2,226, , TOTAL TRAVEL 3,678, % 88, ,864 2,932, % 64,514-2,226, ,358 DEFENSE WORKING CAPITAL FUND SUPPLIES AND MATERIALS 0401 DFSC FUEL 660, % 98, , , % 183, , , SERVICE FUND FUEL 5, % ,902 20, % 7,281-12,288 15, ARMY MANAGED SUPPLIES/MATERIALS 5,470, % 136,750-2,577,709 3,029, % 133,285-1,807,365 1,355, NAVY MANAGED SUPPLIES/MATERIALS 5, % , % 132-3,399 2, AIR FORCE MANAGED SUPPLIES/MATERIALS 4, % , % 267-2,164 2, DLA MANAGED SUPPLIES/MATERIALS 2,742, % 32,907-1,633,962 1,141, % 6, , , GSA MANAGED SUPPLIES AND MATERIALS 324, % 7,789-83, , % 5, ,793 92, LOCAL PROC DWCF MANAGED SUPL MAT % 0 12,534 12, % 275 2,900 15, TOTAL DEFENSE WORKING CAPITAL FUND SUPPLIES AND MATERIALS 9,213, % 277,415-4,520,615 4,970, % 337,246-3,018,874 2,288,982 DEFENSE WORKING CAPITAL FUND EQUIPMENT PURCHASES 0502 ARMY DWCF EQUIPMENT 199, % 4, ,758 63, % 2,798-12,535 53, NAVY DWCF EQUIPMENT 2, % 211-1,161 1, % 43-1, AIR FORCE DWCF EQUIPMENT 7, % 410-6,316 1, % DLA DWCF EQUIPMENT 112, % 1,350-26,074 88, % ,967 31, GSA MANAGED EQUIPMENT 114, % 2,737-6, , % 2,441-26,550 86, TOTAL DEFENSE WORKING CAPITAL FUND EQUIPMENT PURCHASES 436, % 9, , , % 5,795-97, ,653 OTHER FUND PURCHASES Percent FY 2006 FC Rate Diff Percent FY 2007 FY 2006 includes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 16 Exhibit OP-32 Summary of and Change

21 FY 2007 BUDGET ESTIMATES OP-32 ($ in Thousands) FY 2005 FC Rate Diff 0601 ARMY (ORDNANCE) 168, % 1,177 53, , % 12,245-26, , ARMY DEPOT SYSTEM COMMAND: MAINTENANCE 1,342, % 9, ,735 1,135, % 62, , , DLA DISTRIBUTION DEPOT (ARMY ONLY) 14, % 1,107 1,085 16, % ,255 5, NAVAL AIR WARFARE CENTER % % NAVAL SURFACE WARFARE CENTER 9, % 262-5,488 4, % 291-4, FLEET AUXILIARY FORCE(NAVY TRANS) % % SPECIAL MISSION SUPPORT (NAVY TRANSPORTATION) % % NAVAL FACILITIES ENGINEERING SERVICE 1, % 19-1, % DEFENSE PUBLICATION & PRINTING SERVICE 59, % ,476 64, % 2,239-1,675 64, NAVAL PUBLIC WORK CENTERS: UTILITIES % % NAVAL PUBLIC WORK CENTERS: PUBLIC WORKS 6, % , % , NAVAL SHIPYARDS % % MARINE CORPS DEPOT MAINTENANCE % -8 2,794 3, % , DISA - INFORMATION 11, % ,457 3, % , AF INFO SERVICES % % DFAS INFORMATION SERVICES % % AF DEPOT MAINT CONTRACT % % COMMUNICATION SERVICES (DISA) 4, % 77 7,495 12, % , , PENTAGON RESERVATION MAINT FUND 8, % -1, , , % 35,657-27, , DEFENSE FINANCING & ACCOUNTING SRVC 685, % -18, , , % -50,396 12, , DEFENSE REUTILIZATION AND MARKETING SERV 3, % 0-3, % 0 4,682 4, DEFENSE SECURITY SERVICE 118, % 1,902-5, , % 2,083-58,415 59, COST REIMBURSABLE PURCHASES 151, % 3,642-30, , % 2,744-52,597 74, BUILDINGS MAINTENANCE FUND 20, % 751-4,933 16, % , TOTAL OTHER FUND PURCHASES 2,608, % -2, ,090 2,421, % 68, ,056 1,730,674 TRANSPORTATION 0703 AMC SAAM/JCS EX 622, % -32, , , % 25, ,135 12, AMC CHANNEL CARGO 1,559, % 31, , , % 4, , , AMC TRAINING % % MSC CHARTED CARGO 36, % ,689 28, % 3,739-26,352 5, MSC APF 118, % 8,509 66, , % 22,009-70, ,143 Percent FY 2006 FC Rate Diff Percent FY 2007 FY 2006 includes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 17 Exhibit OP-32 Summary of and Change

22 FY 2007 BUDGET ESTIMATES OP-32 ($ in Thousands) FY 2005 FC Rate Diff 0716 MSC SURGE SEALIFT (FSS & LMSR) % % SDDC GLOBAL POV 9, % -1,800-3,655 4, % 153-1,052 3, SDDC LINEAR OCEAN TRANSPORTATION 383, % 3, , , % -58, ,451 94, SDDC CARGO OPERATIONS 26, % -7,802 2,883 21, % ,918 7, SDDC (PORT HANDLING-FUND) 105, % 4,747-78,749 31, % 7,965 7,433 46, COMMERCIAL TRANSPORTATION 1,516, % 30,332 55,845 1,603, % 33,660-1,324, , TOTAL TRANSPORTATION 4,378, % 36, ,426 3,526, % 37,993-2,689, ,011 OTHER PURCHASES 0901 FOREIGN NAT'L INDIRECT HIRE (FNIDH) 463,780 28, % 13,642-2, ,405 14, % 12, , SEPARATION LIABILITY (FNIDH) 1, % 0-1, % RENTAL PAYMENTS TO GSA (SLUC) 183, % 4,582-26, , % 4,030-13, , PURCHASED UTILITIES (NON-DWCF) 634, % 15, , ,899 1, % 10,204-59, , PURCHASED COMMUNICATIONS (NON-DWCF) 492, % 11, , ,152 3, % 8, , , RENTS (NON-GSA) 467, % 11, , , % 5,310 3, , POSTAL SERVICES (U.S.P.S.) 35, % 0-3,117 32, % 0-6,473 25, SUPPLIES & MATERIALS (NON-DWCF) 2,338,592 47, % 57, ,293 1,797,088 3, % 39, ,758 1,007, PRINTING & REPRODUCTION 255, % 6,131-78, , % 4,048-95,215 92, EQUIPMENT MAINTENANCE BY CONTRACT 3,910,181 21, % 94, ,350 3,486,953 20, % 77,159-2,014,996 1,569, FACILITY MAINTENANCE BY CONTRACT 10,871,615 90, % 263,089-3,149,441 8,075,899 10, % 177,903-6,243,837 2,020, EQUIPMENT (NON-DWCF) 4,088,784 9, % 98,369-1,305,257 2,891,609 3, % 63,695-1,961, , AIR DEFENSE CONTRACTS & SPACE SUPPOR 32, % 783-9,854 23, % , SHIP MAINTENANCE BY CONTRACT 31, % ,689 5, % ,355 33, AIRCRAFT REWORKS BY CONTRACT 71, % 1,711-60,801 12, % ,786 32, OTHER DEPOT MAINT (NON-DWCF) 617, % 14,829 15, , % 14, , , MANAGEMENT & PROFESSIONAL SUP SVS 879, % 21, , , % 4,008 20, , STUDIES, ANALYSIS, & EVALUATIONS 77, % 1,856-52,068 27, % 592 3,420 31, ENGINEERING & TECHNICAL SERVICES 725, % 17, , , % 2,451 17, , LOCALLY PURCHASED FUEL (NON-SF) 39, % 6,021-17,229 29, % 10,550-9,531 30, OTHER INTRA-GOVERNMENT PURCHASES 3,435,572 8, % 82, ,364 2,594,301 3, % 57, ,785 1,835, GRANTS 5, % 130-5, % OTHER CONTRACTS 3,647,844 54, % 88, ,959 2,970,253 9, % 65, ,343 2,507,833 Percent FY 2006 FC Rate Diff Percent FY 2007 FY 2006 includes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 18 Exhibit OP-32 Summary of and Change

23 FY 2007 BUDGET ESTIMATES OP-32 ($ in Thousands) FY 2005 FC Rate Diff 0998 OTHER COSTS 97,183 36, % 3,212-74,792 62, % 1,375-29,654 34, TOTAL OTHER PURCHASES 33,406, , % 815,041-9,634,019 24,886,079 71, % 559,782-13,150,226 12,366,742 Percent FY 2006 FC Rate Diff Percent FY GRAND TOTAL 60,327, , % 1,400,101-16,520,653 45,505,704 73, % 1,230,484-21,907,028 24,902,380 FY 2006 includes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 19 Exhibit OP-32 Summary of and Change

24 FY 2007 BUDGET ESTIMATES OP-32A ($ in Thousands) FY 2005 FC Rate Diff CIVILIAN PERSONNEL COMPENSATION 0101 EXECUTIVE GENERAL SCHEDULE 5,908, % 163, ,592 5,942, % 145,704 32,639 6,120, WAGE BOARD 449, % 9, , , % 9,229 1, , FOREIGN NATIONAL DIRECT HIRE (FNDH) 109, % 2,165-34,270 78,135 2, % 2, , SEPARATION LIABILITY (FNDH) 2, % , % , BENEFITS TO FORMER EMPLOYEES 3, % 0-1,985 1, % , SEPARATION INCENTIVES 19, % 0-19, % UNEMPLOYMENT COMP 15, % 0 5,360 20, % 0-2,255 18, DISABILITY COMP 97, % 0 7, , % 0 3, , TOTAL CIVILIAN PERSONNEL COMPENSATION 6,606, % 175, ,315 6,502,088 2, % 157,038 35,719 6,696,960 TRAVEL 0308 TRAVEL OF PERSONS 3,678, % 88,275-3,011, , % 16,607-1, , TOTAL TRAVEL 3,678, % 88,275-3,011, , % 16,607-1, ,358 DEFENSE WORKING CAPITAL FUND SUPPLIES AND MATERIALS 0401 DFSC FUEL 660, % 98, , , % 75,382 61, , SERVICE FUND FUEL 5, % ,902 20, % 7,281-12,288 15, ARMY MANAGED SUPPLIES/MATERIALS 5,470, % 136,750-4,577,709 1,029, % 45, ,635 1,355, NAVY MANAGED SUPPLIES/MATERIALS 5, % 435-3,523 2, % , AIR FORCE MANAGED SUPPLIES/MATERIALS 4, % 258-2,425 2, % , DLA MANAGED SUPPLIES/MATERIALS 2,742, % 32,907-2,422, , % 2, , , GSA MANAGED SUPPLIES AND MATERIALS 324, % 7, ,975 88, % 1,951 2,137 92, LOCAL PROC DWCF MANAGED SUPL MAT % 0 12,534 12, % 275 2,900 15, TOTAL DEFENSE WORKING CAPITAL FUND SUPPLIES AND MATERIALS 9,213, % 277,415-7,773,845 1,717, % 132, ,093 2,288,982 DEFENSE WORKING CAPITAL FUND EQUIPMENT PURCHASES 0502 ARMY DWCF EQUIPMENT 199, % 4, ,758 63, % 2,798-12,535 53, NAVY DWCF EQUIPMENT 2, % 211-2, % AIR FORCE DWCF EQUIPMENT 7, % 410-7, % DLA DWCF EQUIPMENT 112, % 1,350-77,475 36, % 216-5,258 31, GSA MANAGED EQUIPMENT 114, % 2,737-29,830 87, % 1,917-2,211 86, TOTAL DEFENSE WORKING CAPITAL FUND EQUIPMENT PURCHASES 436, % 9, , , % 4,943-19, ,653 Percent FY 2006 FC Rate Diff Percent FY 2007 FY 2006 excludes war-related and disaster supplemental funds (Title IX, Hurricane, X-Year). Includes BA1/BA4 final adj. not reflected in the FY 2007 PB. 20 Exhibit OP-32A Summary of and Change