Headquarters U.S. Air Force Air Force Financial Management & Comptroller Mr. Ricardo Aguilera SAF/FM 10 Mar 16
Headquarters U.S. Air Force Air Force Budget Maj Gen Martin SAF/FMB 10 Mar 16
5 Core Missions Critical to Joint Force 5 Core Missions Air & Space Superiority Intelligence, Surveillance & Reconnaissance Rapid Global Mobility Global Strike Command & Control Air Force Priorities: Taking care of people Striking a balance between today s readiness & future modernization Making every dollar count Informed by the defense strategy, Air Force 30-year plan, Combatant Commanders expectations I n t e and g r i requirements t y - S e r v i of c e their - E Air x c Force e l l e n c e 3
Delivering Global Vigilance, Reach, and Power Daily 569 2,020 16,273 Where we are vs. What we thought in 2012 773 1,194 172 205,000 Airmen directly support Combatant Commander requirements from home stations 20,200 Airmen deployed 80,800 stationed overseas Active, Guard, & Reserve Flew nearly 1.7 million hours, equal to 194 continuous years of flying Delivered 1.2 billion pounds of fuel, 345,000 tons of cargo & evacuated 4,300+ injured / ill patients Conducted over 8,000 cyber ops detected 29 intrusions / 1,400 anomalies investigated & closed Executed 9,400 ISR missions in Iraq / Syria improved targeting with fewer civilian casualties Supported 25 space missions in support of National Security objectives 35,000 Airmen provide the bedrock of our Nation s security with credible nuclear strategic deterrence 13-Jan-15 American We Airmen amazing are busier than ever results, and our competitors but 25 years are of closing combat the capability ops are gap taking a toll 4
State of the Air Force Today s Reality 1991: 946K 2017: 664K 16,273 1 2 Since Desert Storm 25 yrs of combat ops tremendous toll on Airmen, their readiness & equipment 59% fewer combat coded fighter squadrons 134 in 1991, 55 today 33 used in DESERT STORM 30% fewer people down from 946K to 664K military and civilian airmen 37% fewer aircraft from 8,637 in 1991 to 5,517 in 2017 Average age of a/c is 27 yrs 21 qualify for antique license plates readiness near all-time lows Demand for Air Force capability is increasing capability advantage over competitors is shrinking Leading global response against ISIL in the Middle East still heavily engaged in Afghanistan Facing a resurgent Russia watchful eye on North Korea and rising China in the Pacific Competitors closing gap in space, cyber, strategic deterrence fielding advanced air defenses & their own 5 th generation aircraft 13-Jan-15 Air Force is one of the busiest, smallest, oldest and least ready fleets in our history We are busier than ever and our competitors are closing the capability gap 5 all while we I n continue t e g r i t y to - S have e r v i unstable c e - E x c budget e l l e n c environments e
FY13 FY16 Recap $145 $140 $135 $130 $125 FY12 PB FY12 Enacted with Inflation FY16 PB FY17 BBA $120 $115 $110 FY16 BBA BCA Topline $105 $100 Billion FY12-FY16 Enacted FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 6 FY13 Sequester Large, immediate cuts Readiness dropped to levels almost as low as early 1980s Stood down flying squadrons for more than three months Deferred aircraft & depot mx Deferred infrastructure repairs Delayed critical modernization Broke faith with civilian Airmen FY14 / 15 Bipartisan Budget Act Modest, temporary budget relief Funded readiness components Protected F-35A, KC-46, & LRS-B To pay bill made tough choices: Tried to divest force structure Reduced military endstrength & Management Headquarters Took substantial risk in base spt, facilities, munitions & MILCON FY16 After Bipartisan Budget Act Temporary relief w/ FY18 uncertainty Fund executable readiness components; other readiness impacts Restore force structure (A-10 / EC-130) Preserve F-35A, KC-46, & LRS-B Over 3X increase in munitions buys Right-size force to fill cyber, nuclear, RPA & maintenance manning shortages Preserve space advancements Cumulative impact I n of t e budget g r i t y cuts our - S e r v relative i c e - E capability x c e l l e advantage n c e is shrinking 6
FY16 Update Billion $120 $100 $80 $60 $40 $20 $0 AF Baseline Blue TOA $122.2 MILPERS $29.0 MILCON $2.1 RDT&E $18.0 Proc $25.3 O&M $47.8 FY16 PB $119.1 MILPERS $28.5 MILCON $2.2 RDT&E $17.3 Proc $25.1 O&M $46.0 FY16 Enacted FY16 Defense budget enacted on 15 Dec Wins: Readiness, Nuclear Force Improvement Flying Hour: Fully funds executable requirements Weapon System Sustainment and exercises Top 3 recap programs funded (F-35, KC-46, LRSB) 1.3% pay raise for military and civilian personnel OCO & ERI fully funded ($12.3B) Where we are: Airmen: Committed to grow to 317K AD Funds distribution: 98% O&M, 100% Investment IMSC: Funds moved from MAJCOMs Spring Program Review Corporate bills (e.g. execution year risk) Way Ahead: Omnibus IBRC scheduled 15 Apr O&M Mid-year review execution goal 83% EOM July Your expertise I n t is e g required r i t y - S for e r v AF i c to e -meet E x c execution e l l e n c e year goals 7
Across the FYDP $145 $140 $135 $130 $125 $120 $115 $110 $105 $100 Billion FY12 PB FY12 Enacted with Inflation FY12-FY16 Enacted At FY17 BBA levels, we can: Sustain capacity to meet CCDR s most urgent needs & readiness for today s fight A-10 & EC-130 Fund readiness components (FHs, WSS, exercises, etc.) Procure munitions to capacity to support current operations Fund top recap prgms KC-46, LRS-B, but F-35A at reduced rates Invest in nuclear enterprise (e.g., ICBM, C3, & B-2 mods) Advance space capabilities & build cyber mission teams Improve RPA enterprise (bonuses, enlisted pilots, & 60 lines) Fund Combat Rescue Helicopter & AF One recapitalization Stabilize the force (317K) assess capability gaps Leverage Total Force capabilities and capacity FY16 PB Provide civilian & military pay increases (1.6%) Continues recovery in readiness and capacity, 8 with modernization challenges FY17 BBA FY16 BBA BCA Topline FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY17 Funding Gap: Modernization: Deferred 5 F-35As & 4th Gen mods gap closing Recapitalization: Delayed incremental replacement of C-130H fleet People: More needed to fill critical capability & capacity gaps Infrastructure: Continues to degrade readiness / IT / QOL impacts FY18 BCA Potential Impacts all bad choices: Force structure cuts already too small for current demand Delay modernization capability advantage is already shrinking Halt readiness recovery even less ready than we are today Defer advancements in space & cyber...already contested Infrastructure / base spt suffers bow wave continues to grow People delays growth & civilian hiring in critical skill sets At BCA too small, less capable need budget certainty to continue recovery 8
Final Thoughts AF strategy balances capacity, capability & readiness and supports five core missions AF priorities remain the same taking care of people, striking the right balance between readiness & modernization, and making every dollar count 2015 Bipartisan Budget Act allows us to Restore end-strength to cover core mission sets Continue top 3 recapitalization programs but at reduced rates for the F-35A Sustain capacity to meet CCDR s most urgent needs & readiness for today s fight Resource strategic assets in nuclear, space, cyber and ISR mission areas Appreciate relief BBA gives tough choices remained (uncertainty looms in FY18) Delay or defer vital modernization programs and critical infrastructure Maintain military end strength at FY16 levels, but critical capability gaps still remain Our Nation has one of the smallest, oldest and least ready fleets in Air Force history Budget stability and repeal of BCA limits are necessary for AF to support our Nation The return of Sequestration will drive a choice between ready and capable now and ready and capable in the future. It s a false choice we must be both for the Joint Force to be successful. General Welsh 9
Headquarters U.S. Air Force Air Force Cost & Economics Ms. Kathy Watern SAF/FMC 10 Mar 16
FMC Cost & Economics Organizational Structure (SAF/FMC) (Ms. Kathy L. Watern, SES) Deputy (Mr. C. Grant McVicker, SES) SAF AFCAA Cost Integration (SAF/FMCC) (Lt Col Anthony Smith) Economics & Business Mgt (SAF/FMCE) (Dr. Anne Gorney) Technical Director (AFCAA) (Ms. Ranae Woods, SES) Operations & Support (AFCAA/FMCY) (Ms. Jennifer Bowles) Photo not Available Info Tech & Electronics (AFCAA/FMCI) (Ms. Eunice Ciskowski) Space Programs (AFCAA/FMCS) (Mr. Bill Seeman) Aircraft & Weapons (AFCAA/FMCA) (Mr. Dave Stem) 11
Organization Major Cost Activity Locations Hanscom Hill Denver Peterson Wright-Pat Pentagon & Andrews LA Kirtland Tinker Robins Eglin 40 personnel in OLs 30 personnel at Pentagon 60 personnel at Joint Base Andrews - AF Cost Analysis Agency (AFCAA) Operating Locations 12
What s Happening? Near-Term Continue refinement of cost support to POM process (e.g., FMP) Cost integration into planning process (FY19) Increase sustainment capability/program affordability On-going support to Total Force Continuum Data research and method improvement activities Opportunities Upfront involvement in peer reviews Diminished source selection capability Revitalize & increase schedule capability Increase role in enterprise EAs & BCAs Earlier involvement in the acquisition process (e.g., AoAs) 13
Looking Forward Cost Opportunities Cost Experience Rotations Career Broadening Cost Crosscuts Across Many Areas Education AFIT Masters of Science in Cost Estimating Naval Post Graduate School (NPS) DAU Curriculum There is Always Opportunities for Costers! 14
Headquarters U.S. Air Force Air Force Financial Operations Mr. Thomas Murphy SAF/FMF 10 Mar 16
on Route 66 16
FIAR Update Congressional Desire: Fix it Fix it Progress Unqualified opinion on Fund Balance with Treasury Completed FY15 Schedule of Budgetary Activity (SBA) Audit Working Mission Critical Asset Valuation FY16 SBA just started 1 Feb 2016 Monitoring Challenges Legacy Systems Reconciliations Supporting Documentation Sustaining Control Environment Integrity Service Excellence 17
DEAMS Update Oracle Federal Financials iprocurement ireceivables What is DEAMS? The Air Force s financial management & accounting Enterprise Resource Planning (ERP) solution utilizing the Oracle ebusiness Suite isupplier Project Costing Project Billing Purchasing DEAMS plays a critical role as the target core accounting environment for all AF enterprise systems necessary to sustain audit readiness Deployments 114 Installations AMC ACC AFGSC AETC AFDW ANG AFRC Communications DEAMS Outreach Portal: http://go.usa.gov/wpqq - Help Desk Announcements Communications Library (Fact Sheets, DEAMS News) - Education & Training Corner milbook/deams Users Group: http://go.usa.gov/z3ua DEAMS Monthly Users Forum (every 3 rd Wednesday, 1330-1500 EST) DEAMS Training Pre-deployment Classroom Web Based Training (WBT) via FMDLC Weekly Webinars Published Instructions (Job Aids, User Guides, etc.) Program Status Slowed down deployment schedule Upcoming releases for FY16/17 include: Performance enhancements Hardware upgrades Foreign currency/foreign national payroll Acquisition functionality- MOCAS/CCAR Reimbursable programs- JOCAS Continued enhancements to online training, FM School House, and video instruction Integrity Service Excellence Integrity Service Excellence 18
BPR Integrity Service Excellence Integrity Service Excellence 19
Accounting Initiatives Military Transportation Authorization (MTA) charges paid with GTC AMC initiative to use charge against GTC vice manual billing process Pilot at aerial port starts May 16 Traveler would be reimbursed on voucher Virtually eliminates intensive manual billing process Fix it Account Management and Provision System (AMPS) Rollout Designed to automate and standardize DFAS system access requests Improves visibility and efficiency of system access requests and maintenance Efficient processing for new and departing employees and contractors Currently using for ADS, DJMS, GAFS Potential adoption for future AF systems Expanded GPC Use Teamed with Contracting to use for (Cable TV, Utility, & Telecom) Service Contract Payments Reduces payment delays Increases GPC rebates Reduces late fees G-Invoicing Captures and maintains trading partner info cradle to grave A standardized business process for Inter/Intra- Governmental Transactions (IGT) within DoD Central repository of all agreements A DoD Enterprise solution Data standards used Enterprise wide Integrity Service Excellence 20
Headquarters U.S. Air Force Air Force Programs Col Chris Nutting SAF/FMP 10 Mar 16 24 March 2016 21
Organizational Structure SAF/FMP Brig Gen Edward Fienga Ms. Patricia Schwenke, SES SAF/FMPE Engine Room Assessments Corporate Database Exercise Special Programs SAF/FMPM Panels (Assigned) Air Superiority/Global Precision Attack Command Control/Global Integrated ISR Nuclear Deterrence Operations Rapid Global Mobility/Special Ops/Building Partnership Space/Cyberspace Superiority Panels (Attached) Personnel and Training (A1) Manpower (A1) Installation Support (A4) Logistics (A4) Research, Development, Test and Evaluation (AQ) Special Access Required (A5/8) 24 March 2016 22
FMP Goals and Objectives We advise Air Force leaders about the translation of strategic priorities into executable and defendable programmatic decisions balanced across limited resources and competing priorities. We do this by formulating and defending a fiscally responsible Program Objective Memorandum (POM) responsive to national, DoD, and Air Force strategy and Congressional intent. 24 March 2016 23
Building the AF Program Objective Memorandum (POM) National Security Strategy National Military Strategy Quadrennial Defense Review Defense Planning Guidance Strategic Portfolio Reviews Fiscal Guidance AF Vision AF Strategic Master Plan Future Operating Concept Strategic Planning Guidance Capability Development Planning Plan-to-Program Guidance RMD NDAA/Approps Bill Congressional Interests & Actions Acquisition Program Performance Emerging DoD & AF Decisions Emerging Threats & World Events COCOM Demands
Building the AF POM PBR PB NDAA/Approps Bill POM Program/Budget Review President s Budget NDAA/Approps February June Involves CFLs/MAJCOMS Air Staff FMP/B/C Objective Tell AF Story Rqmts vs $$$ July - December Involves OSD & entire DoD Air Staff Objective Defend AF Advocate for TOA February Involves FMB FMP Objective Executable budget Basis for next POM 1 Oct Involves Congress Result Define the AF Fund the AF
FY18 Programming Timeline 24 March 2016 26