United States Fleet Forces Command…Comptroller Overview

United States Fleet Forces Command…Comptroller Overview

UNCLASSIFIED

RDML (S) John P. PolowczykComptroller

USFFCMay 14, 2013

AgendaAgenda

• Understanding United States Fleet Forces Command

• How We Produce Readiness

• Fiscal Update

• Financial Improvement and Audit Readiness (FIAR)

• United States Fleet Forces Command Contract Efforts

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MissionMission

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• Train, certify and provide combat-ready Navy forces to Combatant Commanders that are capable of conducting prompt, sustained naval, joint, and combined operations in support of U.S. national interests.

• Command and control subordinate Navy forces and shore activities during the planning and execution of assigned service functions in support of Chief of Naval Operations.

• Provide operational planning and coordination support to Commander, U.S. Northern Command (CDR USNORTHCOM), Commander U.S. Element NORAD (CDR USELEMNORAD), and Commander, U.S. Strategic Command (CDR USSTRATCOM).

• Command and control subordinate forces during the planning and execution of joint missions as the Joint Forces Maritime Component Commander North (JFMCC-N) to CDR USNORTHCOM.

Per FFC MF&T (OPNAVINST 5440.77B), Signed 25APR12

Commander’s IntentCommander’s Intent

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Warfighting first, but hollowness is not an option.To successfully execute our mission, we must:

• Support and defend our homeland

• Send forward-deployed warfighters the most lethal Naval Forces possible

• Standardize Readiness production

• Drive costs down, and increase Readiness effectiveness

• Harness the power of properly trained and aligned staffs

• Synchronize actions and messages to produce effects

• Hold Commanders and Leaders accountable for results

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U.S. Fleet Forces Roll CallU.S. Fleet Forces Roll Call

Postured to Meet Global Mission Requirements

Surface~40,000 People*

76 Ships

Aviation~50,000 People*

1200+ Aircraft

5 Aircraft Carriers

Subsurface~8,000 People*

32 Submarines

Expeditionary~30,000 People*

3 Riverine Squadrons

7 Construction Regiments

2 EOD Groups

11 MESF Squadrons

5 Logistics Regiments

Network Warfare~15,000 People*

28 Activities

* Includes Military, Government Civilian, and Private Contractor Staff

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Command RelationshipsCommand Relationships

REGIONAL COMMANDERS

SHORE INSTALLATION COMMANDERS

U.S. PACIFIC FLEET

U.S. NAVAL FORCES EUROPE COMMAND

U.S. NAVAL FORCES CENTRAL COMMAND

U.S. NAVAL FORCES SOUTHERN COMMAND

NAVAL SPECIAL WARFARE COMMAND

MILITARY SEALIFT COMMAND

CHIEF OF NAVAL OPERATIONS

U.S. STRATEGIC COMMAND

CNIC

USFF

NAVY CYBER FORCES

COMMAND

NAVY EXPEDITIONARY

COMBAT COMMAND

MILITARY SEALIFT

COMMAND

FLEET CYBER COMMAND

SURFACE FORCES ATLANTIC

SUBMARINEFORCES ATLANTIC

AIR FORCES ATLANTIC

STRIKE FORCE TRAINING

ATLANTIC COMMAND

NAVAL STRIKE &AIR WARFARE

CENTER

STRIKE GROUP

COMMANDERS

NAVAL WARFARE DEVELOPMENT

COMMAND

NAVY MUNITIONSCOMMAND

NAVY METEOROLOGY &OCEANOGRAPHYCOMMAND

U.S. NAVAL FORCES AFRICA COMMAND

U.S. NORTHERN COMMAND

Alignment North to SouthAlignment North to South

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DON Objectives for FY12

and Beyond

Global Force Management

Warfighting and Readiness

Joint and FleetOperations

Sailors, Civilians, and Their Families

Safety(underpins all other Lines of Operation)

Fleet Forces

Lines of Operation

CNO’s Sailing Directions Warfighting First Operate Forward

Take Care of Our People

Maintain Warfighter Readiness in an Era of Reduced Budgets

Lead the Nation in Sustainable Energy

Promote Acquisition Excellence and Integrity

Dominate in Unmanned Systems

Drive Innovative Enterprise Transformation

Be Ready

Alignment East to WestAlignment East to West

“Two Fleets, One Voice”

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Fleet Forces Lines of Operation provide the lens through which mission is executed:

Pacific Fleet Priorities broadly define the primary focus areas:

• Warfighting and Readiness

• Joint and Fleet Operations

• Global Force Management

• Sailors, Civilians, and Their Families

• Safety (underpins all Lines of Operation)

• Warfighting Readiness

• Advance Regional Partnerships and Alliances

• Purposeful, Forward Presence

• Value our People and Their Families

• Safety

Readiness Kill ChainA

ssess

EndsWays

RESOURCE/ POLICY

ASSESS /PROCURE

PRE-INTRO

BASIC INTEGRATEDMAINT DEPLOY &SUSTAIN

FRTP

Surface

Aviation

Submarines

C4ISR/CYBER

NECCWea

pon

Syst

em

Common Actions

Synchronized Training

Full Weapon System Ops

MeansPersonnelEquipmentSuppliesTrainingOrdnanceInstallationsNetworks Community / Industry

OP/TAC HQs

Everyone is part of the Readiness Kill ChainEveryone needs to know their place and role in the Readiness Kill Chain

Means and Ways must support the Ends – our Deployability / Sustainment model, the FRP

SYSCOMs / CNIC / MSC

CPF / FFC Responsibility TYCOMs CSFTL/P Numbered Fleets

The Joint StaffOPNAV N1, N2/6, N3/5, N4, N8, N9

As of 30NOV2012

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Navy Level• ~$49B requirement• Continuous Resolution (CR) “wedge” $5.5B• Sequestration took out $4.4B• Navy down ~$10B on $50B program

USFFC - BSO 60• ~$11.9B requirement• ~$9.9B CR/SEQ control• ~$2B reduction of Fleet spending

ADM Gortney’s Fleet Priorities• Support FY 13 Global Force Management Allocation

Plan (GFMAP)• Prepare FY 14 GFMAP• CENTCOM• BMD ships

FY 13 Fiscal Update

Sequestration Overview

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Navy’s Revised Plan: Tier Alpha and Tier Bravo

Tier Alpha: Recoverable actions and/or things to do in 4th Quarter such as:• Cancel 4th Quarter A/C maintenance• Civilian hiring freeze• Reduced Tuition Assistance• Reduce NECC equipment buys• Cancel 4th quarter SDM• Reduce FSRM• Furloughs in 4th Quarter• Travel restrictions• Contract reductions

Tier Bravo: Drastic actions with direct impact to Fleet operations such as:• Cut Deployments• Cancel MIAMI and PORTER repairs• Cancel 3rd Quarter SDM maintenance• Reduce flying and steaming hours

FY 13 Fiscal Update (continued)

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Where are we now?

HR 933 or Public Law 113-6 as an appropriation bill• OM&N ~ $43.9B with additional resources for CGs / LSDs in a transfer fund• Navy still ~$4B short to adjusted lower requirement…1 CSG presence• Limited transfer authority for Navy ~$250M out of DoD $7B; remainder to Army and Air Force• Current status = we will make it through FY 13, but with shortfalls across the fleet…but no significant reduction to operating forces

• May bow wave some requirements into FY 14

FY 14 Outlook

USFFC (BSO 60)• Required =~$11.1B• PB14 =~$10.5B• SEQ = ~$9.5B• Shortfall of ~$1.6B

Current Status

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National Defense Authorization Act (2010) - Mandated that DoD financial statements are validated and ready for audit by 30 September 2017

The Office of Secretary of Defense has directed DoD produce an audit ready Statement of Budgetary Resources by 2014

The Secretary of the Navy accelerated DoN’s audit readiness timeline to 2013

DoD has developed a standard process for all services to assert financial segments through discovery, testing and implementing corrective actions to prepare for validation by an Independent Public Accountant (IPA)

Audit Readiness = 100% of financial transactions are captured, properly documented, and substantiated

Financial Improvement and Audit Readiness (FIAR) Background

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Contractor Vendor Pay (CVP)Reimbursable Work Order –Grantor/Performer (RWO-G/P)Funds Balance with Treasury (FBwT)Financial Statement Compilation & Reporting (FSCR)Transportation of People (ToP)Transportation of Things (ToT)Acquire to Retire (A2R)Civilian Pay (CIVPAY)Existence and Completeness (E&C)Military Pay (MILPAY)Military Standard Requisitioning and Issue Procedures (MILSTRIP)

Financial Segments Current EffortsBusiness Process Standardization (BPS)

Booz Allen Hamilton (19 FTEs) (N00189-10-b-ZD27)

Phases 2•Align system agnostic to system- specific processes

•Confirm controls and business rules align to corresponding steps

•Document/confirm all financial controls are included within processes

• Identify opportunities for reduced process variation around control steps

Phase 2.5• Implementation Guidelines•Accounting Handbook•Segment-specific Standard Operating Procedure (SOP) documents

•Establish a Resource site

KPMG (~4 FTEs)Phase 3.0

• Implement accepted standard processes

•Establish Support Teams•Compliance testing and metrics

Assertion Testing

Accenture (4 FTEs)(N00189-10-D-Z026-0003) Using the FIAR Methodology, provide direct support in the 6 phases in the DoD FIAR Methodology:

1 Discovery2 Corrective Actions3 Evaluation4 Assertion5 Validation6 Audit from IPA

BPS Phase IV

•Sustainment of approved business processes

•Change management around any previously approved standardized process

•Periodic testing of controls and compliance with published standards

Future Efforts

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USFF FIAR Efforts

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FY 13 Contract Focus AreasFY 13 Contract Focus Areas

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FOCUS AREA 1HQ Contract Initiatives

FOCUS AREA 3ECH III Contract Initiatives

Deep Dive to analyze: • Long term contract support (>5 yrs)• High priced labor (>$250K)• Consolidation of like requirements

Deep Dive to analyze:

• What are the primary contract vehicles used

• What Contracting Centers are used

• What kind of support is needed

FOCUS AREA 2HQ Policy and Oversight

FOCUS AREA 4ECH III Priorities

•Revisions to USFFINST4200.1 Service Support Contract Mgmt

•Contract clause to cover work stoppage under severe cuts and/or furlough scenarios for FY14 actions

• Discussions with ECH IIIs to evaluate shared umbrella contract opportunities.•Identify measures to streamline and gain efficiencies to reduce costs

CONTRACT # CONTRACTOR END OF PERIOD OF PERFORMANCE DESCRIPTION

N0010412CQ353

EY AK TECHNOLOGY LLC 9/8/2014

Provide functional and technical support for the Command Financial Management System (CFMS).

N0018910DZ006 CACI 12/31/2013 HOA OCO Financial Support Personnel.

N0018910DZ006 CACI 12/31/2013 Ship Operations and Flying Hr analytical support.

SP070003D1380 BAH 12/26/2013Fleet Integration, Strategic planning and communications.

GS00F0059M JHT 9/30/2013 Building Manager.

N0018910DZ006 CACI 12/31/2013 Horn of Africa deployment training.

GS23F9755H BAH 9/30/2013Support sailors IA assignment in six principle areas.

N0017804D4091NORTHRUM GRUMMAN 8/31/2013 Maritime Operations Center support.

N0018912D0040 PREVAILANCE 7/12/2013

Contracted antiterrorism expertise and support through the conduct of research and analysis, and technical and doctrinal report generation for USFF.

N0018910DZ006 CACI 12/31/2013Contracted logistics support and fleet readiness analysis.

Current USFF ContractsCurrent USFF Contracts

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CONTRACT # CONTRACTOR END OF PERIOD OF PERFORMANCE DESCRIPTION

GS10F0076J SAIC 9/28/2013 Environmental contract support.

N0017806D4760 HONEYWELL 5/19/2013

Provide network engineering support , Fleet Forces online portal support, naval messaging delivery and profiling support.

GS23F8006H SAIC 7/30/2013Contracted Fleet Training support for live and synthetic training worldwide.

N0010412CQ360 PITS, INC 5/14/2014 Fleet Training Fiscal Support Services.

N0010412CQ226 PITS, INC 5/11/2014 Fleet Training Technical and Acquisition Support Services.

N0018912C0039TRINITY SHIP MANAGEMENT 9/15/2013 PREVAIL Training Ship Support Services

GS23F8006H SAIC 8/13/2013 Maritime Operations Center Training.

N6600108D0030 INNOVA 9/26/2013

Per DoD and OPNAV directives, support Navy Readiness Reporting through a robust, full spectrum capability-based reporting system providing more utility to the war fighter, Decision Support tools.

N00178-04-D-4012 GDIT 1/2/2014 Ballistic Missile Defense (BMD) AEGIS.

N00024-13-D- 6400 JHU 9/30/2014 INTEGRATED CAPABILITIES ASSESSMENT.

N00024-13-D- 6400 JHU 9/30/2013 MOC ARCHIVE SUPPORT.

N00178-04-D4079 LOCKHEED MARTIN 5/31/2014

MOC support .

W15P712CF600 MITRE 9/30/2013 Support to Fleet requirements and capability development.

N00178-04-D-4091 NGIT 8/31/2013 MOC Support.N00189-12-D-0046 PREVAILANCE 7/31/2013 CONOPS support effort.

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Current USFF Contracts (continued)Current USFF Contracts (continued)

Coming AttractionsComing Attractions

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• Re-compete for the maritime operation center training support effort - estimated - $4.5M per year

• Fleet Integration, strategic planning and communication support – estimated - $340K per year

• Ballistic Missile Defense (BMD) analytic support – estimated - $700K per year

• USFFC Contract Management POC is Maureen Hayes: maureen.hayes@navy.mil; (757) 836-5239

QUESTIONS?QUESTIONS?

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