EffectsofFY13FiscalUncertaintyonArmyOMAAccounts

Actions
~$57B Emerging OCO
~$18B

Impacts
Significantlyimpactsequipmentandsubsequentreadiness Significantly impacts equipment and subsequent readiness ForcesadditionaltradeoffsbetweenwartimeprioritiesandFY14 readiness

Increasedtransportationcostsdelayreturn of$20BinequipmentfromAfghanistan $ Increasedintheaterforceprotectionand intelligencesystemsmaintenance Increaseddemandandtransportationcostsfor foodsupplyforcivilianworkforceinAfghanistan

Reducesreadinessof>78%ofnondeploying Erodestrainingandimpactsabilitytorespondto brigadecombatteams brigade combat teams contingenciesandCONPLANs contingencies and CONPLANs ~$5.3B ~$5 3B Mustfurloughwhichnegativelyimpactseachemployeein Deferspostcombatequipment repairinActiveand ourvaluedworkforce Sequestration Reserveunits34yearsfollowingredeployment Potentiallyfurloughsupto251,000Armycivilians $65B Cancels4of6brigadecombatteamtrainingcenterrotations (PB13) SustainsreadinessonlyforOEF,next Reducesmaintenancefornondeployingunits deployers,KoreaRotationalForce,and ~$6B Reducesdepotmaintenanceworkload Division Ready Brigade DivisionReadyBrigade 5,000employeesreleased;economicimpactexceeds$2B CR Impactsreadinessanddegradestraining Stopspostwarrepairof1,300vehicles;14,000radios;and17,000weapons intoFY14andbeyond,causingreadiness Shortfall Reducesunitflyinghours;nondeployers willnotmaintainaircrewproficiency shortfalls Createstrainingbacklogforaviationandintelligenceoccupationalspecialties $59B (CR) Near NeartermActionstoReduceSpending Current ShocktovaluedCivilian Releases1,300temporaryandtermemployees;implementshiringfreeze , p y p y ; p g workforceandlocal workforce and local Project Project & & Reducesbaseoperationsupto30% Reducesbaseoperationsupto30% ~90%erosion communities ofCurrent& 86%ofcivilianworkforce Future Reducesfacilitysustainmentfrom90%to37%;reducesrestorationand Reducesfacilitysustainmentfrom90%to37%;reducesrestorationand Future worksandlivesoutsideof maintenanceoffacilitiesto0% Readiness Readiness theWashingtonMetroarea rd th
Fundsin 4th quarter

($34B)

quarterAirandGroundDepotMaintenance Cancels3 /4 quarterAirandGroundDepotMaintenance Cancels3 Reducestravel,conferences,andstudies

Wartime Spending ($25B)

OCT

DirectWarEffort($21.4B) Nexttodeployunitreadiness($2.7B) CriticalFamilyPrograms($1.3B) CriticalSoldierPrograms($0.08B)

Willnotcompromise

SEP

MortgagesfuturereadinessinFY13,andentersFY14hollowinReadiness.
FY:FiscalYear CR:ContinuingResolution PB13:PresidentsBudgetFY2013

Initial Estimate of CR + Sequestration + OCO Shortfall Effects

Army mortgages future readiness in FY13, and enters FY14 "hollow" in Readiness y g g ,

Immediate Actions
Hiring freeze imposed, released temp employees and not renew term employees. Terminated non-essential contracts, TDYs and conferences. , Canceled selected institutional training courses. Cash flowed In-theater Maintenance OCO bills out of base funds Cash flowed Second Destination Transportation OCO bills out of base funds Cash flowed National Training Center /Joint Readiness Training Center from Ground OPTEMPO and Flying Hour Program (risk in FY14 readiness for FY13 shortfall) Mission Command Training Program not funded to support operations and Civilian pay. TRADOC unable to cash flow. $2.5B Contractor Logistics Support not funded in base and/or OCO budget

Initial Estimate of CR + Sequestration + OCO Shortfall Effects

Army mortgages future readiness in FY13, and enters FY14 "hollow" in Readiness hollow

Planned Actions & Risk

UnabletorespondtoCOCOMcontingenciesorsupportCOCOMOPLANS
withoutadditionalfundsandadditionaltrainingtime Lackofretrogradedequipmentputsatriskselectcapabilitygeneration(e.g. CIED,ISR,basedefense)for3+years C IED ISR base defense) for 3+ years OnlyOEFdeployingunits,otherassignedunits(Korea)andDivision ReadyBrigadeconductnecessarytraining. Allothersexecuteverylimitedcollectivetrainingnohigherthansquad level.In1st quartersFY2014,78%ofnondeploying,nonforward deployedbrigadecombatteams(BCTs)arenotreadyforcontingencies withoutsignificantpreparation g p p UnabletosupportoperationsoutsideofOEF(OBSERVANTCOMPASS, PATRIOTsupporttoNATO) Lackoffundsinfringesonabilitytomeetgrowingcyberdefenseneeds ReducedsupportforSoldierandfamilyprograms: unabletomeetSHARP(SexualHarassment/AssaultResponseand PreventionProgram)goals, g )g , YellowRibbonProgramreduced SoldierFamilyAssistantCentersandArmySubstanceAbuseProgram fundingreduced Willnotmeetseconddestinationtransportation(SDT)goalsforretrograde placesAfghanistanretrogradetimelineinjeopardyanddelaysresetof$20Bin postwarequipmentneededforfuturecontingencies. OEFIntheaterMaintenanceexecutinghigherthanbudgeted;cashflowat highriskduetoreducedotherArmysources. ReducedcontractlogisticssupportforCIED,ISRandAviationinsupportof OEFoperationsputsatriskenablingcapabilitiesinsupportofOEF;inhibits newcapabilitygeneration;andreducesnewSoldierequipmentby50% ArmysupporttoJointExercisesreduced:5+exercisescanceled(e.g.KEY RESOLVE),allnonOEFBCTmissioncommandcanceled.Impactsjoint proficiency ReducedunitFlyingHourProgram,nondeployingunitswillnothavethe resourcestokeepallauthorizedcrewsproficient.ARSOUTHInteragency CounterDrugmissionsseverelyhampered;impactsstrategicpartnerships

ProfessionalMilitaryEducationcoursesreducedatalllevels(officer,NCO,activeand
reserve).Backlogcreated,unknownwhenwillbecleared.Impactsabilitytomaintain gradestructureandfuturereadiness;impactsArmycommitmenttocapturinglessons learnedinwarandbuildingstrengthintheProfessionalForceformilitaryandcivilian learned in war and building strength in the Professional Force for military and civilian personnel SelectedInitialMilitaryTrainingcoursesreduced/canceled. Reducedflightschoolstarts,backloggrowsto500+studentsandwillrequire2+ yearstorecover InitialMilitaryTrainingforcertainspecialtieswillbecanceled(e.g.Artilleryand MilitaryIntelligence);DrillSGTandAdvancedIndividualTrainingPlatoon y g ) g SergeantCoursesreduced CriticalDirectorateofLogisticsservicesprovidedthroughoutArmyInstallations significantlyreducedorterminated.Reachespotentialmissionfailureforpostswith nomanpowertodiverttothesefunctions(e.g.traininginstallations) NonewdepotmaintenanceordersissuedbeyondJanuary. Affects6DivisionsandancillaryunitsinAlaska,Colorado,Georgia,Hawaii, Kentucky,Louisiana,NewYork,andNorthCarolina. 1,300tacticalvehicles,14,000radios,17,000weapons; SDTshortfallcreatesbacklogof3+years Release~5,000depottemporary,termandcontractemployees Impacts3,000Companies;366highrisk,742mediumriskofbankruptcy Withoutreprogrammingauthority,multiplecommandsatriskofnotsupporting p g g y, p pp g payrollevenafter22dayfurlough 21of26Armymajoracquisition(ACAT1)programspotentiallyincursignificantNunn McCurdybreaches Affects300+contractors,1,000+suppliersandmorethan40states Increasesunitcostinsomeprograms10percent,delaysupto18months Installationoperationsathighrisk:FacilitiesSustainmentreducedfrom90%to37%, p g % %, servicingonlylife,healthandsafetyrequirements.CancelledallRestorationand Modernizationprojects.CriticalimpactsaretheWestPointCadetBarracksandthe TrainingBarracksUpgradeProgram;stopsenergyandenvironmentalprojects, Europeantransformationprojectspostponed