Base Realignment and Closure (BRAC)

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Base Realignment and Closure (BRAC)

• The Armys Approach to Managing Resources

10 August 2005
Mr. Jeff Giangiuli Vice President CALIBRE
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Discussion

1. Definitions of BRAC Savings and Costs
2. Appropriation
3. Results of Past Rounds
4. Management of Current Legacy
5. Expectations for Current BRAC 2005
6. Concluding Thoughts

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BRAC Savings Defined
For Closing and Realigning Installations
One-time Implementation costs
Total Cost of Installation Operations
-
Recurring costs at Gaining Installations
-
-

Recurring costs at Enclaves
Net BRAC Savings

• Savings result from
• Civilian personnel reductions
• Base Operations Support (BOS) cost reductions
• Sustainment Restoration and Modernization (SRM)
  cost reductions
• Reduced capital fund costs
• Cancellation of budgeted Military Construction
  (MILCON) projects
• Family Housing Operations cost reductions

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BRAC Costs Defined

• BRAC costs are the one-time, non-recurring costs
  that support the implementation of BRAC
  decisions.
• Costs are organized into 6 BRAC budget
  activities
• BA1 MILCON
• BA2 Family Housing
• BA3 Operations and Maintenance
• BA4 Military Personnel
• BA5 Other Procurement
• BA6 Environmental
• Part of Army Total Obligation Authority (TOA)
• Budgeted, Appropriated, and Executed as an OSD
  account

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BRAC MAKES ENSE (M)
FY97 Break Even Year
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BRAC 1988 1995 Program Execution TOTAL ARMY
BRAC FUNDING FY 90-05
Total 5.6B
ENVIRONMENT 45
2.5 Billion
1.7 Billion
1.3 Billion
MILCON 31
OM / Other 24
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Resource Optimization

• Program Optimization
• Program Review Crosswalks (PRXs) and In-Process
  Reviews (IPRs)
• Validates installations future year
  cost-to-complete (CTC)
• Validates path to Remedy in Place/Response
  Complete (RIP/RC)
• Environmental Services Cooperative Agreements
  (ESCAs)
• Transfers both property and cleanup effort
• Accelerates the disposition of Hard to Move
  BRAC property
• Integrates cleanup and redevelopment to the
  benefit of local communities
• Performance-Based Contracting
• Eliminates lengthy clean-ups
• Demonstrates commitment to all stakeholders
• for cleanup of the property
• Limits risk to Army of cost overruns

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Resource Optimization (Continued)

• Fiscal Optimization
• BRAC Action Scheduler (BRACAS)
• Financial optimization model that evaluates
  savings options based on the scheduling of
  various realignment and closure actions
• Critical to the efforts to optimize BRAC 2005
  implementing actions to enhance BRAC savings
• BRAC Optimization Model (BOM)
• Financial model that takes into account
  environmental regulations, legal agreements, key
  dates, and relative risk
• Output removes slack and budget conflicts

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Army/BRAC Path Forward for FY05

• Finalize Last Four BRAC Rounds
• Maximize Use of Performance-Based Contracting
• Maximize Use of ESCAs and Early Transfers
• Review/Justify CTC
• Track BRAC 2005 Costs and Savings
• Link Environmental and Real Estate Stove Pipes
• Accelerate Conveyance of Real Property

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BRAC 2005 Cost and Savings Audit Trail
Actual/ updates
POM/ Budget
BRAC Budget
TABS COBRA
Cost Savings
Expectation of GAO and Congress is to implement
BRAC at the published cost and achieve and track
expected savings.
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Control Costs

• Army (ACSIM) Lead GO Team
• 22 Installations
• Aug Sept 05
• Review Senior Mission Commander Plans
• Reconcile COBRA Estimates with Developing
  Requirements
• Look at all options (e.g. Revitalize existing
  facilities, privatization)
• Employ Army Audit Agency (AAA) Teams
• Use Standard Designs (Site Adapt for local
  requirements)
• Use Commercial Specifications
• Centrally Manage Change Requests

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BRAC 2005 Savings Metrics Response to
GAO/Congressional Interest

• COBRA analysis establishes savings baseline
• Implementing organizations develop savings
  estimates
• BRACD/ARSTAF evaluate estimates against baseline
• Deviations accepted based on DFAS data
  (accounting records) or similar evidence of
  actual cost of operations
• Dispute issues audited by AAA
• BRACD establishes BRAC 2005 savings budget
  baseline
• Army G-8 programs BRAC 2005 savings by
  appropriation/organization
• Army updates savings estimates annually based on
  actual execution data
• BRACD updates BRAC 2005 justification book to
  reflect savings

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Capture Use of Savings

• Savings a product of Manpower Efficiencies
• Achieved as we finish MILCON and relocations
• Achieved upon Closure and Realignment
• Majority available in FY08 11
• Track BRAC savings annually during POM build
• Additional Revenue from Land Sales
• Fair Market Value should reduce Federal and
  Public Benefit Conveyance property requests
• Rural Army properties are likely candidates for
  no-cost Economic Development Conveyances (EDCs)

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Concluding Thoughts

• Management and control of resources associated
  with implementing BRAC actions is difficult
  because of economic, mission, infrastructure,
  environmental, and political issues. An
  aggressive and committed resource management
  approach is needed.
• Use of private sector and/or market forces has
  helped to accelerate some past BRAC actions
  that were otherwise languishing.
• What worked before should be built upon for
  implementation of the next round to minimize
  one-time costs, accelerate timelines, and
  maximize recurring savings especially with
  respect to the hard to move properties.

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Contact Information

• Mr. Jeff Giangiuli
• Vice President
• CALIBRE
• Phone [phone]
• Email jeff.giangiuli_at_calibresys.com