PB 2012 SECDEF Efficiency Initiatives

1. PB 2012 SECDEF Efficiency Initiatives OSD Ref # Initiative Milestone Risk Program Risk 1 Service Support Contractor Reduction 12 Civilian Manpower Freeze - Navy Note: FMB will assess and report on these initiatives Enclosure (1) 1 FOR OFFICIAL USE ONLY

2. PB 2012 DON Efficiency Initiatives Initiative Milestone Risk Program Risk • USMC Housing and BAH Efficiencies • USMC CIVPERS Optimization • Cancel Offshore Supply Vessels (OSVs) • SECNAV Energy Initiative – MILCON • Realize ERP Savings at NAVSUP • Contractor Support Reduction • Service Support Contracts • Strategic Sourcing • Organization and HQ Consolidations • SPAWAR Efficiencies • NAVSEA Overhead Reduction • Reduce BSO 60-70 Fleet Shore Command by 5% • Note: These PB12 initiatives were initially chosen by DON DCMO as representative of DON efforts. All were previously assessed ‘green’ and, therefore, not reported to OSD. • If a BSO assesses otherwise: • Change milestone and/or program risk assessment to or • Complete slides 3 and 4 • Submit ‘exception’ to FMB Enclosure (1) 2 FOR OFFICIAL USE ONLY

3. DON – Efficiency Title from PB 2012 DON Efficiency Initiatives Slide Definition and Assumptions Description:Short description. e.g. Reduces the Department's reliance on service support contractors by 10 percent per year from FY2011 to FY2013.Assumptions:List assumptions. e.g. This effort is underpinned by SECDEF Memo 24 SEP 2010. Staff augmentation is targeted at support staff and impacts DON Headquarters staff and 30 submitting offices and 566 contracts. Primary oversight of the task within DON resides with the Senior Services Manager (ASN RD&A) with DCMO, ASN FM&C, and ASN M&RA support. Initiative Governance Plan Governance Plan Description and OPR: e.g. ASN (RD&A)Responsible POC: Stakeholder ASN Latest Plan Update: Describe recent review activity Enclosure (1) FOR OFFICIAL USE ONLY

4. DON – Efficiency Title from PB 2012 DON Efficiency Initiatives Slide Milestone PlanChoose assessment color that corresponds to slide 2 • List Major Milestones: • Example: • Stood up Director of Services Contracting – completed 30 Nov 10 • FY11 Section 807 Contractor Services Inventory Guidance received Dec 11 for new submission due JUN 12 – Completed • Engaged with Provider Enterprise EXCOMM wrt “Contracts Court” and requirements validation OCT 11 - ongoing • Issued DON “Service Requirements Review Board (SRRB)” Guidance to establish standards in identifying, validating, optimizing, assessing, planning, and monitoring service acquisitions – APR 12 • DON CAPE Services Reduction mid-year data call completed. Results showed 2,702 and 1,773 service support contractor FTEs in FY11 and FY12, respectively. This was approximately a 35% reduction in service support contractor FTEs in FY12 Issues and Program Risks Choose assessment color that corresponds to slide 2 Issues: Describe current issues Indicate funding amount required to restore risk to ‘green’ Enclosure (1) FOR OFFICIAL USE ONLY

5. PB 2013 More Disciplined Use of Resources OSD Ref # Initiative Milestone Risk Program Risk • Streamline Naval Installations • Information Technology Reductions • 22 Strategic Sourcing • Note: These PB13 initiatives were previously assessed as at risk by DON leadership and reported to OSD. • BSOs must assess and report on these: • Change milestone and/or program risk assessment to or • Complete slides 7 and 8 • Submit ‘exception’ to FMB Enclosure (1) FOR OFFICIAL USE ONLY

6. PB 2013 More Disciplined Use of Resources Initiative Milestone Risk Program Risk • Properly Price CVN Refueling & Complex Overhaul, DDG & V22 • USMC Special Duty Assignment Pay Reduction • USMC Early Release at 90 days • Procurement Mod Reductions • Strength Plan Re-phasing – Navy Reserve • JFCOM Disestablishment Savings • Note: These PB13 initiatives were previously assessed as low risk and on track by DON leadership and, therefore, not reported to OSD. • If a BSO assesses otherwise: • Change milestone and/or program risk assessment to or • Complete slides 7 and 8 • Submit ‘exception’ to FMB Enclosure (1) FOR OFFICIAL USE ONLY

7. DON – MDUR Title from PB 2013 DON MDUR Initiatives Slide Definition and Assumptions Description:Short description. e.g. Reduces the Department's reliance on service support contractors by 10 percent per year from FY2011 to FY2013.Assumptions:List assumptions. e.g. This effort is underpinned by SECDEF Memo 24 SEP 2010. Staff augmentation is targeted at support staff and impacts DON Headquarters staff and 30 submitting offices and 566 contracts. Primary oversight of the task within DON resides with the Senior Services Manager (ASN RD&A) with DCMO, ASN FM&C, and ASN M&RA support. Initiative Governance Plan Governance Plan Description and OPR: e.g. ASN (RD&A)Responsible POC: Stakeholder ASN Latest Plan Update: Describe recent review activity Enclosure (1) FOR OFFICIAL USE ONLY

8. DON – MDUR Title from PB 2013 DON MDUR Initiatives Slide Milestone Plan Choose assessment color that corresponds to slide 2 • List Major Milestones: • Example: • Stood up Director of Services Contracting – completed 30 Nov 10 • FY11 Section 807 Contractor Services Inventory Guidance received Dec 11 for new submission due JUN 12 – Completed (Mr. Ken Brennan) • Engaged with Provider Enterprise EXCOMM wrt “Contracts Court” and requirements validation OCT 11 - ongoing (Mr. Ken Brennan) • Issued DON “Service Requirements Review Board (SRRB)” Guidance to establish standards in identifying, validating, optimizing, assessing, planning, and monitoring service acquisitions – APR 12 • DON CAPE Services Reduction mid-year data call completed. Results showed 2,702 and 1,773 service support contractor FTEs in FY11 and FY12, respectively. This was approximately a 35% reduction in service support contractor FTEs in FY12 Issues and Program Risks Choose assessment color that corresponds to slide 2 Issues: Describe current issues Indicate funding amount required to restore risk to ‘green’ Enclosure (1) FOR OFFICIAL USE ONLY

9. PB 2013 Congressional Interest Items OSD Ref # Initiative Milestone Risk Program Risk • 23 Section 808 Contract Services • 24 FY 2013 30% Travel Reduction 1 - 1- 1 - 1- Note: FMB will assess and report on these initiatives Enclosure (1) FOR OFFICIAL USE ONLY

10. FY 2014 More Disciplined Use of Resources Note: These will be reported beginning in FY 2014 Enclosure (1) Note: No action required at this time 10 FOR OFFICIAL USE ONLY