operation and maintenance overview - Office of the Under Secretary ...

FY 2012 /1
Actual
Price
Growth
Program /2
Growth
NAVY
$ in Millions
FY 2013 /2,3
Estimate
NAVY
Price
Growth
Program /2
Growth
FY 2014 /3
Estimate
46,979.8 1,229.3 -6,602.1 41,606.9 -145.6 -1,516.1 39,945.2
-3,252.8 -3,252.8 -3,252.8
46,979.8 1,229.3 -9,854.9 38,354.1 -145.6 1,736.7 39,945.2
1
FY 2012 includes Overseas Contingency Operations (OCO) funding
2
FY 2013 contains an undistributed adjustment to match the annualized Continuing Resolution
3
FY 2013 and FY 2014 exclude OCO funding
Numbers may not add due to rounding
The Operation and Maintenance, Navy (OMN) appropriation finances the day-to-day costs of operating naval forces, including fuel,
supplies, and ship maintenance, Navy and Marine Corps aircraft maintenance, related weapon systems maintenance, and the support
establishment ashore. The primary focus of the Department’s FY 2014 budget is to continue to operating forward across the global
environment, providing the nation offshore options to deter and defeat aggression today and into the future. This budget does not
reflect the uncertainty associated the implementation of sequestration as an end product of the Budget Control Act of 2011. In this
challenging time, this budget balances procurement with operations, having reviewed every decision and made the best possible
choices. The Navy continues to scrutinize every option to provide the most affordable, versatile and effective budget. Despite
drawdown, the Navy will continue to support non-traditional joint requirements around the globe, and the force will continue a
renewed focus on Asia and the Pacific. The Navy will remain a global force with the ability to provide credible deterrence anywhere.
Together with the Marne Corps, the Navy constitutes the nation’s forward rotational force, operating globally at sea and on land. The
Navy will continue to provide a balanced blend of peacetime engagement and major combat operational capabilities. The FY2014
funding supports Combatant Commander OPTEMPO requirements and sustains enduring steaming day (45/20) deployed/nondeployed
and flight hour (T-2.5/T-2.0 Navy/Marine Corps) readiness requirements.
OVERALL ASSESSMENT:
The FY 2014 estimate of $39,945.2 million includes a price decrease of $145.6 million. This price change primarily results from
increases in general inflation changes ($308.9 million), civilian pay ($70.7 million), and transportation ($3.2 million), offset by
decreases in Working Capital Fund (WCF) rate costs ($441 million), and fuel ($96.7 million). This budget reflects an overall program
decrease of $1,516.1 million. The program decreases between FY 2013 to FY 2014 by approximately 4 percent. The remaining
program decreases are due to the USS ENTERPRISE (CVN 65) deactivation of $928 million and other force structure changes within
the Navy. Included in this appropriation are costs for bio-fuel, supplemented with Department of Agriculture, Commodity Credit
Corporation funds for costs above market price for petroleum-based fuel, in support of a sustainable commercial bio-fuels industry.
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