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

OPERATION AND MAINTENANCE TITLE SUMMARY
PRICE CHANGES
Price change reflects the additional cost of executing the previous year’s program at the next year's prices. In general, price change
amounts are estimated by applying price change rates to amounts budgeted for various commodity groups (i.e., civilian pay, Working
Capital Fund purchases, medical supply purchases, general non-personnel purchases, etc.). The FY 2014 price change is $2.7 billion.
For FY 2014, the budgeted pay raise is 1.0 percent for General Schedule and wage board employees and is projected to be effective
January 1, 2014. It also provides for foreign national employee pay raises at the rates negotiated with the host countries provided to
public sector personnel.
Consistent with Office of Management and Budget (OMB) direction, the general non-personnel purchase inflation rate is 1.9 percent
for FY 2014.
Working Capital Fund rates change by business activity group and vary from year to year. The following list of FY 2014 rate changes
are composite rates that will vary based on the specific purchase categories. This list represents those business areas that account for
the vast majority of orders from O&M customers. The FY 2014 budget submission assumes West Texas Intermediate crude oil at
$89.12 per 42-gallon barrel with a standard composite selling price of $152.04 per barrel, which includes the cost of crude oil, refined
products, inventory control, transportation, storage, and operating costs.
Rate Change
Defense Working Capital Funds
(Percent)
Army Managed Supplies, Materials, and Equipment -2.75
Navy Managed Supplies, Materials, and Equipment -0.11
Air Force Managed Supplies, Materials, and Equipment 6.25
Marine Corps Managed Supplies, Materials, and Equipment -0.91
Defense Logistics Agency (DLA) Managed Supplies, Materials, and Equipment -0.19
Army Industrial Operations 4.01
Navy Fleet Readiness Centers (Aviation) 2.55
Marine Corps Depot Maintenance -2.77
Air Force Consolidated Sustainment Activity Group (Maintenance) 4.06
Air Force Consolidated Sustainment Activity Group (Supply) 3.08
Navy Facility Engineering Command 2.80
Navy Military Sealift Command (Navy Fleet Auxiliary Force) -7.60
Navy Military Sealift Command (Special Mission Ships) -38.40
USTRANSCOM Channel Cargo 1.90
USTRANSCOM Channel Passenger 1.90
USTRANSCOM Flying Training (C-5 and C-17) 0.90
OPERATION AND MAINTENANCE TITLE SUMMARY
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