Milt E.Milt E. NappierNappierMarch 25, 2009March 25, 2009

Combatant Commander Exercise EngagementStakeholder Leadership Team (CE2 SLT)

FY 2009 CE2T2 Fiscal Update2009 Midyear Review Planning

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FY 2009 CE2T2 FundingFY 2009 CE2T2 Funding $747M CE2T2 funds available for obligation (less taxes)

O&M -- $670M – 65% of funding issued to date

RDT&E -- $57M (includes $20M for Congressional Adds) -- 100% of funding issued

Procurement -- $20M – 100% of funding issued

Congressional and Undistributed Taxes -- $21.7M

O&M Undistributed Taxes -- $19.7M

RDT&E Undistributed Taxes -- $1.8M

Procurement Undistributed Taxes -- $.2M

OUSD(P&R) Readiness and Training released Midyear Review Planning Guidance March 4, 2009

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CE2T2 FY09 O&M EMS Actual Obligations

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

CE2T2 FY09 Apportionment Request

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

1st Quarter$221,059

33%

2nd Quarter$212,181

32%

3rd Quarter$168,533

25%4t

h Quar

ter

$68,

231

10%

$ 000

1st Quarter

Obligations

$76,225

11%

2nd QuarterObligations

thru February$259,120

39%

FY09 Apportionment Request reflects how PMs planned to execute O&M CE2T2 programs

OSD(C) required justification to support more than 25% of funding per quarter

Shows how PMs are executing O&M CE2T2 programs as reflected in the Execution Management System (EMS) compared to FY09 Apportionment Request

CE2T2 Program on track to achieve at least 65% obligations by end of 2nd Quarter (31 March)

$ 000

CE2T2 FY 2009 O&M FISCAL OVERVIEW

September 2008 February 2009

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February O&M 2009 Actuals Obligations — Goal 42%

Programs below RED line did not meet February 2009 42% Obligation benchmark for O&M

 CLAIMANT   Project Title Execution

Value  OCT   NOV   DEC   JAN   FEB  Actual 

 Obl Sum  Actual   Obl % 

Joint Staff CE2 Management Support 403 0 396 0 0 0 396 98%STRATCOM COCOM Headquarters Joint Exercise Support 7,736 0 2,217 5 -9 4,167 6,380 83%TRANSCOM COCOM Headquarters Joint Exercise Support 4,215 1,719 339 7 564 0 2,629 62%Joint Staff Joint Exercise Transportaion Program (JETP) 263,719 0 5,428 0 70,079 87,698 163,205 62%USMC Joint National Training Capability (JNTC) 4,173 0 0 1,352 649 578 2,579 62%JFCOM Joint Task Force/Functional Component Hq Certification 12,357 1,090 16 2,002 156 4,009 7,273 59%Joint Staff Joint Trng Information Management Sys (JTIMS) 6,252 1,500 0 0 0 2,138 3,638 58%Army Joint National Training Capability (JNTC) 11,097 0 2,365 2,025 2,047 615 7,052 58%Navy Joint National Training Capability (JNTC) 8,131 1,825 0 70 750 2,050 4,695 58%JFCOM JWFC COCOM Exercise Support 30,363 2,541 229 4,346 317 9,421 16,854 56%JFCOM JWFC Support Element/Liaison Officer (SE/LNO) 4,744 425 0 853 776 494 2,548 54%SOCOM COCOM Headquarters Joint Exercise Support 5,673 13 38 0 4 2,881 2,936 52%P&R Joint Assessment & Enabling Capability ( JAEC) 2,137 0 0 0 0 1,100 1,100 52%USAF Joint National Training Capability (JNTC) 17,580 1,295 3,222 0 4,124 399 9,040 51%JFCOM Joint National Training Capability (JNTC) 57,109 931 1,329 11,406 2,961 11,812 28,439 50%LANFLT Joint Exercise Program (JEP SIF) 1,139 0 0 0 536 0 536 47%Joint Staff Joint Training System Specialist (JTSS) 11,196 0 0 0 0 5,088 5,088 45%JFCOM Joint Deployment Training Center (JDTC) 14,266 2,073 379 1,452 2,125 426 6,455 45%JFCOM Joint Knowledge Dev & Distro Capability (JKDDC) 7,744 0 579 37 2,299 455 3,370 44%USAF Joint Exercise Program (JEP SIF) 23,221 0 0 4,114 4,665 1,052 9,831 42%JFCOM JWFC Core (Doctrine & Operations) 37,598 2,940 1,852 1,998 0 8,990 15,780 42%PACOM COCOM Headquarters Joint Exercise Support 12,007 96 155 1,164 2,396 979 4,790 40%PACFLT Joint Exercise Program (JEP SIF) 5,299 111 970 139 507 303 2,030 38%JFCOM JKDDC Regional Security Cooperation Network (RSCN) 1,975 141 0 400 0 63 604 31%PACOM Joint Task Force/Functional Component Hq Certification 3,638 0 5 321 623 124 1,073 30%USMC Joint Exercise Program (JEP SIF) 21,573 0 0 1,833 0 3,922 5,755 27%Army Joint Exercise Program (JEP SIF) 54,486 810 923 3,453 5,139 3,480 13,805 25%NORTHCOM COCOM Headquarters Joint Exercise Support 18,389 0 0 137 970 3,436 4,543 25%SOUTHCOM COCOM Headquarters Joint Exercise Support 2,349 11 213 27 129 132 512 22%EUCOM COCOM Headquarters Joint Exercise Support 4,333 68 59 17 584 108 836 19%AFRICOM COCOM Headquarters Joint Exercise Support 4,356 19 42 40 46 593 740 17%CENTCOM COCOM Headquarters Joint Exercise Support 10,746 371 139 153 170 0 833 8%

670,004 17,979 20,895 37,351 102,607 156,513 335,345 50%TOTAL

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February Procurement 2009 Actuals Obligations — Goal 33%

Programs below RED line did not meet February 2009 Obligation benchmarks (Proc 33%; RDTE 46%)

 CLAIMANT   Project Title Execution

Value  OCT   NOV   DEC   JAN   FEB  Actual 

 Obl Sum  Actual   Obl % 

JFCOM Joint National Training Capability (JNTC) 16,191 0 0 0 270 2,234 2,504 16%JFCOM Joint Warfighting Center (JWFC) 3,518 0 0 0 0 2,363 2,363 67%

19,709 0 0 0 270 4,597 4,867 25%TOTAL

 CLAIMANT   Project Title Execution

Value  OCT   NOV   DEC   JAN   FEB  Actual 

 Obl Sum  Actual   Obl % 

PACOM COCOM Headquarters Joint Exercise Support 1,742 0 3 6 1,642 0 1,651 95%JFCOM Joint Simulation System (JSS) 9,346 1,448 1,228 2,140 1,906 303 7,025 75%JFCOM Joint National Training Capability (JNTC) 22,863 651 443 471 2,413 2,485 6,463 28%JFCOM Integrated Analysis Environment 1,165 0 0 0 0 0 0 0%JFCOM Agile Software Capability Interventions 1,554 0 0 0 0 0 0 0%JFCOM Indiana Complex Operations Partnership 1,942 0 0 0 0 0 0 0%JFCOM NMSU Institute for Defense and Public Policy 9,708 0 0 0 0 0 0 0%JFCOM Playas Training and Research Joint Trng Experiment 4,659 0 0 0 0 0 0 0%JFCOM Training Capability Analysis of Alternatives (TCAoA) 3,571 0 0 0 0 0 0 0%

56,550 2,099 1,674 2,617 5,961 2,788 15,139 27%TOTAL

February RDT&E 2009 Actuals Obligations — Goal 46%

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FY2009 Summary of FY2009 Summary of Program PerformanceProgram Performance

February 2009February 2009

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FY2009 Financial Status – O&MFY2009 Financial Status – O&MActuals versus Annual AllocationsActuals versus Annual Allocations

Program Obligation Summary

O&M CE2T2 FY2009 Obligations: SummaryAs of February 2009

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Feb DoD Obligation Goal for February: 42% Mid-Year Review: 50% Public Law 31 July: 80%

Public Law 31 July: 80%

Mid-Year Review (notional): 50%

February 2009 Goal: 42%

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FY2009 Financial Status – ProcurementFY2009 Financial Status – ProcurementActuals versus Annual AllocationsActuals versus Annual Allocations

Program Obligation Summary

Procurement CE2T2 FY2009 Obligations: SummaryAs of February 2009

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Feb DoD Obligation Goal for February: 33% Mid-Year Review (notional): 40% End of Year Goal: 77%

End of Year Goal: 77%

Mid-Year Review (notional): 40%

February 2009 Goal: 33%

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FY2009 Financial Status – RDT&EFY2009 Financial Status – RDT&EActuals versus Annual AllocationsActuals versus Annual Allocations

Program Obligation Summary

RDT&E CE2T2 FY2009 Obligations: SummaryAs of February 2009

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Feb DoD Obligation Goal for February: 46% Mid-Year Review (notional): 55% End of Year Goal: 90%

End of Year Goal: 90%

Mid-Year Review (notional): 55%

February 2009 Goal: 46%

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FY2008 Summary of FY2008 Summary of Program PerformanceProgram Performance

February 2009February 2009

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FY2008 Financial Status – ProcurementFY2008 Financial Status – ProcurementActuals versus Annual AllocationsActuals versus Annual Allocations

Program Obligation Summary

Procurement CE2T2 FY2008 Obligations: SummaryAs of February 2009

75%

80%

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100%

JDTC JNTC JFCOM JWFC JFCOM

% O

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% Obligated DoD Obligation Goal for February: 84%

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FY2008 Financial Status – RDT&EFY2008 Financial Status – RDT&EActuals versus Annual AllocationsActuals versus Annual Allocations

Program Obligation Summary

RDT&E CE2T2 FY2008 Obligations: SummaryAs of February 2009

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JNTC JSS TCAoA Alt 5 TCAoA Alt 4 JCTC

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% Obligated DoD Obligation Goal for February: 94%

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2009 Midyear Review 2009 Midyear Review Planning -- FormatsPlanning -- Formats

(Tentative)(Tentative)

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2009 Midyear Review (MYR) Scope2009 Midyear Review (MYR) Scope FY 2008: CE2T2 RDT&E and Procurement Programs

FY 2009: CE2T2 O&M, RDT&E and Procurement Programs

Notional Midyear Review Benchmarks (Obligation %)

Expenditures

OUSD(Comptroller) 2008 Midyear Review Guidance quote:

“As with any RDT&E account, the main focus when measuring execution performance is expenditures.”

— 2008 Midyear Review RDT&E expenditure benchmark was 35%

No 2008 MYR guidance on expenditures for O&M or Procurement

O&M RDTE ProcFY 2008 N/A 95 73FY 2009 50 55 40

OFFICIAL MYR GUIDANCE TBD

FY 2008: CE2T2 RDT&E and Procurement Programs

FY 2009: CE2T2 O&M, RDT&E and Procurement Programs

Notional Midyear Review Benchmarks (Obligation %)

Expenditures

OUSD(Comptroller) 2008 Midyear Review Guidance quote:

“As with any RDT&E account, the main focus when measuring execution performance is expenditures.”

— 2008 Midyear Review RDT&E expenditure benchmark was 35%

No 2008 MYR guidance on expenditures for O&M or Procurement

OUSD(Comptroller) MYR GUIDANCE TBD

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EMS DocumentationEMS Documentation

Use file upload feature in EMS to provide documentation to support obligations, etc.

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DFAS Execution

Value Oblig $$Exp $$

Oblig% (formula)

Exp% (formula)

Oblig $$ (formula)

Exp $$ (formula)

Oblig $$ (formula)

Exp $$

(formula)

0 0 0 #DIV/0! #DIV/0! 0 0 0 0

EMS Execution

ValueCommit

$$Oblig

$$Exp $$

Commit% (formula)

Oblig% (formula) Exp% (formula)

0 0 0 0 #DIV/0! #DIV/0! #DIV/0!

Recovery/Get Well Plan

0902198D8Z / 4GTN

P&R Reported Actuals

Defense Finance and Accounting Service (DFAS) February 2009 Oblig: 50% Exp: 37%

DoD Benchmarks

Operations & Maintenance (TY$K) FY2009 MID-YEAR EXECUTION REVIEW OUSD(P&R) Readiness and Training

Program Name

ODUSD(P&R) Readiness and Training

Recovery Plan (Efforts required to achieve the 50% obligated and 37% expended benchmarks)

Program Element / AGSAG

DeltaDFAS - BenchMark

Official format will change – information requested relatively the same

Expect several iterations of these charts

Significant difference this year – OUSD(P&R) will develop MYR charts based on information in the Execution Management System (EMS)

— Documentation must be loaded in EMS to support obligations

— OUSD(P&R) will forward draft charts to PMs for coordination

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Unfunded Requirements (UFRs)Unfunded Requirements (UFRs)Resource Management PlanResource Management Plan

Internal ReprioritizationInternal Reprioritization Midyear Review UFRs are requested for CE2T2 Enterprise wide sourcing

Commands/organizations can reallocate up to $500K O&M internally

– Appropriation and service boundaries must be adhered to

– These reallocations must be reported during periodic JIPT meetings

Command/organizations can reallocate up to $1.5M O&M internally

– Appropriation and service boundaries must be adhered to

– These reallocations require Director, Readiness and Training Policy and Programs (RTPP) approval

Reallocations greater than $1.5M in O&M require Deputy Under Secretary of Defense, Readiness (DUSD(R)) approval

RDT&E and Procurement Reallocation

Must follow JIPT and SAG approval thresholds as O&M appropriation

Can only be made in accordance with applicable fiscal law and procedural guidelines

Prioritized Unfunded Requirements Due 3 Apr 09

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Unfunded Requirements (UFRs)Unfunded Requirements (UFRs)Rules of EngagementRules of Engagement

UFRs must be approved at GO/FO/SES level and submitted to Mr. Gardner with a copy to Mr. DiGiovanni and Milt Nappier

UFRs must be prioritized by command/organization

OUSD(P&R), in coordination with the Joint Staff, JFCOM and Services (GO/FO/SES level) will prioritize UFRs across CE2T2 Enterprise

O&M UFRs – Submission Limits

COCOM HQ Joint Exercise Support via Joint Staff – 5 maximum

Joint Staff – 3 maximum

JFCOM – 5 maximum

Services – 2 per Service

RDT&E and Procurement

Three UFRs per appropriation

In addition to merits of each UFR, following will also be considered

March 31st (midyear review) benchmarks

Funds unobligated at end of FY2008

Prioritized Unfunded Requirements Due 3 Apr 09

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5 March Finalize Obligations & Expenditure Plans in EMS

5 March EMS Update (February Actuals)

5 March Load/Update Obligation and Expenditure Documentation in EMS

3 April Unfunded Requirements Due

5 April EMS Update (March Actuals)

31 Jul 09 80% O&M Must Be Obligated

Action Items

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BACKUPBACKUP

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DoD Obligation and Expenditure GoalsDoD Obligation and Expenditure GoalsFY 2009FY 2009

Month OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP

RDT&E  Oblig % 7 16 26 36 46 55 60 66 72 78 84 90

RDT&E  Exp % 1 7 13 20 28 35 38 40 42 44 45 47

PROC  Oblig % 6 12 19 26 33 40 46 52 59 65 71 77

PROC  Exp % 2 4 6 8 10 12 13 15 17 19 21 23

O&M  Oblig % 8 16 24 33 42 50 58 66 72 80 90 100

O&M  Exp % 6 12 18 23 29 35 41 46 52 58 64 69

DoD Oblig/Exp Goals - FY2009

REQUIRES OUSD(COMPTROLLER) CONCURRENCE