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Ellen Rosenthal Bldg 204, Rm

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1 Ellen Rosenthal Bldg 204, Rm 203 703-805-4430
EPMC FM Update Ellen Rosenthal Bldg 204, Rm 203

2 Topics FM Scope FM Updates Time Now OSD/OMB Budget Review

3 Financial Management Scope Commitment Reprogramming
Planning, Programming Budgeting & Execution Life Cycle Cost Estimate Annual Funding ICE Cost Analysis Funding Policies FYDP DPG PDM PBD Full Funding (Exceptions) MFP POM BES CAIV CCA Incremental Funding MBIs Fiscal Environment POE Congressional Enactment President’s Budget HAC HASC HBC Budget Resolution Authorization & Appropriation Laws SAC SASC SBC Introduce student to subject of Funds Management. Why study it? -- Money is lifeblood of program. Learn how to get it and keep it. Walk through “Cloud Chart” - the funds management portions of acquisition Stress that process is not as straightforward as it appears due to having to deal with multiple years’ of money -- several of these processes may be operating on your program simultaneously. APB Operational Concept Force Structure Modernization Operational Capability Readiness Sustainability Commitment Reprogramming Feedback ICD Budget Authority Obligation Outlay Budget Execution

4 FM Updates Cost Analysis: Affordability, CAIV, Breaches
Funding Policies: Funding Limitations, Severable Contracts, Multi-Year Service Contracts, 18 Month RDT&E Exception, AIS Systems, LRIP PPBE: FY-05-09/MID-913 Congressional Enactment: 108th Congress Budget Execution: Reprogramming Limits. New Starts, OSD Goals, CFSR, Termination Liability, Fiscal Law

5 Affordability Programs must be consistent with overall DoD planning and funding priorities Applies to all programs Foster greater program stability: Fully Funded in the FYDP Assess affordability at each milestone CAIG and CPIPT shall address affordability Basic concept is that components must put their money where their mouths are. Components must decide early on which programs are affordable and then provide sufficient resources for them in the FYDP (“fully fund”) -- reduces funding uncertainty and therefore makes program more stable. The DAB is now requiring programs to be funded at the CAIG estimate (usually more conservative – higher).

6 Cost As An Independent Variable (CAIV)
Essential to balance three significant parameters or variables in acquisition programs: Cost Schedule Performance Two of those variables are dependent on the third. Under CAIV philosophy, performance and schedule are dependent on cost Applies to all programs by end of FY 02 CAIV is an extension of all other acquisition reform efforts. CAIV requires that at Program Initiation, the PM set cost objectives and thresholds for the four major cost categories previously discussed: R&D, Investment, O&S, and Disposal. Thus CAIV looks at Life Cycle Cost. Cost/Performance IPT is empowered to recommend performance or engineering / design changes which lower cost but still permit performance and schedule thresholds to be achieved. Changes which negatively impact threshold values must be approved by ORD/APB approval authorities to ensure mission needs can still be met. “CAIV flagship” programs: - Army: ATACMS/BAT (P3I), Crusader - Navy: AIM-9X, MIDS - Air Force: SBIRS, JASSM, EELV - JSF CAIV success stories: - Joint Direct Attack Munition (JDAM) -- claims 66% production cost savings - MIDS redesign for 100% performance, 50% cost

7 Nunn-McCurdy Breach Implications
Law requires cancellation of acquisition program with 25% or greater unit cost overrun unless DAE provides specific “certifications” Certifications required to continue program: Program is “vital” to national security; There are no alternatives that provide equal or greater capability at less cost; Latest cost estimates for program are reasonable; and The current acquisition strategy is adequate to manage and control cost.

8 Nunn-McCurdy Breach Implications (cont.)
Program cancelled under provisions of Nunn-McCurdy unit cost breach: Area Missile Defense Program (Navy; 65% cost growth) Programs currently “on – watch” for cancellation: CH-47 Chinook Helicopter Upgrade (Army; 117%) Guided Multiple Launch Rocket System (Army; 153%) Chemical Demilitarization (Army; 80%) Space Based Infrared System High (Air Force; 66%) LPD-17 Amphibious Ship (Navy; 75%) UH-1 Huey Helicopter Upgrade (Marine Corps; 68%)

9 Major Appropriation Categories
APPN CAT FUNDING POLICY OBLIGATION PERIOD SCOPE OF WORK EFFORT RDT & E RDT&E Activities & Exp, Minor Const & AIS R&D Fac Incremental 2 Years PROC (SCN) Production Labor/HW, Initial Spares, HW & AIS E/SW>$250K Full 3 Years 5 Years - SCN O&M Replenishment Spares, Civilian Salaries, Travel, Fuel, Supplies, Minor Const<$750K, H/W & AIS E/SW <=$250K Annual 1 Year Dollar thresholds for O&M just were raised from $100K to $250K in Joint Appropriation Resolution in 2003. MILCON thresholds changed in Authorization Act for FY 2002 MILPERS Military Pay & Allowances, PCS Moves, Retired Pay Accrual Annual 1 Year MILCON Major Construction Projects >$750K Full 5 Years * Minor Construction threshold changed by FY2002 Authorization Act, O&M threshold changed by Joint Appropriation Res. FY 2003

10 Severable Services May enter into a contract for severable services that begins in one fiscal year and ends in the next fiscal year if the contract period does not exceed one year Funds made available for a fiscal year may be obligated for the total amount of the contract

11 Multi-Year Service Contracts
Operations & Maintenance Continuing requirement for services Furnishing of services will require substantial initial investment in plant/equipment, or incur substantial contingent liabilities for the assembly, training, or transportation of a specialized work force The use of such a contract will promote the best interest of the U.S. by encouraging competition and promoting economies of operation.

12 Multi-Year Service Contracts (cont.)
O & M - Covered Services Operation, maintenance and support of facilities and installations Maintenance or modification of aircraft, ships, vehicles, and other highly complex military equipment Specialized training necessitating high quality instructor skills (eg. Pilot and aircrew members; foreign language training) Base services (eg. Ground maintenance; plane refueling; bus transportation; refuse collection and disposal.) Chapter 137 of title 10, United States Code, Sec 2306C, Multiyear Services Contracts. (Originated in 2000 Authorization language).

13 RDT&E - 18 Month Exception
There are requirements in which there is no logical way to divide the work, it is clearly unfeasible to limit the contract to a shorter period; or the planned technical effort is such that no responsible contractor can be found who will accept a contract for a less than completion increment. For these type of efforts that take longer than 12 months, but less than 18 months, the Service or Defense Agency Comptroller may approve financing the total requirement in one fiscal year.

14 Funding Rules for Communications & Information Systems
Procurement - Investment - New Equipment / SW > $250K - Upgrades / Replacement Equipment > $250K O&M - Expenses - New Equipment / SW < $250K - Upgrades/Replacement Equipment < $250K - Routine maintenance, Lease RDT&E - Development, test and evaluation costs - Development of major upgrades - HW / SW for RDT&E Facilities < $250K ADPE usually follows the general rules pertaining to funding of Investment and Expense items. The rules on this slide apply to both General Purpose and Special Purpose ADPE. Although equipment is usually purchased with Procurement, hardware for RDT&E-funded facilities is to be purchased with RDT&E funds. General Purpose and Special Purpose ADPE funding rules diverge when it comes to development and/or purchase of software. Differences are addressed on the following slides.

15 LRIP According to FMR - Designed to be flexible
Article Use Appropriation DT or OT RDT&E Operational Use Procurement Testing subsequent to acceptance Procurement Modification of Test Articles Procurement

16 108th Congress The “Sitting Congress” for 2003 – 2004 (1st Session)
HOUSE SENATE 435 MEMBERS 100 MEMBERS - 51 REPUBLICANS - 229 REPUBLICANS - 48 DEMOCRATS - 205 DEMOCRATS - 1 INDEPENDENT - 1 INDEPENDENT House Independent is Bernie Sanders, VT. Senate Independent is James Jeffords, VT. Few with military experience

17 SASC / HASC Subcommittees Different Subcommittee Titles in House and Senate
Senate Armed Services Subcommittees Readiness and Management Support Emerging Threats and Capabilities Personnel Seapower Strategic Air-Land House Armed Services Subcommittees Tactical Air and Land Forces Readiness Terrorism, Unconventional Threats and Capabilities Total Force Strategic Forces Projection Forces HASC has renamed subcommittees

18 SAC / HAC Subcommittees Same Titles in House and Senate
Agriculture and Rural Development Commerce, Justice, State and Judiciary Defense District of Columbia Energy and Water Development Foreign Operations Homeland Security Interior Labor, Health and Human Services and Education Legislative Branch Military Construction Transportation/Treasury and Postal Service VA, HUD and Independent Agencies These are the thirteen subcommittees of the appropriations committees. They are broken down along the lines of each appropriations bill. The Homeland Security Subcommittee was created with the 108th Congress in 2003, while at the same time combining Transportation and the Treasury and Postal Service subcommittees. Note that the VA, HUD, Independent Agencies bill includes funding for NASA, FEMA, IG offices, EPA, National Science Foundation, and the American Battle Monuments commission, to name a few.

19 DoD Appropriation Structure
Level of Control for “Below Threshold” Reprogramming Purposes RDT&E Procurement O&M MILPERS MILCON Budget Activity Budget Activity Budget Activity Budget Activity Budget Activity This slide shows level of control for three major appropriations. May be useful to show this prior to Below Threshold reprogramming slide Program Elements Line Item Activity Group Activity Group Activity Group Projects Sub Activity Sub Activity Project

20 Below-Threshold Reprogramming
Obligation Appropriations Max In Max Out Level of Control Period RDT&E Procurement O&M MILPERS MILCON Program Element $10M Greater of $10M or 20% 2 Yrs Line Item $20M Greater of $20M or 20% 3 Yrs Budget Activity $15M None, unless otherwise spec 1 Yr No Restriction Budget Activity $10M 1 Yr Lesser of $2M or 25% No Restriction Project 5 Yrs * Over Threshold Reprogramming requires notification of Congress

21 New Starts What is it? How do you determine a new start?
Any new program, project, sub-project, task that you haven’t told Congress about How do you determine a new start? Budget submission R-Forms and P-Forms Why should you care? Congress mad at Air Force about this Congress now watching other services Appropriation Law says you won’t get paid, if you don’t follow the rules

22 New Starts (cont.) Any New Starts over $10M RDT&E or $20M Procurement in first three years requires written Congressional approval in the Authorization Act If your program has not been approved in the Authorization Act, you must get written approval of the Congressional Authorization committees. Programs under this dollar threshold must do a letter notification to Congress and wait 30 days

23 Congressional Interest
HAC-D issued strong language in FY 00 House report criticizing DoD for initiating new programs without proper notification Identified specific programs Cited lax management FY 01 Appropriation Bill Sec 8091 “None of the funds in this Act may be used to compensate an employee of the Department of Defense who initiates a new start program without notification to the Office of the Secretary of Defense, the Office of Management and Budget, and the congressional defense committees, as required by Department of Defense financial management regulations.”

24 OSD Goals – End of 1st Year
RDT&E Obligations 80% Expenditures 55% Procurement Advance Procurement Obligations 100% Services are more stringent: i.e. Navy end of first year, 94% obligations, 58% expenditures

25 Contract Funds Status Report
(DD Form 1586) Required to obtain funding data on contracts over six months in duration No dollar threshold specified but generally applicable to non- firm fixed priced contracts in excess of $1.2 million (in FY 96 constant dollars) Purpose of CFSR is to assist Components in: Updating and forecasting contract fund requirements Planning and decision making on funding changes Developing fund requirements and budget estimates in support of approved programs Determining funds in excess of contract needs and available for deobligation Obtaining rough estimates of termination costs

26 Contract Funds Status Report

27 Termination Liability
No laws or regulations governing how to cover/budget for termination liability Termination liability over $100M requires written notification to the Congressional Defense Committees at least 30 days prior to contract award. MYP contracts cannot be terminated without notifying Congress 10 days prior

28 Execution Laws Misappropriation Act (Title 31, U.S. Code, Sec 1301)
Requires funds to be used only for the purposes and programs for which the appropriation was made. AKA “The Purpose Statute” Anti-Deficiency Act (Title 31, U.S. Code, Sec 1341 & 1517) Prohibits making or authorizing an obligation in excess of the amount available. Forbids obligation to pay money from the US Treasury in advance of an appropriation. Requires agency to fix responsibility for violations of the Act. The Misappropriation Act requires that funds be used only for the programs and purposes for which the appropriation is made. Examples: Multiple sidewalks to build an airfield because no MILCON appropriated Product Improvement interpretation of improving system performance The Anti-Deficiency Act prohibits authorizing an appropriation in excess of the amount available in an appropriation, or in advance of an appropriation. Examples: Any action resulting in overobligation or overexpenditure (including clerical errors), signing contract in advance of appropriation Do an exercise here - Good & Plenty, Jack & the Beanstalk (?) TRANSITION: Sometimes, programs require more funds than they asked for or were appropriated. This can happen for many reasons, including changed requirements, revised cost estimates, etc. If the Misappropriation Act prevents us from using funds for other than their named purposes and programs, how do we deal with the program’s funding problem? Reprogramming authority provided by Congress is the answer. Bona Fide Need Rule Requires funds to be used only for needs or services in the year of the appropriations obligation availability period.

29 OSD Budget Review Balance Requirements to Available Resources Topline
Readiness vs Modernization Address Administration / DoD Priorities National Programs Defense Planning Guidance (DPG) Programming Decisions (PDM) QDR During an OSD Budget Review, these are things that get looked at: Assuring that you meet Priorities of Administration & DoD - Bottoms-Up Review - Concern with National Programs Application of Acquisition Initiatives: - Defense Reinvestment - Support of Industrial Base - CAIV

30 OSD Budget Review (cont.)
Address Departmental Initiatives Readiness Levels/OPTEMPO Rates Quality of Life Defense Reform Initiative Infrastructure Savings Modernization Target Affordability Science & Technology During an OSD Budget Review, these are things that get looked at: Assuring that you meet Priorities of Administration & DoD - Bottoms-Up Review - Concern with National Programs Application of Acquisition Initiatives: - Defense Reinvestment - Support of Industrial Base - CAIV

31 OSD Budget Review (cont.)
Acquisition Initiatives Program Stability Acquisition Reform Total Ownership Cost ADM/Baseline Conformity Assure Joint Programs Are Consistent During an OSD Budget Review, these are things that get looked at: Assuring that you meet Priorities of Administration & DoD - Bottoms-Up Review - Concern with National Programs Application of Acquisition Initiatives: - Defense Reinvestment - Support of Industrial Base - CAIV

32 OSD Budget Review (cont.)
Balanced / Coherent / Consistent Budget Budget Scrub Programs Are Properly Priced Development / Production Transition Duplicative Programs Follow-on Systems Support Costs Budget Execution Rates Conform With Budget Policies Departmental Outlay Projections Accomodate Topline Resource Changes: - Subject to reprioritization of projects - Examine program growth - Update Economitc Assumptions Balanced, Understandable and Consistent Budgets - Budget Scrub - Ensure proper pricing of programs - Ensure transition between phases supports program - Look at similar systems - Follow-on systems - O&S Costs - Check on execution rates of current program - Check conformity with budgeting policies - Check outlay projections

33 OSD Balanced/Coherent/ Consistent Budget
Program Phasing Development / Production Concurrency Acquisition Schedule: Milestone Approvals, Testing First Quarter/Fourth Quarter new starts at risk Production Lead-time/Non-recurring Costs Funded Delivery Period Should not exceed 12 months Program Pricing Basis of estimates for programs and cost exhibits Analysis of: Learning curves and Production rates OSD Escalation Indices Contract data/Configuration changes Budget to most likely cost (Target / Ceiling)

34 OSD Balanced/Coherent/ Consistent Budget
Budget Policy Incremental Funding - RDT&E Full Funding - Procurement, MILCON Annual Funding - MILPERS, O&M Explanation of Funding Anomalies Appropriation Cognizance (“Color” of Money) Budget Execution Analysis of Accounting Reports Historical (3-5 years) track record Likelihood budget request can be executed Obligation Rates, Expenditure Rates Availability of prior yr funds for budget yr efforts

35 How to Survive Prepare for hearing Focus on Advance Questions
Acquaint yourself with key OSD staff Prepare for hearing Focus on Advance Questions Conduct an internal budget review Ensure your submission answers all their questions Understand Issues:Budget policy, programmatic Hearing Limit attendance at Hearing Follow-up Hearing Questions Appeals - Address Specific PBD Rationale Recognize that outside “macro” issues will impact acquisition programs How to survive: Get to know OSD staff Be Prepared Answer questions completely, but do not give them more than they ask for or try to BS them. At Hearings, focus on questions. Limit attendance to those who need to be there, with one spokesman. Follow-up on hearing questions During appeals - address the rationale in the PBD Recognize that outside issues with impact your program

36 Impact Statements Tips for Effective Impact Statements:
- Operational Impact Capabilities to Warfighter/User Impact to Program Believable - Business Case Greater Cost to the Government - Non-compliance with Policy

37 Back-Up

38 Expired Funds Years 1 2 3 4 5 6 7 8 9 10 O&M RDT&E Ships MILCON
Procurement Ships MILCON MILPERS Available for Obligation Available for Outlay

39 Expired Funds National Defense Authorization Act of FY 1991
Effective 1993 Remains available for obligation adjustments and payments for 5 years after the obligation period Keeps fiscal identity (appropriation, fiscal year, line item, etc. After 5 year period, all obligated and unobligated balances are cancelled Any additional payments funded out of current appropriation - Limited to lesser of: - 1% of current appropriation - Unexpended balance of cancelled appropriation

40 Types of Reprogramming
Congressional Prior Approval Reprogramming Internal Reprogramming Below Threshold Reprogramming Reprogramming is the use of funds for purposes other than those contemplated by Congress at the time originally appropriated. These actions do not represesnt requests for additional funds from Congress, rather they involve the reapplication of resources within a particular appropriation. Guidance contained in the DoD Budget Guidance Manual (DoD M) Four types of Reprogramming Actions

41 Congressional Prior Approval
Applies to Actions Involving: - General Transfer Authority - Major System Procurement Quantity Increases - Congressional Special Interest Items - Amounts exceeding those specified for below threshold - Initiating a new start above $2M in the first year or $10M over a 3 year period Requires: - Approval by Comptroller, DoD - Approval by HAC / SAC and HASC / SASC - Approval by House and Senate Committees on Intelligence Congressional Prior Approval: Requires: - Approval by the Comptroller, Department of Defense - Approval by the HAC/SAC, HNSC/SASC and House and Senate Committees on Intelligence. Applies to actions involving: - General transfer authority - Provision in the Appropriation and Authorization Acts where transfers may be made between appropriations or appropriation subdivisions in the Acts. Made upon determination of SECDEF that such action is necessary in the national interest, and higher priority items, based on military requirements, than the items for which funds were originally appropriated, and in no case where the item for which funds are requested has been denied by Congress. Must also be approved by OMB. - Major system procurement quantity increases - Items that are designated as Special Interest.

42 Omnibus Reprogramming
DoD sends Congress one annual integrated package of reprogramming requests containing all “Bills” and “Bill- payers” DoD/Congress will not revisit any rejected “Bills” or “Bill-payers” DoD prioritized Congressionally approved “Bills” and pays to the extent funds are available from Congressionally approved “Billpayers” Major acquisition reprogramming requests sent to Congress on “exception” basis “Bills and Bill-payers” Approvals or Rejections

43 Internal Reprogramming
Applies to: - Reprogramming actions that do not involve changes from the purpose and amounts justified in budget presentations to Congress Requires: - Approval by the DoD Comptroller Internal Reprogramming Requires: - Approval by the DoD Comptroller Applies to: - Reprogramming actions that do not involve changes from the purpose and amounts justified in budget presentations to Congress

44 Life Cycle Cost Categories
Notional % of LCC ~16% Space system ~ % Surface vehicle ~ % Ship ~66% ~0% ~37% ~18% ~0 - 1% ~31% Operating & Support Cost Program Cost % ~9% ~0 - 2% Disposal Cost ~1% R&D Cost Investment Cost CE PDRR EMD Production, Fielding / Deployment & Operational Support

45 Total Ownership Cost (TOC)
Reduction of Total Ownership Cost (TOC) is an initiative of the Defense Systems Affordability Council (DSAC). “DoD TOC is comprised of costs to research, develop, acquire, own, operate and dispose of weapon and support systems, other equipment and real property; the costs to recruit, train, retain, separate and otherwise support military and civilian personnel; and all other costs of business operations of the DoD.” One of the many dimensions of DoD TOC is “Defense Systems TOC”; this is defined specifically as the “Life Cycle Cost (LCC) of that system” (further defined in DoD M). The PM should focus primarily on this dimension of DoD TOC and support reduction on DoD TOC through a continuous reduction of the system’s LCC. Reference: USD (A&T) Letter, Subject: Definition of Total Ownership Cost (TOC), Life Cycle Cost (LCC), and the Responsibilities of Program Managers, 13 Nov 98

46 Total Ownership Cost (TOC)- Representative “Type” Costs
Direct Costs of Acquisition System: Research, Development and Testing (Prime and Support Items); Production (Prime and Support Items); Initial Spares; Construction of Unique Facilities; Manpower Costs; Disposal Costs PM Primary Focus: The “Life Cycle Cost” of the specific acquisition system Indirect Costs Attributable to System: Program Management/System Program Office (PMO/SPO) operations; Other Infrastructure that plans, manages and executes the acquisition program; Training of Personnel; POL; Ammunition; Replenishment spares; Maintenance $ $ $ $ $ $ $ $ $ $ $ Indirect Costs of Command Infrastructure not directly involved with System : Operational Command HQ; Service HQ; OSD; Recruitment, training, retaining and separation of military and civilian personnel PM Interest (Beyond PM Influence and Control) : Generally, based on an incremental “fair share” that might be assigned to or associated with an Acquisition System Indirect Costs of Installations where Deployed: “Routine” BASEOPS (e.g., Maintenance of Grounds and Buildings; Snow Removal; Chapel; etc.); Personnel and Support - Related Costs at Post, Base or Ship

47 FY99 C-5 Budget Justification
BUDGET ITEM JUSTIFICATION (EXHIBIT P-40) Date February 1998 APPROPRIATION/BUDGET ACTIVITY AIRCRAFT PROCUREMENT-AIR FORCE/Aircraft Modifications P-1 ITEM NOMENCLATURE: C-5 This line item funds modifications to the C-5 aircraft. The four engine C-5 carries outsized and heavy cargo (tanks, helicopters, etc.) between main operating bases. The primary modificaiton budgeted in FY99 is the TF-39 High pressure Turbine (HPT). Other modifications enhance operational capability while improving flight safety, reliability and maintainability. The specific modifications budgeted and programmed are below. MOD MODIFICATION COST TOTAL NR TITLE FY-97 FY-98 FY-99 FY-00 FY-01 FY-02 FY-03 TO GO PROG. 3150 NAVSTAR GLOBAL POSITIONING 4252 AIRLIFT DEFENSIVE SYSTEMS 6032 COMPARTMENT FLOOR CORROS 6037 TF39 ENGINE HIGH PRESSURE 6038 AVIONICS MODERN PROGRAM 96001 STATION KEEPING EQUIPMENT 96004 SINCGARS 99999X LOW COST MODIFICATI Z88888 REPROGRAMMINGS TOTAL FOR C P-1 SHOPP LIST ITEM NO. 035 PAGE NO. 214

48 Case Study - C-5 AMP Requirement Budget Justification
FY 98 DEPSECDEF direction - passenger safety high priority Air Force decides to start Traffic and Collision Avoidance System (TCAS) effort on the C-5 in FY 99 instead of FY 00 Budget Justification FY9 9 President’s Budget (PB) showed C-5 AMP (Avionics Modernization Program) totaling $600M beginning in FY 00 TCAS effort included as part of overall C-5 AMP program Answer to Congressional Inquiry (Aug 98) states AF intent to accelerate TCAS portion of C-5 AMP During Staffer Days (Feb 99) briefed House Appropriations Committee (HAC) staffer - intent to accelerate TCAS portion of AMP from FY 00 to FY 99 Decision - New Start Notification Not Required AF believed Congress notified and agreed with approach

49 FY00 C-5 Budget Justification
BUDGET ITEM JUSTIFICATION (EXHIBIT P-40) Date February 1999 APPROPRIATION/BUDGET ACTIVITY AIRCRAFT PROCUREMENT-AIR FORCE/Aircraft Modifications P-1 ITEM NOMENCLATURE: C-5 This line item funds modifications to the C-5 aircraft. The four engine C-5 carries outsized and heavy cargo (tanks, helicopters, etc.) between main operating bases. The primary modificaiton budgeted in FY00 is the TF-39 High pressure Turbine (HPT). Other modifications enhance operational capability while improving flight safety, reliability and maintainability. The specific modifications budgeted and programmed are below. MOD MODIFICATION COST TOTAL NR TITLE FY-98 FY-99 FY-00 FY-01 FY-02 FY-03 FY-04 FY-05 TO GO PROG. 3150 NAVSTAR GLOBAL POSI 4252 AIRLIFT DEFENSIVE SYS 6032 COMPARTMENT FLOOR 6037 TF39 ENGINE HIGH PRE 6038 AVIONICS MODERNIZATI 96001 STATION KEEPING EQUI RADIO 99999X LOW COST MODIFICATI Z88888 REPROGRAMMINGS TOTAL FOR C P-1 SHOPP LIST ITEM NO. 33 PAGE NO. 1

50 Case Study C-5 AMP - Lessons Learned
Discussion $9.7M spent in FY 99 for TCAS, using funds from other C-5 modification efforts FY 00 PB sent to Congress with FY 99 updates Budget depicted $9.7M for C-5 AMP (which was not supposed to start until FY 00) HAC criticism published in NY Times Appearance that Air Force diverted funds from Congressional special interest item to fund the new start Conclusion - Formal Congressional Notification Required Staffer Day briefing does not constitute notification KEY POINT: Formal Notification

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