1. United States Fleet Forces Command…Comptroller Overview
RDML (S) John P. Polowczyk
Comptroller
USFFC
May 14, 2013
UNCLASSIFIED

2. Agenda Understanding United States Fleet Forces Command
How We Produce Readiness
Fiscal Update
Financial Improvement and Audit Readiness (FIAR)
United States Fleet Forces Command Contract Efforts

3. Mission
Train, certify and provide combat-ready Navy forces to Combatant Commanders that are capable of conducting prompt, sustained naval, joint, and combined operations in support of U.S. national interests.
Command and control subordinate Navy forces and shore activities during the planning and execution of assigned service functions in support of Chief of Naval Operations.
Provide operational planning and coordination support to Commander, U.S. Northern Command (CDR USNORTHCOM), Commander U.S. Element NORAD (CDR USELEMNORAD), and Commander, U.S. Strategic Command (CDR USSTRATCOM).
Command and control subordinate forces during the planning and execution of joint missions as the Joint Forces Maritime Component Commander North (JFMCC-N) to CDR USNORTHCOM.
Per FFC MF&T (OPNAVINST B), Signed 25APR12

4. Commander’s Intent Warfighting first, but hollowness is not an option.
To successfully execute our mission, we must:
Support and defend our homeland
Send forward-deployed warfighters the most lethal Naval Forces possible
Standardize Readiness production
Drive costs down, and increase Readiness effectiveness
Harness the power of properly trained and aligned staffs
Synchronize actions and messages to produce effects
Hold Commanders and Leaders accountable for results

5. U.S. Fleet Forces Roll Call
Postured to Meet Global Mission Requirements
Surface
~40,000 People*
76 Ships
Aviation
~50,000 People*
Aircraft
5 Aircraft Carriers
Subsurface
~8,000 People*
32 Submarines
Expeditionary
~30,000 People*
3 Riverine Squadrons
7 Construction Regiments
2 EOD Groups
11 MESF Squadrons
5 Logistics Regiments
Network Warfare
~15,000 People*
28 Activities
* Includes Military, Government Civilian, and Private Contractor Staff 1

6. Command Relationships
U.S. NORTHERN
COMMAND
CHIEF OF
NAVAL OPERATIONS
U.S. STRATEGIC
COMMAND
U.S. PACIFIC FLEET
U.S. NAVAL FORCES EUROPE COMMAND
U.S. NAVAL FORCES CENTRAL COMMAND
U.S. NAVAL FORCES SOUTHERN COMMAND
U.S. NAVAL FORCES AFRICA COMMAND
CNIC
USFF
NAVAL SPECIAL WARFARE COMMAND
REGIONAL COMMANDERS
MILITARY SEALIFT COMMAND
FLEET CYBER COMMAND
SHORE INSTALLATION COMMANDERS
AIR
FORCES ATLANTIC
SUBMARINE
FORCES ATLANTIC
SURFACE FORCES ATLANTIC
NAVY CYBER FORCES COMMAND
NAVY EXPEDITIONARY COMBAT COMMAND
MILITARY SEALIFT COMMAND
NAVAL WARFARE DEVELOPMENT
COMMAND
NAVAL STRIKE &
AIR WARFARE CENTER
STRIKE
GROUP COMMANDERS
STRIKE FORCE TRAINING
ATLANTIC COMMAND
NAVY
MUNITIONS
COMMAND
NAVY METEOROLOGY &
OCEANOGRAPHY
COMMAND 1

7. Alignment North to South
Promote Acquisition Excellence
and Integrity
Take Care
of Our People
Lead the Nation
in Sustainable Energy
DON Objectives
for FY12
and Beyond
Maintain Warfighter Readiness in
an Era of Reduced Budgets
Dominate in
Unmanned Systems
Drive Innovative
Enterprise Transformation
CNO’s Sailing Directions
Warfighting First
Operate Forward
Be Ready
Warfighting and Readiness
Joint and Fleet
Operations
Global Force
Management
Sailors, Civilians, and Their Families
Fleet Forces Lines of Operation
Safety
(underpins all other Lines of Operation)

8. Alignment East to West “Two Fleets, One Voice”
Fleet Forces Lines of Operation provide the lens through which mission is executed:
Pacific Fleet Priorities broadly define the primary focus areas:
Warfighting and Readiness
Joint and Fleet Operations
Global Force Management
Sailors, Civilians, and Their Families
Safety (underpins all Lines of Operation)
Warfighting Readiness
Advance Regional Partnerships and Alliances
Purposeful, Forward Presence
Value our People and Their Families
Safety 1

9. Synchronized Training
Readiness Kill Chain
Means
Personnel
Equipment
Supplies
Training
Ordnance
Installations
Networks
Community / Industry
Ways
Ends
Assess
RESOURCE
/ POLICY
ASSESS /
PROCURE
PRE-
INTRO
FRTP
MAINT
BASIC
INTEGRATED
DEPLOY &
SUSTAIN
Surface
Aviation
Submarines
Common Actions
Synchronized Training
Full Weapon System Ops
Weapon System
C4ISR/CYBER
NECC
OP/TAC HQs
OPNAV N1, N2/6, N3/5, N4, N8, N9
The Joint Staff
SYSCOMs / CNIC / MSC
CPF / FFC Responsibility TYCOMs CSFTL/P Numbered Fleets
Everyone is part of the Readiness Kill Chain
Everyone needs to know their place and role in the Readiness Kill Chain
Means and Ways must support the Ends – our Deployability / Sustainment model, the FRP
As of 30NOV2012

10. Sequestration Overview
FY 13 Fiscal Update
Sequestration Overview
Navy Level
~$49B requirement
Continuous Resolution (CR) “wedge” $5.5B
Sequestration took out $4.4B
Navy down ~$10B on $50B program
USFFC - BSO 60
~$11.9B requirement
~$9.9B CR/SEQ control
~$2B reduction of Fleet spending
ADM Gortney’s Fleet Priorities
Support FY 13 Global Force Management Allocation
Plan (GFMAP)
Prepare FY 14 GFMAP
CENTCOM
BMD ships

11. FY 13 Fiscal Update (continued)
Navy’s Revised Plan: Tier Alpha and Tier Bravo
Tier Alpha: Recoverable actions and/or things to do in 4th Quarter such as:
Cancel 4th Quarter A/C maintenance
Civilian hiring freeze
Reduced Tuition Assistance
Reduce NECC equipment buys
Cancel 4th quarter SDM
Reduce FSRM
Furloughs in 4th Quarter
Travel restrictions
Contract reductions
Tier Bravo: Drastic actions with direct impact to Fleet operations such as:
Cut Deployments
Cancel MIAMI and PORTER repairs
Cancel 3rd Quarter SDM maintenance
Reduce flying and steaming hours

12. Current Status Where are we now? FY 14 Outlook
HR 933 or Public Law as an appropriation bill
OM&N ~ $43.9B with additional resources for CGs / LSDs in a transfer fund
Navy still ~$4B short to adjusted lower requirement…1 CSG presence
Limited transfer authority for Navy ~$250M out of DoD $7B; remainder to Army
and Air Force
Current status = we will make it through FY 13, but with shortfalls across the
fleet…but no significant reduction to operating forces
May bow wave some requirements into FY 14
FY 14 Outlook
USFFC (BSO 60)
Required =~$11.1B
PB14 =~$10.5B
SEQ = ~$9.5B
Shortfall of ~$1.6B

13. Financial Improvement and Audit Readiness (FIAR) Background
National Defense Authorization Act (2010) - Mandated that DoD financial statements are validated and ready for audit by 30 September 2017
The Office of Secretary of Defense has directed DoD produce an audit ready Statement of Budgetary Resources by 2014
The Secretary of the Navy accelerated DoN’s audit readiness timeline to 2013
DoD has developed a standard process for all services to assert financial segments through discovery, testing and implementing corrective actions to prepare for validation by an Independent Public Accountant (IPA)
Audit Readiness = 100% of financial transactions are captured, properly documented, and substantiated 13

14. Business Process Standardization (BPS)
USFF FIAR Efforts
Financial Segments
Current Efforts
Future Efforts
Business Process Standardization (BPS)
Booz Allen Hamilton (19 FTEs)
(N b-ZD27)
Phases 2
Align system agnostic to system- specific processes
Confirm controls and business rules align to corresponding steps
Document/confirm all financial controls are included within processes
Identify opportunities for reduced process variation around control steps
Phase 2.5
Implementation Guidelines
Accounting Handbook
Segment-specific Standard Operating Procedure (SOP) documents
Establish a Resource site
KPMG (~4 FTEs)
Phase 3.0
Implement accepted standard processes
Establish Support Teams
Compliance testing and metrics
Assertion Testing
Accenture (4 FTEs)
(N D-Z )
Using the FIAR Methodology, provide direct support in the 6 phases in the DoD FIAR Methodology:
Discovery
Corrective Actions
Evaluation
Assertion
Validation
Audit from IPA
BPS Phase IV
Sustainment of approved business processes
Change management around any previously approved standardized process
Periodic testing of controls and compliance with published standards
Contractor Vendor Pay (CVP)
Reimbursable Work Order –Grantor/Performer (RWO-G/P)
Funds Balance with Treasury
(FBwT)
Financial Statement Compilation
& Reporting (FSCR)
Transportation of People (ToP)
Transportation of Things (ToT)
Acquire to Retire (A2R)
Civilian Pay (CIVPAY)
Existence and Completeness
(E&C)
Military Pay (MILPAY)
Military Standard Requisitioning
and Issue Procedures
(MILSTRIP) 14 7

15. FY 13 Contract Focus Areas
HQ Contract Initiatives
FOCUS AREA 3
ECH III Contract Initiatives
Deep Dive to analyze:
Long term contract support (>5 yrs)
High priced labor (>$250K)
Consolidation of like requirements
What are the primary contract vehicles used
What Contracting Centers are used
What kind of support is needed
FOCUS AREA 2
HQ Policy and Oversight
FOCUS AREA 4
ECH III Priorities
Revisions to USFFINST Service Support Contract Mgmt
Contract clause to cover work stoppage under severe cuts and/or furlough scenarios for FY14 actions
Discussions with ECH IIIs to evaluate shared umbrella contract opportunities.
Identify measures to streamline and gain efficiencies to reduce costs
Unclassified

16. Current USFF Contracts
CONTRACTOR
END OF PERIOD OF PERFORMANCE
DESCRIPTION
N CQ353
EY AK TECHNOLOGY LLC
9/8/2014
Provide functional and technical support for the Command Financial Management System (CFMS).
N DZ006
CACI
12/31/2013
HOA OCO Financial Support Personnel.
Ship Operations and Flying Hr analytical support.
SP070003D1380
BAH
12/26/2013
Fleet Integration, Strategic planning and communications.
GS00F0059M
JHT
9/30/2013
Building Manager.
Horn of Africa deployment training.
GS23F9755H
Support sailors IA assignment in six principle areas.
N D4091
NORTHRUM GRUMMAN
8/31/2013
Maritime Operations Center support.
N D0040
PREVAILANCE
7/12/2013
Contracted antiterrorism expertise and support through the conduct of research and analysis, and technical and doctrinal report generation for USFF.
Contracted logistics support and fleet readiness analysis.

17. Current USFF Contracts (continued)
CONTRACTOR
END OF PERIOD OF PERFORMANCE
DESCRIPTION
GS10F0076J
SAIC
9/28/2013
Environmental contract support.
N D4760
HONEYWELL
5/19/2013
Provide network engineering support , Fleet Forces online portal support, naval messaging delivery and profiling support.
GS23F8006H
7/30/2013
Contracted Fleet Training support for live and synthetic training worldwide.
N CQ360
PITS, INC
5/14/2014
Fleet Training Fiscal Support Services.
N CQ226
5/11/2014
Fleet Training Technical and Acquisition Support Services.
N C0039
TRINITY SHIP MANAGEMENT
9/15/2013
PREVAIL Training Ship Support Services
8/13/2013
Maritime Operations Center Training.
N D0030
INNOVA
9/26/2013
Per DoD and OPNAV directives, support Navy Readiness Reporting through a robust, full spectrum capability-based reporting system providing more utility to the war fighter, Decision Support tools.
N D-4012
GDIT
1/2/2014
Ballistic Missile Defense (BMD) AEGIS.
N D- 6400
JHU
9/30/2014
INTEGRATED CAPABILITIES ASSESSMENT.
9/30/2013
MOC ARCHIVE SUPPORT.
N D4079
LOCKHEED MARTIN
5/31/2014
MOC support .
W15P712CF600
MITRE
Support to Fleet requirements and capability development.
N D-4091
NGIT
8/31/2013
MOC Support.
N D-0046
PREVAILANCE
7/31/2013
CONOPS support effort.

18. Coming Attractions
Re-compete for the maritime operation center training support effort - estimated - $4.5M per year
Fleet Integration, strategic planning and communication support – estimated - $340K per year
Ballistic Missile Defense (BMD) analytic support – estimated - $700K per year
USFFC Contract Management POC is Maureen Hayes: (757)

19. Questions?