1. AMERICA’S ARMY: THE STRENGTH OF THE NATION AMERICA’S ARMY: THE STRENGTH OF THE NATION HQDA EXORD 164-15 Reduce the Installation Facility Footprint 23 June 2016 Mr. Paul D. Cramer Deputy Assistant Secretary of the Army (Installations, Housing & Partnerships) Deputy Assistant Secretary of the Army (Installations, Housing) MG Ted Harrison Director of Operations, Office of the Assistant Chief of Staff for Installation Management Mr. Greg Kuhr Director, G-4 Installation Management Command Partnerships)

2. AMERICA’S ARMY: THE STRENGTH OF THE NATION Army Excess Infrastructure Strategy ELEMENT #1: Consolidation Within Installations o EXORD 164-15 o Force structure reductions create underutilized space o Conversions can be challenging o Base Operations Support inelastic to reductions in population o Not all excess is bad; demolition not universal solution o Likely savings modest (tens of $ millions/year) ELEMENT #2 Consolidation Across Installations o European Infrastructure Consolidation: ~$163M/year savings starting in FY21; close 27 sites, eliminate ~ 8 MSF of excess capacity o EXORD not a substitute for BRAC o BRAC saves hundreds of $ millions/year o High quality excess at high military value installations used to receive missions from closing lower military value locations. 2

3. AMERICA’S ARMY: THE STRENGTH OF THE NATION How it is Supposed to Work 3

4. AMERICA’S ARMY: THE STRENGTH OF THE NATION AMERICA’S ARMY: THE STRENGTH OF THE NATION Overview Execution Order 164-15: Reduce the Installation Facility Footprint Issued by Army Vice Chief of Staff, Published March 2015 Holds Senior Commanders at installations accountable for making all reasonable efforts to maximize space utilization, consolidate units into our best facilities, and dispose of excess assets Army-wide excess capacity: 170 MSF @ 980K Total Army o Average $3/SF per year cost to maintain o Average $11/SF to demolish o Excess costing Army ≥ $500M/year Senior Commanders (SC) identified subset of ~47 MSF to divest: o Convert excess to satisfy another functional shortfall o Retain for expansion or swing space o Reduce off-post leases o Demolish if in poor or failing condition 4

5. AMERICA’S ARMY: THE STRENGTH OF THE NATION Major Road TRAINING AREA CANTONMENT AREA Major Road Parade Field Reserve Center Installation of the Future: Business Parks w/Training Areas Gate Multi-Function Operations Area Brigade HQ Battalion HQs Company Ops Motor Pools Logistics Gyms Dining Facilities Multi-Function Training Area Trng Barracks Instruction Bldgs Dining Facilities Gen Purpose Admin Non-Army tenants Health Clinic Off-Post: Commissary PX Bowling Alley (MWR) Hospital Child Devel Cntrs Banks Housing HQ Future: Multi-Purpose, Multi-Story, Multi-Tenant, Mixed Use Buildings? Communities have opportunity to help Army shrink the fenceline and open-up valuable real estate opportunities. New Fenceline Multi-Modal Transit Center EUL? Open Post Possible Return To Training Area? 5

6. AMERICA’S ARMY: THE STRENGTH OF THE NATION The Office of Management and Budget : Freeze the Footprint (2012-2015) directed agencies to freeze office and warehouse SF baselines. DoD met or exceeded the FTF policy objectives The Office of Management and Budget March 2015 – National Strategy for the Efficient Use of Real Property and Companion RTF Policy; requires all departments to Submit annual real property efficiency plans that: (1) Set annual SF reduction targets (2) Adopt space design standards to optimize federal domestic office space usage (3) Maintain the 2015 RtF baseline FY 15 Army Management Action Group’s (AMAG) directed rightsizing to reduce costs HQDA EXORD 164-15 “Reduce the Installation Facility Footprint,” tasks OACSIM as the lead agent for reducing installation footprints and costs Facility Investment Strategy (FIS) established the facility Lines of Effort (LoE) aimed at balancing the Army’s facility investments and for improving the quality of its infrastructure Facility Investment Guidance (FIG) provides the annual guidance in support of accomplishing the FIS, Rightsizing Strategy, and Army priorities Why are we doing this? UNCLASSIFIED Guiding Documents 6

7. AMERICA’S ARMY: THE STRENGTH OF THE NATION TRAINING AREA CANTONMENT AREA Major Road Parade Field Reserve Center HQ Installation of the Present Today: Mostly single tenant, mostly 1-2 story, single function/specialized buildings Fenceline Housing Zone Barracks GFOQs Officer Hsg Senior Enlisted Hsg Transient Hsg Gate Operations Zone Brigade HQ Battalion HQs Company Ops Motor Pools Logistics Gyms Dining Facilities Training Zone Trng Barracks Instruction Bldgs Dining Facilities Gen Purpose Admin Non-Army tenants Health Clinic Community Zone Commissary PX Bowling Alley (MWR) Hospital Child Devel Cntrs Banks Major Road Consolidation without community Involvement keeps the most valuable real- estate in Army hands. 7

8. AMERICA’S ARMY: THE STRENGTH OF THE NATION Army Facility Degradation is Accelerating Good facilities rated >/=90 FCI Fair facilities rated 80 to <90 FCI Poor facilities rated 80 to 60 FCI Failing facilities rated <60 FCI Percent of Facilities with Green/Amber/Red/Black Ratings Best. Worst Trying to sustain all facilities with less money is a proven recipe for failure Facility Condition Index (FCI) rating in Army Installation Status Report (ISR) System BCA budget caps correlate with rapid facility condition degradation 8

9. AMERICA’S ARMY: THE STRENGTH OF THE NATION The Army identified current challenges facing the efforts to rightsize the installation footprint and achieve auditability in four key Focus Areas The data transfer process between State, Federal, and HQDAs real property reporting systems are manual, providing opportunities to introduce human errors Current real property reporting processes are not standardized and lack internal control measures Rather than a single system, there are four separate systems each of which has a different owner, and it is often unclear how systems relate and record data Due to the limitations of real property system Decision Support Systems (DSS), the Army is unable store and process classified real property documentation or link/track facilities Existing policies can be clarified and streamlined to ensure that real property accountability guidance is understandable and to enforce cooperation between commands and units on real property Policies must include incentives for completing real property management. Current policies do not enforce a culture of compliance The roles and responsibilities for real property are unclear between Landholding Commands (LHCs) and Army Commands (ACOMs) LHCs and ACOMs lack dedicated, adequately trained personnel to perform real property assessments People Policy Process Technology PeopleProcess Technology Policy Key Challenges 9

10. AMERICA’S ARMY: THE STRENGTH OF THE NATION INSTALLATION MANAGEMENT COMMAND OBJECTIVES Ensure quality facilities are retained per Army standard allowances to support our changing force structure. Reduce sustainment and utility costs by disposing of excess facilities or placing into caretaker status until disposed or re-utilized. Improve the accuracy of real property accountability, requirements and utilization data. Follow Real Property Master Planning principles which increases facility density, retains green space, and retains the flexibility of multi-use facilities. 10