1. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Headquarters U.S. Air Force 1 “To BRAC or Not to BRAC” What happens if there is not a BRAC? ADC 2015 National Summit Colonel Jonathan Webb Director of Air Force Installations Planning 23 June 2015

2. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 2 The Facts The Air Force estimates ~30% excess infrastructure capacity. Since the last round of BRAC, the Air Force has experienced: ~10% reduction in force structure (~500 fewer aircraft) ~10% reduction in personnel (~50,000 fewer personnel) But our installation footprint has largely remained the same Less than 1% reduction in infrastructure Funding shortfalls have driven the Air Force to take risk in maintenance and repair levels for current infrastructure With an excess of infrastructure and not enough funds to maintain our installations, AF strongly supports DoD request for BRAC 2017

3. I n t e g r i t y - S e r v i c e - E x c e l l e n c e The Solutions Enhanced Use Leasing Demolition Managing Energy Community Partnerships / P4 Alternative Authorities BRAC 3

4. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Enhanced Use Leasing (EUL) With EULs, the AF can partner with private industry to leverage underutilized facilities, infrastructure and real estate The Air Force has executed 11 deals valued at $302M Example: Eglin AFB Emerald Breeze EUL AF benefits with rent and % of gross Roof and upper floor continue to support AF operations and equipment Example: Eglin AFB Photo-Voltaic (PV) Solar Panel EUL Joint venture with Gulf Power to build 30 MW solar facility Contributes to both AF & State renewable energy goals Supports energy resiliency and conservation projects 4

5. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Demolition Demolition supports AF need to right-size our infrastructure by eliminating low value/poor condition facilities Since 2006, AF has demolished 44M square feet of aging building space that was excess to need AF plan in FY16 calls for 1.1M square feet of demolition to eliminate almost $200M of Plant Replacement Value (PRV) 5

6. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Managing Energy Energy Savings Performance Contracts (ESPCs) Leverage 3 rd -party funding to modernize infrastructure and improve efficiency at no upfront cost to taxpayers Air Force has awarded two contracts thus far AF goal to award $500M in ESPCs by end of FY16 Power Purchase Agreements (PPA) Using a PPA, AF constructed DoD’s largest operational solar array at Davis-Monthan AFB Could provide up to 40% of the base’s total energy need 6

7. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Community Partnership Public-Public / Public-Private Partnerships (P4) P4 - Community Partnerships that leverage private sector services, practices and products to reduce mutual costs Example: Six installations are pursuing partnerships with local communities to share firing range facilities Benefit to AF and Community: $2-3M O&M / $8-16M MILCON cost avoidance by partnering instead of creating dual ranges Example: Four installations and communities are partnering to develop Shared Water/Waste Water Treatment Systems Projects to reduce annual costs by $150-$200K per year Air Force is currently working with 50 participating bases and communities on more than 1,000 initiatives 7

8. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Alternative Authorities for Closure / Realignment 10 USC §2687- Base closure/realignments reporting Applies to closure of installations with more than 300 civilians Applies to realignment of installations involving reduction by more that 1,000 civilians or more than 50% Requires evaluations of fiscal, local economic, budgetary, environmental, strategic, operational consequences, and local infrastructure ability to accommodate missions/costs 10 USC §993- Base closure/realignments reporting Applies to reductions affecting more than 1,000 military Requires justification and cost/benefit evaluation along with local economic, strategic and operational consequences 8 “In the absence of BRAC authorization, the Administration will pursue alternative options to reduce waste and ensure resources for the highest priorities of the warfighter and national security.” (2015 SAP)

9. I n t e g r i t y - S e r v i c e - E x c e l l e n c e Base Realignment & Closure In previous rounds of BRAC, the Air Force closed 40 installations and saves $2.9B annually BRAC law directs DoD to provide economic adjustment and community planning assistance to impacted communities Examples of BRAC redevelopment success Williams AFB is now home to an airport, several colleges, and numerous businesses bringing 10,000 jobs and $1.3 billion in economic activity to the region Pease AFB - transformed into the Pease International Tradeport, which includes an airport, an aviation industrial community and businesses employing 7,000 personnel 9 BRAC is the most effective means to reduce excess infrastructure capacity

10. I n t e g r i t y - S e r v i c e - E x c e l l e n c e 10