1. Society of American Military Engineers - Northern Virginia
Adapting MILCON and other programs
due to the changing fiscal environment
MG Kendall Cox
Deputy Commanding General
Military & International Operations
United States Army Corps of Engineers
6 FEB 2014

2. Support the Warfighter
4 Goals, 12 Words –
USACE Campaign Plan
Support the Warfighter
Transform Civil Works
Reduce Disaster Risks
Prepare for Tomorrow
We simplified our Campaign Goal areas into 4 major goals: twelve words to remember.
Support the Warfighter: Afghanistan Power Grid.
Transform Civil Works: West Closure Complex (Largest pump station of its kind in the world), delivered as part of New Orleans HSDRRS using Early Contractor Involvement, an innovative Method of Delivery for Civil Works.
Reduce Disaster Risks: Post-Sandy recovery efforts.
Prepare for Tomorrow: West Point Cadets work in the new science lab constructed by USACE’s New York District.

3. FY14 USACE Global Engagement
Engagement Countries
Physical Presence - 43 Countries
FY14 USACE Global Engagement
Port in Bahrain development for U.S. and allied ships .
Jordan: Contract for underground bunkers in three separate locations.
Colombia Renovate Hangar, Support Building, Parking Lot, Helicopter Warehouse
Qatar: New construction consolidates several U.S. Air Force functions.
Technical Assistance Visit
Sao Francisco River, Brazil
Zambia Water Supply
Feasibility Studies
Potable Water Project, Mozambique

4. FEST Deployments AF & Jordan
Key 2013/2014 Responses
Galena, AK
May 2013
MS River Rock Pinnacles 2013
FEST Deployments AF & Jordan
2013
Marselles Dam APR 2013
Winter Ice Storm
DEC 2013
Colorado Flash Flooding 2013
Lock and Dam 52
OCT 2013
MS River Rock Pinnacles 2013
Lake Okechobee
Summer 2013
Mel Price Lock
and Dam
JAN 2014
New Mexico Flooding
SEP 2013
Midwest Spring Flooding 2013
Typhoon Haiyan
NOV 2013
Rocky River Ice Jams JAN 2014
West, TX Fertilzer Plant APR 2013
Midwest Spring Flooding 2013
OK City Tornado May 2013
West Virginia Chemical Spill
JAN 2014

5. Civil Works Support to National Security
Civil Works makes available:
25,000 engineers and related professionals.
Large-scale construction capability.
Relationship with contracting community.
Environmental skills.
Location in hundreds of communities.
Interaction with millions of citizens.
… all at no peacetime cost to DOD.
Corps members deployed to Iraq and Afghanistan have built roads, airstrips, ports, electric stations, hospitals, schools, and other key infrastructure to promote stability.

6. USACE ESF #3 Support Debris Management Temporary Emergency Power
Temporary Roofing
Water and Ice
Commodities
Critical Public Facilities and Temporary Housing
Urban Search
and Rescue
Sub-Taskings
to Other Agencies

7. The Defense Budget
Discretionary spending is ~30% total federal budget…Defense budget is ~50% discretionary spending (PB2013 Request)
Increasing emphasis on reducing spending/deficit – Congress and the Administration
Historically, funding levels have decreased as military demand decreases
Height of
Vietnam War
(1968)
Height of
Cold War
(1985)
9/11
(2001)
Korean War
Armistice (1953)
Gulf War
Ends (1991)
Vietnam War
Ends (1973)
OCO?
See how the increases all coincide with conflicts and how, as hostilities cease, there is always a significant decrease, not only in funding, but also in strength.
So it should come as no surprise as we exited Iraq and continue to drawdown from Afghanistan that we are again in the midst of a significant decrease in resources.
As we take our lessons from history, this fiscally constrained time was certainly anticipated. However this drawdown is different in that we’re reducing our military during a period of uncertainty and risk around the globe (North Korea, Syria, Iran, Egypt, etc.), fiscal environment in the country/world that we have not seen before, lack of opportunities for those who will leave our ranks, both military and civilian…further reinforcing the need to maintain competencies, certifications, and helping to do our part in transitioning our Soldiers/Civilians.
End
Strength
Ramp 7

8. Sequestration Impact on DoD Budget $52B/Year
USACE Impacts (FY13)
Mil Missions: ~$163 M
CW: ~$255 M
Sandy: ~ $268 M
$553B
$571B
$586B
$598B
$611B
$531B
$525B
$534B
$546B
$552B
$559B
~$473B
~$481B
~$493B
~$503B
~$515B
~$527B
~$540B
~$553B
~$565B
$400
$450
$500
$550
$600
$650
$700
FY12
FY13
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
PB12 DoD
PB13 DoD (includes BCA $487 B) -
Impact of sequstration on DoD (~$472B)
Want to give you an overall picture of the impacts of sequestration at a very MACRO level.
-As a result of the BUDGET CONTROL ACT; discretionary federal spending was reduced by ~$85B in FY13 and ~$1.2 trillion over the next 10 years combined.
-The Department of Defense share was ~$52B in FY13– more than $500B incrementally over the next 10 years.
-Sequestration significantly lowers the discretionary funding caps for DoD during FY14-FY21, Dramatically cutting personnel, moderation and readiness funding in future years.
DoD was not given a choice on where to make the cuts…we were handed a salami slice cut across the board. (May want to talk about the household budget here).
Blue line = Original programmed Budget
Yellow Line = Programmed Budget after Budget Control Act Reduction (-$487B)
Red Line = sequestration – the reduction from Yellow line is required to comply with deficit reduction requirement $1.2T, or ~$52B/year for DoD
10-year program…we will continue to see impacts to both our military and civil works programs.
Overall USACE impacts for FY13:
Mil Missions: ~$163 M
Civil Works: ~$255 million
Hurricane Sandy Response: ~$268 million
Furloughs: ~10,000 civilian personnel impacted by furloughs
Sequestration is Norm Until the Nation Regains Control of its Budget

9. USACE Program Trends FY01-16 Fiscal Year
Program (Budget Authority) ($M)
Total USACE
Military
Civil
Fiscal Year
FY14 Constant $ (Oct 13)
Military = MILCON, RDT&E, RE, Reimb, OCO, ARRA Civil = Direct+Reimb, FY05-13 Incl Supplemental

11. FY14 & Previous FY MILCON Projects Summary
233 Projects in USACE program (81 FY13 and earlier)
currently awarded 12
MSC
NOP
ADV
AWD
Remaining Awards
Projected to Awd by 30 Sep
FY13&PFY
FY14
FY13&
PFY
FY14 & prior
HNC 1
LRD 17 18 9 2 16
NAD 26 10 7 4 14
NWD 5 29 3
POD 21 6
SAD
SPD 15 11
SWD 12
TAD
Total 81
152 47 34 62 74
135

13. -STEM -Accessions -Quality: safety -On time, on budget
Where We Need Your Help
-STEM
-Accessions
STEM / Accessions
In 2008, 4 out of every 100 U.S. college graduates was an engineer. This is among the lowest in the world – only 14 countries graduate a lower percentage of engineers – countries like: Bangladesh, Cambodia and Cuba. In Russia, 10 out of 100 graduates is an engineer. In China, 31 out of 100 graduates is an engineer.
The U.S. expects a total of 2.8 million STEM job openings by 2020 based on growth and retirements.
2013 EN Branch Accessions:
ROTC – 25% Tech degree
OCS – 6% Tech degrees
USMA – 78% Tech degrees
STEM remains critical to the technical competencies of the Engineer Regiment. AEA is an important partner to encourage future and existing college students to pursue a STEM degrees--this is relevant to the Regiment but also critically important for the Nation's future.
Although the recruitment efforts at USMA have paid off and we're achieving the 70% accessions goal, we are falling short with ROTC where 55% of the Regiment's officers are accessed from (compared with 35% from USMA and 10% OCS, which is very difficult to impact).
For civilian workforce, USACE is focused on recruiting Recent/Future STEM Graduates and deepening the Diversity Pool
Over 100 Formal Partnerships with STEM focused University/Colleges
Over 1000 STEM Internships per year
Encouraging West Point and ROTC Cadets to study STEM fields
Photos:
(Upper Left) STEM Event Sasebo Elementary School, Japan
(Lower Right) ROTC Cadets at the Army Geospatial Center
-Quality: safety
-On time, on budget

14. Questions?