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Lisa J. Smith / DAIM-ISE / (703) 601-1563 / lisa.j.smith@us.army.mil 100006MAY2009
Army Programming Process and the Environmental Cost Standardization
Model
Ms. Lisa SmithOACSIM Directorate of Installation Services
Environmental Division
6 May 2009
Report Documentation Page Form ApprovedOMB No. 0704-0188
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1. REPORT DATE 06 MAY 2009 2. REPORT TYPE
3. DATES COVERED 00-00-2009 to 00-00-2009
4. TITLE AND SUBTITLE Army Programming Process and the Environmental CostStandardization Model
5a. CONTRACT NUMBER
5b. GRANT NUMBER
5c. PROGRAM ELEMENT NUMBER
6. AUTHOR(S) 5d. PROJECT NUMBER
5e. TASK NUMBER
5f. WORK UNIT NUMBER
7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) Army Office of the Asst Chief od Staff InstallationManagement,Installation Services Directorate ,600 Army Pentagon ,Washington,DC,20310
8. PERFORMING ORGANIZATIONREPORT NUMBER
9. SPONSORING/MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSOR/MONITOR’S ACRONYM(S)
11. SPONSOR/MONITOR’S REPORT NUMBER(S)
12. DISTRIBUTION/AVAILABILITY STATEMENT Approved for public release; distribution unlimited
13. SUPPLEMENTARY NOTES Presented at the NDIA Environment, Energy Security & Sustainability (E2S2) Symposium & Exhibitionheld 4-7 May 2009 in Denver, CO.
14. ABSTRACT
15. SUBJECT TERMS
16. SECURITY CLASSIFICATION OF: 17. LIMITATION OF ABSTRACT Same as
Report (SAR)
18. NUMBEROF PAGES
23
19a. NAME OFRESPONSIBLE PERSON
a. REPORT unclassified
b. ABSTRACT unclassified
c. THIS PAGE unclassified
Standard Form 298 (Rev. 8-98) Prescribed by ANSI Std Z39-18
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY2009
Agenda
Army PPBES Process Requirements Building Process Environmental Cost Standardization (ECS)
Overview POM Deliberative Process Funds Distribution Process
2 of 24
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY2009
Army PPBES Process
Army PPBE’s main objective is to establish, justify, and acquire the fiscal and manpower resources needed to accomplish the Army’s assigned missions in executing the Defense Strategy
Planning
Programming and Budgeting
Program Execution
Budget Execution
Size, structure, man equip, train and sustain the Army force
Distribute projected manpower, dollars, and materiel among
competing requirements Convert resource allocation decisions into congressional
requests
Manage and account for funds in approved
programs
Apply resources to achieve approved
program objectives
3 of 24
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY2009
Army PPBES Cycle
What Installations NeedRequirements
What Installations GetFunding
4 of 24
* Army PPBES Cycle U.S.ARMY
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Lisa J. Smith / DAIM-ISE / (703) 601-1563 / lisa.j.smith@us.army.mil 100006MAY20095 of 24
What Installations Need…Requirements Building Process
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY2009
What Installations Need
6of 23
ECS Requirements +
Non-Recurring Requirements
POM Deliberations
Requirements and Funding Setfor POM Years
Presidents Budget (PB) Set
Army Budget Office
IMCOM, NGB, USAR
Installations, States, RRCs
From POM/BES to PB
POM – Program Objective MemorandumBES – Budget Estimate Submission
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY20097 of 23
Background
Environmental Program Requirements (EPR) turned–off October 2005:– Bottoms up build, labor intensive submittal and process– Inconsistent costing approaches– Out-year requirements dropped off significantly
Environmental Cost Standardization (ECS) model first used for POM FY08-13
ECS revision/update began May 07 to provide greater visibility, auditabilty, reproducibility in recurring activity costs
ECS has migrated from desktop into module of BOS Requirements Module (BRM)
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY20098 of 23
What is ECS?
Generates requirements for Environmental Quality (EQ) program activities
Hybrid Activities Based Costing Methodology designed to use data from existing
authoritative data sources updated as needed Utilized subject matter experts to
– Identify costs – Calculate unit costs specifically designed for this methodology– Determine cost adjustment factors base on installation tier,
size, and location Extensive documentation
– Unit cost factors– Assumptions– Data sources
Flexible enough to incorporate future condition changes and periodic refinements
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY20099 of 23
What does ECS do?
ECS generates costs for recurring requirements for Environmental Quality (EQ) program activities –– Recurring requirements include costs that are either annually
recurring or cyclic in nature
– Generates requirements by installation, by program area, and by activity
Generates sufficient requirement costs to:– Maintain steady state in EQ programs
– Meet current legal and policy-driven requirements
– Assume full and sustained compliance
– Tiered funding levels allows either “Validated” or “Critical”
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY200910 of 23
What Activities are in ECS?
Personnel Compliance
– Clean Air Program – Clean Water Program– Safe Drinking Water Programs– Hazardous Waste – Storage Tanks– Toxic Substances Control
Pollution Prevention– Emergency Planning and Community Right-to-Know Act (EPCRA)– Pollution Prevention Plans
Conservation– Natural Resources– Cultural Resources
Installation Programs and Initiatives
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY200911 of 23
Statistical Analyses
Used to identify appropriate adjustment factors for hybrid-activity based costing
Analyzed differences in environmental expenditures (6 years of data):– Mission (Tier 1, 2, 3)– Size (Small, Medium, Large, etc.)– Location (Alaska, Hawaii, Europe, Pacific Rim**)
Continuing to analyze data for possible links between environmental funding and real property assets– No statistical significance established to date– No linkage between real property and ECS for POM FY10-15– Continue to analyze the appropriate linkage
** Unique factors to account for specific issues
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY200912 of 23
ECS Activity Equation
ECS EQ Requirement
Costs
WaterSolid Waste
Hazardous WasteAir
Storage TanksNatural ResourcesCultural Resources
Installation Programs & Initiatives
= f *Mission
SizeLocationInflation
Environmental Activities Cost Factors
Adjustment Factors
Authoritative Data Sources
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY200913 of 23
ECS Basic Framework
Cost Categories Cost Driver / Unit of Measure
Unit Cost 1Adjust ment
variable 1Adjustment coefficient$/Unit of
Measure Base Year Unit Cost based on
Water
Wastewater
Monitoring and Sampling
Total Cost per wastewater system if wastewater is not privatized;
remote factors applied $1,234 2006Applies to all installations
Hawaii adjustment: applies to all
installations in Hawaii 1.23
Monitoring and Sampling - Lab analyses
Total Cost per wastewater system if wastewater is not privatized $123 2007
Applies to all installations
Permit Applications Total cost per CONUS
installations only $123 2006Medium
installations
Example only numbers not realistic
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY200914 of 43
ECS Documentation
Provides functional definition, cost factors, sources, definition, cost factors, calculations, assumptions, references
* ECS Documentation U.S.ARMY
A e;n '1/a~er Act
CATEGORY Water Seciin enl basins v;ill Je used 1o control discharQes of sediment-ACTIVITY CWA: Non-Point Gou rce {~) laden :,torn wntcr r .mofffron mnltetr_.c,r orca~. Coot wa3 b l•c"' REGULA TORY OR CWA trom an t l-'.ll. stud'/ ror nstaraua1 and mamtenance 01 seatment POLICY OrtiVEfl Stntutc : 33 USC 1251 c : 3 CQ. basins f« di~t-.ubed land
l"<eautallo n: 40 CI"K 1:l:l.:l1 OEFif>JITIOI~ n ,b a ctivity i3 intc'ld cd to OO\'Cr coot3 to comply wi!h Section
Tlte cala 90-ur :e b r ttte ru-nbe-r oi install-at:on maneu•1er r\ fe·a 31!:1 ot me CWA ana retated state. beat or ·oreta-~ c,overnrnQ ~.;r~::s i:s dal i:! tt:lpCJi l::l.l i11 HQ~IS CAT: ODE~ 177 · 0 ami 17720. etandardc t hot r~gula!e non p o. int e o.urce dicchargee. Training
areas are ; sed ·or cornt•at anl naneuver uaintng a 1d can te :>,GOO t.3 ot ~ed'im::nt b.:. .sin will l:e needed ;)¢r ea" e of dis:U'l:e·j charact:orizec 3$ con1imously di~tlJ'be.d 3reas. The'te disturbed area. ttl ::c:.:s c:.1~ •..1ft~11 suiJj~t.:t 1o 11101~ tlXlensiv~ 6MP::; ro1 in:s l~:~11c:. liuu
S'lnrl m::\n~!JP.mP.nt nf f!rn::.ion :::nri ~P.rl imP.."lt t o ntrols; ~.~ rP.qu irP.r. C.Jst ;o Install sectmem c.asrn rs $0.22/ltl. by their St·:~rm Ylealer N FOCS Pemits ancJ/cr 5WPPP~. Ther.e
activties include o ·eventino sed im ent ation. beach. or stream Th~ ~llt 1 ui:ll U lo:till lt: I IC:.J I\:~ .,;o:sl u l t1 t.~J i·•,=nt t;a::;ir• i:s tl4U;.11 lu bon I( c~ion if not ottributc.blc to moncu·tcr d amage; t ,Jn k troil n o;. nf thP. r.nM tr. insts;.ll :'l ~P.r,inP.nt h;:;~in
m~intP.n::\nr.P. rr.::\rl m-.intP.nAnr.~ firP.lYP. llk~ nr nihP.r A"n~ion nnt re.!oultina from the bc;k of ma intena nce to real prcoertv
Seciin enl basins have a 1-year efective l ffe and ml.sl t:·e re-ENGIIJEERED S1.19 (SfVOO) im tnlc :t (or the cq1..ivolcn(• every yccr. ACTIVITY COSl
UNIT OF MEASURo Per acre OCO\IU$ 1nstal a:ion~ haw analog:~us CWA requir~nents CALCULATION IMCOM - CONUS ouUiucd ; , .,;o un!JV·.$UC\: iri.,; FGS.
<.:-ost = t nomeeJet:r cost cet n;aneuveJ area acre "'Numoer or REFERENCES CWA , '33 USC 125' e.t ~eq., 4•) CFR 122.21 m:.meu~'er a rea ':lcrec
F P A ?flO) nP.w:lf1(:n:P..?t r:n-:L•mP.m {.")r Pm{¥0$P.rl FffitJP.nt IMCOM OCOH US Guicl::li:u:s and 3Uinc:'o,"ds for 1h e G:msfrucfiM end Devetoomenf C-ost = EngmeeJet:r cosr cet n;aneuveJ area acre • Numoer or C:~tecorr·. June. Costs 111 d ocument are Q.i'ven in $=v co m an.e.u![er ar~a acres
IJ!i.AR H •:!! ISCAT.:OOE.s ·rrr· oano 1772.
Not tJpp/ic;,bfe U:;t'cJ pu; (e::;::;iof ~ t:-J!.Ptlf i::nt;t: ~n.,; bt:t>l e:nyint:t:Jiuy julfym~ut
de.r ived l:y ass-i stin~ "a,ious DoD in;:t~l a :ic,n;: n V;ate· program Arm'j ~'otionol C uord
~\: livi.it: ::s. Cost = EnoineeJed cost oet n;aneuveJ area acre • Number of muncu~'crarco ':lcrc3 C·:ln3ul:otion wi1h HQ0.6.. and ~thcr Army 3Ul:jccl nc.ttcr c xpcrt3
BASIS FOR Enoineere~ oos: per maneuver are a acre is based on 1he and techmcar worK ·:HOJ!Q_S. ENCitJEEnED m ointcr.a ncc coo~ 033ociotcd v.it h cro3bn ond ::ccimcnt ACI IYI I Y t.:US I connors.
Engmeered cos: per manewer area ocre = ((Secflmem Das/Jl cub;e ieet/Oc te of dir:Wrbect' a1e3 * Cott t::> ;nsfr~l/Jr;edin:en! bos~n
~..:uiJ;c f et::l) • 0 . ~5 <J tiiiUbl Jti<JiillctltJiu.:e ~,;w;(.'tJt:tlf.:.;J/ ilt:t.ul/ <;1..::>1 " (SP.rlim~nf hs;.~;, r.:uh i-: fP.P. f.'~r:rP. o i ,"fis:.furll~d WP.A • !.o<5:1 JO
insta{f/~ediment ba~ir. cubk. ket}) ASS I IMPTIOIIS All A rm'} iMt:~I IMions: w il"' mAnP.uvr_r S'lrP.I\~ will rAr[llf P. SIP.•1imP.nt
and erosion (.Ontrol m etl$UrC$ a nd :hat t ho.:.e Ol CII$Ure$ will re· u 're a n 1ual naintenance.
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY2009
What Installations Need
15 of 23
ECS Requirements +
Non-Recurring Requirements
Presidents Budget (PB)
POM Deliberations
Requirements and Funding Setfor POM Years
Army Budget Office
IMCOM, NGB, USAR
Installations, States, RRCs
From POM/BES to PB
POM – Program Objective MemorandumBES – Budget Estimate Submission
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY2009
POM Deliberative Process
16 of 23
Current Year 10
Budget Year 11
POM 12-17
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / lisa.j.smith@us.army.mil 100006MAY200917 of 23
What Installations Get…Funding Distribution Process
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY2009
What Installations Get
18 of 23
ECS Requirements +
Non-Recurring Requirements
Presidents Budget (PB)
POM Deliberations
Requirements and Funding Setfor POM Years
Army Budget Office
IMCOM, NGB, USAR
Installations, States, RRCs
From POM/BES to PB
POM – Program Objective MemorandumBES – Budget Estimate Submission
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY2009
What Installations Get…
19 of 28
IMCOM
Recurring: Common Levels of Support (CLS)
Non-Recurring: STEP
NGBRecurring: Status Toolof the Environmental
Program (STEP)Non-Recurring: STEP
USARC
Recurring: CLS(yet to be implemented)
Non-Recurring
Commands distribute funds using different mechanisms
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY200920 of 23
ECS, CLS, ISR, STEP Linkage
Under Construction No direct link
BOS Requirements Model (BRM)
Common Level of Support (CLS)
Installations Execute
CLS helps IMCOM determine funds
distribution based onfunding levels available
Green, Amber, Red
$$$
Real Property InventoryPopulation Data
Environmental Database
Installations report service
metrics
Installation StatusReport - Services
(ISR)Execution
Data
ECS
Metrics adjust funding levels
POM Development
$$$STEP
BRM/ECS develops recurring requirements
by Installation
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY200921 of 23
ECS, ISR, and STEP Linkage
BOS Requirements Model (BRM)
STEP Database
Installations Execute
Installations input environmental
projects
NGB, USARC determine funds distribution
based onapproved projects
$$$
Real Property InventoryPopulation Data
Environmental Database
Installations report service
metrics
Installation StatusReport - Services
(ISR)Execution
Data
ECS
Metrics adjust funding levels
POM Development
$$$
Under Construction No direct link, informs model
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY2009
Installation Status Report (ISR)[“How Well” --- Level of Service:
Green C1, Amber C2, Red C3, & Black C4]
ISR-Cost (previously SBC)
[“How Much” ---Dollars & Quantities]
Standard ServiceCosting (SSC)
[“Should Cost”]II PEG MDEP
Managers & POCs
Requirements Build
PROBE & and More HQDA Approved
Adjustments (PBD’s, PDM’s, Senior Leader
Changes)
The Standard Service Costing (SSC) methodology that forms the basic cost algorithms within BRM are developed, certified
and validated by the Deputy Assistant Secretary of the Army for Cost and Economics (DASA-CE).
BRM requirements build requires BOTH ISR –S and ISR–Cost (SBC) data, plus the cost estimating relationships generated by the Standard Service Costing (SSC)
methodology to generate the baseline BOS requirements portfolio for the Army.
•Performance•Quantity
•Cost
BOS Requirements Model (BRM)
http://brm.army.mil
Adjustments re-allocated at Installation Level by Appn, MDEP,
PE and Service
Baseline Requirements
at Installation Level by Appn,
MDEP, PE and Service POMRequirementAC/AR/NG
Adjustments allocated at CMD, Appn, MDEP and
PE Level
II PEG Requirements
Review
RVT ValidationISR-Cost
Lisa J. Smith / DAIM-ISE / (703) 601-1563 / llisa.j.smith@us.army.mil 100006MAY2009
Questions???
23 of 23
ECS Documentation on AKO:
BRM website: http://brm.army.mil
https://www.us.army.mil/suite/collaboration/GetDocument.do?doid=10798482
Ms. Lisa SmithHQDA
OACSIM Installation Services Directorate
Environmental Division703-601-1563
lisa.j.smith@us.army.mil
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