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U.S. Army Materiel Command | Army Sustainment Command U.S. Army Sustainment Command FORSCOM CDRs Conference DOL Transition Update 2 OCT 2012 COL Dan Reilly Installation Logistics Directorate AMSAS-FSI DSN 793-5070 dan-reilly@us.army.mil

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U.S. Army Materiel Command | Army Sustainment Command What We Want to Leave You With 2 Transfer is on track and will culminate over 24 months of operational control and detailed planning with stakeholders FY 13 Program Budget Guidance (PBG) funding of $ 656 million to installations based upon the pay, non-pay and contract requirements identified. The PBG allocation funds 100% of civilian pay and approximately 10% of non-pay and 25% of contract obligations. The unfunded requirement is over $200+ million. While challenges remain in funding, these challenges would be the same even if the transfer did not occur. Additionally, the PBG allocation doesn't include supplemental funding, reimbursable funding or the reduction in the contract requirement based upon buying forward with end of year funds. In short, the true delta may be less than identified but costs to support Army initiatives (such as local moves, etc) may be unfunded. In FY13, EAGLE will be implemented on 13 installations. EAGLE consolidates/optimizes installation contracts; in CONUS alone, the EAGLE program will consolidate 148 separate contracts into 40 installation logistics contracts, with standardized Performance Work Statements (PWS) and performance measures. The goal is a single logistics provider on each installation for supply, maintenance, and transportation. Laundry & dry cleaning, food service, and aviation maintenance will fall outside the scope of EAGLE. A-76 DOLs assume more risk than Most Efficient Organization (MEO) DOLs. Additionally, Non-Tactical Vehicles and Dining Facility Operations, large consumers of QLOG dollars, are at risk for reduced services. Manpower assessments to be conducted. As we move forward, our priorities for DOLs include FY 13 execution, establishment of the Common Level of Support (CLS) baseline, Memorandums of Agreement, manpower assessment, FY 14 DOL transfer (JBLM and Kwajalein), Eagle Implementation, and the Personal Property Shipping Office consolidation. Bottom Line : the DOLs will continue to provide installation-level logistics, supporting Senior Commander priorities within the limits of available resources and IAW area support responsibilities outlined in Army Regulation 5-9.

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U.S. Army Materiel Command | Army Sustainment Command Effective 1 October 2012, Army Sustainment Command accepts transfer of resources, assumes full control of Directorates of Logistics from Installation Management Command, and provides installation level logistics in support of Senior Commanders and force generation to align core competencies, eliminate redundancies, gain efficiencies, and produce readiness at best value. 3 DOL Mission Transfer Partner with IMCOM and installations to set conditions, conduct change management, and establish service baselines. Set the conditions required to execute the Basic Ordering Agreements (BOA) for the OSD approved Enhanced Army Global Logistics Enterprise (EAGLE) acquisition strategy. Implement Sec Army directive Transfer 73 DOLs worldwide, including 4 Reserve Component; does not include JBLM (scheduled for FY14) or Heidelberg Transfer action is zero sum = No new bills to the Army AMC assumes responsibility within Army FY 13 PBG ($656M) Cost-Benefit Analysis validated by DASA-CE AMC updating MOAs Key Tasks -

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U.S. Army Materiel Command | Army Sustainment Command Resource Challenges (PBG & CBA) 4 PBG : FY13 DOL budget is ~22% less than FY 12 Limited flexibility due to pay &contracts; PBG spread supports 100% of pay, 10% of non-pay and 25% of contracts Delta / UFR reduced through reimbursable, OCO and buying forward contracts Senior Commanders decisions on local moves, etc may impact CLS services Installations must sustain efficiencies gained based upon FY12 reductions & S3U and continue to look for efficiencies Significant decrease from FY12 to FY13 DASA-CE validated CBA provides four year glide path to achieve directed PBG This requires funding above the projected PBG. Execute a comprehensive manpower study and align personnel resources.

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U.S. Army Materiel Command | Army Sustainment Command 5 Memorandum of Agreements MOAs between AMC and ACOM / ASCC / DRU. Baseline CLS serves as annex to MOA Basis for installation support agreements Staffed in time for POM 15-19 input to address direct fund or reimbursable Current ISSAs should remain in effect until new ISSAs are signed or updated based upon the updated MOA and baseline CLS CLS baseline is crucial to expectation management. Differences vary based upon type installation. ISSAs/MOAs reimbursable support must be factored into the POM process by the requiring activity. Policy issues for food service operations, NTVs, etc will affect future CLS.

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U.S. Army Materiel Command | Army Sustainment Command 6 ASC DOL Way Ahead Timeline Moving Target