1. Supporting the All-Volunteer Force and Its Families March 15, 2010 Rich RobbinsDirector, Requirements and Program & Budget Coordination

2. Agenda • Introduction: Fiscal Context - “The OUSD (P&R) Perspective” • Total Force Background: “Mix” and Cost “Vectors” • PBR-11 Re-Cap: “How Did We Do?” • POM-12 “Road Ahead” • Take Aways: “Keys to Success”

3. Competition for Resources: OUSD (P&R) Perspective • NOT just about “getting the money” • About promoting Department’s larger objectives • Sustain the All-Volunteer Force • Deliver Total Force readiness and sustainability • Reduce fiscal opportunity costs • MWR • Child Development • Youth Programs • etc. “Recapitalization” needs are compelling!

4. USD (P&R) Fiscal Context: FY11 DoD Budget Authority ($B) P&R Oversight: ~$103B without all manpower ~$200B with manpower >> about 1/3 of DoD TOA 707.4 696.4 654.7 32.7 159.1 130.0 141.4 548.3 What’s the P&R budget? It depends… 533.7 513.3 Includes ~$2.1B in MWR, Child Dev, Youth Programs Source: OMB Red=Total with oversight *Includes OCO

5. The DoD Topline and Personnel Costs (2007 Constant Dollars*) Total Force Strategy: “Should focus on the right mix but be affordable” OCO Supplementals 2007$ Billions Active Duty (Millions) * Using the GDP Price Index from the Budget of the United States Government: Historical Tables Fiscal Year 2009 (Table 10.1)

6. Fewer People Costing Much More: “The Fiscal Squeeze” Takeaways include: Active Military “per capita” costs increasing – everyone else, too Service Contract costs now almost equal to Active Military costs Also, related costs associated with: 3M Dependents 10M Retirees + Dependents/Survivors FY67 FY87 FY07 Manpower (millions) ▀Active Duty** ▀ Reserve (FTE) ▀ Civilian ▀ Contractor* Total 4.2M Total 5.8M Total 3.0M (-48%) ** Includes DHP, Retired Pay, & Family Housing (excludes O&M training & Reserve MilPers) *Contract Manyear Equivalent (CME) based upon $175K FY07 Dollars additionally deflated proportionately to Civilian Per Capita costs Manpower Costs (2007$ billions) Total $245B Total $200B Total $334B (+67%)

7. P&R PBR-11: Fiscally Challenging…“But We Did Well” Resource Movements Included (FY-11 / FY11-15, $M): - *Private Sector Care: $2,339 / $22,520 - *DoDEA Milcon: $246 / $3,700 - EHR: $302 / $1,659 - Family Support: $475.6 / $2,300 - Language and Culture: $35.8 / $115.2 - Aviation Safety Technologies: $46.8 / $678.2 - Small Unit Immersive Training $50 / $285 (CE2T2) - IPO $8.9 / $48.6 - VPP $5.3 / $28.1 - YRRP $28.3 / $28.3 - ESGR: $6.6 / $34 - FVAP: $4/ $4 • Large, Wide Budgetary “Playing Field” • $ Amount not always indicative of issue significance Success Due to “Informed Engagement” Throughout OUSD (P&R)… …What About POM-12?

8. CY 2010 Evolving Calendar JAN FEB MAR APR MAY JUL AUG SEP OCT NOV DEC JUN OSD Services Decision Meetings Capability Gap Assessment JS/COCOMS PB-10 Execution FY-11 Budget Hearings HAC / HASC Mark-Up SAC / SASC Mark-Up PB-11 Jun Appeals PB-11 Signed Floor Consideration of NDAA and Appropriation Conference Bills 2011 PB Submit 3 – 17 Sep Review by ODS Sponsor 13 May WG Mtg 22 Feb - 5 Mar Review by ODS Sponsor 25 Oct - 8 Nov Pre-vote 18 Nov WG Mtg 16 - 29 Apr Pre-vote 8 Mar Initiatives Available for Review 10-30 Dec Final Vote 2012B P&R ULB 2013A P&R ULB 14 Apr WG Meeting 20 Sep Initiatives Available for Review 12 Nov Finalize Summit Agenda 6 May Finalize Summit Agenda 2 Sep Submit 2013A Proposals 7 Oct WG Mtg 19 May ULB Summit 19 Feb Submit 2012B Proposals 9 Dec ULB Submit Front-End Program Assessments PBR / Issue Teams Component POM Development RMDs GDF/GEF Fiscal Guidance PBR Guidance P&R Issues to USD for approval Issue Papers due to CAPE P&R Issues to RQ POM-12 Wild Card: IDA DoD Management Processes Recommendations P&R Issue Brfs to USD(P&R) PBR Complete Early P&R Issue ID P&R Issue Refinement Svc POMs/ BES due Comp POM Brfs JPG P&R POM Brfs w/th Services DSLC DSLC DSLC CPR JROC Hub Trip CPA JROC Hub Trip JS / JCIDS Capability Assessment COCOM J8 Conference COCOM IPL Submissions COCOM Issue Nom Submission to J-8 PR-13 Planning Input Memos due A Busy & Complicated Slide – A Busy & Complicated Process

9. POM-12 Road Ahead **Potential POM-12 Issues / Focus Areas may include: • P&R Issues: • VLER • EHR • FVAP • Yellow Ribbon • EO • Fitness Centers • Online Libraries • Oversight Issues with P&R Equities • Service End Strength • Security Force Assistance • COCOM Manning • Safety • Reserve Equipping • Individual Augmentees • It’s Started • POM-12 PBC “Kick-off” Meeting was 14 Jan 2010 • Service POMs probably 80% built • P&R will have to adapt • Top down fiscal squeeze from OMB • Increasingly “narrowly defined” OCO • Potential for significant PPBES changes • New OUSD(P&R) organization • Etc.. • We can always do better, including: • “Divestiture” ID (Solve our own problems) • Service oversight / coordination • PSA and JS coordination **The many positive P&R outcomes from PBR-11 will obviate many POM-12 issues

10. TAKE AWAYSKeys to Successful “Competition for Resources” Include: • Build Alliances • Inside OSD • With the Services • Once the POMs are built, opposition intensifies! • Know exactly who “sits at the table” and your “target” • Build a Solid Business Case that… • Supports the first two objectives • Promotes the third • Identify Divestiture – Reduction Opportunities • Analyze Return on Investment • Measure Risk • Eliminate Redundancies • Look at both P&R Funded Programs and P&R Oversight Areas Overarching objectives: • Sustain the All-Volunteer Force • Deliver readiness and sustainability • Reduce fiscal opportunity costs The best proposal without an offset is on a very, very long list.