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

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.

FY14 USACE Global Engagement Engagement - 132+ 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

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

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.

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

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

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

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

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

-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

Questions?