Overseas Base Closures: Prospects and Impacts

Overseas Base
Closures: Prospects
and Impacts
Dr. Craig College, February 28, 2012
2012 ADC WINTER FORUM | PAGE 1
Overseas Base Closures: Prospects &
Impacts
• Budget
• Europe Reductions
• Overseas Base Closure
• Impact on Domestic Installations
• European Perspective on Base Closures
2012 ADC WINTER FORUM
PAGE 2
The Fiscal Driver
2017
2019
2013
2015
2011
2007
2009
2003
2005
2001
1997
1999
1993
1995
1991
1987
1989
1983
1985
1981
1977
1979
1973
1975
1969
1971
Federal Deficit/Surplus
4%
40-year average
(1969-2009):
-2.6%
GDP
Surplus / Deficit as % of GDP
2%
FYDP average
(2011-2015):
-5.4%
0%
-2%
-4%
-6%
Federal Surplus / Deficit
200
-8%
0
-200
TY $ in B
-400
-10%
-600
-800
-1,000
-1,200
-1,400
-12%
FY08 – $459B
FY09 – $1413B
FY10 – $1500B
FY11 – $1341B
FY12 – $915B
1940
1942
1944
1946
1948
1950
1952
1954
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
-1,600
2012 ADC WINTER FORUM
CBO 5 Mar 10 Projection
PAGE 3
3
The Defense Budget Over Time
• Discretionary spending is ~35% of total federal budget – Defense budget is ~50% of discretionary spending
• Increasing emphasis on reducing spending/deficit – Congress and the Administration
• Historically, funding levels have decreased as military demand decreases
$800 B
$700 B
DoD Military Manpower
DoD Total Manpower
Height of
Vietnam
War (1968)
Korean War
Armistice (1953)
Vietnam War
Ends (1973)
$600 B
DoD $ (FY12 Constant $)
Height of
Cold War
(1985)
9/11
(2001)
FY01-11 Base (FY12 Constant $)
8.0 M
OCO?
Gulf War
Ends (1991)
7.0 M
6.0 M
$500 B
5.0 M
BCA
$400 B
4.0 M
$300 B
3.0 M
$200 B
2.0 M
$100 B
BCA
impact
1.0 M
?
$B
2012 ADC WINTER FORUM
.0 M
PAGE 4
The Army Budget
$300 B
Base
OCO
OCO Request
$252
$250 B
$235
$243
$240
$221
$203
$200 B
$167
$121
$177
$92
$99
$185
$100
$68
$109
$143
$150 B
$64
$123
$50
$72
$40
$26
$100 B
$78
$50 B
$86
$78
$84
FY01
FY02
$97
$103
$103
$105
$112
FY03
FY04
FY05
FY06
FY07
$131
$143
$144
$140
$135
$135
FY09
FY10
FY11
FY12
FY13
$B
Execution
2012 ADC WINTER FORUM
PAGE 5
FY08
Approp Request
Supporting Infrastructure
Consigned Site Reductions
Reductions



Installations & sites returned to the Host Nation
– FY06 07 Sites Returned (211 Acres, PRV .36B)
– FY07 29 Sites Returned (2,986 Acres, PRV 2.48B)
– FY08 26 Sites Returned (11,305 Acres, PRV 2.53B)
– FY09 20 Sites Returned (7,816 Acres, PRV 2.71B)
– FY10 08 Sites Returned (68 Acres, PRV .50B)
– FY11 07 Sites Returned (298 Acres, PRV .51B)
Total 97 ( 27 Major Closures* @ 23,224 Acres $9.1B PRV)
BRAC 05 (FY06-11)
ARMY’s 12 Major Closures *
@ $7.2B PRV
Announced Site Closures / Pending Actions (FY12-16)
 22 Sites to Return 6,550 Acres $4.931B PRV
 1 Garrison (USAG-BW) To Inactivate
* Using OSD BRAC 05 Rules,
Site w/$100M PRV = Major Closure
DoD Agency Closure: (FY06-11)
 22 DoDD Schools (- 578 staff positions)
 14 DeCA Commissaries (-198 staff positions)
 7 AAFES Main Post Exchanges / 74 other AAFES facilities
Inactivated
6 Garrisons
* AKA Wurzburg
** AKA Hanau
Franconia *
FY06
2012 ADC WINTER FORUM
PAGE 6
Giessen
FY07
Hessen **
FY08
Darmstadt
FY08
Heidelberg
FY10
Mannheim
FY11
USAREUR Transformation Overview
Garrisons
USAREUR Units Relocations
 Enduring
1.
2.
3.
4.
5.
 Non-Enduring
 Closing
 Conversions
 Proposed
Conversions
To the
United States
Schinnen
BENLUX
Brussels
US Army EUR HQs
V Corps HQs
66th MI
5th Sig
Baumholder
170th
HBCT
Wiesbaden
Mannheim /
Heidelberg
Kaiserslautern
Schweinfurt *
Bamberg
Signal BDE
Engineer BDE
Sustainment BDE
Ansbach
IMCOM-E HQs
21st TSC/7th CSC
Landstuhl Regional Med Center
ERMC
Patriot/Theater Mis. Def
18th MP BDE
Stuttgart
Returned 1st AD to Ft. Bliss (2011)
Relocate V Corps HQs to Wiesbaden (~2011)
Relocate USAREUR HQ to Wiesbaden (~2012-13)
Inactivation of the 170th (FY12) & 172nd HBCT (FY13)
Consolidate 173rd ABCT in Italy (2014)
Grafenwoehr
Hohenfels
12th Aviation BDE
EUCOM HQs
AFRICOM HQs
SOF HQs
172nd HBCT
2nd Stryker RGT
Joint Multi National Training Command
Garmisch
IMCOM-Europe Related Actions:
 Garrison Restructuring: Close 2* and convert 2 Garrisons to sub-sites of their parent garrison
 Site Reductions: Close 9 sites ( ~$39.7M Annual Savings)
 Logistics Transfer: Region CPSSO, Consol Maint / Garrison DOLs to AMC FY13?
 Build up of the Receiving (Enduring) Garrisons
 Maintain the Region’s Centralized SRM Account to support USAREUR Transformation
 Establish the New USAG Vicenza Dal Molin site to support 173rd BCT consolidation
2012 ADC WINTER FORUM | PAGE 7
* Pending HQDA TAA14-18 Force Structure decisions

7
Livorno
Vicenza
173rd ABCT
US Army Africa HQs
APS 2 Site
USAREUR HQs C2 Consolidation
Mission
Command
Center
FY09/11
WIESBADEN
Consolidated
Intel Center
FY11
Color
27 mi
Organization
CLOSE
DARMSTADT
USAREUR
V-Corps
5th
SIG CMD
4th
66th
ASOG
MI BDE
1/214th AVN BN
ELIMINATES:
Information
Processing
Center
FY11
529th MP CO / CLE
Medical + WTU
USAG Wiesbaden
AFH
• 48 installations (28/20)*
• $8B Plant Value
• 9 DoDEA schools
• 45 controlled gates
• 2 airfields
• 5K+ AFH Quarters
• 3 sets of community
support infrastructure
37 mi
CLOSE
MANNHEIM
Consolidation at Wiesbaden Permits:
 Consolidation of USAREUR HQ, V Corps HQ, 5th Signal Cmd and 66th MI Bde
 Closure of 3 non-enduring communities; Mannheim, Heidelberg & Darmstadt
 Provides improved force protection, expansion capability and enhanced communications
$112M Annual Savings w/ROI of 3.4 Yrs
2012 ADC WINTER FORUM | PAGE 8
59 mi
CLOSE
HEIDELBERG
* 28 Closed / 20 Pending Closure
USAG Schinnen Relocation
Leased Site Reduction
USAG Schinnen
Emma Mine
Leased Site
Brunnsum
NIC Site
ESSO
7.7 Miles
1.1 Miles
Brunssum NATO
Joint Forces HQs
Hendricks Mine Site
ESSO
ESSO
ESSO
NL Gov’t
Is funding $14M to
Support the Move
$3.7M Annual savings, ROI = 2.9 Years
2012 ADC WINTER FORUM
PAGE 9
Germersheim Army Depot
IMCOM-E use of Host Nation Payment-In-Kind (PIK) /
SRM to fill in for recently cancelled /deferred MILCON)
Germersheim Army Depot (GAD)
Germersheim Army Depot
MILCON Projects
 FY12 Central Distr. Facility for AAFES $21.0M
Allows for closure of AAFES Giessen Depot
• Status: 95% design in progress
• Construct 16,000 SF admin building (Renovate Brks Bldg)
• Construct 48,000 SY container hardstand (Build Smaller)
• Renovate 13 warehouses (Limit Scope)
 FY12 Infrastructure Upgrade (entire depot) $16.5M
• Status: Design started 22 Nov 2011
•135,000 SY road construction & repair (Deferred)
• Upgrade electrical service (Limit Scope)
• Install water & gas lines (Limit Scope)
 FY09 Logistics Distr. Center, DLA $21.0M
Allows DDDE to relocate from “Big O” facilities
• 235,000 SF warehouse & operations center
•10,000 SF admin facility
• 6,000 SY concrete warehouse aprons
AAFES Distribution Center
~$5.3M Annual
BASOPs Cost*
Ex-Giessen Army Depot
2012 ADC WINTER FORUM
PAGE 10
* Large Deferred Maintenance Bill
Overseas Base Closure
1. IMCOM-Europe and USAREUR consult and determine which sites or entire
installations would be excess to need.
2. USAREUR, nominates the site/installation to EUCOM for return.
3. EUCOM Staff reviews the proposal and coordinates to see if any other
service could use. EUCOM coordinates with the affected Embassy to
conduct a host nation sensitivity study. If no major issues, forward to Joint
Staff. (Staffing & Embassy coordination until EUCOM approval ~30 days)
4. Joint Staff reviews, coordinates with the services and if no objections,
forwards to OSD.
5. OSD Staff reviews, determines policy or NATO impact, notifies/coordinates
w/ State Department, sends to Office of SECDEF for signature.
2012 ADC WINTER FORUM
PAGE 11
Overseas Base Closure
6. OSD returns signed approval memorandum to EUCOM.
7. EUCOM coordinates with USAREUR to set an official Host Nation notification
date. EUCOM coordinates with Embassy to conduct classified Host Nation
notification to affected Ministry of Defense/Federal Government.
8. USAREUR & IMCOM Public Affairs Officers coordinate a "Public
Announcement" packet.
a. USAREUR Liaisons notify state government officials .
b. USAREUR Civilian Personnel Division notifies Local National Head
Works council.
c. Garrison Commanders notify affected Mayors, Local National Works
Councils, and employees/family members of the action.
d. Once notifications are complete, USAREUR & IMCOM-E Public Affairs
release an official news release to U.S. and Local National news
organizations.
2012 ADC WINTER FORUM | PAGE 12
ARMY
ARMY
NAVY
AIR FORCE
SOCOM
2
Force Structure Changes
WE JUST DO NOT KNOW FOR SURE……
• WHICH UNITS?
• Recent announcement: (Army Times, 27 FEB 2012)
- 170th Brigade (Baumholder) by Oct 2012.
- 172nd Brigade (Schweinfurt/ Grafenwoehr) by end of 2013.
• CG USAREUR has offered other units that may be better used
in CONUS.
- Military police companies, Engineer Brigade HQS, truck
companies, logistic units
• WHEN & WHAT OTHER UNITS?
• Await decision from the National Command Authority
(President through Secretary of Defense)
2012 ADC WINTER FORUM
PAGE 14
Impact on Domestic Installations
• Primary:
• The Army is drawing down to 490K from 569K
• No authorities that permit Army to execute stationing
decisions without standard Congressional notification
• Potential BRAC
• Secondary:
• Potential Overseas Base Closure
• Not clear what will happen with other USAREUR units
• Don’t know what other units will deactivate or relocate to
CONUS
• Reductions may relieve Installation / IMCOM budget
constraints
2012 ADC WINTER FORUM
PAGE 15