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

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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

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CBO 5 Mar 10 Projection

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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

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.0 M

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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

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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

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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

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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

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* 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.

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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

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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

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