OPERATION AND MAINTENANCE (In Thousands) FY 1983 Program $612,329 Purpose and Scope a. Operation. This portion of the program provides for expenses in the following categories: Management. Includes direct and indirect expenses incident to the administration of the family housing program such as housing office personnel and operations, administrative support, training, travel, programming and studies, and community liaison. All housing referral costs are also included, although the housing referral program assists personnel in finding housing in the private community, and is not related to the operation or management of military family housing units. Services. Includes direct and indirect expenses incident to providing basic support services such as refuse collection and disposal, fire and police protection, pest control, custodial, snow removal, and street cleaning. Utilities. Includes all utility services provided to family housing, such as electricity, gas, fuel oil, water and sewage, excluding telephone service. Furnishings. Includes the procurement for initial issue or replacement of household equipment (primarily stoves and refrigerators) and, in limited circumstances, furniture; the control, moving and handling of furnishings inventories; and the maintenance and repair of such items. Miscellaneous. Includes all work or services performed for the benefit of family housing occupants, including mobile home hook-ups and disconnections, for which reimbursement will be received; and miscellaneous expenses not covered elsewhere. b. Maintenance. This portion of the program supports the upkeep of family housing real property, as follows: Includes service Maintenance/Repair of Dwellings. calls, change of occupancy rehabilitation, routine maintenance, preventive maintenance, interior and exterior painting, and major repairs and replacement. Exterior Utilities. Includes maintenance, repair and replacement of electricity, gas, water, sewage and other utility distribution systems located within family housing areas, and the portion of activity utility rates attributable to distribution system maintenance when separately identified. Other Real Property. Includes maintenance and repair of any other family housing real property, such as grounds, surfaced areas, and community facilities. Alterations and Additions. Includes minor incidental improvements to dwellings or other real property performed under the authority of 10 USC 2674 subject to OSD administrative limitations. Program Summary. Authorization is requested for appropriation of $605,166,000. This amount, together with estimated reimbursements of $7,163,000 will completely fund the Fiscal Year 1983 program of $612,329,000. A summary of the funding program for Fiscal Year 1983 follows: FAMILY HOUSING, NAVY Program Justification a. Operation Management. The Navy management requirement for FY 1983 equates to less than 5% of the total Navy family housing program request. These funds will provide for salaries and benefits for approximately 650 workyears of effort and office operating expenses necessary to manage about 77,000 family housing units at over 150 locations throughout the world. It also will provide for salaries and benefits for approximately 160 workyears and office expenses incident to execution of the Housing Referral program which annually assists more than 68,000 Navy members and their dependents locate suitable housing in the private community. Funds are also included for direct and indirect administrative support necessary to the management of the family housing program provided by other installation organizations such as comptroller, personnel, payroll, supply, transportation, and maintenance control. O Services The amount requested for Services equates to approximately $33 per unit per month, which compares quite favorably with costs experienced by private property owners, through direct payments and local tax assessments, to acquire an equivalent range of services. Utilities The amount requested for utilities equates to approximately $177 per unit per month. This reflects, in part, high overseas utility costs, since costs within CONUS in FY 1983 are estimated at approximately $150 per unit per month. Navy Family Housing purchases approximately one half of its utilities from industrially funded activities, which publish customer rates in advance and the cost of which, therefore, can be closely estimated. The prices for the balance of the utility requirements have been developed in accordance with Office of Management and Budget fuel and utility price escalation assumptions. Energy conservation achievements and initiatives have been fully considered in the development of utility consumption estimates, including the attainment by Navy family housing of a 17.4% reduction in consumed energy through FY 1981 in comparison with FY 1975, on a per square foot basis. O Furnishings. Approximately 50% of the amount requested for furnishings relates to maintenance, repair and replacement of authorized household equipment, predominantly ranges and refrigerators, based on historical service and time-in-use criteria. Approximately 25% of the amount requested relates to moving and handling occasioned by warehousing and control of furnishings inventories, equipment replacements, and provision of loaner furniture sets at overseas locations to personnel awaiting arrival of their personal household goods shipment from their last duty station. The remaining 25% of the requirement relates to maintenance, repair and procurement of furniture. Expenditures in this area were curtailed during the past two fiscal years due to a procurement moratorium, creating a backlog of unfunded requirements. Resumption of normal levels of furniture repair and procurement is badly needed to avoid unacceptable deterioration of inventories maintained primarily for the overseas loaner furniture program. Miscellaneous. The large percentage increase in this element results from a budget change from past years to include maintenance type work for which reimbursement will be received in the Operations area. This will correspond with OSD accounting policy guidance to apply all reimbursements to finance the Operations area of the account. A corresponding decrease has been made to the Maintenance account. b. Maintenance The amount requested for maintenance in FY 1983 includes recurring maintenance requirements as well as funding to reduce the maintenance backlog and halt further deterioration of the family housing inventory. The amount requested will permit application of approximately $50 million to reduce a backlog now estimated at more than $320 million. c. Comparison of FY 1983 With FY 1982 The amounts shown by line item in the FY 1982 column for Operations and Maintenance do not include consideration of FY 1982 classified and wage grade pay increases, nor do they reflect reprogrammings between line items which will be necessary to reflect the impact of the payment of indirect support costs approved in FY 1982 for absorption in the Family Housing Management account. Accordingly, valid comparisons by individual line item between FY 1982 and 1983 cannot be made. Reprogramming authority, provided by the Military Construction Act, 1982, Report No. H.R. 97-400, will be exercised within the totals shown for FY 1982 Operations and Maintenance which correctly reflects the OSD allocation to Navy. |