Consolidate the Naval Facilities Engineering Command (NAVFAC) and Naval Supply Command (NAVSUP) into the Naval Installations Command (NIC).
In 2003 all Class 1 (land) and 2 (infrastructure) real property was assigned to NIC. The consolidation of real property under one command is a good one. But in the end this consolidation created another command that was not provided the capabilities to perform its mission. In order for NIC to perform its mission it requires contracting / acquisition capabilities. For NIC to accomplish its contracting / acquisition responsibilities NIC has had to utilize Memorandums of Understanding with NAVFAC and NAVSUP in order to provide the support, in its Host role, to the Tenant commands located at its shore facilities. In addition, to acquisition support NIC has arranged for personnel from NAVFAC and NAVSUP perform basic planning, programming and budgeting services associated with Environmental, Operational (Supply) and Facility Support.
My opinion this is an inefficient and costly arrangement. The two service providers have no real vested interest in planning, programming, and submitting budgets for NIC. Both NAVFAC and NAVSUP are service providers and have not traditionally been involved in planning and programming for long term requirements. They are both short term planning agencies who, purchase this, construct this, or maintain that based on the funds provided during a given execution year. Their customers provide them with their future requirements based on the contracting / acquisitions they have projected they will be funded for. This short sightedness for long term planning has created a shortfall in funds required to cover the required annual life cycle costs. This arrangement is similar to contracting to a consultant asking them to tell you what your annual requirements are and how much will it cost. Then with that information you turn around and hire the same consultant make sure the services that they identified and provided a cost for are performed.
NAVFAC and NAVSUP need to be consolidated into NIC. There are duplicative contracting /acquisition functions within both that could be consolidated into one contracting / acquisition department. The organizational structures could be consolidated into one Headquarters and all Regional Commands rolled into NIC’s structure. This would allow for a reduction of high level staff positions, eliminating some and transferring remaining billets to the major installation level at lower grades. All major installation Commands under NIC should be converted from appropriated funded commands to working capital funded commands. NIC provides appropriated funds via its Regional Commands for the basic operating and support services for the property, infrastructure, and mission tenants assigned to the major installations within. Regional Commands should be looking for common support services that could be bundled and provided to its major installations. The major installations are identified as working capital funded and staffed to provide the basic services to its mission tenant commands. Mission Tenant Commands who require support and service above the basic level can obtain those from the major installation (Host) at the same working capital fund rates established for that Region by NIC.
