Department of the Army Historical Summary: FY 1984
Organization and Management
Field operating agencies (FOA) execute and implement policies formulated by their Army staff proponent agency and produce guidance on these policies for the Army. In 1974, FOAs accounted for more than 32,000 personnel. Since then, the number of FOAs increased by eight and their strength by 7,490. In FY 84, 13 of the 15 Army Staff agencies were assigned 57 FOAs. However, unlike TOE units, FOA missions do not exist in priorities. When new FOAs are created, the existing ones are neither reduced in size nor disestablished.
On 11 January 1984, the Director of the Army Staff asked Army Staff agency chiefs to submit plans to cut their staffs by 10 percent and report on the reduction's effect on their field operating agency capabilities. Office of the Chief of Staff, Army, management personnel analyzed these submissions and the Director of the Army Staff reduced FOAs by nearly 1,200 military and civilian spaces. The agencies completed their force reduction on 30 September 1984. Since 1975, Congress has taken a special interest in containing the growth of management headquarters. In the FY 84 Defense Authorization Act, Congress directed that management headquarters be reduced by 5 percent from the levels imposed in the FY 84 President's Budget. The Army complied by eliminating 1,260 manpower authorizations (spaces) in Army Management Headquarters Activities (AMHA) for FY 84 and 1,271 AMHA authorizations for FY 85.
Congress directed the Army to reorganize its information management operations to have a single "information manager." As a result, General Order 26, 25 July 1984, established the Office of the Assistant Chief of Staff for Information Management (OACSIM) as an Army General Staff Agency and the U.S. Army Information Systems Command (USAISC) at Fort Huachuca, Arizona. Composed of assets from the Command, Control, Communications, and. Computer Directorate of ODCSOPS; the Management Directorate of OCSA; and the Adjutant General Center, OACSIM began operations on 27 July 1984. It assumed Army General Staff responsibility
for the tactical, strategic, and sustaining base aspects of automation, telecommunications, records management, publications and printing, and audiovisual operations.
The USAISC consolidated the assets of the U.S. Army Communications Command; the U.S. Army Computer Systems Command; the U.S. Army Computer Systems Selection and Acquisition Agency; and the U.S. Army Audio Visual Center on 15 May 1984. In conjunction with OACSIM it will modernize the Army's information management, command and control, and communications systems. In addition, it will provide air traffic control support to the Army.
During FY 84, the U.S. Army Materiel Development and Readiness Command (DARCOM) was redesignated the U.S. Army Materiel Command (AMC), its name from its founding in 1962 until 1976.
In early October 1983, TRADOC forwarded to the Office of the Chief of Engineers (OCE) a draft Case Study and Justification Folder for the relocation of the Engineer School from Fort Belvoir, Virginia, to Fort Leonard Wood, Missouri. The folder presented all of the economic data developed for the realignment study as well as the data contained in the backfill study for Forts Belvoir and Meade. The total cost of proposed construction to support the relocation of the Engineer School equaled $61.75 million at Fort Leonard Wood, exclusive of family housing. The estimated net first year cost of realignment ranged from $66.21 million to $88.49 million, depending upon the backfill alternative chosen for Fort Belvoir. OCE forwarded its comments on the proposed realignment to TRADOC on 19 October 1983. In September 1984, TRADOC revised the cost estimate for construction at Fort Leonard Wood to $36.62 million. Dropping construction of an engineer museum caused the reduction in the cost estimate.
Under initial relocation plans, HQ,, Intelligence and Security Command, elements from Arlington Hall Station and Fort Meade would move to Fort Belvoir. The HQ,, Criminal Investigation Command, or HQ, 1st Region Criminal Investigation Command could use the vacated space at Fort Meade. The Corps forwarded a Backfill Study Addendum to TRADOC on 31 August 1984.
The Cohesion, Operational Readiness, and Training Program, described in detail in previous DAHSUMS, added 42 company/battery-size units with 4,396 soldiers and disestablished 15 units during the fiscal year. As a part of the planned expansion of the New Manning System (NMS) the first Cohesion, Operational Readiness, and Training battalion (2d Battalion, 5th Field Artillery) was created at Fort Riley, Kansas. The program continued to plan for the activation of additional company/battery-size units and seven more battalions
during FY 85. In the following fiscal year, the eight Cohesion, Operational Readiness, and Training battalions will begin the NMS Battalion Rotation Program.
The U.S. Army Regimental System paired CONUS battalions with OCONUS battalions in non-tactical regiments with their personnel affiliated with that regiment for their entire period of service. The Army believed the affiliation with a regiment that possessed a distinguished lineage would foster a sense of belonging in its personnel and improve the unit's esprit de corps. Fifteen of the proposed 64 combat arms regiments had been created by the end of FY 84, which affiliated 27,000 soldiers. On 29 June 1984, the Army changed the affiliation policy and suspended the affiliation of first-term soldiers to a specific regiment. This allowed soldiers to experience service in several regiments before their first enlistment and commitment to a particular regiment. The Army announced, on 22 August 1984, the expansion of the honorary positions in the U.S. Army Regimental System with the addition of an Honorary Sergeant Major of the Regiment.
Functional Area Assessments (FAA) integrated reviews of Headquarters, Department of the Army-level short-range plans and programs, started in early FY 84. FAAs were divided into two categories: functional branch assessments and management area assessments. While the former was a biennial analysis of a branch of the Total Army such as Infantry, the latter analyzed, on a schedule determined by the VCSA, specific functions such as depot maintenance. FAAs allowed experienced officers to examine, in detail, the Army's progress in force integration to identity and rectify problems early in the process. In the long run, FAAs will ensure that new equipment, personnel, training, and sustainment requirements are determined and assimilated into the total force more effectively and efficiently. During FY 84, the Army conducted 15 FAAs, which examined Field Artillery, Aviation, Military Intelligence, Air Defense Artillery, Armor, Infantry, Ordnance, Quartermaster, Military Construction, Engineers, Total Package Fielding, Chemical, Depot Maintenance, Terrorism, and Communications/Electronics.
Table 14 presents an audit trail of the FY 84 budget from President Reagan's budget submission through final congressional action.
Overall obligation (appropriated funds reserved for expenditure in payment of an order placed, contract awarded, or service received) performance was below the DA planned level for FY 84.
TABLE 14 - DEPARTMENT OF THE ARMY ACTIONS ON THE FY 84 BUDGET
BA/TOA ($ In millions) 1
|President's Budget||President's Budget||Authorization||Appropriation||Appropriation|
|31 Jan 1983||Amendments||17 May 1983||
15 Sep 1983
8 Dec 1983
|President's Supplemental Request||
22 Aug 1984
|Total Appropriation Basic & Supplemental|
|Procurement Total BA||2 (19,192.1)||(-221.0)||(18,971.1)||(18,052.6)||(17,291.5)||(-0-)||(-0-)||(17,291.5)|
|President's Budget||President's Budget||Authorization||Appropriation||Appropriation|
|31 Jan 1983||Amendments||17 May 1983|| Enacted 4
15 Sep 1983
| Enacted 4
8 Dec 1983
|President's Supplemental Request|| Enacted 3,4
22 Aug 1984
|Total Appropriation Basic & Supplemental|
|Army Stock Fund||408.6||-0-||408.6||-||388.6||-0-||-0-||388.6|
|Ammunition. Stock Fund||-0-||-||-0-||-||-0-||-0-||-0-||-0-|
|Army Industrial Fund||-0-||-0-||-0-||-||-0-||-0-||-0-||-0-|
|Subtotals Excluding BA||6 (62,625.4)||(-511.8)||(62,113.6)||7 (41,696.8)||(59,126.7)||(752.6)||(609.8)||(59,736.4)|
|MILCON Act 5 TOA||6 (62,625.4)||(-511.8)||(62,113.6)||7 (41,696.8)||(59,308.3)||(752.6)||(609.8)||(59,918.0)|
|Trust Funds BA||.1||-0-||.1||-||.1||-0-||-0-||.1|
|Trust Funds TOA||-0-||-0-||-0-||-||-0-||-0-||-0-||-0-|
|Offsetting Rects BA||-218.9||-0-||-218.9||-||-218.9||-0-||-0-||-218.9|
|Offsetting Rects TOA||-0-||-0-||-0-||-||-0-||-0-||-0-||-0-|
|MILCON Act Total||(2,723.9)||(-30.9)||(2,693.0)||(2,572.5)||(2,541.5)||(3.8)||(-0-)||(2,541.5)|
|Fam. Hsg. Con. Army||186.3||-0-||186.3||173.1||172.7||-0-||-0-||172.7|
|Fam. Hsg. Opn. & Debt||1,054.6||-23.0||1,031.6||1,120.3||1062.3||3.8||-0-||1062.3|
|Grand Total 5 BA||6 (65,130.5)||(-542.7)||(64,587.8)||7 (44,269.3)||(61,449.3)||(756.4)||(609.8)||(62,059.1)|
|Grand Total TOA||6 (65,349.3)||(-542.7)||(64,806.6)||7 (44,269.3)||(61,849.3)||(756.4)||(609.8)||(62,459.5)|
1 BA = TOA unless otherwise stated.
2 ( ) = Totals.
3 MILCON Authorization P.L. 98-115, dated: 11 Oct 83; no supplemental authorization act.
4 MILCON Appropriation P.L. 98-116, dated: 11 Oct 83. MILCON supplemental appropriation act same as DOD act.
5 Detail may not add totals due to rounding.
6 Does not include Army RDT&E share of Special Foreign Currency Account.
7 Authorization figures include Army RDT&E share of Special Foreign Currency Account.
However, the outlay (actual payment of obligated funds) performance was very good, with FY 84 actual outlays only $49 million or 0.1 percent below the planned level. These performances are summarized in Table 15.
TABLE 15 - 30 SEPTEMBER 1984 OBLIGATION AND OUTLAY STATUS
($ In millions)
As a result of the increase in the defense budget request for FY 85, the increasing congressional concern on the expanding federal deficit, and reports of procurement abuses, the FY 85 Department of Defense budget request met immediate opposition when it was submitted. Table 16 gives a breakdown of the FY 85 budget request and compares it to the FY 83 and FY 84 Defense Budgets.
TABLE 16 - FY 85 DEFENSE BUDGET FINANCIAL SUMMARY
(TOA $ in billions)
|DOD Component||FY 83||FY84||FY85|
|Department of the Army||$57.6||$62.6||$77.9|
|Department of the Navy||81.5||82.0||101.3|
|Department of the Air Force||73.8||86.3||108.7|
|Defense Agencies/OSD||9.4||10.9||1 17.8|
|Total Direct Program (TOA)||238.7||259.1||305.7|
1 Includes FY 85 Pay Raise & BMD (SDI) Funds.
The $77.9 billion Army request represented a real budget growth of approximately 10.2 percent. FY 85 marked the first time that the retired pay accrual (funds to pay the cost of future military retirees) was included within each service's budget and this added $6.7 billion to the Army's budget request. While significantly increasing the size of the request, it did not enhance military capability. For FY 85, the
accrual overstated the Army's real growth. Fortunately, this was a onetime distortion of budget totals and military pay trends, since each future budget will contain the retired pay accrual. Table 17 shows details for the Army's retired pay accrual.
TABLE 17 - ARMY RETIRED PAY ACCRUAL
(In millions of $)
|Retired Pay Accrual||TOA||BA||Outlays|
|Military Personnel, Army||$5,325||$5,325||$5,310|
|National Guard Personnel, Army||828||828||756|
|Reserve Personnel, Army||560||560||516|
The congressional debate over the DOD budget focused on the federal deficit, conventional forces, and the United States role in Central America. However, national attention centered on federal spending and President Reagan and congressional leaders, in the April "Rose Garden" meeting, agreed to cut government expenditures. They reduced the DOD budget by $13.9 billion. The final Army appropriated FY 85 budget is depicted in Table 18.
TABLE 18 - FY 85 ARMY BUDGET SUMMARY
(TOA in millions of $)
|Appropriations||FY 1984||FY 1985||1 Real Growth|
|Military Personnel||$18,601||$26,031||2.1 %|
|Operation & Maintenance||20,295||21,766||3.6%|
|Research & Development||4,225||4,349||-1.3%|
1 Real Growth Includes Military Retired Pay Accrual.
During FY 84, the Quick Return on Investment Program (QRIP), the Productivity Enhancing Capital Investment Program (PECIP), and OSD Productivity Investment Funding (OSD PIF) invested $89 million, which is expected to save $112 million.
The Army led all services in the number of Value Engineering Change Proposals (VECP) submitted and approved as well as in total VECP savings. Total Value Engineering Savings increased from $405.3 million in FY 83 to $477 million in FY 84, an 11.7 percent in-
crease. Savings from the approval of 1,101 in-house value engineering proposals produced an estimated one year net savings/cost avoidance to the government of $413.0 million. Additional savings of $64.0 million resulted from 420 VECPs submitted on Army contracts. The overall return of investment from FY 84 VE actions was $15 for each dollar invested. The Army will start Value Engineering Programs at TRADOC and FORSCOM in FY85.
During FY 84, the Army completed 56 cost studies of in-house activities, 31 of which determined that the status quo was more advantageous than contracting out. The remaining 25 studies indicated that the activities could be contracted out at a lower expense to the Army. As a result, the Army released 1,016 civilian and 574 military specks for other Army requirements and estimated a three year savings of $24.9 million. However, the Army will not complete all of its Commercial Activities Act studies by the end of FY 87. This is due to congressional concerns and legislative actions, rapid turnover of key personnel, a shortage of properly trained personnel, and the large number of cost studies remaining to be completed.
The Army's Nonappropriated Funds Financial Management NAF centralized cash management system pooled and invested NAF cash not needed for installation operations. The interest was returned to Nonappropriated Fund Instrumentalities depositors. Table 19 below summarizes the system's FY 84 activities.
TABLE 19 - NAF CENTRALIZED CASH MANAGEMENT AND INVESTMENTS PROGRAM ACTIVITIES
|Fiscal Quarter||Total Deposits||Interest Rate Percent|| Total
Table 20 presents details of NAFI earnings during FY 84.
TABLE 20 - NAFI EARNINGS DURING FY 84
(In millions of $)
|NAFI Category||Total Revenue||Net Income|
1 69% of Army clubs were profitable. Beverage sales dropped $5.7 million from FY 83.
Armed Forces Recreation Centers (AFRO) and Army hotels received total revenues of $55.2 million, a 12 percent increase over FY 83. Net income as a percentage of total revenue rose to 5.5 from FY 83's 3.3. Table 21 gives more details.
TABLE 21 - AFRC AND ARMY HOTEL EARNINGS
|Facility||Total Revenue||Net Income||Change|
|Hale Koa Hotel||$15,400,000||$457,400||3.0 %|
|Kilauea Military Camp||1,700,000||41,000||2.5 %|
|Naija Hotel||2,000,000||306,800||15.6 %|
|AFRC Europe||20,800,000||2,400,000||11.3 %|
|Seoul Garden Hotel||10,200,000||(100,200)||(l.0)%|
The Army MWR Fund's (AMWRF) major sources of revenue were interest income and the Army's portion of Army and Air Force Exchange Service dividends. Starting in FY 84, the AMWRF stopped its support of Installation/MACOM Morale Support Programs' recurring operating expenses and capital expenditures under $300,000 and began funding NAF major capital construction. The current NAF construction program had a $2.0 billion backlog and AMWRF programmed over $236.2 million over the next three years to catch up on construction projects. The installation/MACOM commanders and their MWR staffs worked hard to pay their own operational and Capital Purchases and Minor Construction (CPMC) bills, which allowed the AMWRF to fund capital construction projects. (See Table 22.)
TABLE 22 - AMWRF FINANCIAL SUMMARY
|Item||Dollars||Dollar change over 1983|
The NAF insurance rates for self-insured property remained the same or were reduced as a result of an improved claims and loss record. Likewise the Workers Compensation Program realized a reduction, for the third consecutive year, in premiums of 11 percent for the United States and 17 percent for overseas. However, insurance companies substantially raised rates for General Tort (liability) and Excess Aircraft Liability. The NAF General Tort record increased the number and cost of claims. One example was the payment of $157,858 in FY84 to settle a claim by an officers club patron who was seriously burned on the face and neck during the preparation of a flambe dessert in December 1981. The Excess Aircraft Liability insurance premium increased because of poor loss record for Army flying clubs. During FY 84, two serious aircraft accidents killed six people. As a result, the insurer raised the commercial liability policy premium and the U.S. Army Safety Center helped to develop an Army-wide program of safety initiatives for flying clubs.
The U.S. Army Audit Agency (USAAA) investigated problems at numerous installations and issued reports during the year that showed an estimated $733 million could be saved. The Army agreed with USAAA recommendations, which saved $444 million. An example of the savings that could be achieved by auditing program results was the audit of the Modern Technology Engine Program. An analysis showed that the engine development would be completed six years before the airframe. By canceling plans to acquire the prototype engines, the Army saved approximately $53 million. In addition, members of the agency discussed with field commanders problems with civilian personnel procedures, research and development activities, acquisition and use of computers, as well as other problems which the local commander could correct. Usually these problems could be alleviated by following Army Guidance.
Management and Information Systems
The Army emphasized the improvement of installment management during FY 84 by developing a Standard Installation Organization; revising the Army Installation Management Course; participating in peer competition analysis, Commander-in-Chief's Award for Installation Excellence, and the OSD Model Installation Program; and coordinating innovative base operations support management techniques with its sister services.
Project VIABLE (Vertical Installation Automation Baseline Project), an automatic data processing modernization program, operated at 47 installations throughout CONUS, Alaska, Hawaii, and Panama. VIABLE replaced obsolescent Base Operating Information Systems, which performed nontactical administrative, logistical, and financial information management. By linking each installation's computer to one of five large contractor-operated regional data centers (three established in FY 84), the Army replaced a stand-alone installation system with a service-wide system capable of facilitating data and resource sharing to improve base operations.
The Army Worldwide Military Command and Control System (WWMCCS) Information System (AWIS) continued to modernize its portion of the joint WWMCCS by aligning and implementing the Army's service and joint WWMCCS Information System requirements. WWMCCS, the command and control network of the National Command Authority, provided daily planning as well as operational information and assessments to key authorities and military commanders on the entire spectrum of crisis and conflict actions up to nuclear war. The Army continued to add twenty-five terminals per year to the system.
The Army completed and began testing the Force Structure Analysis System, an automated system designed to assist HQDA command managers create and better employ work forces. The system will begin operations after the installation of TEMPEST terminals.
The Office of the Deputy Chief of Staff for Operations and Plans used the Structure and Composition System (SACS) to transfer personnel and equipment requirements to DCSPER/MILPERCEN, DCSLOG/AMC, Corps of Engineers, and DCSRDA for planning and programming personnel accession, training, and distribution; equipment acquisition and distribution; military construction; and related budgets. In an effort to enhance SACS's operation, the Army awarded a contract to redesign it.
The Army Authorization Documents System (TAADS) provided documentation for organizational structure and unit requirements, authorization for personnel and equipment, and a management re-
porting capability. The system operated at 17 MACOMs and 68 installations during FY 84. Among the numerous improvements made to the system, one of the more important was the Project VIABLE equipment enhancements within CONUS. The Army upgraded three MA COMB and 31 installations by the end of FY84 and continued to plan for replacing TAADS with the Vertical Force Development Management Information System. TAADS use increased during the year with over 3.5 million update transactions conducted at HQDA-
The Decentralized Automated Service Support System (DAS3), a tactical transportable computer system, automated manual operations or upgraded automated operations of combat service support units. The system used several functional software systems such as supply, maintenance, personnel, finance, ammunition, transportation, and port operations. The DAS3 was composed of two models which differed only in processing capacity and communications capability.
The A -Model, the smaller of the two, supported Active and Reserve Component nondivisional logistics supply and maintenance units as well as medical supply, optical, and maintenance (MEDSOM) units. During FY 84, the Army completed fielding the A -Model and had 211 in its inventor: The B-Model was approximately twice the size of the A -Model and had an inherent communications capability. It supported theaters, corps, divisions, separate brigades, personnel units, and Military Traffic Management Command (MTMC) ports. Fielding of the B-Model began during October 1983, and 58 entered the Army's inventory during the fiscal year.
Significant Records and Publications Management Developments
An interdisciplinary team of office automation specialists studied Military Personnel Office operations in CONUS and USAREUR during the year. Office planners will use the results of the review of current operations, existing applications of office automation technologies, and work load volumes to develop office automation functional descriptions and systems requirements for the redesigned Army wide military personnel system.
The Reduction of Administration Work Load Task Force published its second "Baseline Report" identifying 29 publications, 21 forms, and 21 reports that could be combined or removed from company-level units. Its first report, presented in early FY 84 had already deleted 116 publications, 8 forms, and 42 reports.
The Modern Army Recordkeeping System (MARKS) will replace The Army Functional File System (TAFFS), in use since the early 1960s, in the near future. MARKS identifies record informa-
tion with the same number as the directive that prescribed it (usually an Army Regulation or DA Pamphlet). The new system was successfully tested at the TOE unit level (5th Battalion, 73d Armored Regiment, 194th Armored Brigade, Fort Knox, Kentucky) from July 1983 to June 1984. A one-year pilot test started on 1 January 1984 at the installation headquarters level (U.S. Army Armor Center and School, Fort Knox).
The Army received 24,734 reportable requests for records and other information under the Freedom of Information Act (FOIA) during FY 84. Although the Army collected $148,365 for search and copying costs, it expended 124 person years at a gross cost of $1,966,172 to process the requests.
The Government Printing Office (GPO) awarded its largest contract (Program 4005) on 9 February 1984 to joint venture organization Fry Communications, Inc., of Mechanicsburg, Pennsylvania, and Info Conversion of Woodbury, New York. Program 4005 published all Army regulations and standards pamphlets with sophisticated typography and printing services. This included electronic changes to publications from remote locations. To support this system, the Army installed 27 editorial microprocessors within CONUS, and GPO received the first electronic change from St. Louis, Missouri, on 24 August 1984. By the end of FY 84, Program 4005 produced 7 handbooks, 17 ARs, and 1 DA Pamphlet. The VCSA noted the program's success and directed that it be expanded to include training and equipment publications. As a result, GPO successfully published FM 1-100, Combat Aviation Operations, on 28 September 1984, as a test publication. The Army and GPO planned to publish two more field manuals and a technical manual under the new format in FY 85.
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Last updated 8 March 2004