business development transition plan draft sept 2015

Camp Navajo Garrison and

Camp Navajo Industrial Operations

P.O. Box 16123

Bellemont, Arizona 86015-6123

BUSINESS PLAN (BUSINESS DEVELOPMENT /TRANSITION PLAN)

This Business Plan provides guidance for the future operation of Camp Navajo Industria l

Operations, to include a Financial Plan and a Marketing Plan, which can be applied to all activit ies on Camp Navajo Military Training Center, located in Bellemont Arizona. The plan was structured in accordance with the Strategic Plan for Camp Navajo June 2015, and is pending approval by the

Camp Navajo Garrison Commander, and the Camp Navajo Executive Council. This Business Plan is one step in knowledge management. Information isn't knowledge. Knowledge management is

the practice of turning the rivers of information that an organization produces into valuable, actionable knowledge.

The process of developing, implementing, and maintaining this viable Business Plan is derived from the Strategic plan (June 2015) and a combination of the historical records of Camp Navajo

Industrial Operations; Congressional Defense Business Operations dated 2015; CFMO Organizational Brief dated 4 April 2 2014; Camp Navajo Cost Allocation Plan FY 2008; 49 Code

of Federal Regulation (49 C.F. R.) and 27 Code of Federal Regulation (27 C.F.R.),The Adjutant General meeting with Congressional Staff Members on Aug. 25th, 2015 at PPMR, and surveys of facilities that offer similar options for business, training, and community development, and

includes key elements of operational importance as found in ARS 26-152, 49 C.F.R. and 27 C.F.R., that have been incorporated for future reference.

SECURITY DISCLAIMER

Material in this document is unclassified and taken from unclassified sources. Information in this

document would be available through multiple sources if requested via the Freedom of Informatio n Act. Projections of U.S. Government intentions regarding employment, storage of strategic assets,

and development of new business, are based upon open sources and non-classified documents and conversations within the Arizona Department of Emergency and Military Affairs; the Arizona

National Guard, and the Department of Defense.

Arizona National Guard – Camp Navajo, Bellemont, Arizona: D. R. Pero pg. 2 Sept. 2015

BUSINESS PLAN (BUSINESS DEVELOPMENT /TRANSITION PLAN)

TABLE OF CONTENTS

SECURITY DISCLAIMER………………………………………………………………………………..Cover page I. INTRODUCTION MATERIAL .............................................................................................. ………4

A. PROMULGATION STATEMENT .................................................................................. ………5 B. APPROVAL AND IMPLEMENTATION.................................................................. ….. ………5

II. PURPOSE, SCOPE, SITUATION AND ASSUMPTIONS................................................... ………6

A. PURPOSE ......................................................................................................................... ………6 B. SCOPE............................................................................................................................... ………7

C. SITUATION OVERVIEW................................................................................................ ……..10 D. PLANNING ASSUMPTIONS.......................................................................................... ……..12

III. CONCEPT OF OPERATIONS............................................................................................... ……..13

A. GENERAL ........................................................................................................................ ……..13 B. KEY AREAS OF MARKETING CAMP NAVAJO INDUSTRIAL OPERATIONS ... . ……..14

C. THE BUSINESS DEVELOPMENT/ TRANSITION PLAN ........................................... ……..16 IV. CAMP NAVAJO INDUSTRIAL OPERATIONS OVERVIEW ........................................ . ……..18

A. ORGANIZATION............................................................................................................. ……..18

B. MAINTENANCE/RENOVATION FACILITIES ....................................................... …. ……..20 C. MODERNIZATION PROGRAM…………………………………………………….………..21

V. INDUSTRIAL OPERATIONS CUSTOMER ........................................................................ ……..25 A. CURRENT CUSTOMER BASE (DOD/DOD CONTRACTOR) ................................... . ……..22

1. U.S. Air Force Space Missile Command (SMC)……………………………………....22

2. U.S. Navy Strategic Missile Systems Program……………………………………..… 24 3. U.S. Army Security Assistance Command (Royal Air Force)………………………... 25

4. Close Combat Weapons Systems (Raytheon Missile Systems)……………………..…26 5. OPM, Counter Rocket, Artillery, and Mortar (C-Ram)……………………………......27 6. MACS (Redstone) Yuma Proving Grounds……………………………………………28

7. U.S. Army Security Assistance Command (Peace Vanguard)………………………....29 8. Joint Strike Force (J-35)…………………………………………………………..……30

9. Apache Attack helicopter Program Manager………………………………………..…31 10. New Strategic Arms Reduction Treaty SMC U.S.A.F………………………………...32

B. CURRENT CUSTOMER INFRASTRUCTURE REQUIREMENTS .................... ……. ……..33

C. CURRENT CUSTOMER TRANSPORTATION REQUIREMENTS......……………………..34 C. CUSTOMER OPPORTUNITIES...................................................................................... ……..25

VI. CAMP NAVAJO PERSONNELCOST ALLOCATION PLAN ..................................... … ……..39 VII. RESOURCE METHODOLOGY........................................................................................... ……..56

VIII. CAMP NAVAJO GARRISON - TRAINING SITE PLAN……………………………………..60

IX. MOVING FORWARD………………………………………………………………………………63

X. RECOGNITION……………………………………………………………………………………...69


*ALL APPENDIX ADDITIONS BEGIN ON PAGE 71 AND COMPRISE OF 100 ADDITIONAL

DOCUMENT PAGES

APPENDIX A STRATEGIC PLAN (PPT) JUNE 2015 ………………………………………………71

APPENDIX B PLANNING FROM CAMP NAVAJO FE 10 MARCH 2015 ………………………71

APPENDIX C E-MAIL BTWN LTC VINSON AND COL. AUT APPROVING 3RD QTR

2015 GSA BUILDING AND IGLOO REFURBISHMENTS…………………………………………71

APPENDIX D DEFENSE CONTRACTORS FOR ARIZONA……………………………………....71

APPENDIX E DEFENSE SUPPLIERS / SUBCONTRACTORS FOR ARIZONA ………………71

APPENDIX F RAYTHEON REQUEST FOR STORAGE OF COMMODITY JULY 2015………71

APPENDIX G LETTER OF INTENT AND SITE CONFIGURATION MAP OF 200 AREA

FOR SALT RIVER MATERIALS GROUP AUG 2015……………………………………………..71

APPENDIX H www.thomas.net SUPPLIER COMPARISON FOR ROCKET ENGINES ………..71

APPENDIX I www.thomas.net SUPPLIER COMPARISON FOR ROCKET

MANUFACTURERS……………………………………………………………………………………71

APPENDIX J MARKET SURVEY LETTER ………….……………………………………………..71

APPENDIX K MARKET SURVEY……………………..……………………………………………..71

APPENDIX L CAMP NAVAJO AND TRAINING SITES FEDERALLY FUNDED PROJECTS

(REQUESTED JULY 2015)……………………………………………………………………………..71

APPENDIX M SALARY COST ALLOCATION .……..……………………………………………..71

APPENDIX N RATE WORKSHEET….………………..……………………………………………..71

APPENDIX O PRO FORMA………..….………………..……………………………………………..71


BUSINESS DEVELOPMENT / TRANSITION PLAN

A. PROMULGATION STATEMENT

The Business Development / Transition Plan and supporting materials, is a guide to how Camp Navajo Industrial Operations (CNIO) conducts all business with the central focus on the shipment, storage, and

handling of commodities which include but are not limited to, Category 1 Hazardous Materials, which would include propellants; explosives; complete rocket systems; ammunition storage; and missile

operations. Material under storage at Camp Navajo and controlled by the operation of the Industrial Office is typically associated with the following categories:

Non-Hazardous - These commodities can consist of various items which by themselves are not hazardous and cannot cause an event without being combined with a chain event from another force

extraneous to man in elements of the natural environment. (e.g., earthquake, flood, hazardous weather, public health emergency, fire).

Hazardous - These commodities can consist of various items which by themselves are considered

hazardous and can cause an event without being combined with a chain event from another force extraneous to man in elements of the natural environment. (e.g., earthquake, flood, hazardous

weather, public health emergency, fire).

More guidance on all hazardous material can be identified from a commodities MSDS, (Material Safety Data Sheet) and CNIO personnel must plan accordingly in accordance with Hazard Specific Procedures.

The Business Development / Transition Plan is specifically written in support of a centralized effort to provide quality service to our customers. The framework is scalable, flexible and adaptable in coordinating

structures to align key roles and responsibility. This plan and contents within shall apply to all Camp Navajo Industrial Operations administration, staff, and visiting personnel, and others participating in the strategic efforts to grow the operations while maintaining a strong business core organization.

This plan is intended to capture specific authorities and best practices for managing marketing and financ ia l

efforts within the operation. Most efforts follow some recognizable build-up period during which actions can be taken to achieve an appropriate state of maximum performance. General actions are detailed in the appropriate sections of this document; however, it is acknowledged that Marketing Procedures involve

unique occurrences, which require specific resources dependent upon the type, nature, and extent of the program that is desired to secure both non-hazardous and hazardous commodities in the storage facilit ies

found on Camp Navajo. In this regard, this document is not all-inclusive, nor does it limit or restrict reasonable or prudent actions.

This Business Development / Transition Plan was prepared by the Marketing Manager and is pending administrative leadership approved by senior staff representing the Arizona National Guard, and the

Arizona Department of Emergency and Military Affairs , whereas enabling activities contained within this document to be performed within their capability to support this plan of action. Furthermore, this Business Development / Transition Plan has been distributed internally within Camp Navajo Industrial Operations,

and the Camp Navajo Garrison operations (the tenant command) and with external agencies that may be affected by its implementation.


B. APPROVAL and IMPLEMENTATION

This Business Development / Transition Plan (BDTP) shall apply to all Camp Navajo Industrial Operations administration, staff, and visiting personnel, and others participating in the strategic efforts to grow the operations. Furthermore, the BDTP may be applied to any marketing situation with non-hazardous or

hazardous material.

This BDTP and its supporting contents are hereby approved, supersedes all previous editions formerly referred to as the Marketing Plan or the Business Plan, effective immediately upon the signing of signature authority noted below.

Approval Signature: ________________________________________________________, Garrison Commander Name: Anita Y. Vinson, LTC, Commanding Date: _________________________________________________________ Approval Signature: ________________________________________________________, Superintendent –

Commanding Officer of the Industrial Operations Name: Roland Aut, Col., Commanding Date: _________________________________________________________

CAMP NAVAJO INDUSTRIAL OPERATIONS SIGNATURE PAGE

Approval Signature: ________________________________________________________, BMO Director Name: Date: ___________________________________________________________ Approval Signature: _______________________________________________________, Deputy Director of Industrial Operations Name: Date: ___________________________________________________________

The Business Development / Transition Plan (BDTP) or designee shall be responsible for plan oversight

and coordination with applicable stakeholders, such and potential customers to Camp Navajo Industria l Operations. The plan is flexible in that part of the plan or the entire plan may be activated based on the specific marketing and financial situations.


II. PURPOSE, SCOPE, SITUATION, and ASSUMPTIONS

A. PURPOSE

The purpose of the Business Development / Transition Plan (BDTP) is to outline the Industrial Operations approach to Marketing for clientele in both, Federal and State business arena in addition to the public arena.

It provides general guidance for marketing activities and evaluation of business. The BDTP and its contents describe Camp Navajo Industrial Operations organization and assigns responsibilities for various tasks with

current clientele, and future clientele on the facility. Specific support materials found in the BDTP sections beyond the Basic Plan, or in attachments, may describe details of who does what, when and how, or provides additional information in support of clientele. Additionally, the BDTP describes capabilities and resources,

as well as establishes responsibilities and operational processes, to help protect Industrial Operations from natural, technological, and man-made issues; with the primary objectives to grow and expand business

opportunities on the installation. The Business Development / Transition Plan (BDTP) supports general operating procedures of the Camp

Navajo Garrison, and Camp Navajo Industrial Operations. It is the responsibility of those referenced in this plan to integrate their departmental policy, procedures, and to focus all activities such as task performance

and organization, toward building better customer relationships, and growing business on the installation. Additionally, the Plan:

Empowers employees to seek new clientele that will enhance the longevity of service provided on

the installation;

Informs administration, staff, and visiting personnel, and others participating in the strategic efforts

to grow the operations, and additionally trains key stakeholders on their roles and responsibilit ies before, during, and after the sale to clientele within Industrial Operations.

Provides other members of the community with assurances that Camp Navajo Industrial Operations

has established policy and procedures to be effective in all aspects of customer service;

Establishes intra-agency and multi-jurisdictional mechanisms for involvement in, and coordination

of, customer communications and growth planning;

Provides guidance for contact, and the sale of new business to clientele and potential cliente le

utilizing all available assets resources growth development on the installation.

The entire staff and internal work force is dedicated to providing the customers with the best possible

service in the training and storage community.


B. SCOPE

It is the Business / Marketing Manager for Camp Navajo Industrial Operations that is the responsible authority to direct the evaluation and progress of marketing efforts for the Operation. In addition, the Business / Marketing Manager will remain in contact with clientele throughout the sales process, and ensure

that appropriate service is afforded after the sale has occurred.

This Business Development / Transition Plan (BDTP) shall apply to all Camp Navajo Industrial Operations administration, staff, and visiting personnel, and others participating in the strategic efforts to grow the operations. A closed contract, in the form of a Memorandum of Understanding (MOU); a Memorandum

of Agreement (MOA); or an Enhanced Use Lease Agreement may also affect the surrounding community; therefore, this plan shall support community relationships and may be identified in any supporting

Memorandums of Understanding (MOU) and/or Memorandums of Agreement (MOA). The scope of the BDTP applies to an evaluation of the included market, identification of the market, and a

cost analysis of the current market with growth predictions. MOUs/MOAs in coordination with additiona l support requested from Federal, State, and local entities may be activated.

The Camp Navajo BDTP outlines the expectations of administration, staff, and visiting personnel, and others participating in the strategic efforts to grow the operations; direction and control systems; interna l

and external communications; training and sustainability of the BDTP; authority and references as defined by Federal, State, and local government mandates; common and specialized procedures; and specific

hazardous material handling requirements that will be reflected in this BDTP. This Business Development / Transition Plan (BDTP) defines the future direction for Camp Navajo

Industrial Operations, under the guidance of the Camp Navajo Executive Council (CNEC); The Arizona National Guard; and the Arizona Department of Emergency and Military Affairs. This plan describes and

conforms to initiatives that have been put in place at the Strategic Planning Sessions held at Papago Military Reservation in June 2015 (See Appendix A), as well as the CNIO Mission, Vision and Strategic Goals. This plan, and supporting action plans, and documentation, are the primary reference document to be used

to guide our collective efforts to make Camp Navajo, a premier storage facility selected by our cliente le and a safer, more productive work place which meets or exceeds customer requirements.

The Strategic Plan Meeting which concluded in June 2015 placed before Camp Navajo Industria l Operations the following initiatives:

Strategic Goal 1: Master Business Management

Major Objectives:

1.1 Increase Operating Revenue by 25% NLT FY 19.

1.2 Compete Business and Marketing Plan NLT 31 Sept. 2015. 1.3 Increase I/O Customer base from 9 to 13 NLT FY 19.


1.4 Increase training from Oct. to Apr to 600/month by TY18.

1.5 Increase range utilization from 50 to 79% NLT TY 18. 1.6 Host 2 major training events per year by NLT TY 18.

1.7 Combine functions needing alignment NLT Jan. 2017

1.8 Develop / Implement MWR program NLT 2020.

Strategic Goal 2: Improve Infrastructure

Strategic Goal #2 was incorporated into other strategic goals in the plan, streamlining the major objectives moving forward from the Strategic planning meeting in June 2015.

Strategic Goal 3: Improve Customer Service

3.1 Camp Navajo and ARNG leaders contact 100% of customers NLT Oct 2015. 3.2 Improve employee satisfaction by 5% annually Until FY 2020.

3.3 Conduct customer Survey NLT Oct 2015.

3.4 Host Annual customer appreciation day NLT May 2016.

Strategic Goal 4: Develop Workforce

4.1 Establish recruiting programs to reach 50% DS employees NLT Dec 2017. 4.2 Reduce employee turnover to <6% by FY 18.

4.3 Increase workforce by 25% by FY 20.

4.4 Improve interdepartmental communication.

4.5 Establish training programs to reach 90% qualified rate NLT Dec 2016.

These Major objectives were applied to the current calendar structure and the following Time line was established:

Strategic Plan Timeline By Date

Strategic

Goal

1 Repair and update Waste distribution System FY 25 3.1

2 Repair and update Waste Water distribution System FY 25 3.1


3 Develop 100 miles of a road network in buffer zone FY 20 3.1

4 Modernize Warehouse Buildings (3 each) Sequentially FY20 1.1

as occupied.

5 Modernize 100 additional Igloos FY 25 1.1

6 Expand Billeting spaces from 530 to 900 by FY 25 FY 25 1.7

7 Convert igloos to ASP by FY 20 FY 20 3.1

8 Construct CNIO Facility Downrange by FY20 ̀ FY 20 3.2

9 Build MPMG by FY22 FY 22 1.5

10 Build Squad Battle Course by FY 25 FY 25 1.5

11 Increase Operating Revenue by 25% NLT FY19 FY 19 1.1

12 Increase training from Oct. - Apr. to 600/ month TY 18 1.2

by TY18

13 Increase range utilization from 50 to 79% NLT TY 18 1.3

TY18

14 Host four major training events/year NLT TY 18 TY 18 1.4

15 Key Camp Navajo and ARNG Leaders contact 100% 1-Nov-15 3.1

customers NLT 30 Sep 15 to enhance customer

relationships and sell Camp Navajo Opportunities

16 Increase customer satisfaction 5% annually through FY 20 3.2

Oct FY 20

16. a. Conduct Customer Survey NLT 15 Oct. 15 15-Oct-15

16. b. Host annual customer appreciation day 28-Jul-16

NLT MAY 15, 2016 (BBQ)

17 CN Quarterly PBAC 28-Jul-15

18 Strategic plan Update Approval 1-Nov-15

19 DLLC briefs New CN/AZTC org structure/CNEC 1-Nov-15


20 Business transition plan complete for review (Financial, Marketing, Organization) 10-1-15

21 Quarterly CNEC (Charter Approval, State Annual 11-Aug-15

Report, Profit and Loss Statement)

22 Strategic Plan Azimuth Check (Leader in Brief) 15-Oct-15

23 Quarterly CNEC (Business Plan Approval, Federal 10-Nov-15

Annual Report, Profit and Loss Statement)

24 Establish Recruiting Programs to reach 50% DS FY 25 4.1

Employees NLT 2025

25 Reduce Employee Turnover by <6% by FY18 FY 18 4.2

26 Increase workforce by 25% by FY 20 FY 20 4.3

27 Improve Workforce Satisfaction by 5% annually

through FY 20 FY 20 4.4

28 Establish training programs to reach 90% quality rate 1-Dec-16 4.5

by NLT Dec 16

C. SITUATION OVERVIEW

Camp Navajo is a Military Installation belonging to the Arizona National Guard. With a long and proud

history, Camp Navajo (aka Navajo Depot Activity) was established in 1942 at the beginning of the war in the Pacific during the Second World War. The installation is located approximately 16 miles west of Flagstaff Arizona, just south of Interstate 40 and along the Burlington Northern Railroad Track which runs

between Los Angeles and Chicago.

Established as the Navajo Ordnance Depot the installation encompasses 28,347 acres. The Depot was built in less than six months and manned by 4000 Native Americans from the Navajo and Hopi Native American Reservations located in Northern Arizona. The specific mission of the Depot focused on munition storage

and shipment in support of the Armed Forces throughout the Pacific theater.

The installation is divided into three areas with the first area consisting of approximately 11,000 acres in the core of the site, referred to as the “limited area” which has the bulk of the storage network for military ordnance. This area includes 777 steel reinforced bunkers (igloos or magazines) for the medium to large

Category 1 Hazardous Materials storage, which would include but not be limited to propellants; explosives ; complete rocket systems; ammunition storage; and missile operations. 12 additional above ground steel


and brick bunkers were designed at 10,000 sq. ft. each, to store small arms ammunition (referred to as J-Standard Warehouses). These are unique buildings, because they are elevated to the height of the loading

dock, equivalent to the height of a railcar for easily loading and unloading of material. Two of the above ground bunkers sustained heavy damage from the Tornado/Thunderstorm incident on the installation in 2010. Additionally, included in the area is three large general purpose warehouse facilities, which are

divided into 40,000 square foot bays for a total of 600,000 square feet of on-grade storage space.

The second area consists of approximately 17,000 acres of land used to provide a safety buffer for the stored ordinance, and consists of training facilities, (small arms firing range, grenade firing range, obstacle course, etc.) made up largely of ponderosa pine forests and open fields.

The remainder of the acreage is centrally located and is home to the Garrison Headquarters, the Ballist ic

Missile Operations Offices, Installation Security Forces, and the Fire Department. Within the 68 structures in the third area, there are support buildings for those units deployed to Camp Navajo for Training (which include battalion and company administrative areas, sleeping quarters for up to 600 soldiers, classrooms, a

dining facility, and a physical fitness center). Other administrative buildings and warehouse space exist in the Garrison area in support of day to day business on the installation.

At the time of publication of this Business Development / Transition Plan (BDTP) the installat ion encompasses 227 miles of roads, and 38 miles of rail. There are plans in the works to resurface 100 miles

of the present roadway upgrading the infrastructure. In addition, land has been recently divested to the Arizona Department of Veterans Affairs for the construction of a Veterans Memorial Cemetery, collocated

adjacent to the limited area and between the Burlington Northern Railroad Track, and Interstate 40, on the western parameter of the installation.

The installation has been in continuous operation since 1942, yet operations were scaled back after the Second World War, only to remain active during both the Korean War and the Vietnam Conflict. In 1988,

the Base Realignment and Closure (BRAC) Commission determined that the property and mission performed at Camp Navajo fell into redundancy with Federal military needs. Upon the recommendation of the BRAC, the installation was turned over to the control of the State of Arizona, under the supervision of

the Arizona Army National Guard. Public Law 100-526 closed the Federal Mission on the installat ion, and established the installation as an Army National Guard Training Site. Therefore, in 1982, management

of the property transferred from the Tooele Army Depot to the USPFO for Arizona. The interpretation of Public Law 100-526 created significant obstacles for the National Guard. The

installation, under the aforementioned was originally transferred from the Forest Service for the purpose of serving a military mission in 1942. Therefore the Department of Defense was issued a “license to operate”

the site retaining federal ownership. The language of the closure law also prohibited the use of federal funds to maintain the site, so the State of Arizona was left with determining how to fund the operation at Camp Navajo, to include infrastructure and the existing buildings. In 1993, The State Adjutant General,

Major General Donald Owens, made a proposal to the National Guard Bureau for his state oversight agency for the National Guard, the Department of Emergency and Military Affairs, to operate the ordnance depot

on a fee-for service basis to government customers so the revenue from the operations could be applied directly to the operation and maintenance of the installation. The Chief of National Guard Bureau agreed to the conceptual plan, and 1994 Camp Navajo Industrial Operations was born.


Reduction in strategic nuclear forces by both the United States and the Former Soviet Union resulted in a large number of strategic rocket motors being taken off line, and both the Air Force and the Navy were

looking for storage beyond their own capacity. After some intense negotiations, intradepartmental support agreements were struck and Camp Navajo was on its way to becoming a self-sustaining entity.

The Legislature of the State of Arizona created a Camp Navajo Fund, and it was signed into law by the Governor as Arizona Revised Statute 126-52. A.R.S. 126-52 created a non-lapsing, segregated operating

account for the installation, and later legal determination by the Department of the Army Legal Counsel allowed for storage of non-government (commercial) material on site. In the approximate 21 years since inception, Camp Navajo has grown to more than 150 full time employees and a 14 million dollar revenue

producing business.

The position of the Business / Marketing Manager is a vital position to maintaining and growing the customer base to continue the growth of revenue into the general fund of Camp Navajo. To enhance capability and mitigation efforts, the Business / Marketing Manager is tasked with coordination of the

Strategic Plan for Camp Navajo with the Business Development / Transition Plan (BDTP) and maintaining lines of communication between current and potential customers, and the Garrison Commander, and the

Industrial Operations. The Marketing Manager will make recommendations that will be considered based upon the use of funds, and the potential return on investment.

D. PLANNING ASSUMPTIONS

The Business Development / Transition Plan (BDTP) is based on the following planning assumptions and considerations as presented in this section.

Income revenue can be found not only in the Industrial Operations, yet it is present in Training Site

usage, in Morale Welfare and Recreation Activities on the installation, and in services provide by the Fire Department to offsite communities.

The Industrial Operations personnel recognize their responsibilities to the customer for the safe

handling of the commodity, and safe and responsible storage. Their actions can lead to further business with the customer, and with recommendations in the form of referral business.

External resources in the form of non-government customers may build the revenue base greatly.

This project was designed to investigate the market and develop a proposal for maximizing revenue

through the next ten years to meet the following:

The General Fund presently supports nearly 1200 structures, the present road and rail system on

the installation, and untold miles of electrical wiring, underground water and sewage line, natural gas lines, telephone lines and internet networks.

The amount of revenue generated pays present day salaries for approximately 150 employees, and

current operating costs, and ongoing repairs, yet does not address all the modification needs of the installation. For the most part, incurring debt is not permitted under the current structure provided ,

therefore using on-hand capital is the only method available to pay for projects.


Current estimate of the Camp Navajo Engineer is that approximately (see Appendix B) $19,717,000.00 is necessary for planned maintenance and replacement needs, and the garrison

Commander has identified an addition $51,000,000.00 in new or replacement facilities in the next 10-15 years. Current revenue stream is not enough.

III. CONCEPT OF OPERATIONS

A. GENERAL

The market survey, coupled with input from existing customers, shows the potential for growth and that the market does exist in which Camp Navajo can increase revenue streams from the current approximate of

$14,000,000.00 to over $20,000,000.00 in the next five years with a reflected fund reserve growing from an estimated $3.8 million dollars to $15 Million dollars (conservatively).

Growth of revenue sources lie primarily with existing large federal customers, though market interest indicates that it is reasonable to expect a net gain of one new federal and one new commercial customer

every year. Some customer loss can be expected as the life cycle of storage requirements is finite in many cases, and is based upon an event or circumstance rather than a normal course of business for most

commercial customers. An example of the aforementioned is the Navy C-4 rocket motor requirement which is becoming the D-5

requirement in FY2016

Camp Navajo should pursue commercial customers as a channel for growth, however, the largest long term prospects are and will remain existing federal customers. Efforts to modernize storage facilities and services are best weighed to support their needs while using the growth of the revenue stream to address

the hierarchy of project needs established by the Adjutant General and the Camp Navajo Executive Council as funds become available. (See appendix B).

Top priorities for Business Development and Marketing are to:

Focus on the current Federal Customer.

Target previous customers of the storage mission of Camp Navajo.

Target Large Commercial Customers with the potential of those with DOD or Federal Contracts.

This BDTP is based on the sales model of “prospect, sell, close, process and service after the sale concept and is flexible in that part of the plan or the entire plan may be activated based on the specific customer and

decision by Camp Navajo Industrial Operations.

Day-to-day functions will directly contribute to serving the customer, and prospect for new clientele and will directly impact the Business Development / Transition Plan (BDTP) which may be update periodically.


B. KEY AREAS OF MARKETING CAMP NAVAJO INDUSTRIAL OPERATIONS

As stated else ware in this BDTP, Camp Navajo is an unfunded installation licensed to the Arizona National Guard from the Federal base realign and Closure Act of 1998. The unique depot infrastructure of the

installation has allowed Camp Navajo to establish a specialized storage operation as a source of revenue to provide for the needs of the installation. Camp Navajo is presently a multi-use facility specializing in the

storage of Department of Defense regulated items and providing training opportunities for military personnel.

Present requirements dictate that Camp Navajo operate in a method similar to a not-for-profit organizat ion. It uses funds received from storage activities managed by the Camp Navajo Industrial Operations, for

Capital Improvement, and the development of training facilities. Revenue from existing customer contracts has been sufficient in the past for the basic sustainment of the installation, however it does not adequately allow for addressing aging infrastructure and large scale capital improvements.

At the time of this BDTP, Camp Navajo currently utilizes 38.5% of the current igloo/magazine space

(approximately 450 of the igloo/magazines are vacant); 40% of the current warehouse space (40,000 sq. ft. of 200,000 sq. ft. available); and 0% of the current J-Standard warehouse space (available is 100,000 sq. feet unless the two that were damaged in a tornado/thunderstorm event are repaired). Given the size of the

installation, there is a considerable amount of space available to the potential customer, or the current customer to expand on commodity storage space requirements.

The Business / Marketing Manager is currently seeking new target market customers (see appendix C) in order to generate additional funds for infrastructure improvement and development. Target market

customers have become available based upon building a business relationship with the former Manager of the Phoenix Business Journal. In addition, additional target market customers have become available from

www.thomas.net, and internet resource that provides information on 128 businesses (see appendix D) that produce explosives under government contract, as well as 24 companies that produce rocket motors (see appendix E).

The Camp Navajo Business / Marketing Manager was tasked with conducting a market research study to

identify new markets for the Industrial Operations storage mission. In addition, the task of producing this Business Development / Transition Plan (BDTP) to outline the development of a marketing plan that can enhance the site infrastructure by producing clientele that will provide a steady source of income over the

next 10 years. The research conducted by the Business / Marketing Manager identified the following key areas of Marketing:

1. Prevention – Consists of actions that involve the review of Camp Navajo Strategic Plan, and

aligning the Business Development / Transition Plan (BDTP) to the Strategic Plan to reduce risk of

redundancy, and ensure that current clientele receive the proper support necessary to grow the mission on Camp Navajo. Prevention planning can also help mitigate secondary or opportunist ic

incidents that may deviate from the original plan of action.

2. Protection – Reduces or eliminates a threat that could cause current or future clientele to

permanently remove their commodities from the installation. Primarily focus is on service after the

http://www.thomas.net/


sale, which includes the storage and payment procedures and how they are explained and carried out with the client or potential client.

3. Mitigation – Mitigation activities are those which eliminate or reduce the probability of losing a client or potential client. Most of this is done through the proper training of personnel, and the appropriate individuals working through problems with the client or potential client. Included are

those long-term activities such as customer visits by the Business / Marketing Manager, continua l phone contact that will prevent a less undesirable effect if activities are identified that are of

detriment to the contractual agreement with the client or potential client. Semi-Annual Account reconciliation with AZ DEMA Finance personnel will assist in mitigation.

4. Preparedness – Preparedness activities serve to develop the internal capabilities needed in the event

a situation should arise that may need mitigation. Planning and training are among the activit ies conducted under this phase.

5. Response – Response is the actual provision of providing an account executive to oversee the account, and provide a single point of contact to the customer. Response activities help to reduce incidents that may cause the client to remove their commodities from the installation. Response

activities include timely communication with the client or the client executive.

6. Recovery – Recovery is both a short-term and long-term process. Short-term operations seek to

restore vital communication and services to the client and provide for the basic needs of client owned commodities. Long-term recovery focuses on restoring the client to normal pre-contract status and an improved, state of affairs. The recovery period is also an opportune time to institute future

mitigation measures, particularly those related those issues that may have occurred with the client on the installation.

The following activities have been conducted to accomplish the goal of the development of the Business

Development / Transition Plan (BDTP):

a) Review of the Camp Navajo Range Development Plan.

b) Review of the Facility Engineer Maintenance Plan.

c) Review the Camp Navajo Security Plan.

d) Review Enhanced Use Lease Procedures with Facilities Maintenance South (Phoenix Papago

Military Reservation) {reference a Biomass facility and the Arizona Department of Public

Safety developing a long term use facility on the installation}

e) Develop Program Improvement Cost Summary

f) Evaluate the Camp Navajo Cost Allocation Plan from FY 2008

g) Evaluate the Business Plan from FY 2011

h) Review the Base Realignment and Closure Commission Report from 1988.

i) Conduct Market research via e-mail, phone, and face to face interviews.

j) Meeting with Coconino County Planning and Zoning Commission and review of their

Strategic Plan.


k) Conduct and Analyze Marketing survey distributed via e-mail to those from www.thomas.net ,

the Phoenix Business Journal, and Transportation Facilities Guide

(https://stallion.eta.sddc.army.mil/tfg/aae.htm)

l) Develop Pro Forma based on the survey results.

m) Develop the Business Development / Transition Plan (BDTP).

C. BUSINESS DEVELOPMENT / TRANSITION PLAN (BDTP) The Business Development / Transition Plan (BDTP) and the development thereof focused on the current

activities and existing capabilities of the Camp Navajo Industrial Operations. The focus sought to gage the commercial market and the potential for the existing capabilities of Camp Navajo Industrial Operations.

Research and Evaluation was conducted in as many markets as practical given time constraints on the project of developing the plan. Potential customers have been identified and a market survey has been conducted with the desire to access Camp Navajo’s ability to increase market share and how to market the

storage operations within the commercial market segment.

Concern has been addressed with the ability to become a supplier / vendor for many commercial entities in the segment that requires an Employer EIN in order to register as a vendor. With an Employer EIN, Camp Navajo could possibly become their “go-to” choice in their storage needs. The majority of these entities

who have raised this question have online registration capabilities that will not allow movement forward in the registration process without an EIN.

In the course of developing the Business Development / Transition Plan (BDTP), a comprehens ive assessment of the following was conducted:

Industrial Operations buildings, equipment, and infrastructure requiring immediate improvement.

Existing Camp Navajo structures requiring improvements for consideration as an asset.

Salvage, razing, and alternate use for structures deemed irreparable.

Funding which supports training facilities and infrastructure that would be co-used at Camp Navajo, by both civilian and military personnel, but necessarily supported through Federal

mandated sources.

Prioritization of planned training facility developments.

Review of the legal restrictions and limitations concerning fund allocation.

Analysis of retained earnings generated by Industrial operations, which can be allocated to training

missions.

The main objectives of the Business Development / Transition Plan (BDTP) were to provide the Executive leadership of the Arizona National Guard and the Camp Navajo Executive Council (CNEC), the assigned

oversight board, with the necessary information to expand Industrial operations and a guide for future development of industrial-based infrastructure and multi-use training facilities. In the course of

accomplishing these goals, a project objective was to analyze potential markets for both Camp Navajo, and the Training Mission of the Garrison. Along with the identification of new markets, the following was analyzed: Target Markets; market size; and the current Market value based upon supply and demand.

Additionally, the following was examined to ascertain if Camp Navajo presently can support growth:

http://www.thomas.net/

https://stallion.eta.sddc.army.mil/tfg/aae.htm


Preparedness - Effective personnel and available equipment and facilities to support the emergence of a new customer base.

Communications and Information Management - The ability to communicate at each level in

order to provide support in a timely manner to the emergence of a new customer base.

Resource Management - To ensure that present resources such as personnel, equipment, and/or

supplies, and facilities are ready to support the emergence of a new customer base.

Command and Management - The Command and Management component within Camp Navajo, and AZ DEMA which by design is enabled to be effective and efficient in the current customer and

future customer base.

Ongoing Management and Maintenance - Within the auspices of ongoing management and

maintenance and service of the agreement with current and new customer base, there are two components: AZ DEMA, which supports the development of a legal agreement, and services the

payments on all agreements; the Camp Navajo Industrial Operations Department with oversight of the commodities, and storage thereof, to include a preliminary accounting procedure of all customer

billing.

The Business Development / Transition Plan (BDTP) seeks to provide a maximum financial benefit to both

missions of Camp Navajo, the Industrial Operations and the training Mission. The plan will outline tasks that are coordinated with the Strategic Plan. In addition, these tasks will be essential for continuing current

operations, and training, tasks essential for the expansion of Industrial Operations, and requirements for achieving the training goals of the Camp Navajo Industrial Operations. The development plan for the training mission will be based upon a stated percentage of retained earnings from Industrial Operations that

will be consistently allocated toward this goal.

The Business Development / Transition Plan (BDTP) will be based upon the following:

Identified Priority Projects and the cost associated with them.

Identified potential customers involved in Category 1 Hazardous Materials storage, which would

include but not be limited to propellants; explosives; complete rocket systems; ammunition storage; and missile operations.

Customer need and marketing strategy as determined by Market Survey.

Financial Pro Forma developed using cash flows to bridge market potential and industry needs.

There are three main areas of challenge or risk concerning the proposed Business Development / Transit ion Plan (BDTP):

Change in Camp Navajo Management/Leadership.

Large scale incident at Camp Navajo causing operations to cease.


The lack of participation by current Camp Navajo clients in the market survey.

Each possibility would not necessarily bring this project to an end, yet it would seriously hamper efforts

moving forward. The following actions could help to minimize the effect of the challenges / risks. Low:

a. Keep the process alive for risk of work.

b. Consider alternative and less risky storage requirements.

c. Revise the plan to limit the goal with smaller revenue streams.

Moderate:

a. Get the vision statement and goal published as in the Strategic Plan, and receive buy in from all

essential personnel, to achieve success.

b. Maintain a review of the efforts on a quarterly basis to adjust the plan accordingly due to availability of storage space, and due to market flexibility.

c. Keep the plan fluid, and flexible.

High:

a. Use the minimum number consistent with statistical evaluation.

b. Request support of major military commands to encourage participation.

c. Reduce the scope of the project to limit the proposed Business development / Transition Plan

(BDTP):

IV. CAMP NAVAJO INDUSTRIAL OPERATIONS OVERVIEW A. ORGANIZATION

The organization of Camp Navajo Industrial Operations is presently in a state change. A Superintendent of Operations has been assigned to oversee the operation with a military rank sufficient to deal with various

commands that request communication with General Staff Officers. POLICY GROUP (DISTRICT)

The Policy Group is comprised of the following:

The Adjutant General of the State of Arizona / Director of the Arizona Department of

Emergency and Military Affairs.


Superintendent – Commanding Officer of the Industrial Operations

The Camp Navajo Executive Council (CNEC)

The Camp Navajo Garrison Commander

The Deputy Director of Industrial Operations

In complex situations involving clientele, the Policy Group will be consulted via phone, e-mail, or in person. The Camp Navajo Executive Council will be convened at 1 Hughes Ave, Bellemont, Arizona 86015, the

Garrison Headquarters at Camp Navajo, at a minimum of once each calendar quarter in accordance with the

Industrial Operations Charter. The role of the Policy Group is to:

Provide direction and strategic guidance, information analysis, and needed resources. Provide policy and strategic guidance.

Help to ensure that adequate resources are available.

Identify and resolve issues common to Camp Navajo organizations.

Keep community elected officials and other executives informed of the situation and decisions.

Provide factual information, both internally and externally through the Joint Information Center.

INDUSTRIAL OPERATIONS

The Deputy Director of Industrial Operations is responsible for all Industrial Operations Activities on a daily basis, and is responsible for the oversight of the administrative and staff services. Acts as the primary point of contact for the Camp Navajo Executive Council, for all briefing and strategic growth of the

Industrial Operations. Presently, at the time of the publication of the BDTP the position of Director of Operations is vacant, and is being filled by the Operations Officer as a collateral assignment.

The Ballistic Missile Ordnance Operation Manager is responsible for the safe storage procedures of all categories of Hazardous Material. The Manager acts on a daily basis as the responsible individual for the oversight of the ordnance operations to include administrative and staff services. Presently, at the time of

the publication of the BDTP the position of Ballistic Missile Ordnance Operations Manager is vacant, and is being filled by the Training Chief as a collateral assignment.

INDUSTRIAL OPERATIONS DEPARTMENTS

Industrial Operations Departments support operations through the performance of their normal roles and

responsibilities. If called upon, these departments if necessary can activate personnel and implement appropriate response actions in support of the storage mission as identified in the BDTP, or as directed by the Director of Industrial Operations, Supervisor of Ballistic Missile Operations, or the Garrison

Commander.


Department Departmental Duties and Responsibilities

1. Facility Engineer

The Facilities Engineer is responsible for oversight of the

Industrial Operations facilities which include the igloos (magazines) and ware house space. Acts as the primary point of

contact for the Camp Navajo Executive Council, for all construction activities within the restricted area.

2.

Maintenance Chief, Operations Officer

Overseas all Maintenance of equipment, and the transfer of commodities from clientele within the confines of the Industrial Operations Area.

3. Transportation Chief

Ensures all general orientation and qualification requirements are provided to employees in order to meet 29 CFR (OSHA), 49 CFR (Transportation), and associated DOD, State and Federal explosive safety transportation requirements are met. Any and all transportation needs that are required and directed and support our customer and provision of such transportation needs will be developed and covered for all customers. Will also assist the National Guard and active duty when requested and directed by chain of command.

4. Training Chief

Ensures all general orientation and qualification requirements are provided to employees in order to meet 29 CFR (OSHA), 49 CFR (Transportation), and associated DOD, State and Federal explosive safety training requirements are met. Any and all training needs that are specialized require direction and support from the customer and provision of such training will be developed on a case-by-case basis.

5.

Business Manager/Marketing Manager

Ensures current Memorandum of Agreement remains valid with clientele. Coordinates activities to grow current customer, and future customer base. Visits customers either directly in person, or indirectly on phone, or via internet. Assists in the reconciliation of the client billing procedure with all involved parties. Ensures that client account remains current with Industrial Operations, and with AZ DEMA, Resource Manager. Coordinates Camp Navajo Strategic Plan with Camp Navajo Industrial Operations.

B. MAINTENANCE/RENOVATION FACILITIES FOR INDUSTRIAL OPERATIONS

Building 301, the Ammunition Maintenance Facility

Camp Navajo has the capability to perform renovation and maintenance on a variety of Category 1

Hazardous material. The Ammunition Facility Building, Building 301, consists of 18,517 gross square feet. The facility has a Bicarbonate of Soda paint stripping system and has sufficient floor space to support

paining and repackaging operations. The Building has blown out walls and roofs and is cited for explosive operations. The building is in a state of borderline condemnation, and can be brought back to full serviceability with approximately $500,000.00 in investment.


Building 331, the Ammunition Surveillance Workshop

The Ammunition Surveillance Workshop, Building 331, located within the limited area, has four inspection bays. The building consists of 4,727 Gross square feet. Camp Navajo Industrial operations employs two

U.S. Army Defense Ammunition Center and School (USADACS) and two Federal Certified Quality Assurance Surveillance Ammunition Specialist (QASAS), who specialize in Category 1 Hazardous Material, specifically focused on the inspection, and receipt, shipment, storage and safety of material. The

building is presently in the control of the Camp Navajo Engineers, and has not been returned to a status of 100% due to the tornado strike that took place in approximately 2010.

In addition, Camp Navajo Industrial Operations employs an ammunition handling team and 12 motor handlers. These personnel are USADACS trained and certified in emergency demilitarizat ion,

maintenance, hazardous materials and handling of category 1 Hazardous Materials and Missiles.

Although Camp Navajo has maintenance and renovation capabilities, the main focus of operations today is toward the movement and storage of commodities. We have a variety of different types of storage capabilities on the Installation. The range from ammunition igloos (magazines), to large well ventila ted,

secure and fire protection capable, equipped warehouse. Sizes varies from some 10,584 square feet to 200,000 square feet (in open bays of 40,000 square feet each). As noted previously, we have a well-trained

labor force and all the necessary equipment to move and store any material.

C: MODERNIZATION PROGRAM

Over 25 million dollars has been spent in the last six years to upgrade and replace aging facilities at Camp

Navajo. Several programs continue to insure the viability of both the training and industrial missions for the foreseeable future.

- 3rd Quarter 2015, $2,159,000.00 appropriation from the CNIO General Fund was approved for GSA Building and Igloo refurbishments, through e-mail traffic between LTC Anita Vinson, and Col (p) Aut.

(See Appendix C). - $1.8 million was spent on maintenance and repair of the railroad network, buildings, firebreaks and fence

repair.

- Annual road maintenance cost approximately $500,000.00. - A joint use (Navy / Air Force) rocket motor facility was built at a cost of $11.7 million dollars.

- The Navy D-5 temporary open air rocket transfer facility at a cost of $749,999.00 will be completed in

FY 2016. - In FY 2016 a permanent facility ground breaking will take place with Military Construction (MilCon)

approval at a cost of approximately $1.8 million, for the Navy D-5 mission.

- @ $ 3 Million on the Electrical Distribution System.


- $7 Million on Igloo repairs and upgrades. $75,000.00 is spent per igloo/magazine for upgrades and repair. The goal is 20 igloos annually.

Cash flow from accounts fall under both Federal and State guidelines. Revenues created by contract, regardless of the source, are put into a non-lapsing, interest bearing account created by the state legislature

called the Camp Navajo Fund (A.R.S. 26-152). At the time of this BDTP, the account and the money within is considered “state” funds, yet kept separate from the general appropriations funds. The funds can be

applied as directed by the Adjutant General and the Camp Navajo Executive Council to support the Arizona National Guard, and Camp Navajo Installation.

The biggest challenge currently facing Camp Navajo executives is how to cover the cost required for deferred maintenance and modernization regarding the facility. Presently the law prohibits Camp Navajo

from borrowing money needed to conduct capital improvements. Any funds required for capital projects and improvements must be drawn from earnings. Capital Improvement projects have been identified by the Camp Navajo Executive Committee and given an order of prioritization with the aid of the Garrison

Commander, the Director of Industrial Operations, and Facilities Engineering (see Appendix B) .

Two Federal Grant Programs provide funds for common functions which include Security and Fire Department. Yet both departments receive supplemental funds from the General Fund. Other functions such as road maintenance, IT support, utility repair, and other community functions are paid out of the

General Fund. The biggest challenge currently facing Camp Navajo Executives, is how to cover cost required for deferred maintenance and modernization regarding the facility as a whole.

V. CAMP NAVAJO INDUSTRIAL OPERATIONS CUSTOMER BASE As mentioned previously, it is the customer base that provides the necessary funds to operate and grow the Camp Navajo Installation in both the Industrial Operations arena, the Training Arena, and the Garrison Arena. The

customer base is presently limited to Department of Defense, and Department of Defense Contractors, for the

storage of Category 1 Hazardous Materials, and other munition related support material referred to as a commodity.

In all the research that has been conducted in preparation for this Business Development/Transition Plan, one factor continues to arise, and that is the need for commercial leasing of facilities for storage of Non-Department

of Defense, or Department of Defense Contractors. The type and volume of commercial storage requirements

would allow for easy use of unmodified igloos/magazines. Previous interviews with BATFE had identified that they are satisfied that Camp Navajo’s Department of defense Explosives safety oversight is adequate for the

proper handling, storage and security of commercial material stored on Camp Navajo.

The recent changes in the manner which a customer pays for the storage on Camp Navajo, changing to a

Memorandum of Agreement with Arizona Department of Emergency and military Affairs would further enhance the possibilities of commercial leasing. A review of previous client base files demonstrated a need of

commercial leasing, yet many previous clients are hesitant on returning to Camp Navajo, having lost the ability

to store material and commodities on the post, and given the necessary requirement of having to relocate the commodity to another facility. However it has been determined that many of the previous clientele would look

to return to the post given the opportunity of a long term agreement with penalties written in for a breach of the agreement by either party.


A. CURRENT CUSTOMER BASE (DOD/DOD CONTRACTOR)

At present, Camp Navajo Industrial Operations services 10 Federal Customers, with two of the customers being our largest income producers.

1. U.S. Air Force Space Missile command (SMC). The largest DOD Customer to date, with the storage of the Minuteman II and the Minuteman III rocket motor systems and the third stage

large rocket motors with supporting components. Recent proclamations regarding further cuts in the strategic forces will require significant increases in storage requirements over the next ten to twenty years. There might be a slight decrease in the next year, as the rocket motors change

versions in the deactivation series, then increase sharply thereafter. Negotiations are currently underway as the Camp Navajo Industrial Operations changes agreement and payment systems

to a more favorable one for the Department of Emergency and Military Affairs. The most recent Memorandum of Agreement is presently under review by SMC and higher Commands within the U.S. Air Force. It is noted that the rocket motors are used for other projects like low orbital

satellite launches and target vehicles for anti-missile defense systems. Some non-rocket components of the Peacekeeper missile system have been added to the storage program and the

combination is paid under one account. It is further noted that the requirements of the New Start Treaty must be met with the First Stage Minuteman III motors (commodities) of the U.S. Air Force, similar to the U.S. Navy. The U.S. Air Force provides separate funding for support

activities for inspections conducted under the New Strategic Arms Reduction Treaty (New Start). Camp Navajo provides approximately 111 igloo/magazines. This includes three 40,000 square foot general storage (inert) bays in the GSA Warehouses. Inert warehouse storage

consists of support equipment and spare parts that support the Minuteman and Peace Keeper systems.

a) Potential for Increased Business: High

b) Projection: Anticipate an increase of business from the AF large rocket motor mission. This increase will be driven by decommissioning of missile systems under NST. Projection

is that 150 full-up missiles will be removed from launch platforms and put into storage, be identified for future use, R&D programs or demilitarization. The first 50 missile systems will most likely be stored full-up, (without warheads) at Hill Air Force Base. The two 50

missile follow on squadrons will most likely be stored at CN. These 300 motors will fill slots vacated in FY10-FY17/18 through shipping, primarily to demilitarization at the Utah

Test and Training Range (UTTR). There could be a potential as identified in July 2015, for the added increase of 50 more igloo/magazines over the next five years

c) Expectations: Even with the vacancies created through shipping, CN will not have sufficient storage space available to receive all motors. Estimate is that the AF would have

to modify approximately 33 additional sites at a cost of $200K (total project cost $6.6M) to accommodate the requirement. First stage MMIII motors are items of inspection (IOI's) under the New START (NST). AF would also have to contract for third stage cradles to

accommodate the 100 SR73 third stage motors (estimated cost between $500K and $700K). No Additional dedicated personnel or overtime would be required, unless, the AF increases

OPTEMPO and wants to move assets more quickly than programmed. If this is the case,


CN could need up to one more 7 person crew (estimated cost of $1.22M per annum). A review of all current equipment would have to be performed and new equipment purchased

to meet new mission requirements or to replace aging equipment. d) Illustration #1

0

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Space Missile Command (SMC) Air Force (AF)

Revenue Years


2. The U.S. Navy Strategic Systems Program. Camp Navajo’s second largest customer with approximately 61 storage locations which include three 40,000 square foot general storage

(inert) bays in the GSA warehouse. Commodities include the Trident C-4 (current in the last stages of retirement) and the D-5 program. In addition there are second and third stage large rocket motors. The inert warehouse bases are home to the support equipment and spare parts

that support the Trident C-4 and D5 missile systems. C4 Motors are either slated for demilitarization at the Utah Test and training range (UTTR) or for transfer to the Missile Defense

Agency (MDA) located at Tooele Army Depot, Utah. Camp Navajo was identified by the strategic Systems Program as the optimal location for storage of the D5 large rocket motors that will be demilitarized as they approach the end of usable life. Igloo C-101 is a C-4

Igloo/magazine that is being modified to accept D5 motors. Successful proof of C-101 was completed in October of 2012. During the Navy Conference conducted at Camp Navajo in July

2015, it was noted the D-5 program is a 40 year program at the minimum. Therefore the long term insurance of the U.S. Navy barring any catastrophic incidents can be factored into the income potential for Camp Navajo. There is some resistance from the U.S. Navy in the transfer

from DOD to DEMA, and the new Memorandum of Agreement/Billing process. The lead representative of the U.S. Navy Program is meeting with personnel from DEMA in conjunction

of the timing of this marketing plan. The Navy has elected to include New Start Treaty funding with their primary account. The Missile Defense Agency has chosen the Trident C-4 as a target vehicle and contributes to the operating costs of this account.

a) Potential for Increased Business: Extremely High

b) Projection: Anticipate an increase in business from the Navy large rocket motor and inert

storage missions. This increase will be driven by the activation of D5 storage at CN along

with the shipping of the last of the C4 motors to the Utah Test and Training Rang (UTTR) for demilitarization. Expectation is that both the C4 and the D5 missions will run

concurrently from 2016 through 2051 when the C4 stocks are exhausted. There will also be a good chance that general non-explosive warehouse space needs will increase due to the Navy closing and consolidating numerous contract operated (Lockheed Martin) sites. The

projection for an additional 25 igloos/magazines is present over the next five years.

c) Expectations: As the C4 motors are shipped, the Navy plans to convert approximately 36 sites from C4 rail to D5 air pallet igloos. The remaining 16 igloos will remain as SS motor storage sites, utilizing the installed rail system. Cost per site will be approximately $250K-

$300K (total project [igloos only] is approximately $11M). The Navy also plans to build a new motor transfer facility for receipt/shipment of D5 FS/SS motors. Dependent upon the

Navy's success in getting appropriated dollars for MILCON/MILCON/UMC projects, the construction/modification projects could begin as early as 2014 or as late as 2020. The goal is to have some type of a transfer platform and at least 8 igloos modified no later than April

2017. Receipt of the first FS D5 motor will trigger NST requirements to be met. It is uncertain if there will be one area designated for inspections, or two (one AF and one Navy).

There would be a requirement to fund, through cost sharing with the AF, to support NST. Navy currently funds a 7 person C4 crew and 2 D5 activation personnel (among other positions; QA, Trainer, Document Control etc.). This 9 person crew has been deemed

sufficient to support C4 and D5 ship and receive to include the period of 2017-2021, when


both systems would be handled concurrently. If the Navy wants to increase OPTEMPO, i.e., ship out all C4 prior to 2021, or increase number of motors for D5 beginning in 2017, a

minimum of 3 additional crew members would be required at a cost of $525K per annum. Navy is currently funding the construction/modification of facilities to support D5 to include the construction of an open air transfer facility as required under the D5 program. In addition

the Navy may be required to fund upgrades to utilities/infrastructure.

d) Illustration #2:

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Strategic Systems Programs (SSP) - Navy

Revenue Year


3. U.S. Army Security Assistance Command (The Royal Air Force) USASAC is the host agency for foreign military that come to the United States for training. The British Royal Air

Force uses bombing ranges throughout the Southwest United States. In so doing, the required a forward depot to reduce the cost of shipping munitions. Presently they occupy 11 locations in the igloo/magazine area and as of our customer contact in Late June 2015, foresee the probability

of an increased demand for storage through 2016. Commodities include under the wing ordinance (Hellfire missiles, “Paveways”, General Bomb Units (GBU’s)), as well as aircraft gun

ammunition and inert support components.

a) Potential for Increased Business: Medium

b) Projection: Anticipate that the RAF mission will increase slightly over the next 1-2 years as the RAF OPTEMPO and participation in U.S. joint exercises increases as a result of U.K. removal of assets from Afghanistan. If the RAF increases the number of exercises or the

level of participation in exercises, revenues could increase marginally, but not dramatically.

c) Expectations: RAF will see a 20% increase in revenue over the next five years, consistent with the demand of un-programmed labor fees (labor that is not programmed into the movement of the commodity. This was addressed in our client conversation in June 2015,

yet until they can manage the labor demand (estimated at 1-2 years) their billing will show an increased expense.

d) Illustration #3:

$-

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Royal Air Force (RAF)

Revenue Year


4. Close Combat Weapons Systems (Raytheon Missile Systems) Presently occupying 11 storage locations. Current agreement covers the storage of tube launched optically tracked, wire guided

command missiles (consist specifically of the TOW Missile system). Recent conversations and e-mail traffic indicate a minimum of a ten year need for the Maintenance Kit Field Spare, AIM-120B (AMRAAM). In the most recent letter of intent dated 21 July 2015, indications of irregular

packaging and 1.1 explosive charge in the kit will require igloo / magazine storage, and the demand could be high, up to forty (40) igloos / magazines.

a) Potential for Increased Business: Extremely High

b) Projections: Anticipate this mission to grow in the short term (1 to 3 years) because of

Raytheon being displaced from storage locations at Tucson International Airport, as the runway is extended. It is unclear if Raytheon will be able to/allowed to reoccupy the storage sites or if modification/relocation of these sites will be required. In addition to first destination Tube

launched, optically tracked, Wireless guided (TOW), as well as TOW motors (used in production), Raytheon has expressed an interest in storing Advanced Medium Range Air-to-Air

Missiles (AMRAAM) at CN. The potential is present for an additional 40 igloos / magazines due to the irregular packaging of the commodity, and the need to access the commodity while in storage, for examination purposes, and surveillance activities.

c) Expectations: The TOW mission will continue at current production rates or fluctuate in the

short to midterm (1-5 years). The addition of AMRAAM to the contract could provide an increase in revenues of approximately 40 % in storage and labor. There is a further expectation that Raytheon will continue to request "special work" on their commodities stored at CN.

Special work encompasses, but is not necessarily limited to repackaging, retagging, swapping out pallets or performing off cycle inventories. One job done in March of 2014 resulted in an

increase of over $200K in uncovered un-programmed revenue. Special work requests are considered by CN on a case-by-case basis. In most cases, special work is accomplished on Fridays and Saturdays in an overtime status.

d) Illustration #4:

0

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Close Combat Weapons System (CCWS) (Raytheon)

Revenue Year


5. Office of the Program Manager (OPM) Counter Rocket, Artillery, and Mortar (C-Ram).

This is a gun radar system that shoots down incoming enemy projectiles. It requires the storage

of enemy ordinance utilized for test and practice. Prospects for long term storage are very good. Presently located in 11 storage areas increasing to a potential of 20 locations over the next five year period.

a. Potential for increased business: High

b. Projections: Anticipate a steady increase in C-RAM workload in the short and midterm (1 to 5 years). The customer has expressed an interest in consolidating all of their

munitions from 7 other locations to CN. They have supported this intention by providing CN with over $1.5M to buy support equipment, upgrade igloos, improve roads and

perform maintenance and repair on the rail network. Historically, C-RAM periodically procures large amounts of foreign munitions and uses this stockpile to support its programs. The bulk of their commodities requires extensive and careful handling,

because when the munitions arrive at CN they require re-marking, re-packaging and re-palletizing. Most of these items are in their original packing configurations, which do

not meet U.S. standards for shipping. CN has to ensure that these items meet U.S. standards before shipment. Likewise, the Department of Justice (DOJ), which is covered under the C-RAM agreement umbrella ships similar stocks to CN with almost the same

problems as we have with the C-RAM stocks. C-RAM/DOJ has made an investment in CN to ensure they have a reliable professional contractor handling their materials.

c. Expectations: This contract could double or triple in size in the next 3-5 years, once C-RAM has the opportunity to put their relocation plans in motion.

d. Illustration #5:

$-

$500,000.00

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$2,000,000.00

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Counter Rocket Artillery, Mortar (C-RAM) / Dept. of Justice (DOJ)

Revenue Year


6. MACS (Redstone): Commodities include 107 mm and 155 mm artillery howitzer rounds as well as green and white powder charges.

a. Potential for increased business: Limited

b. Projections: Anticipate little change in this mission. YPG stores overflow stocks, in excess of YPG's storage capabilities.

c. Expectations: The YPG mission at CN will remain in a steady state.

d. Illustration #6:

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Yuma Proving Grounds (YPG) - MACS

Revenue Year


7. U.S. Army Security Assistance Command (Peace Vanguard): Contract is in support of the Royal Singapore Air Force, and presently contains six (6) locations. The commodities include

aircraft ordnance and gun ammunition for the Apache longbow helicopter. Hell fires, 2.75 inch rockets and the 30 mm.

a. Potential for increased business: Limited and distributed between Gila Bend and Camp Navajo.

b. Projections: Anticipating little change of the next five years. The mission is difficult

for the amount of money net to Camp Navajo. Consists of packing and repacking

ammunition, and transportation between Camp Navajo and Gila Bend, and often at unscheduled labor rates.

c. Expectations: The mission in support of Peace Van Guard will remain consistent thru the next five years.

d. Illustration #7:

$-

$20,000.00

$40,000.00

$60,000.00

$80,000.00

$100,000.00

$120,000.00

$140,000.00

$160,000.00

$180,000.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Peace Vanguard (PV)

Revenue Year


8. Joint Strike Force (F-35): Storage in 2 locations which include both test and inert ammunit ion that will support the initial testing in the F-35 aircraft. Recent receipts include Joint Standoff

weapons and Possibly the AIM-9X Sidewinder.

a. Potential for increased business: High

b. Projections: As the F-35 becomes the fighter of choice for both the Navy and the Air

Force, there is a possibility that CN will be identified as the storage site for overflow training ammunition for the F35 training squadron that is based at Luke Air Force Base. CN provided storage for the test ordnance that was used at Edwards Air Force Base

during the system final trials. We are already seeing an up-tick in activity with this account with the receipt of inert Advanced Medium Range Air-to-Air Missiles

(AMRAAM) and live Joint Standoff Weapons (JSOW). The Program Manager has also expressed an interest to store AIM-9X Sidewinders at CN.

c. Expectations: We will see this mission expand slowly in the short term (1 to 3 years) and more rapidly as time goes by.

d. Illustration #8:

$-

$5,000.00

$10,000.00

$15,000.00

$20,000.00

$25,000.00

$30,000.00

1 2 3 4 5 6 7 8 9 10 11 12 13

Joint Strike Fighter 35 (JSF-35)

Revenue Year


9. Apache Attack Helicopter Program Manager: 1 Storage site, utilized for the storage of ordnance and gun ammunition for the Apache Attack Helicopter to support Boeing Flight Test

program of new Helicopters. This is a long term storage activity with no significant changes anticipated.

a. Potential for increased business: Low

b. Projections: ATCOM has been a CN customer since before BRAC in 1993. Storage of ATCOM munitions has remained static for the last 21 years.

c. Expectations: ATCOM will remain constant.

d. Illustration #9:

$-

$10,000.00

$20,000.00

$30,000.00

$40,000.00

$50,000.00

$60,000.00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Apache Attack Helicopter (ATCOM)

Revenue Year


10. New Strategic Arms Reduction Treaty (NEW START) /SMC U.S. Air Force SMC Treaty

Support: Unlike the U.S. Navy, the United States Air Force provides separate funding for the

support of the New START

a. Potential for increased business: Limited

b. Projections: AF will maintain NST requirements for all MM system. When D5 comes

on line, the Navy will be participating in NST also.

c. Expectations: When Navy assets become IOI's cost of funding this program at CN will

be on a cost sharing basis.

d. Illustration #9:

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Strategic Arms Reduction Treaty (START) aka New START Treaty (NST)

Revenue Year


B. CURRENT CUSTOMER INFRASTRUCTURE REQUIREMENTS

Most military ordnance is robust and not likely to deteriorate if modest protection measures are used. The storage bunkers, or igloos, are steel reinforced concrete half barrel structures with an earth over cover. The covers acts as an insulating blanket and intended to serve as an additional purpose of aiding to smother fires

in case of an accident. The igloos are designed to direct any explosion directly up, with the concrete and earth thinnest at the peak of the roof. They are spaced far enough apart that a chance sympathetic denotation

between the igloos is minimal. Igloos come in two sizes: 26 feet by 60 feet, and 26 feet by 80 feet. The doors to the igloos are mounted in a thick concrete facing at one end of the barrel and are of heavy steel construction measuring 4 feet by 7 feet. The igloo spacing is determined by a mathematical equation using

the maximum capacity of the igloo filled with high explosive material (typically equivalent to 250,000 pounds of explosive per igloo, though the modified rocket igloos are rated at 500,000 pounds of explosive

force) against a lower fixed ratio for lesser energetic material such as flares or propellants. The igloos are clustered in fields of approximately 100 units, there being 8 fields at Camp Navajo. These fields are labeled A through H. The igloos are connected to a roadway network that is approximately 250 miles in length,

with the road bed consisting mostly of crushed gravel and cinder from the onsite quarry. At one time there was a paving plant on the installation, and it was operated by the National Guard in support of the Garrison

Mission. The plant no longer exists, and the paving equipment is no longer an asset. 38 Miles of railroad connect the igloo fields through central trans-loading sites for each field. Camp Navajo Industria l Operations maintains four (4) locomotives in the 60 to 80 ton range capacity, which is roughly the same

size as a commercial rail yard locomotive. Currently the rails see little use, and the only customer that uses the railroad is the U.S. Navy, who prefers to transfer their missile systems via climate controlled, bullet

proof custom rail cars for their large rocket motors. The Navy trident motors and the Air Force Minuteman Motors are housed in specially modified igloos,

paid for by their respective services. The Navy Motors are extremely climate sensitive and require a supplemental HVAC System to stabilize the storage temperature and humidity. The Air Force Minuteman

motors are less sensitive, but require heaters to stabilize temperature and reduce humidity. Sensors, enhance grounding measures, larger doors, and lightning protection are additional requirements for the Navy and Air Force igloos. To accommodate the heavy transport equipment, reinforced concrete aprons are in front

of all rocket motor igloos to stabilize the equipment as the rocket is offloaded. All other igloos have crushed cinder around the entrances.

Some non-explosive storage is required to supplement ordnance storage. Rocket inter-stage connector fin assemblies for bombs, empty nose cones, and a multitude of repair and assembly parts are stored by

customers in 3 large grade warehouses. Each warehouse consists of five 40,000 foot bays, with each accessed by 4 large roll-up doors designed to accept tractor trailers. Limitations of the facility are the ceiling

height which is approximately 17 feet, and the lack of climate control. Neither limitation affects most military, DOD, or DOD contractor storage requirements.

C. CURRENT CUSTOMER TRANSPORTATION AND HANDLING REQUIREMENTS

Transportation and handling of Class 1 Hazardous Material (explosive, propellants, and other energetic) is governed by 49 C.F.R. of the Transportation Department. Both military and commercial activities are bound by this regulation and this allows for the compatibility of Camp Navajo common Material Handling

Equipment (M.H.E.) to be used on commercial material. The vast majority of material is shipped in


containers and on common pallets (roughly 4’ x4’) so door sizes and fork truck dimensions are not an issue. Current certification of assigned ordnance crew members far exceeds 49 C.F.R. standards and so there are

no barriers to using existing equipment and personnel. Existing personnel hold the necessary certificat ions required to handle the material that would be stored by new clientele, and by the present customer.

The bulk of the military ordnance stored on Camp Navajo arrives on post on commercial pallets that are 4 X 4 and will just barely fit into igloo doors. Ordnance like artillery projectiles is quite heavy (a typical 155

mm artillery projectile weighs 98 pounds) and requires a fork truck with a 10,000 pound capacity. Military ordnance is packaged to be easily stacked and moved. Commonly available commercial material handling equipment can handle it without modification. Large items like rocket motors, however, require specialized

handling equipment. The motor dimensions and weight (about 20 feet long by 4 foot wide for a Minuteman III first stage and 52,000 pounds; the trident C-4 first stage is about 15 feet long, and nearly 5 feet wide,

weighing in at 48,000 pounds. The Navy D5 rocket is estimated to weigh 80,000 pounds) of the large rocket motors require specialized transportation vehicles and lifting equipment. In addition to transport and lift ing equipment, the motors of the Navy and the Air Force require a specialized facility, referred to as the Motor

Transfer Facility (MTF), which provides a controlled environment transfer structure for motors arriving by rail or interstate truck. The facility was designed to receive the Minuteman motors from interstate trucks

sliding them out on an internal rail system and then sling load by bridge crane onto an air pallet cradle. The cradle is mounted on hydraulic jacks and is lifted onto a custom designed flat-bed truck, called a depot transfer vehicle (DTV). This vehicle takes the motor to its designed storage igloo where the hydraulic legs

once again lift the motor clear of the DTV as it drives away and settles it onto the ground. A large air compressor is then attached to the cradle/air pallet assembly and the entire load is walked into the igloo,

and the motor is placed into its storage position. For the Navy Trident Motors, the MTF and the Future Open Air Transfer Facility has a receiving dock that

is designed to marry up to the specialized rail cars the Navy uses for transport. The motors are winched on rail-mounted cradles onto an intermediate platform in the MTF. Because Navy rules and regulat ions

prohibit sling- loading the motors, the rail cradles remain attached to the motor and the assembly is winched along from the intermediate platform to a vehicle similar to the DTV and referred to as the Navy Transport Vehicle (NTV). The NTV takes the rocket motor to its assigned igloo and the railed cradle is lowered to

the ground hydraulically, just like the DTV system. The difference is that the Navy igloos have floor rails designed to take the cradle assembly and the load is rolled into its storage place.

Personnel requirements for these responsibilities are very stringent. Besides passing background checks, and health physicals, ordnance personnel must attend the Army’s school for handling ordnance; in addition

they must qualify and earn their commercial driver’s license, become hazardous material (Hazmat) certified, receive Red Cross Certification in First Aid and CPR, and attend task specific training for the crew they are

assigned to. Typical training time to full qualification for basic ordnance handling is approximately 18 months. The Navy and the Air Force retain the right to perform evaluations of their crews and typically visit Camp Navajo once a year to perform proficiency validation checks. There presently are three crews

in Industrial Operations; Navy; Air Force; and General Ordnance. The latter is the entry point for new employees, and the career progression (with general ordnance technicians associated pay incentives) moves

up to Air Force, and then to Navy Crew Status. The next step is Team leader. Under the State pay system, all ordnance handlers are referred to as rocket motor technicians, and the entry point for new employees is SG Level 15 at approximately $34,000 annually. The senior team supervisor is a SG18 at approximate ly

$53,100 annually. The supervisory staff included program managers and training officers at SG19 at


$56,970 annually. They have a supporting staff, at SG level 17 at approximately $49,566 annually. The Director of the Operations program is a SG Level 24 with an annual income of approximately $85,490.00.

The entire Industrial Operations maintains 112 positions with an approximate demand of approximate ly $7,398,340.00 annually for payroll and benefits.

D. CUSTOMER COMMODITY STORAGE OPPORTUNITIES

There is an untapped market in Arizona of many potential customers that deal on, what can be considered an “often” a daily basis with the Federal (through companies that have and maintain DOD Contracts), and the State Government. An ideal source of information for the untapped market can be found in the Phoenix

Business Journal (As highlighted in Appendix D and Appendix E). Additionally, opening up the Camp Navajo Industrial Operations to storage opportunities in the NON –DOD Market, would open a world of

opportunities not only in the Flagstaff area, yet the State of Arizona which presently has a wide market of industrial opportunities as highlighted in the Phoenix Business Journal. Quite often several companies in the State of Arizona have DOD contracts, and produce other material not under DOD Contract. An example

is Raytheon, who currently has commodities stored at Camp Navajo under a DOD contract, yet as of the date of this BDTP, Raytheon has reached out to CNIO for the expansion of storage based upon the

production of other commodities, presently not under DOD Contract (See Appendix F). In an effort to illustrate the current market for storage, the Marketing Manager has reached out to NON

DOD prospective customers to gauge interest, and has received numerous inquiries, with several letters of intent. Due to the circumstances of the transition that CNIO is currently faced with, moving into an

operation that is to be governed by the Department of Emergency and Military Affairs, these perspective clients have been put in a hold status until contracts with DEMA, and management indicates that the transition is complete and new NON DOD clientele are welcome. Potential Non- DOD Customers include,

but are not limited to those whom in the past utilized the services at Camp Navajo. These include:

1. Orbital Sciences Corporation. Presently located in Chandler, Arizona, Orbital manufacture rs rocket systems for NASA, and various military commercial programs. They have in the past utilized Camp Navajo to store explosive bolts, inter stage separators, and Vernier motors. These items were

not under DOD contract, therefore Orbital at the time, was commercial a large capacity commodity client, Non DOD. They have expressed an interest to return to Camp Navajo due to the high

component turnover against transportation costs, therefore making it cost effective to store their components locally.

2. SCA Paper. This is a neighboring company to Camp Navajo, and they had a large presence on the installation in the past. They presently make and store large quantities of paper products, which is

dispersed for storage in warehouse facilities they presently rent in Flagstaff, and approximately 180 tractor trailer “trailers” on site at the plant. With the frequent foul weather conditions in the Flagstaff area during the winter, it is difficult for SCA Paper to meet the needs of their clientele unless more

suitable storage is located. They have issued a letter of intent to Camp Navajo for 200,000 square feet of storage space in the general purpose warehouse area, and are willing to supply the necessary

special equipment to lift and move the large paper rolls. In addition, they are interested in moving all approximately 180 tractor trailer “trailers” to a suitable storage area on Camp Navajo.


3. ATK Gun Systems. The gun systems division of ATK is located in Mesa, Arizona. They produce medium sized automatic “Chain gun” cannons for the various branches in the U.S. Armed Services.

Their flagship products are the 25 mm bushmaster gun on the Bradley Fighting Vehicle and the 30 mm “Chain gun” used on the AH-64 Apache Helicopter gunship. ATK presently has a gun test facility in Mesa, near Falcon Field and they still require the need for off-site storage due to BATFE

and city restrictions. They, at one time were the oldest Camp Navajo Customer. Yet in lacking the ability to attach the “Chain gun” and ammunition to a DOD contract, removed the commodity from

the installation under the direction of The Adjutant General, Hugo Salazar. They have indicate in e-mail traffic the highest desire to return to Camp Navajo under a long term contract, at the time of the publication of this Business Development / Transition Plan.

4. Burlington Northern Railroad under BNSF. In late July, Directors from the Flagstaff Office of

BNSF contact the Marketing Manager with the intent to return to Camp Navajo storing between 5 and 7 miles of railcars on the railroad on the Camp Navajo Facility. They are willing to group the cars in sections of 20 cars each in order to allow cutting necessary cars for transportation assignment.

BNSF has experienced a lull in the rail business, and estimates storing railcars for up to two years on the installation.

5. Salt River Materials Group. One of the most promising is the opportunity presently with a Non-

DOD potential Client, whom is not a previous client. Salt River Materials Group, as represented by

Pozzolan of Phoenix Cement Company, located in Scottsdale Arizona, approached the Marketing Manager for the storage of cement, and the by-products necessary to complete operations for their

firm in central and northern Arizona. The company, has issued a letter of intent for one of the J-Standard Buildings, and three cement pads in the 200 Area, with rail access for a long term contract, of three to five years. Support of this client would require additional staffing of ten to twelve

personnel, and 24 hour operations on camp Navajo to move the amount of material. In addition this client would need a defined footprint on the installation, with access to concrete slab, rail track, and

access to and from the site with trucks, and the ability to install equipment and improve the site (utilities, lighting, rail car switching). Appendix G includes the Letter of intent, photographs of the current operation in the Maricopa County area (to give an idea of the footprint necessary on Camp

Navajo) and the design configuration of the site request for Salt River Materials Group, along with the Safety Data Sheets for the materials to be handled. Improvements to property, and equipment

cost, employee costs would be considered as cost handled by Salt River Materials Group.

6. TYR Tactical. A DOD contractor. In a meeting with the founder, and CEO, Jason Beck on

September 8th, 2015, Jason Beck shared TYR Tactical’s story. TYR Tactical has 23 patents on tactical equipment, and has 80,000 sq. ft. facility and work space in Scottsdale Arizona, with no

storage capabilities. They have the largest DOD contract for tactical equipment between the Army, Marine Corps and the Navy. In addition they hold contracts with the U.S. Marshall Service, Customs, and the FBI and CIA. In addition they produce tactical equipment for most of the Police

department’s in the U.S. Presently they produce the equipment “just in time” (JIT) because of lack of storage. A storage mission with them could evolve quickly for 100,000 + sq. feet in the

Warehouse. The types and volume of commercial storage requirements allow for easier use of the un-modified igloos.

Interviews conducted by the Marketing Manager with several agencies and business throughout Arizona


have indicated that the Department of Defense Explosive Safety Board, and the BATFE provide adequate for proper oversite of the handling, storage, and security of commercial material stored at Camp Navajo.

It is noted that in previous notes within the archives, there was an inquiry made in 2005 from the Boeing Corporation about storing approximately 20 GEM – 60 Solid Rocket boosters for the NASA Delta IV

Rocket. Yet, as the time of the inquiry, igloos similar to those utilized by the Air Force for the Minuteman Systems would have been required but there were not available. The cost to modify an igloo and provide

infrastructure support would be approximately $1.5 million dollars (U.S.), and Boeing did not have the funds to begin the commodity mission. Additionally, ATK Rocket Propulsion Division of Magna, Utah inquired about storing of company owned Kinetic Energy Interceptor Rocket motors that were a part of the

advanced –research antiballistic missile testing that was terminated under Presidential Order. All indicat ion is present at the time of writing this Business Development / Transition Plan, which the need still exists,

and if four to five modified igloos can be provided, the commodity contract could be easily acquired in favor of Camp Navajo.

VI. CAMP NAVAJO INDUSTRIAL OPERATIONS PERSONNEL. The purpose of this discussion on the Camp Navajo Industrial operations Personnel is to basically identify end recipients of the services provided by CNIO State of Arizona employees. One aspect of the concept

plan for the operation of an industrial activity at CN is that the IO exists solely for the purpose of deferring costs associated with the operation of the National Guard Training Site at CN. Throughout this document, this mission is identified as the Collective Training Center (CTC), made up of the Garrison and

Camp Navajo Industrial Operations.

The CNIO has met this mission requirement for the last 22 years (1993-2015), however, there has only

been one attempt made to quantify the contribution in man-hours that the IO provides to the CTC, as made in January 2008 completed by a concentrated effort of executives within the Industrial operations

department. At the time of the publication of this Business Development / Transition Plan some of the personnel may have changed yet the position within the operation still exists, and may have been filled by other personnel in the department.

This portion of the Business Development / Transition Plan addresses salaries and employee related

Expenses (ERE), base operations (Base Ops) and revenue source/expenditure priority which are included in this document as Appendix of this document as Appendix M, as the Salary Cost Allocation worksheet, and Appendix N, as the Rate Worksheet.

Federal employees and state employees who are directly funded by another agency are not included in this

discussion. This group of people includes all AGR and Fed Tech’s that support the CN Training Site and the CTC. It also does not include the CFMO funded TS M&R personnel or the CFMO funded environmental personnel at CN. The CN Fire Department is included in this analysis because Fire and

Emergency (F&E) money is year-to-year.

A. METHODOLOGY

This plan lists all full time active employees as well as projected positions (Table 2 Below). All 112

active positions have been extended out to reflect them being filled for 100% of the FY15 timeframe


without regard to leave without pay or periods during which the position may have been vacant while awaiting backfill. For this reason, the total payroll amount shown at the bottom of Annex G, exceeds the

total payroll shown in FY15 year-end report. The cost of projected positions has not been used in any calculations. Projected positions have been provided as place holders as categorized in C, below.

The FY15 year-end financial report was used is the source for all actual revenues and expenditures.

Actual salary figures used for establishing annual salary costs was based on the payroll report for the pay period ending 1 Aug 2015. The calculation for an annual salary and ERE for each active position was (total salary for period x 26 pay periods=annual salary)

Each position was then individually looked at and assessed regarding which customer benefited. All

times are estimates based on supervisor evaluations. In the event of a disagreement about which customer benefited, the % of time defaulted back to the CNIO mission.

Projected salaries were calculated by using the midrange for the grade and adding 31% ERE, i.e., (midrange x 1.31=annual salary). Midrange salaries used for projected positions are:

SG-13 30,673 X 1.31= $40,182

SG-14 32,442 X 1.31= $42,499

SG-15 34,132 X 1.31= $44,713

SG-16 36,744 X 1.31= $48,135

SG-17 39,285 X 1.31= $51,463

SG-18 42,109 X 1.31= $55,162

SG-19 45,199 X 1.31= $59,211

SG-20 49,454 X 1.31= $64,784

SG-21 54,069 X 1.31= $70,831

SG-22 58,510 X 1.31= $76,648

SG-23 63,541 X 1.31= $83,239

SG-24 69,012 X 1.31= $90,406

These salaries should be used only for planning purposes because the actual cost for an employee will vary based on the benefit package the employee elects to take.

Projected Positions are not included in the bottom line of this Cost Allocation Plan. They fall into several

categories.

1. Positions filled by deployed soldiers that had less than 3 months (6 payrolls) of activity during

FY07. Also includes LTD. 2. Positions that have historically been funded by CNIO that are now funded by another source.

3. Positions that were filled for all or part of FY07 that are currently vacant. (New employee would start at midrange +31% ERE).


4. Positions that are vacant and may be filled in the near future based on availability of a bill payer. 5. Part-time positions are not included in this CAP as projected positions. Part-time positions were

extended out to one full man-year for both salary and cost allocation for the purposes of this plan.

Cost Allocation Plan-Projected Positions Table 2

Annex Position IO % of time CTC % of time Other % of time

A Buyer(3)* 0.90/$46,317 0.10/$5,146 0

B Munition Chief(4) 1.0/$65,176 0 0

B Mun Whse Supv(1) 1.0/$55,162 0 0

B Rkt Mtr Tech(1) 1.0/$51,463 0 0

B Rkt Mtr Tech(1) 1.0/$51,463 0 0

B Rkt Mtr Tech(1) 0.90/$46,317 0.10/$5,146 0

B Rkt Mtr Tech(4) 1.0/$51,463 0 0

B Ammo Insp(1) 0.90/$53,290 0.10/$5,921 0

C Phys PH Mngr(1) 0.40/$30,659 0.40/$30,659 0.20/$15,329(EUL)

C Env Mngr(3) 0.75/$44,408 0.25/$14,803 0

C Planner(4) 0 1.0/$59,211 0

C Prg Proj Spec(1) 1.0/$55,162 0 0

C Eq Oper(4) 0 1.0/%$51,463 0

D Shift Supv(SG-15)(4) 0 0 1.0/$44,713(EUL)

D Patrolman(SG-13)(4) 0 0 1.0/$40,182(EUL)




E Fire Sgt(1) 0.50/$27,851 0.50/$27,852 0

E Firefighter(2) 0 1.0/$40,182 0

E FF(2) 0 1.0/$40,182 0

E FF(4) 0 1.0/$40,182 0

E FF(4) 0 1.0/$40,182 0

E FF(4) 0 1.0/$40,182 0

E FF(4) 0 1.0/$40,182 0

E Fire Sgt (4) 0 0 $55,162(EUL)

E FF(4) 0 0 $40,182(EUL)

E FF(4) 0 0 $40,182(EUL)

E FF(4) 0 0 $40,182(EUL)


*Parenthesized number refers to C1-C5 on previous page

B. COMMAND AND SUPPORT STAFF

MISSION: The Command Staff provides the senior leadership and guidance for accomplishing CN’s multiple missions as defined in the Camp Navajo Concept Plan and ARS 26-152.

COST ALLOCATION: The following is a cost allocation of Command and Support Staff at Camp Navajo based on mission requirements.

Position IO percent of time* CTC % of time* Other % of time*

Dep Cdr Ops(24)(A)**(Vacant) 0.35/$34,028 0.50/$48,611 0.15/$14,583(EUL)

Dep Cdr Spt Svc(24)(A)(Vacant)

0.80/$87,050 0.20/$21,762 0

Liaison Off (22)(A)(Rising) 0.34/$27,635 0.33/$26,822 0.33/$26,822(START)

Prog Proj Spec (19)(A)(Ramonos)

0.75/$35,409 0 0.25/$11,803(START)

Safety Off(19)(A)(Costa) 0.75/$56,238 0.25/$18,746 0

Exec Secy (15)(A)(Zinno) 0.25/$14,262 0.75/$42,785 0

Res Mngr (21)(A)(Hemric) 0.90/$67,949 0.10/$7,550 0

Buyer (17)(P)(Vacant) 0.90/$46,317(P) 0.10/$5,146(P) 0

Fis Svc Spec (17)(A)(Kelly) 1.0/$59,712 0 0

Log Supv (19)(A)(Simmons) 0.90/$51,291 0.10/$5,699 0

Storekeeper(15)(A)(Mitchell) 0.90/$44,603 0.10/$4,956 0

Pers Admin(15)(A)(Stewart) 1.0/$62,770 0 0

InfoTech3(C3)(A)(Grumbine) 0.90/$72,472 0.10/$8,052 0

InfoTech3(C3)(A)(Leonard) 1.0/$54,566 0 0

InfoTech3(C3)(A)(Oster) 1.0/$50,435 0 0

Phys Plt Supv(19)(A)(Golosewski)

0 1.0/$71,551 0

TOTAL*** 10.84/$718,420 3.43/$256,535 0.73/$53,208

*All percentage of time is in man-years

**Salaries are either Actual (A) or Projected (P). Projected salaries are midrange within the state grade plus 31% employee related expenses (ERE).

***Total costs do not include any Base Ops such as vehicle leave, vehicle maintenance and repair, fuel, equipment, utilities or cost of facility M&R.

E FF(4) 0 0 $40,182(EUL)

F Eq Rep Tech(1) 1.0/$51,463 0 0

I. TOTAL 11.35/$623,174 9.45/$441,022 10.20/$436,660


C. DIRECTOR OF AMMUNITION OPERATIONS

MISSION: The Director for Ammunition Operations has the responsibility for executing all contracts negotiated by both the federal and the state side of the house for CN storage customers.

COST ALLOCATION: The following is a cost allocation of Director of Ammunition Operations at Camp Navajo based on mission requirements.

Position title IO % of time* CTC % of time* Other % of time*

AdmvServOff III(22)(A)**(Hanford) 0.90/$80,840 0.10/$8,982 0

Munitions Chief(20)(P)(Vacant) 1.0/$65,176(P) 0 0

ProgProjSpec(19)(A)(Lintel) 0.90/$71,198 0.10/$7,911 0

TngOff(18)(A)(Jameson) 1.0/$84,804 0 0

ProgProjSpec(19)(A)(Mott) 0.90/$75,315 0.10/$8,368 0

TransSpec(17)(A)(Backer) 0.90/$62,891 0.10/$6,988 0

TransSpec(17)(A)(Standard) 1.0/$67,160 0 0

Trans Spec(17)(A)(Wilkins) 1.0/$69,655 0 0

MunWhseSupv(18)(A)(Coffey) 0.90/$73,360 0.10/$8,151 0

MunWhseSupv(18)(A)(Hook) 1.0/$74,300 0 0

MunWhseSupv(18)(P)(Diaz) 1.0/$55,162(P) 0 0

MunWhseSupv(18)(A)(Ruiz) 1.0/$87,049 0 0

MunWhseSupv(18)(A)(Dobbins) 1.0/$85,656 0 0

RktMtrTech(17)(A)(Sears) 1.0/$68,634 0 0

RktMtrTech(17)(A)(Sablan) 1.0/$81,261 0 0

RktMtrTech(17)(P)(Fawbush) 1.0/$51,463(P) 0 0

RktMtrTech(17)(P)(Guiggy) 1.0/$51,463(P) 0 0

RktMtrTech(17)(A)(Johnson) 1.0/$68,527 0 0

RktMtrTech(17)(A)(Parvin) 0.90/$62,877 0.10/$6,986 0

RktMtrTech(17)(A)(Lee) 0.90/$70,385 0.10/$7,821 0

RktMtrTech(17)(P)(Beltran) 0.90/$46,317(P) 0.10/$5,146(P) 0

RktMtrTech(17)(A)(Vincent) 0.90/$55,049 0.10/$6,117 0

RktMtrTech(17)(A)(Merritt) 0.90/$57,304 0.10/$6,367 0

RktMtrTech(17)(P)(Vacant) 1.0/$51,463(P) 0 0

RktMtrTech(15)(A)(Kent) 1.0/$43,401 0 0

RktMtrTech(15)(A)(Sayles) 1.0/$61,387 0 0

RktMtrTech(15)(A)(Bruntz) 1.0/$60,440 0 0

RktMtrTech(15)(A)(Kirchner) 1.0/$64,598 0 0

RktMtrTech(15)(A)(Gnagi) 1.0/$62,006 0 0

RktMtrTech(15)(A)(Reel) 1.0/$59,843 0 0

RktMtrTech(15)(A)(Taranto) 1.0/$66,023 0 0

RktMtrTech(15)(A)(Turner) 1.0/$57,107 0 0

RktMtrTech(15)(A)(Porr) 1.0/$62,186 0 0

RktMtrTech(15)(A)(Blewitt) 1.0/$64,246 0 0

RktMtrTech(15)(A)(Southwell) 1.0/$70,869 0 0

RktMtrTech(15)(A)(Kusterer) 1.0/$50,642 0 0


RktMtrtech(15)(A)(LeNormand) 1.0/$44,025 0 0

RktMtrTech(15)(A)(Larson) 1.0/$50,636 0 0

RktMtrTech(15)(A)(Eubanks) 1.0/$62,007 0 0

RktMtrTech(15)(A)(Overfield) 1.0/$62,020 0 0

RktMtrTech(15)(P)(Vacant) 1.0/$44,713(P) 0 0

Ammunition Insp(19)(A)(Lynch) 0.90/$75,355 0.10/$8,373 0

Ammunition Insp (19)(P)(Bustamante) 0.90/$53,290(P) 0.10/$5,921(P)

QASAS 1.0/$99,212 0 0

QASAS 1.0/$99,212 0 0

TOTAL*** 36.9/$2,557,795 1.1/$81,210 0

*All percentage of time is in man-years **Salaries are either Actual (A) or Projected (P). Projected salaries are midrange within the state grade plus 31% employee related expenses (ERE).


D. FACILITY ENGINEERING COST ALLOCATION PLAN

BACKGROUND: The manning levels for the Camp Navajo Facilities Engineering Division were established through a reorganization that was finalized in January 2005. This reorganization resulted in

the identification of 81 positions (of which 29 are currently filled). The new organization chart (admin share/HR stuff/org charts/FE org chart B(2)) includes Firefighters, (12 positions) and the M&R staff for the Training Site (5 positions) that are currently funded by the CFMO. The 2005 reorganization was

geared towards the mission requirements at that point in time and forecasted positions that could be required to meet future challenges or expansion of current missions.

All these positions are established and supported by Position Description Questionnaire (PDQ’s).

MISSION: The current mission of the FE Division is:

1. To provide support to the industrial mission at CN by providing locomotive engineers, road maintenance, igloo PM and M&R and other such services as may be required to meet IO storage customer needs.

2. To operate and maintain the utility systems on CN to include the water treatment plant and distribution system, the wastewater treatment plant and collection system, the natural gas

distribution system and the electrical distribution system. 3. To execute a facility preventative maintenance and M&R program for all state

operated buildings on the installation.

4. To Liaison with the CFMO to meet any other additional requirements and facilitate accomplishment of the CFMO mission at CN. This is accomplished through established processes

such as the Installation Planning Board, the Engineer Review Board, PBAC’s and in effect MOA’s/MOU’s.

The cost allocation plan will be broken down into four separate areas:


1- Management and Planning 2- Utilities

3- Trades and Crafts 4- Equipment Operations

I. Management and Planning.

This area provides the administrative, environmental, planning management and control, and communication services for the installation.

Position Title IO % of time* CTC % of time* Other % of time*

PhysPltMngr(SG-22)(P)**(Cullum) 0.40/$30,659(P) 0.40/$30,659(P) 0.20/$15,329(P)(EUL)

AdminAsst(SG-15)(A)(Hall) 0.80/$50,956 0.20/$12,739 0

PPS(Plans)(SG-20)(A)(Wood) 0.50/$35,726 0.25/$17,863 0.25/$17,863(EUL)

EnvMngr(SG-19)(P)(Freyer) 0.75/$44,408(P) 0.25/$14,803(P) 0

CustWrkr(SG-10)(A)(Semallie) 1.0/$36,158 0 0

ConstrSpec(SG-18)(A)(James) 0.50/$31,694 0.50/$31,694 0

Trainer(SG-18)(A)(Hughner) 0.90/$68,040 0.10/$7,560 0

Planner(SG-19)(A)(Vandewater) 0.80/$50,344 0.20/$12,586 0

Planner(SG-19)(A)(Abraham) 0 1.0/$89,214 0

Planner(SG-19)(P)(Vacant) 0 1.0/$59,211(P) 0

ProgProjSpec(SG-18)(P)(Hack) 1.0/$55,162 0 0

CommTech(SG-18)(A)(Pickard) 0.90/$67,091 0.10/$7,455 0

InfoTech(C2)(A)(Lomax) 0.75/$46,365 0.25/$15,455 0

TOTAL*** 7.15/$441,536 2.60/$194,563 0.2550/$17,863

*All percentage of time is in man-years **Salaries are either Actual (A) or Projected (P). Projected salaries are midrange within the state grade

plus 31% employee related expenses (ERE). ***Total costs do not include any Base Ops such as vehicle leave, vehicle maintenance and repair, fuel, equipment, utilities or cost of facility M&R.

II. Utilities.

This area provides for the operation and maintenance and repair of the water, waste water, electrical and natural gas systems. Personnel costs and materials to support the M&R of the systems are included when

computing the rate that we charge to our customers for utility services. For this reason, the column for “EUL and other customers” has been changed to "Util rate". For FY08, CN utility rates account for

$200,207 being reclaimed as part of the rate structure for personnel and repair parts.


Position Title IO % of time* CTC % of time* Util rate*

PhyPltSupv(SG-19)(A)**(Dangelo) 0 0.20/$13,346 0.80/$53,385

W/WW SysTech(SG-17)(A)(Carpenter) 0 0.50/$29,318 0.50/$29,318

W/WW SysTech(SG-17)(A)(Casey) 0 0 1.0/$61,650

Electrician(SG-17)(A)(Swinehart) 0.50/$32,488 0 0.50/$32,488

TOTAL*** 0.50/$32,488 0.70/$42,664 2.80/$176,841



III. Trades and Crafts

This area provides the skills necessary for carpentry, masonry and other construction type skills. Also included in this area is general grounds keeping and general labor. CTC % of time is time spent in

support of the Training Site with higher level of M&R than TS assets are capable of addressing.

Position Title IO % of time* CTC % of time* Other Customers*

PhyPltSupv(SG-20)(A)**(Luedke) 0.75/$55,427 0.25/$18,476 0

PhyPltSupv(SG-19)(A)(Carstens) 0.75/$58,335 0.25/$19,445 0

BMS(SG-17)(A)(Stewart) 0.75/$60,667 0.25/$20,222 0

BMS(SG-17)(A)(Engelke) 0.75/$50,744 0.25/$16,915 0

BMS(SG-17)(A)(Snodgrass) 0.75/$50,748 0.25/$16,916 0

Groundskeeper(SG-16)(A)(Biamonte) 0 1.0/$53,080 0

Laborer(SG-10)(A)(Russell) 0.75/$31,802 0.25/$10,601 0

TOTAL*** 4.50/$307,724 2.50/$155,654 0



IV. Equipment Operators

This area provides the trained and certified locomotive operators who man the train for moving customer commodities. These positions also maintain the road network and perform maintenance and repair on

roads, culverts and fences. Locomotive operators are allocated 100% to IO because they have to be available at all times to support that mission.


Position Title IO % of time* CTC % of time* Other Customers*

PhyPltSupv(SG-19)(A)**(Trimble) 0.75/$62,391 0.25/$20,797 0

HvyEqOper(SG-18)(A)(Alvarado) 1.0/$75,144 0 0

HvyEqOper(SG-18)(A)(Davis) 1.0/$53,749 0 0

HvyEqOper(SG-18)(A)(Mitchell) 1.0/$63,294 0 0

HvyEqOper(SG-18)(A)(Jaime) 1.0/$74,432 0 0

HvyEqoper(SG-18)(A)(Henes) 1.0/$65,248 0 0

EqOper(SG-17)(A)(Dewey) 0 1.0/$84,147 0

EqOper(SG-17)(A)(Huerena) 0 1.0/$73,456 0

EqOper(SG-17)(P)(Johnson) 0 1.0/$51,463(P) 0

TOTAL*** 5.75/$394,258 2.25/$178,400 0

*All percentage of time is in man-years **Salaries are either Actual (A) or Projected (P). Projected salaries are midrange within the state grade plus 31% employee related expenses (ERE).


V. SUMMARY:

Mgnt& Planning 7.15/$441,536 2.60/$194,563 0.25/$17,863

Utilities 0.50/$65,488 0.70/$42,664 2.80/$176,841

T&C 4.50/$307,724 2.50/$155,654 0

Eq Oper 5.75/$394,258 2.25/$178,400 0

TOTAL 17.90/$1,176,006 8.05/$571,281 3.05/$194,707


**Salaries are either Actual (A) or Projected (P). Projected salaries are midrange within the state grade plus 31% employee related expenses (ERE). ***Total costs do not include any Base Ops such as vehicle leave, vehicle maintenance and repair, fuel,

equipment, utilities or cost of facility M&R.

E. SECURITY DIVISION COST ALLOCATION

BACKROUND: The manning levels for the Camp Navajo Security Division were originally established

in 1979 by the Table for Distribution and Allowances (TDA) XWW0L9AA. This TDA established 37 positions within the security Division, and from 1982 until 1993, all 37 of these positions were fully funded

by the Army Material Command (AMC) through the Inter-service Support Agreement with Tooele Army Depot (TEAD) for the operation of Navajo Depot Activity (NADA).


In 1993, several events occurred that influenced the manning levels of the Security Division. First, NADA changed its name to Camp Navajo effective 01OCT93 because the installation had met the terms of Base

realignment and Closure (BRAC). BRAC, in a nutshell, withdrew the federal AMC funding for the operation of the installation and turned the property over to the Arizona Army National Guard (AzARNG) to be utilized as a Training Site. The newly established Industrial Operation (IO) assumed the funding for

the Security Division amidst other mission related activities. This change in funding also impacted the mission of the Security Division, in that the Security force was no longer required to perform hourly checks

on ammunition storage igloos in the "F" area that contained CAT I and CAT II explosives. This requirement had gone away in 1990 when the Vindicator IDS system was installed in "F" area to monitor 99 igloos in that area. With the Vindicator on line, the Security Division no longer had a requirement for 16 of the 37

Officers authorized by the TDA.

The second thing that happened to effect the Security Division was a change in the TDA that overall reduced the manning from 135 to 92, with the impact to the Security Division being the loss of the 18 Patrol Officer authorizations and a new strength authorization of 19 personnel.

The TDA for Navajo Depot Activity, NG7UBAA authorizes 19 positions:

One Security Chief (O4) One Physical security NCO (E7) One Operations Sergeant (E7)

Three Squad Leaders ((E6) Three Military Police Sergeants (E5)

Ten Military Police Specialists (E4) The IO used the TDA as a template for establishing the Fulltime State manning requirement for the

installation. Adjustments were made to provide an Administrative assistant (SG-13) and a Training Officer (SG-18).

Personnel were also arranged into four shifts, instead of three, to ensure 24/7/365 coverage. From 1993 through 2005, the IO funded all Security costs at CN. In 2006, the AzARNG POMSO office contributed

$150,000 to defer costs of security Operations. In 2007, the DOM contributed $75,000 to defer costs of Security Operation at CN.

The fulltime Security positions at CN are established by State of Arizona Position Description Questionnaires (PDQ's).

MISSION: The mission of the Camp Navajo Security Division is to:

1- Provide general and MEVA Security services and protection for Camp Navajo, from fence line to fence line.

2- To protect and preserve life and property. 3- To meet the requirements of Army Regulations, as deemed applicable to the Security mission at Camp

Navajo by the Garrison Commander. 4- To provide input and overall management of Command programs that are Security driven, such as the Antiterrorist and Force Protection and Physical Security programs.


COST ALLOCATION: The following is a cost allocation, current and projected, of Security personnel at Camp Navajo. Salaries are actual per payroll report as of May 2015 including ERE.

***Total costs represent personnel only and do not include any operational expenditures. REQUIREMENTS: IO requirements for Security are for monitoring IO customer IDS control systems,

supporting Strategic arms reduction Treaty (START) training and visits, Command and Control, and patrol of IO customer locations and response to incidents.

MTC-L requirements are for meeting general, Command and Control, and MEVA security requirements. These requirements, as applicable, are derived mostly from Army Regulations 190 series and Anti-

Terrorism and Force protection/Physical Security requirements.

Current Cost Allocation, Splits are based on estimated man-hours per employee. Current funding is 100% IO

Position Title Split IO/MTC

Security Chief (SG-19)(A) 69913.59 50/50

Admin Asst (SG-13)(A) 53031.23 50/50

Security Off III (SG-17)(A) 62422.15 50/50

Security Off II (SG-15)(A) 51041.58 80/20



Security Off I (SG-13)(A) 44476.35 80/20





Security Off I (SG-13)(A) (Vacant)

44476.35 80/20





Security Off I (SG-13)(A) (Vacant)

44476.35 80/20






Total cost w/ERE $1,085,155.62


Proposed Cost Allocation would remove the Administrative Assistant and add 9 positions. Added positons include; 1-Officer III, 3-Officer II, 5-Officer I (60-40 split), and change 1-Officer I to a 60/40 split.

Position Title IO MTC Proposed %

Security Chief (SG-19)(A) $34,956.80 $34,956.80 50/50 split

*Admin Asst (SG-13)(A)* (Propose to remove)

Security Off III (SG-17)(A) $62,422.15 100

Security Off III (SG-17)(P) $62,422.15 100

Security Off II (SG-15)(A) $51,041.58 100



Security Off II (SG-15)(P) $51,030.72 100



Security Off I (SG-13)(A) $44,476.35 100





Security Off I (SG-13)(A) (Vacant) change

$26,685.81 $17,790.54 60/40

Security Off I (SG-13)(P) $26,685.81 $17,790.54 60/40






Security Off I (SG-13)(A) (Vacant) $44,476.35 100









$1,115,963.56 $357,214.35

Total Cost w/ERE $1,473,177.91


I. Security Operations Center (SOC) Tower (Command and Control)

Man-hour functions equate to a 70/30 split between IO and MTC function 1. Phone lines x 2

2. Radio traffic X 3

3. DCO, START

4. Vista Data Vision (VDV)

AR 190-11 3–6. Intrusion Detection System The IDS is an essential part of the PS system. The IDS consists of the combination of electronic components,

including sensors, control units, transmission lines, and monitoring units integrated to be capable of detecting all types of intrusion into an area protected by the system including the stay-behind threat. An

IDS includes both interior and exterior systems. The system will be a DOD standardized system or DA-approved commercial system. The following policy applies:

a. Central monitoring station.

(1) A central monitoring station (CMS) will be provided at which alarms will present audible and visual alerts and from which a response force will be dispatched. The response force is not required to be collocated with the CMS.

(2) When IDSs are used in civilian communities, arrangements will be made to connect alarms to civil police headquarters, private security companies, or a monitoring service from which immediate response

can be directed. A commercial answering service is not authorized. Coordination is required with civil authorities to ensure a response force can be directed immediately.

b. Response force.

The response force should respond to an activated alarm as soon as possible, but in no case may arrival at the scene exceed 15 minutes. (This also applies to patrol)

5. Pelco cameras system, as it pertains to storage of Security arms and ammunition. This is a duel function CCTV cameras are also placed at the Water Treatment Facility, both ACP’s and Building 1 (HQ)

AR 190-11 4–2. Storage and supplemental controls

a. Storage and supplemental controls.

(1) Category II arms stored in arms storage buildings or rooms that do not meet or exceed the criteria for Category II arms may be stored in GSA-approved Class 5 security containers not containing classified documents or materials, or in a safe-type steel file container not containing classified documents or

materials, having a three-position, dial-type, combination lock providing forced entry protection as


approved by GSA (Federal Specification AA–F–363D(3) as amended) or in approved modular vaults not containing classified documents or materials with GSA-approved Class 5 vault doors or GSA-approved

Class 5 armory doors. Modular vaults meeting Federal Specification AA–V–2737 (1) may be used to meet this requirement. Vaults, containers, and safes will be under 24–hour armed guard surveillance or protected by an approved IDS, and the facility will be checked by a security patrol at least once every 8 hours (This

also applies to patrol).

6. Fire alarm system 7. C.O.P.S monitoring company calls to report all alarms for National Guard IDS requiring response

8. Daily logs for each function to meet regulations

II. Post 3 Operations (Limited Use)

Man-hour functions equate to a 0/20 split between IO and MTC function

III. Entry control

AR 190-11 5–9. Entry control for Restricted Areas

Vehicular and personnel gates will be secured, and strict key control accountability will be observed. A

pass, badge, or access roster, plus a registration system, will be used to admit properly identified authorized personnel to storage areas. (3) Entry and exit procedures will include searches of personnel and vehic les for unauthorized material. (6) Upon exiting, all vehicles will be thoroughly inspected to ensure that only

authorized material is being removed.

The restricted area deals with hunters, fisherman, contractors, explosive laden commercial vehicles and employees. Each have required processing forms. On a daily basis this is the ACP that requires vehicle searches.

Main Gate ACP (Primary)

Man-hour functions cannot be calculated because IO customer requirements can be met for need at the Limited use ACP

First physical boundary that restricts access to installation cantonment areas. Guards check identificat ion

of everyone entering the installation. During raised FPCON levels, guards may perform vehicle inspections. Guards provide direction and assistance as required.

Patrol

Man-hour functions equate to an 80/20 split between IO and MTC function

AR 190-11 3–7. Security forces


A security patrol, guard patrol, or unit personnel will periodically check facilities and areas used to store sensitive or critical items or equipment as prescribed herein and as dictated by a threat and vulnerability

analysis. Checks will be conducted on an irregular basis during non-duty hours to avoid establishment of a pattern. Security checks will be made to ensure unauthorized personnel are not in the area and the structures are intact and have not been breached. During periods of increased vigilance because of a threat situation,

security patrols will physically inspect doors and locks on all storage structures in their area of responsibility. Selection of personnel to perform guard duties will be closely monitored by commanders to

ensure only properly trained and reliable individuals are assigned duty. Supervisory checks will be conducted to ensure guard duties are being performed properly.

a. Security patrols may be conducted by military personnel; civilian security personnel, includ ing contract personnel; U.S. Marshal Service; or state, local, or campus police.

b. Security forces personnel (for example, guards, security patrols, security reaction forces) will be

armed with appropriate weapons and ammunition. If such personnel are armed, provisions of AR

190–14 apply.

c. Inspections and guard checks will be increased during nights, weekends, and holidays to provide for deterrence of violations and early detection of loss. These checks will be recorded and will consist of an inspection of the building or facility including all doors and windows. Records of these

checks will be maintained in an active file for a minimum of 90 days and then destroyed.

AR 190-11 5–5. Guard protection and surveillance

Protection and surveillance by guards or other personnel together with other PS measures will be established

for facilities or temporary open storage areas as set forth in this regulation and otherwise as needed to ensure protection at the facilities. At a minimum, entrance and exit points into magazine and holding areas where

vehicles, railcars, or aircrafts with missiles, rockets, ammunition, or explosives aboard are parked will be controlled by guards or other personnel. When duty personnel are not present or IDS or CCTV are not used, enough security patrols will be provided to allow physical inspection of each aircraft, railcar, or vehicle at

a frequency determined by the commander concerned, based on the category of AA&E, the threat, and the location.

F. FIRE DEPARTMENT COST ALLOCATION

BACKROUND: The manning levels for the Camp Navajo Fire Department (CNFD). Were origina lly established in 1979 by the Table for Distribution and Allowances (TDA) XWW0L9AA. This TDA

established 12 positions within the Fire Department, and from 1982 until 1993, all 12 positions were fully funded by the Army Material Command (AMC) through the Inter-service Support Agreement with Tooele Army Depot (TEAD) for the operation of Navajo Depot Activity (NADA).

In 1993, several events occurred that influenced the manning levels of the CNFD. First, NADA changed

its name to Camp Navajo effective 01OCT93 because the installation had met the terms of Base Realignment and Closure (BRAC). BRAC, in a nutshell, withdrew the federal AMC funding for the operation of the installation and turned the property over to the Arizona Army National Guard (AzARNG)

to be utilized as a Training Site. The newly established Industrial Operation (IO) assumed the responsibility


for funding the Fire department, amidst funding other mission related activities. This change in fundi ng also impacted the mission of the FD in that the FD was no longer allowed to respond to

accidents/incidents/fires off of the installation unless their participation was requested per mutual aid agreements. Because of these changes, the full time manning of the FD as funded by the IO was reduced to 7 full time positions.

The second thing that happened to effect the FD was a change in the TDA that overall reduced the manning

from 135 to 92, with the impact to the FD being a change in the FD structure and the loss of one TDA position. From 1993 until 2006, the manning of the FD fluctuated from 7 to a low of 3 in 2006, with one of those three employees being militarily deployed to Afghanistan.

In 2007, federal Fire & Emergency (F&E) money was obtained through the Construction and Facility

Maintenance Officer (CFMO) to pay for maintaining fire departments. Salary money was included as an authorized use for these funds. As a result, the salaries for the two FD personnel on payroll at the time were paid for all of 2007. An additional four Firefighters were also hired during 2007, with their salaries also

being covered by F&E funds. During FY'08, CN intends to hire an additional three Firefighters, which will bring the total number of Firefighters to nine. Upon the return of the deployed soldier in the second quarter

of FY'08, the number of Firefighters available for duty will be ten. The TDA for Navajo Depot Activity, NG7UBAA authorizes eleven positions:

One Fire Chief (E7) Two Firefighter Sergeants (E5)

Eight Firefighter Specialists (E4) MISSION: The Fire Department mission, per CN Regulation 420-90, dtd 09OCT07 is:

1- To prevent fires from occurring by practicing fire prevention, education, engineering and enforcement. 2- To minimize loss of life and property when fires do occur.

3- To outline specific procedures for reporting and for correction of violations of fire codes. 4- To outline procedures for reporting fire related incidents and other emergencies. 5- To respond to and mitigate all hazardous materials incidents on or around Camp Navajo.

6- To provide emergency medical services to all personnel on Camp Navajo.

The fulltime Firefighter positions at CN are established by State of Arizona Position Description Questionnaires (PDQ's). In addition to the requirements listed in the CN Reg 420-90 (AR 42-90 has been replaced by AR 420-1, Chapter 25), the PDQ also requires that all Firefighters, at the minimum, meet the

certification requirements for firefighter I&II, Basic wildland firefighter, and Emergency Medical Technician (EMT)

COST ALLOCATION: The following is a cost allocation of Firefighters at Camp Navajo based on mission requirements.

Position Title IO % of time* CTC % of time* Other % of time*

Fire Chief (SG-19)(A)**(Antonides L) 0.25/$22,684.19 0.50/$45,368.38 0.25/$22,684.19

Deputy Chief(SG-18)(A)(Brutto) 0.25/$20,429.33 0.50/$40,858.66 0.25/$20,429.33

Fire Captain(SG-15)(P)**(Mitchell) 0.25/$16,702.14 0.50/$33,404.28 0.25/$16,702.14


Fire Captain(SG-15)(A)(Davis) 0.25/$16,702.14 0.50/$33,404.28 0.25/$16,702.14

Fire Captain(SG-15)(A)(Hall) 0.25/$16,702.14 0.50/$33,404.28 0.25/$16,702.14

Firefighter(SG-13)(P)(Antonides T) 0.25/$15,116.92 0.50/$30,233.85 0.25/$15,116.92

Firefighter(SG-13)(P)(Bailey) 0.25/$15,116.92 0.50/$30,233.85 0.25/$15,116.92

Firefighter(SG-13)(P)(Leon M.) 0.25/$15,116.92 0.50/$30,233.85 0.25/$15,116.92

Firefighter(SG-13)(P)(Leon Z.) 0.25/$15,116.92 0.50/$30,233.85 0.25/$15,116.92

Firefighter(SG-13)(P)(Mullins) 0.25/$15,116.92 0.50/$30,233.85 0.25/$15,116.92

Firefighter(SG-13)(P)(Pastor) 0.25/$15,116.92 0.50/$30,233.85 0.25/$15,116.92

Firefighter(SG-13)(P)(Pfetsch) 0.25/$15,116.92 0.50/$30,233.85 0.25/$15,116.92

Firefighter(SG-13)(P)(Swartzlander) 0.25/$15,116.92 0.50/$30,233.85 0.25/$15,116.92

Firefighter(SG-13)(P)(Testing) 0.25/$15,116.92 0.50/$30,233.85 0.25/$15,116.92

Firefighter(SG-13)(P)(Vacant) 0.25/$15,116.92 0.50/$30,233.85 0.25/$15,116.92

Firefighter(SG-13)(P)(Vacant) 0.25/$15,116.92 0.50/$30,233.85 0.25/$15,116.92

TOTAL*** 0.25/$259,506.06 0.50/$519,012.23 0.25/$259,506.06


**Salaries are either Actual (A)[based on FY15] or Projected (P)[based on midrange for the grade with 35% ERE added]. ***Total costs do not include any BaseOps costs such as vehicle lease, vehicle maintenance and repair,

fuel, equipment, utilities or cost of facility M&R

REQUIREMENTS: IO requirements for the FD are for fire planning, occupied building inspections, supporting required fire practice exercises and EMT support 24/7. FD on shift would be responsible for organizing response to emergency events. FD support to IO external customers is negligible.

CTC requirements are for fire planning, TS building and range inspections, wildland and structura l

firefighting installation-wide and compliance with all AR 420-1 requirements. EUL and other customer requirements are for life safety, property conservation, and incident stabilization.

F. MAINTENANCE SHOP COST ALLOCATION

BACKGROUND: The Camp Navajo vehicle maintenance activity supports approximately 220 pieces of

state leased, state owned federal leased (GSA) and federal equipment. Federal equipment in hand receipted to the CN industrial, which uses and maintains the equipment.

THE TDA equipment readiness is reported monthly to the FMS #6 maintenance supervisor who inputs the data into ULLS-4.


MISSION: The CN maintenance shops mission is to support CNIO and CNIO customer equipment by using either in-house resources or contract services. This support consists of routine maintenance and

repair (as reported by user’s during PMCS), cyclic maintenance and services and emergency response. COST ALLOCATION: The following is a cost allocation of CN Maintenance Shop based on mission

requirements.

Position IO % of time* CTC % of time* Other %of time*

MechSupv(19)(A)**(Jiminez) 0.90/$87,233 0.10/$9,693 0

EqReptech(17)(P)(Kenneth) 1.0/$51,463(P) 0 0

EqReptech(17)(A)(Burton) 1.0/$74,826 0 0

EqRepTech(17)(A)(Cluck) 1.0/$73,209 0 0

EqRepTech(17)(A)(Salmon) 1.0/$56,209 0 0

Storekeeper(15)(A)(Heasley) 0.60/$23,472 0.40/$15,648 0

TOTAL*** 4.50/$314,770 0.50/$25,341 0


plus 31% employee related expenses (ERE). ***Total costs do not include any Base Ops such as vehicle leave, vehicle maintenance and repair, fuel,

equipment, utilities or cost of facility M&R. G. COST ALLOCATION PLAN SUMMARY

Section IO % of time CTC % of time Other % time

Cmd/Spt Staff 10.84/$718,420 3.43/$256,534 0.73/$53,208

DO 36.9/$2,57,795 1.1/$81,210 0

FE 17.90/$1,176,006 8.05/$571,281 3.05/$194,704

Security 9.5/$568,258 11.5/$714,737 0

FD 2.75/$162,395 1.0/$95,329 0.25/$26,026

MT 4.50/$314,770 0.50/$25,341 0

TOTAL 82.39/$5,447,131 25.58/$1,647,270 4.03/$273,738

112.0 positions - $7,398,340

VII. RESOURCE METHODOLOGY

While extensive research was necessary in order to evaluate Camp Navajo, the majority of the research was conducted to complete the marketing study and subsequent market survey. The last “Business Plan” that

was developed, was completed in 2007-2009 by representatives from the Eller College of Management,


University of Arizona as led by the then assigned Marketing Manager of Industrial Operations. The “Business Plan” provided great direction and insight to this plan. Camp Navajo’s site infrastructure and

costs associated with maintenance, repair, salvage, or razing has been detailed in recommendations from the Facilities Maintenance Office, and from Facilities Engineers at Camp Navajo, in additional reports often submitted quarterly. Further research was conducted regarding costs associated with developing the

training facility which included Camp Navajo specific; Florence Military Range; and Phoenix Papago Military Reservation. In addition, personal interviews, telephonic interviews, and e-mail correspondence

with significant personnel involved in the Industrial Operations Mission, were instrumental in the gather of information. Legal restrictions were reviewed along with historical documentation and reports regarding fund allocation and an attempt has been made to project future goals from this aforementioned information.

The project was focused on the research and evaluation of information necessary to complete a market study

for Camp Navajo. Primary and Secondary Research was used to identify new markets, and market conditions relevant to Camp Navajo Industrial Operations.

The marketing study focused on the market size and opportunities for Camp Navajo Industrial Operations while taking into account the specialized storage capabilities. Camp Navajo’s mission is diverse affecting

the training standard of the Arizona National Guard, and the capabilities of clientele to function within DOD standards for their specific ballistic missile program. The restricted access, location, and structures were no compatible to privatized storage in Arizona, which is utilized for residential and individual storage,

and for commercial storage of bulk materials with high turnover. Research was performed on potential markets where the primary service sought is the storage of explosive material, solid grain rocket propellants,

and rocket motors and parts to include similar energetic materials along with bulk storage items that are comparable to existing explosive storage. Additional research was included in nuclear, biologica l, radiological, and chemical elements that are considered hazardous waste materials as Camp Navajo is not

presently permitted to store such items.

Use of the internet was a primary source of determining the size of the market and identifying potential new customers for Camp Navajo. Queries using key words in a “Boolean Search” method were used to identify the various corporations and product lines that fall in the concept of manufacturing, sale, and use of bulk

explosive and/or energetic materials. The following list of words is illustrative of the type of words used during the Boolean Search.

Explosive manufacturers. Explosive material manufacturing. Rocket propellants. Rocket motors.

Energetic materials. Energetic propellants. Rocket motor manufacturing. Mining Explosive manufacturers.

Aerospace manufacturing. Aerospace materials. Ammunition manufacturing. Ammunitions sales.

Thomas.net was utilized for a more targeted search of companies registered with the site that specialize in the use, manufacturing or sale of items that matched the Boolean Search. The site is specific in nature, and

identifies a profile and contact list for business activities, allowing easy reference for marketing contact. The site was utilized in all queries within the western region of the United States, which list explosives ; propellants; rocket motors; and energetic materials within their profiles.


Those manufacturers and corporations that are involved with explosives and energetic materials operate within a highly regulated environment, therefore there is a large parameter of sensitivity surrounding the

materials, and any discussion until both service provider and manufacturer are capable of further investigation of each other. The entire contract process could for all potential purpose take a considerable amount of time, unless they are presently a customer to the Industrial Operations, or they are currently under

the auspices of a DOD Contract. The market study reflects this fact and the number of potential customers is deceased because of this parameter.

Appendix K is the market survey which was sent to all current customers (10), and potential customers (98), for a total of 108 surveys. A concentrated effort was made to focus on telephonic contact, and e-mail follow-

up. There was little expectation that a mail off survey would provide the amount of information desired for this Business Development / Transition Plan. The completion rate of the survey was particularly important

due to the identified companies, and sites that were identified that could provide similar service that is found at Camp Navajo. The Survey sought to determine information concerning four main topic areas:

1. Demand for storing quantities of explosives or energetic materials. 2. Key Aspects of the corporation that could be considered when selecting a storage facility.

3. Fair market pricing for storage of explosive or energetic materials. 4. Specific handling, transportation, maintenance, and structural requirements concerning the

materials.

Additional consideration was given to the idea of a future market that is not DOD oriented, therefore a pricing structure was considered for the NON DOD Market which is compatible to the market in Northern and Central Arizona which would be consider to be storage competitors. The complexity concerning the

disclosure of information that a corporation may hold confidential towards their particular competitors in the industry was understood and taken into consideration. The disclosure of such informa tion was identified

in a cover letter as well as initial conversations. There were initially 30 responses to either telephonic conversations concerning the survey, e-mail

responses, and one hand written response. This was a much better response than the survey that assisted in the “Business Plan” of 2009, which received eleven (11) survey responses. Each response contributed

greatly to the development of this Business Development / Transition Plan. A significant portion of the companies involved with explosives and energetic materials conduct business

with the Federal and State Government. Conducting business with the government is a strong indicator that the policies and procedures of these companies are compatible with those of Camp Navajo.

Of the 30 surveys answered, less than half indicated a willingness to pay for offsite storage where their personnel were not directly involved in the handling of their material or commodity. Because of the security

restrictions within the Industrial Operations Mission, only those personnel who are presently employed and cleared through security procedures are permitted to work within the restricted are of Camp Navajo. This

was a common factor with companies that do not have a DOD mission, and have a company platform of “Just in Time” (JIT) manufacturing and sales.

Of those companies willing to pay for off-site storage, these companies identified restrictions that affect the ability to expand on-site storage, and indicated a need for services that could be filled by doing business


with Camp Navajo Industrial Operations. One company indicated unparticular that their operation need required them to maintain inventories greater than housed in on-site storage, and they presently pay for

storage at sites in Flagstaff, Arizona, and within Container trucks on their facility. Due to present customer restrictions, Camp Navajo Industrial Operations cannot pursue this client due to the lack of DOD or State Contracting with such. A definite effort was made to keep the results of DOD clientele/potential DOD

clientele separate from the results of NON DOD clientele/potential Non DOD Clientele.

List of Companies and or DOD entities that Responded to the Survey:

1. U.S. Navy Strategic Systems Program. Dr. Steve Bazow and Mr. Tim Cowan.

2. U.S. Air Force, Rocket Systems Launch Program. Mr. Edward Mitchell. 3. U.S. Army Security Assistance Command. Ms. Cynthia Berkowski, Case Manager.

4. Yuma Proving Grounds, Yuma Test Center. Mr. Clede O’Neil. 5. Marine Corps Air Station Yuma. Ms. Holy Freitas. 6. Marine Corp Air Ground Combat Center (MCAGCC) 29 Palms, California.

7. Lockheed Martin Fleet Ballistic Systems (U.S. Navy Contractor).Mr. Lynn Smith. 8. Indian Head Naval Ordnance Center.

9. ATK Corporation, Kinetic Energy Interceptor Program. Mr. Jim Keyes. 10. Raytheon. Mr. Dan Mingo. 11. Hanley Industries. Mr. Erik Kambarian.

12. Orbital Sciences Corporation. Mr. Stephen Thomas. 13. TYR Tactical. Mr. Jason Beck

14. Goodrich UPCO. Ms. Christine Borden. 15. Greenbrier Leasing. Mr. Dan Weiler. 16. Timberline Environmental Company.

17. Boeing. 18. SCA Paper. Mr. Greg Verkulen.

19. Apache Nitro. Mr. Lyndon Denton and Ms. Shalmarie Tulk. 20. N.A.S. Naval Air Weapons Station, China Lake. Mr. James Cook. 21. USPFO for Pennsylvania Fort Indiantown Gap. Mr. Eric Turner.

22. Tobyhanna Storage Depot. Mr. Robert Holland. 23. Letterkenny Army Depot. Mr. Edward Averill

24. Camp Stanley Storage Activity, Boerne, Tx. Mr. Cortez L. Hall 25. NMC Seal Beach, Fallbrook Annex, Fallbrook, Ca. Ms. Mercedes Muro. 26. Burlington Northern Santa Fe Railroad, Director Flagstaff Office.

27. Salt River Materials Group, Mr. Dale Diulus. 28. Tooele Army Depot, Mr. Lorene McKendrick.

29. White Sands Missile Range, Nm. Mr. Esperanza Salgado. 30. Cannon AFB, Clovis, Nm. Mr. Charles Roop.

Of those thirty (30) surveyed, the following results were determined:

(a) Ten (10) companies were affiliated with the U.S. Military or were DOD Contractors.

a. Of the ten (10) companies, Seven (7) currently store commodities at Camp Navajo.

b. Of the ten (10) companies, all ten project an increase in their U.S. Military or DOD mission, which could have a strong effect on an increased support mission by Camp Navajo.


(b) Seven (7) companies were Civilian Companies without ties to the U.S. Military or the Department of defense.

a. Of the seven (7) companies, none (0) of the companies currently store commodities at Camp Navajo.

b. Of the seven (7) companies, four (4) have indicated a high potential for storing commodit ies

at Camp Navajo, and one (1) has issued a letter of intent. c. Of the seven (7) companies, three (3) were previous customers of Camp Navajo.

(c) Seven (7) companies produce or deal in a type of business that handles, manufacturers or ships type 1 Hazardous material.

a. Of the seven (7) companies, three (3) have indicated a need for services similar to those

offered in storage of commodities at Camp Navajo, and show a willingness to pay. b. Of the seven (7) companies, one (1) has issued a verbal intent, and sent a project description

for the storage of a maintenance which has low quantity Type 1 hazardous material as part of the kit.

(d) Seven (7) Companies do not produce or deal in a type of business that handles, manufacturers or

ships type 1 Hazardous material. a. Of the seven (7) companies, three (3) have indicated a need for services similar to those

offered in storage of commodities at Camp Navajo, and show a willingness to pay. b. Of the seven (7) companies, one (1) has issued a written intent, and sent a project description

which encompasses long term use of property within the restricted area.

(e) Eight (8) companies, or entities, provide services similar to Camp Navajo to the U.S. Military or DOD on a temporary basis, and do not have the capabilities to extend long term use options. They

show a willingness to forward business to Camp Navajo. Building a relationship with these companies, or entities could greatly enhance the customer market for Camp Navajo.

(f) Five (5) companies, or entities, provide services similar to Camp Navajo to the U.S. Military or

DOD on a long term basis, and provided valuable insight to pricing.

VIII. CAMP NAVAJO GARRISON – TRAINING SITE PLANS.

The Garrison and Training Site functions were never meant to be big money makers in the scheme of things. Their value lies in the training support that is provided in the development of the modern soldier, sailor,

airman or marine. The facilities within Camp Navajo, and the training sites within Florence Military Range, and Phoenix Papago Military Reservation which is currently under the charge of the Garrison Headquartered at Camp Navajo offer state of the art training opportunities and plans are in the works to

continue to develop the facilities. There is one major factor in the continual development of state of the art training facilities and that is the Federal Fiscal Policy. The current policy requires that funding sources be

governed by “time, purpose, and amount.” This means that funds appropriated must go through the process of Congressional approval and must be used in the year that the funds are appropriated for. Further, the interpretation of the law severely limits the ability to mingle federal funds with state and private funds

unless provided by law. This means that projects with a strict federal nexus must be paid for with federal dollars.

A. THE MILITIA ACT OF 1903 AND THE DICK ACT OF 1909

Though the Arizona Army National Guard is under the control of the Governor of Arizona, and the Adjutant General as appointed by the Governor during peacetime, under the Militia Act of 1903, often referred to as


the Dick Act, and later updated as the Dick Act of 1909, the State is responsible for the training its force structure in compliance with federal standards, therefore the training functions of the National Guard are

considered purely federal and are paid in federal dollars. There are several types of appropriations that may apply on the Garrison, and Training Sites side of Camp Navajo and tertiary commands.

(1) MILCON (military Construction) funds are approved by line item in congressional Committee and are submitted in order of priority. The minimum lead time in submission for requests is 5 years.

(2) SRM (Sustainment, repair and Modernization) funds which are applied exclusively to existing federally funded structures and cover everything from utilities to updates. There is a financial cap on modernization of $750,000.00 on any given project or structure.

(3) ITAM (Installation Training and Maneuver) funds are used for the development of new ranges and maneuver areas. These are used for the expansion of Camp Navajo’s range network.

The current program of all federally funded projects and projected for funding can be found in Appendix L

as requested July 2015.

B. RANGE DEVELOPMENT PLAN

The Camp Navajo Range development plan is the product of a deliberate planning process that integrates the need of the Arizona Army National Guard, force structure, in coordination with the Department of the

Army, and training standards and priorities as set forth by the Adjutant General. In October of 2008, the Camp Navajo Executive Council met and was briefed by Major Chad Abts of the Joint Force Headquarters Training Command of the Arizona Army National Guard, in which the Major brief the Council on the

results of an analysis of his staff and made a proposal to the council regarding the integration of new shooting and maneuver ranges at Camp Navajo for the period of 5 to 8 years. The Council approved a

recommendation to include a General Purpose Machine Gun Range, a Sniper Range, and a Squad/Platoon Infantry Battle Course into the southern buffer area of Camp Navajo. Because of the federal nexus of the program, ITAM funds were designated as the funding source and the programming of federal appropriations

was established through the next five years from the date of this BDTP publication. Requests and reports have been forwarded by the command in July 2015. The consideration for Camp Navajo Industria l

Operations funding lies in the roads and upgrades required to the existing infrastructure to support the new range construction and use in the near future. As of the publication of this BDTP, the approval has not been funded, and the General Purpose Machine Gun Range, a Sniper Range, and a Squad/Platoon Infantry Battle

Course has not moved from the planning stage to the development stage.

C. CLIENTELE RESOURCES FOR THE TRAINING CENTER AND INCOME POTENTIAL

It must be noted that the biggest client for the training center, and it affiliate training ranges at Florence and Phoenix Papago Military Reservation (PPMR), is and has been the Arizona Army National Guard.

Therefore it must be recognized that the training center does not produce the amount of income from the Arizona Army National Guard that one would expect. Quite often, the marketing of Camp Navajo as a

National Training Center (Light) has been at the center of conversation, and it has been observed that the surrounding states, (California, Nevada, New Mexico, Colorado, and for the most part Utah) have interna l agreements that in state resources must be expended for training before an unit can receive approval to

training out of site. One advantage that Camp Navajo does offer as an NTC (light) is the four seasons of meteorological events and the corresponding altitude. Yet the best market for new clientele to Camp


Navajo, Florence and the ranges at PPMR can be found within the active components of the Army (such as Ranger Units from Ft. Benning and Ft. Bragg) and the Marine Corps from installations in California and

North Carolina. In addition, the reserve components of the Army and the Marine Corp offer a prime target for marketing for training activities. Another prime target is the law enforcement of Arizona and the municipalities.

In previous years the fee to use ranges at Camp Navajo, Florence and PPMR has included a $35.00

reservation fee; a $35.00 administrative fee, and $2.00 per day, per person who participates in the actual event. These fees do not include billeting at Camp Navajo (which is presently being reevaluated to correspond with billeting fees similar to other installations in the South Western United States). The income

from activities at Camp Navajo, Florence and PPMR for FY 2014 was approximately $60,000.00, and FY 2015 is on track to net approximately $65,000.00.

Consideration should be given to a price increase that corresponds with fees similar to Camp Williams, in Utah; Dugway Proving Grounds, in Utah; Yuma Proving Grounds in Yuma, Arizona; Marine Corp Air

Ground Combat Center (MCAGCC) 29 Palms California. This would increase the reservation fee to $50.00, the Administrative fee to $50.00, and the daily rate, per person per day to $7.50. Keeping the daily

rate at $1.00 less than the aforementioned adjacent training centers, and remaining competitive. A 300 man reserve unit training for the weekend at Camp Navajo would net a minimum for $4600.00 for a Military Uniform Training Assembly (MUTA) 4. This does not include fees for the lodging, and use of facilities at

the training center such as lecture halls, or the Dining Facility. This is an increase from the $1270.00 for the same period. No increase in the rate has taken place since 1992.

An additional consideration must be made in the funds that are paid to out of State training facilities, and the transportation costs that the Arizona Guard pays to transport personnel and equipment to these facilit ies.

Those funds could potentially become tertiary (third source) for funding utilized to build and improve the training sites at Camp Navajo, PPMR, and Florence.

A marketing budget of not more than $10,000.00 should be allocated for the development of a Table display, professional brochures and handouts that can be used for military and public/municipal services and units

that could be utilized for targeted to market to future clientele. Defining the target market will determine the effective display and professional brochures/handouts.

D. SPECIFIC RANGE DISCUSSIONS.

1. Camp Navajo 25meter Zero Range. This range will consist of 25 lanes for soldiers to zero

their weapons, prior to qualifying on the Qualification Training Range (QTR). The range will support Annual Qualifications and Sustainment Training for M-16/M-4 Rifles and M-249 Automatic Rifles/Light Machineguns. Soldiers currently zero on the QTR prior to qualifying,

which means all zeroing must be complete prior to qualifying. Building an adjacent 25meter Zero Range will allow concurrent training and enhance throughput. Construction could be done

“in-house” as only berm building is required, no automated targetry is needed. It will require a new Ricochet Analysis thru ARDEC, as the M855A1 ammunition will exceed the post boundaries.

a. Potential for Increased Business: Low


b. Projection: While the range will be used by and promoted to outside agencies (i.e. Law

Enforcement, SOCOM, Civilian Agencies, etc.), its purpose will be to enhance throughput to train and qualify Arizona National Guard soldiers.

e) Expectations: Throughput will increase 25-40% and unit qualification percentages should increase 15-25%.

2. Camp Navajo Multi-Purpose Machinegun Range (MPMG). This range will consist of 5

lanes, some of which will support multiple weapon systems. The range will support Annual

Qualifications and Sustainment Training for Sniper Rifles, Heavy, Medium and Light Machineguns, Grenade Launching Machineguns and Automatic Rifles. The range had been an

approved project for construction in 2014 in the Future Years Defense Program (FYDP), but was removed during Sequestration. Units stationed in Northern Arizona would have to travel to the Florence Military reservation to conduct training and qualifications. The Florence Range is

used by units stationed in Central and Southern Arizona, so there will be inevitable scheduling conflicts for the Northern Units. The Army Range Requirements Model (ARRM) supports

building an MPMG at Camp Navajo and the range was an approved (unfunded) project in the 2014 Range Complex Master Plan (RCMP). It has been re-entered into the 2015 RCMP, but remains unfunded.

a. Potential for Increased Business: Low

b. Projection: While the range will be used by and promoted to outside agencies (i.e. Law

Enforcement, SOCOM, Civilian Agencies, etc.), its purpose will be to train and qualify

Arizona National Guard soldiers. It will be the only facility with remotely operated and controlled targets out to 1500m in the Northern Arizona, Nevada, Colorado and Eastern

California Area.

c. Expectations: SOCOM currently has an annual major exercise at Camp Navajo (Angel

Thunder), they have expressed significant interest in training on the MPMG, once it is built. They intend to incorporate it into all of their training at Camp Navajo. Local SWAT

and FBI Sniper Teams have also expressed interest increasing their training at Camp Navajo, if the range is built.

IX. MOVING FORWARD.

The mission statement of Camp Navajo Industrial operations should be simple and easy to remember,

therefore making it something that each member of the Industrial Operations can apply daily as they complete assigned tasks. The mission statement should be: “Working together to become the premier

storage repository for commodities for the Department of Defense, and un-programmed and

certifiable commercial entities in the United States.”

Getting to this point one should utilize S.M.A.R.T. planning. Specific, measurable, achievable, realist ic and timely. Price point and benefits and features will drive a customer market to Camp Navajo Industria l Operations.


In the S.M.A.R.T (Specific; Measureable; Achievable; Realistic; Timely) analysis, one needs to refer back to the beginning of this Business Development / Transition Plan (BDTP) and review the Strategic Goals as

identified in the Strategic Planning for Camp Navajo and Industrial Operations. After such identification a plan should be considered on the part of each line item to ensure that forward progress is made and measurable toward achieving the goal. The analysis utilizing S.W.O.T. (a structured planning method used

to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture) is the optimum method to maintain the diligence in the effort:

Strategic Goal 1: Master Business Management

Major Objectives:

1.1 Increase Operating Revenue by 25% NLT FY 19.

1.1.1 S.M.A.R.T and S.W.O.T. Analysis:

A. Specific:

a. Current Clientele: Maintain contact on a monthly basis with current clientele to ensure that if the need is identified, a solution can be provide utilizing the resources found within Camp Navajo of the Industrial Operation.

b. Centers of Influence: Two new contacts should be made each month with individua ls that can lead to client contact (these contacts should be classified as Centers of Influence

– individuals who can influence the outcome of future business). c. Very Important People: Two contacts should be made each month with Very Important

People, V.I.P.’s. These individuals can endorse the program and see value in a long term

relationship. B. Measurable: A contact log with conversation notes should be constructed electronically and

updated at the very least, daily with pertinent information. C. Achievable: Working in a pattern of inclusiveness, where one should build a frame of mind that

everyone is a potential customer for Camp Navajo, the training sites, and Industrial Operations.

An annual goal of 4 new contracts per year, one per quarter if possible should be the target goal, with a minimum of $500,000.00 as the ultimate dollar value of the contract for Industria l

Operations, and $3,000.00 to $3,500.00 for training operations of Camp Navajo, PPMR and Florence Military Ranges.

D. Realistic: The current contract base provides potential future business with branch or affilia te

activity that indicates a minimum of $500,000.00 as the ultimate dollar value of the contract based upon time, man power and facility usage. The annual funds received into the training

sites at the time of this publication is approximately $60,000.00 (averaging $5,000 monthly) E. Timely: An annual goal is the standard in the industry in building and maintaining business.

Attendance to seminars, conferences, and training events will open the door to opportunity that

can enhance the Training Mission at Camp Navajo, and the Storage Mission of Industria l Operations.

F. S.W.O.T: a. Strengths: In order for the plan to be successful, the marketing of Camp Navajo, the

training sites at PPMR, and Florence Military Ranges need to be a separate task from the

marketing of the Camp Navajo Industrial Operations. The assignment could be led by a


Marketing Officer, with a staff of four. The staff would be composed of The Marketing Officer; a Contract Specialist; a Marketing Staff Agent whose focus would be directly

on growing the training mission of Camp Navajo, and the training sites at PPMR, and Florence Military Range. The fourth member would be a Marketing Staff Agent with direct focus on the mission of the Industrial Operations. The marketing agents, could

receive a fair wage supplemented by commission on the sales contracts closed in the office. (Understanding the contracts with Camp Navajo Industrial Operations would

offer greater income potential than the contracts from a training assignment.) This would promote a combined effort by all parties involved. The Contract bonus would be paid out semi-annually.

b. Weakness: A marketing budget would have to be adjusted semi-annually, to allow national and international travel to work with current and potential clients and encourage

business relationships in the training mission, and in the Industrial Operations Mission. c. Opportunities: The opportunities have been identified else ware in this Business

Development Transition Plan.

d. Threats: At any point in the process of turning over the property identified as Camp Navajo, and the Industrial Operations to the auspice of the State of Arizona, under the

direct leadership and direction of The Adjutant General of the Arizona National Guard, and the Director of the Department of Emergency and Military Affairs, the plan could be modified to limit customers to Federal and State, or a plan to include Federal, State,

and civilian. The biggest threat would be success to the point of another State within the union copying the footprint and becoming a strong competitor in the business field. We

are only limited in sales by the limits we place upon our thoughts, and our actions. First to contact is the first to contract.

1.2 Compete Business and Marketing Plan NLT 31 Sept. 2015.

1.2.1 The publication of this Business Development Transition Plan should satisfy this requirement. The best plan is the plan that remains visible, and foremost in everyone’s thoughts, and updated as often as possible. It is not meant to sit on a shelf.

1.3 Increase I/O Customer base from 9 to 13 NLT FY 19.

1.3.1 See Paragraph 1.1.1

1.4 Increase training from Oct. to Apr to 600/month by TY18.

1.4.1 Increasing marketing efforts as identified in 1.1.1.C. would achieve this strategic goal. 1.5 Increase range utilization from 50 to 79% NLT TY 18.

1.5.1 Increasing marketing efforts as identified in 1.1.1.C. would achieve this strategic goal.

1.6 Host 2 major training events per year by NLT TY 18.

1.6.1 Increasing marketing efforts as identified in 1.1.1.C. would achieve this strategic goal.


1.7 Combine functions needing alignment NLT Jan. 2017

1.7 Develop / Implement MWR program NLT 2020. A. Additional Considerations, Camp Navajo Industrial Operations.

While small quantities of explosives are commonly held on company owned sites, large quantities and big

items such as rockets capable of orbital launches require physical restrictions which may require a huge investment in real property and supporting security. The only places that come configured to accept such requirements are former military depots, and there are few that perform that kind of function to date.

The other choice or alternative for storage is a full service depot operation, and Camp Navajo is the only

site in the United States that uses a former Ordnance Depot, staffs it by state of Arizona Employees, and runs it in accordance with Department of Defense Standards. This means that the site is fully responsible for all activities within its boundaries, to include security, material handling, and quality assurance (as

separate function of both safety and regulatory compliance through assigned specialists in the field). Customers cannot move their own material while on the property, though they may be permitted to perform

non-invasive functions like inventory and functionality inspections under the supervision of the site ordnance Chief and Crew.

This total control and responsibility is both a positional and capabilities-based competitive advantage.

Camp Navajo is the first to commercially offer this type of service and develop and extensive set of skills in the work force that is extremely difficult to replicate and or replace. Federal ordnance depots with such capabilities, have limitations placed on them legally, and practically when looking at the possible storage

of non-mission materials. Most often their mission inventory is managed by the “cradle to grave” program assigned to each depot. Having seen many installations closed under previous military cutbacks and

consecutive BRAC findings, the military depot system is very lean. Therefore Camp Navajo offers a broader network of services, and a manageable fee structure, Because of the narrow spectrum of skillse ts, and broader services, Camp Navajo could be identified at the top of the tier for storage and considered a

monopoly in a highly niche market. Camp Navajo’s competitive advantage, while significant, is no t absolute. It has been stated previously in the 2009 Business Plan, completed in conjunction with the Eller

college of Management, The University of Arizona, that a business entity with access to the necessary property and able to hire employees from a military depot could replicate Camp Navajo’s capabilit ies. Therefore other states within the United States, may study the operation and performance of Camp Navajo

Industrial Operations and take it upon themselves to replicate the abilities within their state boundaries. This could be achieved by taking on similar regulatory relationships with the department of Defense, or

private entities and they could develop sufficient expertise to work BATFE regulatory oversight. What has been achieved at Camp Navajo has taken years of hard work, planning, and a continual effort by personnel to stay proficient in their duties, on would not be pleased to see all the work lost to another state in a loos

of proprietary organization information.

The empirical data derived from the survey conducted in coordination with the publication of the Business Development Transition Plan (BDTP) indicates that fee for usage of facility, personnel, and equipment at Camp Navajo, PPMR, and Florence Military Ranges; and within the Industrial Operations has been below

price point range in comparison with as close as similar facility, personnel, and equipment, locally, with the State of Arizona, and nationally. Prince point has a direct effect on the return on investment, and future


planning for all parties within the realm of this Business Development Transition Plan. Appendix N has been developed with recommended price po9ints for each year, identifying historical data as well. One

must consider the extrapolated curve that is derived based upon demand, and the willingness/ability to pay for services rendered. Potential entrants as competitors have significant barriers to becoming a viable threat. The amount of appropriate real estate at a competitive cost is considered exceptional with the typical

military depot beginning at approximately 15,000 acres as compared to Camp Navajo’s @28,000 acres. The storage structures are increasingly expensive to build and maintain, with recent cost estimates ranging

from $1,500,000.00 for a concrete igloo (bunker) to $15,000,000.00 for a 200,000 sq. foot storage facility. Add to this the need for skilled and certified labor which makes the possibility for entry as a competitor a daunting and unlikely task. Therefore consideration of a price increase would have little to no effect on the

current customer base, and those forecasted as potential customers.

Consideration should be given to the existence and potential long term contract, as well as the civilian contract. Those clientele who will consider a long term contract, or a contract with automatic rolls and extensions supported with evidence of funds either guaranteed with a Documentary Letter of Credit by a

top tier bank, that is payable upon demand, or by Federal or State Budgeted funds, should receive an incentive for the long term contract. In addition those potential customers who fall outside of the

aforementioned should expect to pay a bit more for the consideration of storage on the facility. Given the virtual monopoly that camp Navajo holds on the market place, it has a significant advantage in

setting the price for its customers. However, this advantage can be offset by the limits placed on the customer market presently limiting the customer market to DOD entities. Therefore this balance does have

an effect that holds the pricing to a reasonable limits. In any event the economic model price identified in the 2009 Business Development Project, developed by representatives from the Eller College of Management, University of Arizona, of $53,524 is considered too high. Therefore the pricing indicated in

Appendix N, borne out from the customer surveys and communications with various parties would indicate reasonable pricing, and allow project growth not only the Camp Navajo, PPMR, and Florence Military

range training mission, yet the Camp Navajo Industrial Operations Storage Mission. There are constraints on the funds paid to Camp Navajo Industrial Operations that should be considered:

a. Funds from the business generated by Camp Navajo Industrial Operations should never be comingled with funds or the training mission of Camp Navajo, PPMR, and Florence Military

Ranges. b. Funds should only be applied to state only, or joint Federal/State projects with no matching fund

requirement.

c. Funds applied to existing repairs and facilities upgrades are consistent with current budgeting plans, and those plans approved by the Adjutant General of the Arizona National Guard and Director of

the Department of Emergency and Military Affairs, and the Executive Council. Essentially, this would mean that money is budgeted for “normal wear and tear” type repairs. Any instance considered an “Act of God/Force Majeure” event such as storm damage or fire damage is covered

by State Insurance and is paid for through budgeted premiums and cost allocations from higher headquarters.

d. Expenses involving real property that are performed at the request or by the result of the customers are borne by the customers. This is customary for intra-governmental and private transactions under the assumption that the improvement is done uniquely for the benefit of that customer. Real property

modifications come under the inventory responsibility of the State of Arizona, under the Department


of Emergency and Military Affairs, and remain a part of the State of Arizona, under the Department of Emergency and Military Affairs, when and if business with the customer is concluded.

e. Non related cost can fluctuate with the market. Those items may include, utilities, purchase of goods and services, fuel, and other related expenses. These expenses may have certain advantages if purchased through state contracts and established through preferred vendors. Given the interna l

cost trends, the customer price index averaged over the past thirty (30) years is a fair representation of the costs incurred by Camp Navajo and is used as a cost growth assumption in a Pro Forma. The

average CPI rate used is 3.4% per annum. Demands on increased storage requirements necessitate an assumption in growth of personnel strength to

support it. Interview with the Director of Operations for the Camp Navajo Industrial Operations does indicate a change in the Personnel Organization Chart, yet significant growth in the storage mission will

demand gradual changes and additions in personnel. To avoid spikes in costs, it is recommended that not all new personnel be hired on at the same time. At present, Camp Navajo Industrial Operations funds 112 employee positions, to include any legislative pay increases, individual merit/performance pay increases,

and any increase in cost of benefits and other employee contributions which are collectively referred to as Employee Related Expenses (ERE). The average assumed rate for the individual employee cost increase,

factored into the Proforma is 3.8%. Based upon business projections Camp Navajo Industrial Operations could feasibly fund 140 positions by 2020. Appendix O is the Pro Forma based upon the data here with in this Business Development Transition Plan, and based upon the leadership vision concerning time goals,

existing financials, market study, and unfinanced requirements to develop a financial roadmap to achieve the goal of sustainability and financial independence for the Camp Navajo Industrial Operations.

A. Recommendations:

Camp Navajo Industrial Operations has proven itself to be a venture that can maintain a successful rate of return. Existing documentation indicates that the personnel and leadership, though often found in conflic t,

can and will come together for the endurance of a self-sustaining venture that fulfills a need and satisfies the future mission of not only the Industrial Operations, yet the support missions found in the Arizona National Guard. It has been said that in a down economy, even when other entities of the government

struggle to survive, Camp Navajo Industrial Operations not only survives, yet shows growth.

In the Spirit of the founding creators of the Camp Navajo Industrial Operations every effort must be made to grow the mission and utilize the storage facility to its fullest. As today’s military forces continues to draw down in size and mission requirements, potential federal customers will continue to grow. The trend

for the federal customer is to be longer-lived and larger than any civilian customer may be, yet all efforts must be made to open the storage operation to any customer that has the ability and is willing to pay for

services rendered. That being said, it is recommended that this Business Development Transition Plan be accepted in its

entirety, and the mission statement as identified on page 63 be accepted. In addition, the following is recommend:

a. On a semi-annual basis this Business Development Transition Plan, and the data here with be

reviewed.


b. Focus Primary Marketing Efforts on the Federal Customer currently storing on Camp Navajo, and build a network of individuals that could assist with bringing more clientele toward the Industria l

Operations. c. Focus Secondary Marketing Efforts on the relationships within the community, state, and industr ies

within the reach of Camp Navajo to generate a business list.

d. Develop a Marketing Office, with an annual budget that will allow marketing publications, and advertisements, to increase the potential customer market.

e. Hire three addition personnel to the marketing office (one in Contracts, One to handle the Camp Navajo, PPMR, and Florence Military Training ranges; and one to focus on the Mission of Industria l Operations).

f. Do not co-mingle the Training mission of Camp Navajo, PPMR, and Florence Military Training ranges, with the mission of the Industrial Operations.

g. Strategically target the recommended improvements for repairs, and building development on Camp Navajo to support the mission, in accordance with the Adjutant General of the Arizona National Guard and Director of the Department of Emergency and Military Affairs, and the Executive

Council. h. Do not co-mingle funds of the Training mission of Camp Navajo, PPMR, and Florence Military

Training ranges, with the mission of the Industrial Operations. i. Pricing should be close to market equilibrium, yet each customer should be treated separate from

the other. No contract should be lost due to the failure to negotiate a contract on what the customers

deems to be fair and allowable within reason. Always listen to the customer, and utilize the best in negotiation skills. The pricing configuration is a recommendation. Yet each customer may have

needs particular to consideration in the developing of a long term relationship. Which would you rather have – a client who pays top dollar for one year, or a client that pays a little less for five or ten years?

j. Guide the personnel in Camp Navajo Industrial Operations with a strong leader that can squash the “rumor mill” before it get started. Stop the “in fighting” of personnel and treat everyone with respect

and as professionals at all time. Demand adherence to policy and procedure, rules and regulat ions of the Department of Emergency and Military Affairs, and the Adjutant General of the Arizona National Guard. You are never wrong, when you choose the right thing to do. Treat everyone with

respect and professionalism. k. Continually train personnel to a higher standard on the job, professionally, and educationally. CNIO

pays some of the highest salaries in Northern Arizona, these individuals need to carry themselves in a manner that clientele looking from the outside in would want to do business with CNIO, and to emulate their business accum.

X. RECOGNITION.

I. The following individual documents provided great insight for the development of this Business Development Transition Plan:

The Strategic Plan (June 2015) – Camp Navajo Camp Navajo Industrial Operations; Congressional Defense Business Operations dated 2015

CFMO Organizational Brief dated 4 April 2 2014 Camp Navajo Cost Allocation Plan FY 2008 49 Code of Federal Regulation (49 C.F. R.)


27 Code of Federal Regulation (27 C.F.R.) The Adjutant General meeting with Congressional Staff Members on Aug. 25 th, 2015 at PPMR

Surveys of facilities that offer similar options for business, training, and community development Key elements of operational importance as found in ARS 26-152, 49 C.F.R. and 27 C.F.R. Kaplan University, Concord Law School

II. The following individual personnel provided great insight for the development of this Business

Development Transition Plan: LTC Kim L. Gage, Former Garrison Commander, Camp Navajo

LTC Anita Vinson-Britman, Garrison Commander, Camp Navajo Maj. Mark Newman, Executive Officer, Garrison, Camp Navajo

LTC Shagena, State Training Officer LTC (Ret.) Tim Cowan LTC (Ret.) Pete Tosi

LTC (Ret.) Pete Cullum, FE Supervisor, Camp Navajo CWO4 Donald Lintel, Industrial Operations, Operations Officer

CWO3 Jamison, Industrial Operations Training Officer Wendy Liebman, Industrial Operations Business Manager Kelli Martinez, Camp Navajo Security Chief

Lee Antonides, Camp Navajo Fire Chief Kathy Selitto, HR Manager, Camp Navajo

Derrick Martin, PPMR Training Sites, Plans and Operations Specialist SFC Brian Miller, PPMR Training Sites, Civil Engineering Tech Ms. Shelley Danzer, PPMR, ITAM Coordinator

III. No intention was made to republish material and information that was derived by resources,

interviews, and documents available. Every effort is recognized to give just credit to those resources, interviews, and documents available which contributed in part or in whole to this Business Development Transition Plan. No intention was made to miss the inclusion for

recognition any resources, interviews, and documents available.

business development transition plan draft sept 2015

Documents