March 13, 2017 Inflation Guidance FY 2018 President's Budget PRICE ESCALATION INDICES (Annual Rates in Percentages) Mil Pers 2 Non-Pay Fiscal Milcon 1 (Excl Med CPI-U Year Proc RDT&E Fam Hsg O&M Fuel Accrual) Medical OUTLAYS 2016 1.2 1.2 1.2 1.2-30.8 1.2 3.5 2017 1.8 1.8 1.8 1.8 6.0 1.8 4.1 2018 2.0 2.0 2.0 2.0-0.4 2.0 3.9 2019 2.0 2.0 2.0 2.0 0.4 2.0 3.9 2020 2.0 2.0 2.0 2.0 0.8 2.0 3.9 2021 2.0 2.0 2.0 2.0 1.2 2.0 3.9 2022 2.0 2.0 2.0 2.0 2.4 2.0 3.9 BUDGET AUTHORITY 3 2016 1.8 1.6 1.9 1.6-30.8 1.3 3.7 2017 2.0 1.9 2.0 1.9 6.0 1.8 4.0 2018 2.0 2.0 2.0 2.0-0.4 2.0 3.9 2019 2.0 2.0 2.0 2.0 0.4 2.0 3.9 2020 2.0 2.0 2.0 2.0 0.8 2.0 3.9 2021 2.0 2.0 2.0 2.0 1.2 2.0 3.9 2022 2.0 2.0 2.0 2.0 2.4 2.0 3.9 PAY RAISE ASSUMPTIONS 4 ECI 5 Military Civilian 2016 2.3 1.3 1.3 2017 2.1 2.1 2.1 2018 2.4 1.9 2.1. 1.9 2019-1.9 1.9 2020-1.9 1.9 2021-2.1 2.1 2022 and beyond - 2.1 2.1 1. Use for Chemical Demilitarization Construction, Defense-Wide. 2. Not to be used to inflate accounts fixed by statute. 3. These are composite rates at the P.L. title level. Inflation rates for specific accounts are a function of their spendout profiles and will vary within each title. DWCF activities use these rates for non-pay inflation. 4. Pay raises are effective January 1 of each year. 5. Employment Cost Index; for use in setting the by-law (37 U.S.C. 1009) military pay raise. Page 1 of 3 Attachment 1
March 13, 2017 Outlay Rates to be Used for Incremental Changes in Budget Authority (BA) Purchases (As Percent of BA Purchases; Excludes Pay and Fuel Dollars) FIRST SECOND THIRD FOURTH FIFTH SIXTH SEVENTH EIGHTH NINTH TENTH YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR Military Personnel Military Personnel, Army 80.62 17.12 2.26 Military Personnel, Navy 85.84 11.89 2.27 Military Personnel, MC 81.69 15.64 2.67 Military Personnel, AF 83.30 16.70 Reserve Personnel, Army 65.28 24.01 10.71 Reserve Personnel, Navy 79.47 20.53 Reserve Personnel, MC 78.21 21.79 Reserve Personnel, AF 74.80 22.05 3.15 National Guard Personnel, A 68.49 31.51 National Guard Personnel, AF 84.36 15.64 Operation and Maintenance O&M, Army 43.26 42.34 10.73 1.55 2.12 O&M, Navy 54.11 35.42 6.44 1.93 2.10 O&M, Marine Corps 40.44 46.16 10.42 1.49 1.49 O&M, Air Force 40.15 41.57 14.24 2.43 1.61 O&M, Defense-wide 48.21 38.08 9.90 2.29 1.52 Inspector General 25.67 66.90 3.72 3.71 O&M, Army Reserve 41.30 44.61 9.54 2.93 1.62 O&M, Navy Reserve 61.42 33.43 2.31 1.93 0.91 O&M, Marine Corps Reserve 48.14 38.62 8.83 3.31 1.10 O&M, Air Force Reserve 45.01 45.82 5.73 0.23 3.21 O&M, Army National Guard 49.72 39.61 6.86 1.68 2.13 O&M, Air National Guard 53.06 38.25 3.48 2.26 1.22 1.73 Overseas Contingency Ops 40.00 25.00 20.00 10.00 3.50 1.50 Court of Appeals, Armed Forces 35.20 32.40 17.28 10.80 4.32 Drug Interdiction 56.32 24.96 9.98 6.24 2.50 Defense Health Program 64.38 23.27 8.43 2.37 1.55 Environmental Restoration 40.00 40.00 15.00 5.00 Overseas Humanitarian 8.00 26.90 32.00 22.00 7.00 2.50 1.60 Cooperative Threat Reduction 7.00 46.00 22.00 13.50 9.00 2.50 Procurement: Army Aircraft Procurement, Army 10.50 39.00 27.90 14.90 4.50 1.10 1.10 1.00 Missile Procurement, Army 9.00 34.00 30.60 18.00 5.60 1.70 0.50 0.60 Procurement of W&TCV 7.00 31.90 30.70 21.10 5.80 2.30 0.50 0.70 Procurement of Ammo, Army 8.00 34.70 32.60 13.20 6.10 2.50 1.80 1.10 Other Procurement, Army 14.00 41.10 28.90 7.00 4.00 3.00 1.00 1.00 JIEDDO 17.00 53.00 21.50 4.50 2.00 1.00 1.00 Chemical Agents and Mun 37.00 31.90 15.90 8.50 4.20 2.50 Procurement: Navy Aircraft Procurement, Navy 17.50 31.00 32.00 9.00 4.00 3.00 2.00 1.50 Weapons Procurement, Navy 17.00 30.20 26.50 12.80 7.50 3.50 1.50 1.00 Procurement of Ammo, N&MC 8.30 27.40 29.30 21.00 7.00 4.00 2.00 1.00 Shipbuilding and Conversion 5.40 24.40 20.50 17.70 13.00 9.00 6.00 2.00 1.00 1.00 Other Procurement, Navy 21.00 42.00 21.00 7.00 4.50 2.00 1.50 1.00 Procurement, Marine Corps 13.00 42.00 27.20 10.90 3.50 1.40 1.00 1.00 Page 2 of 3 Attachment 1
March 13, 2017 Outlay Rates to be Used for Incremental Changes in Budget Authority (BA) Purchases (As Percent of BA Purchases; Excludes Pay and Fuel Dollars) FIRST SECOND THIRD FOURTH FIFTH SIXTH SEVENTH EIGHTH NINTH TENTH YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR Procurement: Air Force Aircraft Procurement, AF 6.30 27.20 30.10 23.10 8.00 2.80 1.50 1.00 Missile Procurement, AF 15.00 33.00 20.00 15.80 7.50 5.00 2.00 1.70 Space Procurement, AF 22.00 29.00 20.00 12.80 7.50 5.00 2.00 1.70 Procurement of Ammo, AF 2.00 30.00 35.00 16.00 10.00 4.00 2.00 1.00 Other Procurement, AF 62.00 26.00 5.00 3.00 2.00 1.00 1.00 Procurement: Defense-Wide Procurement, Defense-wide 22.00 41.00 24.80 7.60 3.00 0.60 1.00 Nat'l Guard and Resv Equip 1.30 15.00 30.80 25.50 16.90 7.00 2.50 1.00 Def Production Act Purchases 55.00 20.00 15.00 5.00 5.00 RDT&E RDT&E, Army 24.78 47.38 16.63 5.01 3.56 1.32 1.32 RDT&E, Navy 30.55 52.64 9.17 4.17 1.11 0.97 1.39 RDT&E, Air Force 48.42 38.04 9.24 1.29 1.18 1.08 0.75 RDT&E, Defense-Wide 42.56 45.13 8.00 1.54 1.13 0.72 0.92 Operational Test and Eval 50.00 39.30 4.60 2.80 1.40 0.90 1.00 Military Construction Military Construction, A 3.00 22.00 28.00 15.00 10.00 8.00 6.00 4.50 2.00 1.50 Military Construction, N&MC 2.00 15.00 27.00 23.00 12.00 10.00 6.00 3.00 1.00 1.00 Military Construction, AF 2.00 30.00 30.00 16.00 7.00 5.00 4.00 3.00 2.00 1.00 Military Construction, DW 2.50 15.00 23.00 18.00 15.00 11.00 8.50 4.00 2.00 1.00 NATO Security Investment 40.00 20.00 15.00 10.00 7.00 5.00 2.00 1.00 Milcon, Army National Guard 2.00 27.00 36.00 10.50 8.30 6.80 4.00 3.40 1.00 1.00 Milcon, Air National Guard 2.00 41.00 33.00 10.00 7.00 3.00 1.50 1.00 0.50 1.00 Milcon, Army Reserve 3.00 29.00 29.00 17.00 9.00 6.00 2.50 2.00 1.00 1.50 Milcon, Navy Reserve 2.00 27.00 30.00 18.00 13.00 5.60 2.00 1.00 0.50 0.90 Milcon, Air Force Reserve 1.20 22.00 32.00 19.00 12.00 8.00 2.30 1.50 1.00 1.00 Chemical Demil Construction 5.00 40.00 23.00 16.00 7.00 4.00 3.00 1.10 0.30 0.60 Base Closure, Army 36.00 25.60 18.40 9.00 4.50 2.50 2.00 1.00 1.00 Base Closure, Navy 29.00 46.50 12.00 4.00 3.00 2.00 1.50 1.00 1.00 Base Closure, Air Force 45.00 23.00 15.00 9.00 3.00 2.00 1.50 1.50 Base Closure, DW 22.00 36.10 26.10 8.30 4.00 2.00 1.50 FY 2005 BRAC, Army 30.00 25.00 20.00 10.00 5.00 4.00 3.00 2.00 1.00 FY 2005 BRAC, Navy 30.00 25.00 18.00 14.00 6.00 3.00 2.00 1.00 1.00 FY 2005 BRAC, Air Force 30.00 25.00 18.00 14.00 6.00 3.00 2.00 1.00 1.00 FY 2005 BRAC, DW 30.00 25.00 18.00 14.00 6.00 3.00 2.00 1.00 1.00 Family Housing FH Construction, Army 2.00 5.00 35.00 28.00 18.00 6.00 3.00 2.00 1.00 FH O&M, Army 50.42 24.24 14.32 8.81 1.43 0.78 FH Construction, N&MC 6.00 15.00 34.00 16.00 12.50 7.00 4.00 3.00 1.50 1.00 FH O&M, N&MC 55.47 31.47 8.41 2.27 1.14 1.24 FH Construction, Air Force 5.00 12.00 25.00 20.00 15.00 8.00 5.00 4.00 3.00 3.00 FH O&M, Air Force 29.15 33.65 20.07 9.45 4.72 2.96 FH Construction, DW 10.00 40.00 20.00 14.00 5.00 4.00 3.00 2.00 1.00 1.00 FH O&M, DW 71.00 14.20 9.00 4.00 0.80 1.00 Nat'l Defense Sealift Fund 40.00 25.00 15.00 7.00 6.00 4.00 2.00 1.00 Page 3 of 3 Attachment 1
FY 2017 President's Budget FY 2017 Rates FY 2017 Budget Request AVGAS (CONUS) - 130 $2.85 $119.70 AVGAS (OCONUS) - LL $11.19 $469.98 Distillates - F76 $2.52 $105.84 High Sulfur - DF1 $2.50 $105.00 Generic (High Sulfur) - DF2 $2.25 $94.50 Ultra Low Sulfur - DS1 $2.57 $107.94 Ultra Low Sulfur - DS2 $2.41 $101.22 Burner Grade - FS1 $2.44 $102.48 Burner Grade - FS2 $2.15 $90.30 Biodiesel - BDI $2.41 $101.22 JP8 & JA1 $2.50 $105.00 JAA $2.48 $104.16 JP5 $2.53 $106.26 JTS $3.88 $162.96 Kerosene -KS1 $2.47 $103.74 Regular, Unleaded - MUR $2.44 $102.48 Midgrade, Unleaded - MUM $2.58 $108.36 Premium, Unleaded - MUP $2.88 $120.96 Gasohol -GUM $2.58 $108.36 Ethanol -E85 $2.44 $102.48 Burner Grade -FS4 $1.58 $66.36 Residual (Burner Grade) - FS6 $1.25 $52.50 FOR $0.94 $39.48 Bunkers - Marine -MGO $2.60 $109.20 Bunkers - Intermediate Grade - 180,380 $1.88 $78.96 Intoplane- Jet Fuel - IA1, IAA, IAB, IP8 $2.85 $119.70 Non-Contract Jet Fuel - NA1, NAA $3.07 $128.94 Non-Contract Ground Fuel - NLS, NMU $2.62 $110.04 Composite Standard Price $2.50 $105.00 Since these prices were not put into effect, this short list was not published on the DLA Page 1 of 7 Attachment 2
FY 2017 President's Budget Updated FY 2017 Rates - Effective October 1, 2016 FY 2017 AVGAS (CONUS) - 130 $2.57 $107.94 AVGAS (OCONUS) - LL $10.11 $424.62 Distillates - F76 $2.28 $95.76 High Sulfur - DF1 $2.26 $94.92 Generic (High Sulfur) - DF2 $2.03 $85.26 Ultra Low Sulfur - DS1 $2.33 $97.86 Ultra Low Sulfur - DS2 $2.18 $91.56 Burner Grade - FS1 $2.21 $92.82 Burner Grade - FS2 $1.95 $81.90 Biodiesel - BDI $2.18 $91.56 JP8 & JA1 $2.26 $94.92 JAA $2.24 $94.08 JP5 $2.29 $96.18 JTS $3.51 $147.42 Kerosene -KS1 $2.22 $93.24 Regular, Unleaded - MUR $2.21 $92.82 Midgrade, Unleaded - MUM $2.33 $97.86 Premium, Unleaded - MUP $2.61 $109.62 Gasohol -GUM $2.33 $97.86 Ethanol -E85 $2.21 $92.82 Burner Grade -FS4 $1.43 $60.06 Residual (Burner Grade) - FS6 $1.13 $47.46 FOR $0.85 $35.70 Bunkers - Marine -MGO $2.36 $99.12 Bunkers - Intermediate Grade - 180,380 $1.70 $71.40 Intoplane- Jet Fuel - IA1, IAA, IAB, IP8 $2.57 $107.94 Non-Contract Jet Fuel - NA1, NAA $2.76 $115.92 Non-Contract Ground Fuel - NLS, NMU $2.37 $99.54 Composite Standard Price $2.26 $94.92 Note: The updated FY 2017 prices went into effect on October 1, 2016. A complete list of standard fuel prices is available on the DLA Page 2 of 7 Attachment 2
FY 2018 President's Budget FY 2018 Rates FY 2018 AVGAS (CONUS) - 130 $2.83 $118.86 AVGAS (OCONUS) - LL $11.14 $467.88 Distillates - F76 $2.51 $105.42 High Sulfur - DF1 $2.49 $104.58 Generic (High Sulfur) - DF2 $2.24 $94.08 Ultra Low Sulfur - DS1 $2.56 $107.52 Ultra Low Sulfur - DS2 $2.40 $100.80 Burner Grade - FS1 $2.43 $102.06 Burner Grade - FS2 $2.15 $90.30 Biodiesel - BDI $2.40 $100.80 JP8 & JA1 $2.49 $104.58 JAA $2.47 $103.74 JP5 $2.52 $105.84 JTS $3.87 $162.54 Kerosene -KS1 $2.45 $102.90 Regular, Unleaded - MUR $2.43 $102.06 Midgrade, Unleaded - MUM $2.57 $107.94 Premium, Unleaded - MUP $2.88 $120.96 Gasohol -GUM $2.57 $107.94 Ethanol -E85 $2.43 $102.06 Burner Grade -FS4 $1.58 $66.36 Residual (Burner Grade) - FS6 $1.25 $52.50 FOR $0.94 $39.48 Bunkers - Marine -MGO $2.59 $108.78 Bunkers - Intermediate Grade - 180,380 $1.87 $78.54 Intoplane- Jet Fuel - IA1, IAA, IAB, IP8 $2.83 $118.86 Local Purchase Jet Fuel -NA1, NAA $3.04 $127.68 Local Purchase Ground Fuel -NLS, NMU $2.61 $109.62 Composite Standard Price $2.49 $104.58 In the year of execution, a complete list of standard fuel prices will be available on the DLA Page 3 of 7 Attachment 2
FY 2018 President's Budget Estimated FY 2019 Rates Note: Provided for planning purposes only. The displayed rates are as of PB 2018 and may be updated during subsequent budget cycles based on the revised economic and consumption assumptions. FY 2019 Estimate AVGAS (CONUS) - 130 $2.84 $119.28 AVGAS (OCONUS) - LL $11.18 $469.56 Distillates - F76 $2.52 $105.84 High Sulfur - DF1 $2.50 $105.00 Generic (High Sulfur) - DF2 $2.25 $94.50 Ultra Low Sulfur - DS1 $2.57 $107.94 Ultra Low Sulfur - DS2 $2.41 $101.22 Burner Grade - FS1 $2.44 $102.48 Burner Grade - FS2 $2.16 $90.72 Biodiesel - BDI $2.41 $101.22 JP8 & JA1 $2.50 $105.00 JAA $2.48 $104.16 JP5 $2.53 $106.26 JTS $3.89 $163.38 Kerosene -KS1 $2.46 $103.32 Regular, Unleaded - MUR $2.44 $102.48 Midgrade, Unleaded - MUM $2.58 $108.36 Premium, Unleaded - MUP $2.89 $121.38 Gasohol -GUM $2.58 $108.36 Ethanol -E85 $2.44 $102.48 Burner Grade -FS4 $1.59 $66.78 Residual (Burner Grade) - FS6 $1.26 $52.92 FOR $0.95 $39.90 Bunkers - Marine -MGO $2.60 $109.20 Bunkers - Intermediate Grade - 180,380 $1.88 $78.96 Intoplane- Jet Fuel - IA1, IAA, IAB, IP8 $2.84 $119.28 Non-Contract Jet Fuel - NA1, NAA $3.05 $128.10 Non Contract Ground Fuel - NLS, NMU $2.62 $110.04 Composite Standard Price $2.50 $105.00 In the year of execution, a complete list of standard fuel prices will be available on the DLA Page 4 of 7 Attachment 2
FY 2018 President's Budget Estimated FY 2020 Rates Note: Provided for planning purposes only. The displayed rates are as of PB 2018 and may be updated during subsequent budget cycles based on the revised economic and consumption assumptions. FY 2020 Estimate AVGAS (CONUS) - 130 $2.86 $120.12 AVGAS (OCONUS) - LL $11.27 $473.34 Distillates - F76 $2.54 $106.68 High Sulfur - DF1 $2.52 $105.84 Generic (High Sulfur) - DF2 $2.27 $95.34 Ultra Low Sulfur - DS1 $2.59 $108.78 Ultra Low Sulfur - DS2 $2.43 $102.06 Burner Grade - FS1 $2.46 $103.32 Burner Grade - FS2 $2.18 $91.56 Biodiesel - BDI $2.43 $102.06 JP8 & JA1 $2.52 $105.84 JAA $2.50 $105.00 JP5 $2.55 $107.10 JTS $3.92 $164.64 Kerosene -KS1 $2.48 $104.16 Regular, Unleaded - MUR $2.46 $103.32 Midgrade, Unleaded - MUM $2.60 $109.20 Premium, Unleaded - MUP $2.91 $122.22 Gasohol -GUM $2.60 $109.20 Ethanol -E85 $2.46 $103.32 Burner Grade -FS4 $1.60 $67.20 Residual (Burner Grade) - FS6 $1.27 $53.34 FOR $0.95 $39.90 Bunkers - Marine -MGO $2.62 $110.04 Bunkers - Intermediate Grade - 180,380 $1.90 $79.80 Intoplane- Jet Fuel - IA1, IAA, IAB, IP8 $2.86 $120.12 Non-Contract Jet Fuel - NA1, NAA $3.07 $128.94 Non Contract Ground Fuel - NLS, NMU $2.64 $110.88 Composite Standard Price $2.52 $105.84 In the year of execution, a complete list of standard fuel prices will be available on the DLA Page 5 of 7 Attachment 2
FY 2018 President's Budget Estimated FY 2021 Rates Note: Provided for planning purposes only. The displayed rates are as of PB 2018 and may be updated during subsequent budget cycles based on the revised economic and consumption assumptions. FY 2021 Estimate AVGAS (CONUS) - 130 $2.89 $121.38 AVGAS (OCONUS) - LL $11.40 $478.80 Distillates - F76 $2.57 $107.94 High Sulfur - DF1 $2.55 $107.10 Generic (High Sulfur) - DF2 $2.30 $96.60 Ultra Low Sulfur - DS1 $2.62 $110.04 Ultra Low Sulfur - DS2 $2.46 $103.32 Burner Grade - FS1 $2.49 $104.58 Burner Grade - FS2 $2.21 $92.82 Biodiesel - BDI $2.46 $103.32 JP8 & JA1 $2.55 $107.10 JAA $2.53 $106.26 JP5 $2.58 $108.36 JTS $3.97 $166.74 Kerosene -KS1 $2.51 $105.42 Regular, Unleaded - MUR $2.49 $104.58 Midgrade, Unleaded - MUM $2.63 $110.46 Premium, Unleaded - MUP $2.94 $123.48 Gasohol -GUM $2.63 $110.46 Ethanol -E85 $2.49 $104.58 Burner Grade -FS4 $1.62 $68.04 Residual (Burner Grade) - FS6 $1.29 $54.18 FOR $0.95 $39.90 Bunkers - Marine -MGO $2.65 $111.30 Bunkers - Intermediate Grade - 180,380 $1.92 $80.64 Intoplane- Jet Fuel - IA1, IAA, IAB, IP8 $2.89 $121.38 Non-Contract Jet Fuel - NA1, NAA $3.11 $130.62 Non Contract Ground Fuel - NLS, NMU $2.67 $112.14 Composite Standard Price $2.55 $107.10 In the year of execution, a complete list of standard fuel prices will be available on the DLA Page 6 of 7 Attachment 2
FY 2018 President's Budget Estimated FY 2022 Rates Note: Provided for planning purposes only. The displayed rates are as of PB 2018 and may be updated during subsequent budget cycles based on the revised economic and consumption assumptions. FY 2022 Estimate AVGAS (CONUS) - 130 $2.96 $124.32 AVGAS (OCONUS) - LL $11.67 $490.14 Distillates - F76 $2.63 $110.46 High Sulfur - DF1 $2.61 $109.62 Generic (High Sulfur) - DF2 $2.35 $98.70 Ultra Low Sulfur - DS1 $2.68 $112.56 Ultra Low Sulfur - DS2 $2.52 $105.84 Burner Grade - FS1 $2.55 $107.10 Burner Grade - FS2 $2.26 $94.92 Biodiesel - BDI $2.52 $105.84 JP8 & JA1 $2.61 $109.62 JAA $2.59 $108.78 JP5 $2.64 $110.88 JTS $4.06 $170.52 Kerosene -KS1 $2.57 $107.94 Regular, Unleaded - MUR $2.55 $107.10 Midgrade, Unleaded - MUM $2.69 $112.98 Premium, Unleaded - MUP $3.01 $126.42 Gasohol -GUM $2.69 $112.98 Ethanol -E85 $2.55 $107.10 Burner Grade -FS4 $1.66 $69.72 Residual (Burner Grade) - FS6 $1.32 $55.44 FOR $0.95 $39.90 Bunkers - Marine -MGO $2.71 $113.82 Bunkers - Intermediate Grade - 180,380 $1.97 $82.74 Intoplane- Jet Fuel - IA1, IAA, IAB, IP8 $2.96 $124.32 Non-Contract Jet Fuel - NA1, NAA $3.18 $133.56 Non Contract Ground Fuel - NLS, NMU $2.73 $114.66 Composite Standard Price $2.61 $109.62 In the year of execution, a complete list of standard fuel prices will be available on the DLA Page 7 of 7 Attachment 2