Grønlandsudvalget 2017-18
GRU Alm.del Bilag 25
Offentligt
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 GRU, Alm.del - 2017-18 - Bilag 25: Oversendelse af notater om Servicekontrakten på Thulebasen, i forlængelse af samrådet den 18. december 2017 om samrådsspørgsmål A og B, fra udenrigsministeren
Introduction
Background
This report provides a review of Danish participation in United States (US) Defense
Projects at Thule Air Base (AB), Greenland during US Government Fiscal Year 2015
(FY15) -- 1 October 2014 through 30 September 2015.
Part I
of this report provides a narrative analysis of expenditures made to Danish and
US vendors during FY15. Additionally, historical data is provided in table and figure
format for FY14 through FY15. An itemization, which provides a comparison between
the FY14 and FY15 elements, is provided in narrative form in Part I.
Part II
of this report includes a summary of expenditures for FY15. The Part covered
are: (a) Base O&M; (b) Other Appropriated Funds; (c) Non-Appropriated Funds; (d)
Construction.
Part III
provides the future construction projections to include projected special base
construction, repair, maintenance and minor construction projects. The estimates for
FY16 through FY18 are based on the Danish Kroner (DKK) planning rate of DKK
6.7523 for FY16 and DKK 6.7076 for FY17 and FY18 = $1.00.
Exchange Rates
Generally, awards are made and funding is obligated on the contracts in the market
currency exchange rates published at the time of the individual purchases, where
available, or at the FY15 exchange rate of DKK 5.5515=$1.00. However in FY15 the
exchange rate changed as of 1 May 15 to DKK 7.0711=$1.00. This change impacted
all funding obligations after that date. Figures contained in this report are based on
then-year Danish Kroner (DKK) or US Dollars (USD). Summaries of total expenditures
consist of multiple exchange rates and may not divide evenly by any single exchange
rate. The historical exchange rates for FY00 through FY15 are also provided in Part II of
this report.
Part I
Narrative Analysis
Danish participation in US Defense Projects at Thule AB totaled DKK 955,130,691
($136,824,042 USD) in FY15 (1 Oct 14 through 30 Sep 15). This is approximately
9.89% decrease in DKK (29.84% decrease in USD) from the FY14 figures of DKK
1,059,985,985 ($195,028,666 USD). The decrease in DKK was due to a decrease in
construction, repair and maintenance contracts. The decrease in USD from FY14 was
due to reduced construction, repair and maintenance contracts as well as a change in
the DKK/USD exchange rate on 1 May 15.
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 GRU, Alm.del - 2017-18 - Bilag 25: Oversendelse af notater om Servicekontrakten på Thulebasen, i forlængelse af samrådet den 18. december 2017 om samrådsspørgsmål A og B, fra udenrigsministeren
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The overall US participation at Thule AB for FY15 was $22,643,016 which was a
27.80% decrease from the FY14 amount of $31,359,905.
FY00-FY15 Data
Table 1 provides a comparison of Danish and US participation in percentages.
Table 1. Danish and US Participation
(Percentage comparison)
FY00
Danish
US
79%
21%
FY08
Danish
US
80%
20%
FY01
82%
18%
FY09
79%
21%
FY02
81%
19%
FY10
82%
18%
FY03
80%
20%
FY11
80%
20%
FY04
75%
25%
FY12
82%
18%
FY05
75%
25%
FY13
82%
18%
FY06
78%
22%
FY14
86%
14%
FY07
81%
19%
FY15
86%
14%
FY15 Itemization
Part II(a) Base Operation and Maintenance (O&M) Services
Danish Base O&M Services totaled DKK 830,389,542 ($115,894,182 USD) in FY15.
This is a 27.61% increase in DKK (3.58% decrease in USD) from the FY14 figure of
DKK 650,745,861 ($120,193,942 USD). The difference in cost from FY14 was primarily
due to additional supplies and special projects in FY15. The FY15 base contract
performance began on 1 October 2014 was for DKK 747,573,379 ($110,033,950 USD).
Additional funds were added throughout FY15 for additional projects DKK 58,356,625
($1,906,070 USD), additional supplies DKK 21,506,353 ($3,422,200 USD) and work
order funding DKK 2,953,185 ($531,962 USD).
Danish and Greenlandic O&M labor decreased from
positions total in FY14 to
positions in FY15. As part of that total, part-time positions decreased from
positions
in FY14 to
positions in FY15. The Base Maintenance Contract (BMC) is a non-
personal services, performance-based contract and the contractor is solely responsible
for the number of personnel needed to perform the service.
Part II(b) Other Appropriated Funds
Other Appropriated Funds included expenditures for passenger and subsistence, airlift
with Air Greenland, ocean transportation with Royal Arctic Lines, Catholic Priest
services, and telecommunication services with TeleGreenland. Total Danish,
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 GRU, Alm.del - 2017-18 - Bilag 25: Oversendelse af notater om Servicekontrakten på Thulebasen, i forlængelse af samrådet den 18. december 2017 om samrådsspørgsmål A og B, fra udenrigsministeren
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participation in Appropriated Funds expenditures for FY15 was DKK 45,600,047
($7,485,653 USD), representing an 8.37% decrease in DKK (16.02% decrease in USD)
from the FY14 amounts of DKK 49,763,181 ($8,913,089 USD). The decrease was
partially due to cost savings in Danish contracts and the change in exchange rate during
the year.
US participation in Appropriated Funds expenditures for US airlift and sealift for the
transportation of passengers and cargo from the US to TAB in FY15 was $12,283,958
USD, a 15.67% increase from the FY14 amount of $10,619,392 USD. The increase was
primarily due to a change in aircraft from McGuire AFB to TAB during Phase I of the
runway repaving.
Part II(c) Non-Appropriated Funds
All items procured with Non-Appropriated Funds were in support of the Top of the World
(TOW) Club, Billeting, Morale, Welfare and Recreation activities, and the Base
Exchange (BX). Danish participation in Non-Appropriated Funds totaled DKK 7,663,988
($1,380,526 USD) in FY15, a 5.48% increase in DKK (2.74% increase in USD) from the
FY14 amount of DKK 7,266,022 ($1,343,718 USD).
US participation in Non-Appropriated Funds totaled $1,646,430 USD in FY15, a 5.65%
increase from the FY14 amount of $1,558,433 USD.
Part II(d) Construction, Repair and Maintenance
Danish participation in Construction, Repair and Maintenance expenditures decreased
from the FY14 expenditures of DKK 352,210,921 ($64,577,917 USD) to DKK
71,477,114 ($12,063,681 USD) in FY15, is a decrease in DKK of 79.71% (81.32%
decrease in USD). This was primarily due to cost of projects allocated to FY14 and the
construction project activities spanning over two or more years with decreasing cost in
the later years.
US participation in FY15 Construction, Repair and Maintenance expenditures was zero.
Part III Projected Special Base Construction, Repair, Maintenance and Minor
Construction Projects
Projected construction projects for FY16 through FY18 are summarized in Part III of this
year’s report. This includes environmental projects, flattop repairs, mission upgrades,
consolidation efforts and other facility infrastructure projects. These projections are
merely estimates and are subject to change depending upon availability of funding and
prioritization of projects.
Employment
Total FY15 Danish employment represented in this report consisted of
employees
of which
were part-time/seasonal employees. Total FY15 US employment
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 GRU, Alm.del - 2017-18 - Bilag 25: Oversendelse af notater om Servicekontrakten på Thulebasen, i forlængelse af samrådet den 18. december 2017 om samrådsspørgsmål A og B, fra udenrigsministeren
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represented in this report consisted of
employees of which were a part-time
employee. Contracts at Thule are non-personal services, performance-based contracts
and the contractors are solely responsible for the number of personnel needed to
perform the service.
Summary
Thule’s location and support capabilities make it suitable to operate the Air Force’s vital
space superiority missions as well as conduct a variety of resupply and arctic research
operations by agencies of the US, Danish and Canadian Governments, academia, and
private organizations. Our enduring relationship with the Kingdom of Denmark makes it
possible for us to continue our partnership and accomplish critical missions.
On a daily basis, four cultures, American, Danish, Greenlandic and Canadian, work
together to ensure mission success. This requires quality work and tremendous effort
from each and every member of Team Thule in one of the most challenging
environments anywhere on Earth. Thule AB is an extraordinary base, with an
extraordinary mission, operated and maintained by extraordinary people.
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