Overseas Presence: State and USAID Should Adopt a Comprehensive Plan to Improve the Consolidation of Overseas Support Services

In September 2006, we reported that while State and USAID had demonstrated the feasibility of consolidating overseas support services, they faced several major challenges. The challenges include the need for State and USAID in Washington and at posts to address concerns that USAID's costs could increase if services are consolidated; develop better cost and performance data; reduce the number of local national hires and reduce or replace U.S. direct hires with local national hires; communicate better; and resolve technical differences. We recommended, among other things, that State and USAID develop a plan that details the desired end state and defines timelines. In response, State and USAID have agreed on a plan that defines the end-state and outlines a three-tiered approach to consolidating State and USAID services. The end-state is defined as the consolidation of agreed-upon duplicative administrative services into one joint administrative platform at co-located overseas missions. The three-tiered approach to implement this plan is as follows. First, posts where State and USAID are currently co-located or will be co-located on a new embassy compound within fiscal year 2007 should develop plans to combine agreed-upon State and USAID services starting in October, 2007. Second, posts where State and USAID will be co-located in fiscal years 2008, 2009, or 2010 should develop plans to consolidate agreed-upon administrative services beginning in fiscal year 2008, with the view to providing consolidated services at the beginning of the fiscal year immediately following the move onto the new embassy compound. Third, posts planning to co-locate State and USAID in fiscal year 2011 or later should develop plans to consolidate agreed-upon administrative services where efficiencies can be achieved. The services that both State and USAID have agreed to consolidate were specified in an April 2006 message to posts. The plan also provides a list of tier 1, tier 2, and tier 3 posts. According to the State Department official in charge of the Office of Rightsizing, on October 1, 2007, nearly 50 of the 80 posts where State and USAID are present should have combined management platforms.

In September 2006, we reported that while State and USAID had demonstrated the feasibility of consolidating overseas support services, they faced several major challenges. The challenges include the need for State and USAID in Washington and at posts to address concerns that USAID's costs could increase if services are consolidated; develop better cost and performance data; reduce the number of local national hires and reduce or replace U.S. direct hires with local national hires; communicate better; and resolve technical differences. We recommended, among other things, that State and USAID develop a plan that details the desired end state and defines timelines. In response, State and USAID have agreed on a plan that defines the end-state and outlines a three-tiered approach to consolidating State and USAID services. The end-state is defined as the consolidation of agreed-upon duplicative administrative services into one joint administrative platform at co-located overseas missions. The three-tiered approach to implement this plan is as follows. First, posts where State and USAID are currently co-located or will be co-located on a new embassy compound within fiscal year 2007 should develop plans to combine agreed-upon State and USAID services starting in October, 2007. Second, posts where State and USAID will be co-located in fiscal years 2008, 2009, or 2010 should develop plans to consolidate agreed-upon administrative services beginning in fiscal year 2008, with the view to providing consolidated services at the beginning of the fiscal year immediately following the move onto the new embassy compound. Third, posts planning to co-locate State and USAID in fiscal year 2011 or later should develop plans to consolidate agreed-upon administrative services where efficiencies can be achieved. The services that both State and USAID have agreed to consolidate were specified in an April 2006 message to posts. The plan also provides a list of tier 1, tier 2, and tier 3 posts. According to the State Department official in charge of the Office of Rightsizing, on October 1, 2007, nearly 50 of the 80 posts where State and USAID are present should have combined management platforms.

In September 2006, we reported that while State and USAID had demonstrated the feasibility of consolidating overseas support services, they faced several major challenges. The challenges include the need for State and USAID in Washington and at posts to address concerns that USAID's costs could increase if services are consolidated; develop better cost and performance data; reduce the number of local national hires and reduce or replace U.S. direct hires with local national hires; communicate better; and resolve technical differences. We recommended, among other things, that State and USAID develop a plan that details the desired end state and defines timelines. In response, State and USAID have agreed on a plan that defines the end-state and outlines a three-tiered approach to consolidating State and USAID services. The end-state is defined as the consolidation of agreed-upon duplicative administrative services into one joint administrative platform at co-located overseas missions. The three-tiered approach to implement this plan is as follows. First, posts where State and USAID are currently co-located or will be co-located on a new embassy compound within fiscal year 2007 should develop plans to combine agreed-upon State and USAID services starting in October, 2007. Second, posts where State and USAID will be co-located in fiscal years 2008, 2009, or 2010 should develop plans to consolidate agreed-upon administrative services beginning in fiscal year 2008, with the view to providing consolidated services at the beginning of the fiscal year immediately following the move onto the new embassy compound. Third, posts planning to co-locate State and USAID in fiscal year 2011 or later should develop plans to consolidate agreed-upon administrative services where efficiencies can be achieved. The services that both State and USAID have agreed to consolidate were specified in an April 2006 message to posts. The plan also provides a list of tier 1, tier 2, and tier 3 posts. According to the State Department official in charge of the Office of Rightsizing, on October 1, 2007, nearly 50 of the 80 posts where State and USAID are present should have combined management platforms.

In September 2006, we reported that while State and USAID had demonstrated the feasibility of consolidating overseas support services, they faced several major challenges. The challenges include the need for State and USAID in Washington and at posts to address concerns that USAID's costs could increase if services are consolidated; develop better cost and performance data; reduce the number of local national hires and reduce or replace U.S. direct hires with local national hires; communicate better; and resolve technical differences. We recommended, among other things, that State and USAID develop a plan that details the desired end state and defines timelines. In response, State and USAID have agreed on a plan that defines the end-state and outlines a three-tiered approach to consolidating State and USAID services. The end-state is defined as the consolidation of agreed-upon duplicative administrative services into one joint administrative platform at co-located overseas missions. The three-tiered approach to implement this plan is as follows. First, posts where State and USAID are currently co-located or will be co-located on a new embassy compound within fiscal year 2007 should develop plans to combine agreed-upon State and USAID services starting in October, 2007. Second, posts where State and USAID will be co-located in fiscal years 2008, 2009, or 2010 should develop plans to consolidate agreed-upon administrative services beginning in fiscal year 2008, with the view to providing consolidated services at the beginning of the fiscal year immediately following the move onto the new embassy compound. Third, posts planning to co-locate State and USAID in fiscal year 2011 or later should develop plans to consolidate agreed-upon administrative services where efficiencies can be achieved. The services that both State and USAID have agreed to consolidate were specified in an April 2006 message to posts. The plan also provides a list of tier 1, tier 2, and tier 3 posts. According to the State Department official in charge of the Office of Rightsizing, on October 1, 2007, nearly 50 of the 80 posts where State and USAID are present should have combined management platforms.

In September 2006, we reported (Overseas Presence: State and USAID Should Adopt a Comprehensive Plan to Improve the Consolidation of Overseas Support Services, 09/08/2006) that State and USAID had demonstrated the feasibility of consolidating overseas support services, but faced several challenges, including the need for State and USAID to address concerns that USAID's costs could increase as a result of consolidating support services. We recommended that the Secretary of State, in conjunction with the USAID Administrator, among other things, set timelines for accomplishing the standardization of State and USAID policies, procedures, and systems. State and USAID have responded to our recommendation by setting forth guidance outlining timelines for consolidating support services at posts. The guidance calls for a three-tier approach, with the goal of consolidating all services into a single consolidated administrative unit under the direction of State/ICASS. Tier 1 posts, consisting of posts where State and USAID are collocated or will be collocated on a new embassy compound by the end of fiscal year 2007, should develop plans to consolidate services by fiscal year 2008. Tier 2 posts, consisting of posts where State and USAID will be collocated in fiscal years 2008, 2009, or 2010, will consolidate services at the beginning of the fiscal year immediately following the post's move into the new embassy compound. Tier 3 posts, consisting of posts where State and USAID will be collocated in or after fiscal year 2011, will develop plans to consolidate administrative services as appropriate and where consolidation can be cost-effective. As part of the effort to consolidate overseas support services, State and USAID have also standardized policies, procedures, and systems, and associated business processes with respect to warehouse management; expendable supplies; functional and residential property leasing; motor pool; residential and non-residential maintenance; customs and shipping; custodial services; reproduction services; mail and pouch services; cashiering; and the hiring, retention and reduction-in-force of foreign service national personnel. For instance, the two agencies have agreed that posts will consolidate all warehouse inventory, using State's inventory management system and software, and not USAID's, to keep track of both State and USAID warehouse inventory. USAID will begin the process of transferring its warehouse inventory data to State's warehouse inventory system in fiscal year 2008. The two agencies have also agreed that posts will maintain a single housing office that will provide housing to both State and USAID officials. In April 2007, the two agencies issued guidance identifying the software applications that both agencies will use in the consolidated administrative unit. Finally, State and USAID have agreed on the policies and procedures that they will use to hire, retain, and fire foreign service nationals or locally employed staff. The two agencies have directed posts to update their reduction-in-force polices. State and USAID have also agreed that best locally employed staff will be hired by State/ICASS as contract personnel. State's Director of the Office of Rightsizing has estimated that as a result of consolidating overseas support services, State and USAID have saved approximately $18 million over the last five years. However, we have not validated this figure and for that reason cannot determine its accuracy.

In September 2006, we reported (Overseas Presence:State and USAID Should Adopt a Comprehensive Plan to Improve the Consolidation of Overseas Support Services, 09/08/2006) that State and USAID had demonstrated the feasibility of consolidating overseas support services, but faced several challenges, including the need for State and USAID to address concerns that USAID's costs could increase as a result of consolidating support services. We recommended that the Secretary of State, in conjunction with the USAID Administrator, among other things, set timelines for accomplishing the standardization of State and USAID policies, procedures, and systems. State and USAID have responded to our recommendation by setting forth guidance outlining timelines for consolidating support services at posts. The guidance calls for a three-tier approach, with the goal of consolidating all services into a single consolidated administrative unit under the direction of State/ICASS. Tier 1 posts, consisting of posts where State and USAID are collocated or will be collocated on a new embassy compound by the end of fiscal year 2007, should develop plans to consolidate services by fiscal year 2008. Tier 2 posts, consisting of posts where State and USAID will be collocated in fiscal years 2008, 2009, or 2010, will consolidate services at the beginning of the fiscal year immediately following the post's move into the new embassy compound. Tier 3 posts, consisting of posts where State and USAID will be collocated in or after fiscal year 2011, will develop plans to consolidate administrative services as appropriate and where consolidation can be cost-effective. As part of the effort to consolidate overseas support services, State and USAID have also standardized policies, procedures, and systems, and associated business processes with respect to warehouse management; expendable supplies; functional and residential property leasing; motor pool; residential and non-residential maintenance; customs and shipping; custodial services; reproduction services; mail and pouch services; cashiering; and the hiring, retention and reduction-in-force of foreign service national personnel. For instance, the two agencies have agreed that posts will consolidate all warehouse inventory, using State's inventory management system and software, and not USAID's, to keep track of both State and USAID warehouse inventory. USAID will begin the process of transferring its warehouse inventory data to State's warehouse inventory system in fiscal year 2008. The two agencies have also agreed that posts will maintain a single housing office that will provide housing to both State and USAID officials. In April 2007, the two agencies issued guidance identifying the software applications that both agencies will use in the consolidated administrative unit. Finally, State and USAID have agreed on the policies and procedures that they will use to hire, retain, and fire foreign service nationals or locally employed staff. The two agencies have directed posts to update their reduction-in-force polices. State and USAID have also agreed that best locally employed staff will be hired by State/ICASS as contract personnel. State's Director of the Office of Rightsizing has estimated that as a result of consolidating overseas support services, State and USAID have saved approximately $18 million over the last five years. However, we have not validated this figure and for that reason cannot determine its accuracy.