Defense Headquarters:

DOD Needs to Reassess Personnel Requirements for the Office of Secretary of Defense, Joint Staff, and Military Service Secretariats

GAO-15-10: Published: Jan 21, 2015. Publicly Released: Jan 21, 2015.

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What GAO Found

Over the past decade, authorized military and civilian positions have increased within the Department of Defense (DOD) headquarters organizations GAO reviewed—the Office of the Secretary of Defense (OSD), the Joint Staff, and the Army, Navy, Marine Corps, and Air Force secretariats and staffs—but the size of these organizations has recently leveled off or begun to decline, and DOD's plans for future reductions are not finalized. The increases varied by organization, and DOD officials told GAO that the increases were due to increased mission responsibilities, conversion of functions performed by contracted services to civilian positions, and institutional reorganizations. For example, authorized military and civilian positions for the Army Secretariat and Army Staff increased by 60 percent, from 2,272 in fiscal year 2001 to 3,639 in fiscal year 2013, but levels have declined since their peak of 3,712 authorized positions in fiscal year 2011. In addition to civilian and military personnel, DOD also relies on personnel performing contracted services. Since DOD is still in the process of compiling complete data on personnel performing contracted services, trends in these data could not be identified. In 2013, the Secretary of Defense set a target to reduce DOD components' headquarters budgets by 20 percent through fiscal year 2019, including costs for contracted services, while striving for a similar reduction to military and civilian personnel. However, DOD has not finalized plans to achieve these reductions. DOD was required to report to Congress by June 2014 on efforts to streamline management headquarters, but needed an extension until late summer 2014 for the report due to staff turnover. As of December 2014, DOD's plan had not been issued.

GAO found that DOD headquarters organizations it reviewed do not determine their personnel requirements as part of a systematic requirements-determination process, nor do they have procedures in place to ensure that they periodically reassess these requirements as outlined in DOD and other guidance. Current personnel levels for these headquarters organizations are traceable to statutory limits enacted in the 1980s and 1990s to force efficiencies and reduce duplication. However, these limits have been waived since fiscal year 2002. If the limits were in force in fiscal year 2013, the Army and Navy would exceed them by 17 percent and 74 percent, respectively. Moreover, the limits have little practical utility because of statutory exceptions for certain categories of personnel and because the limits exclude personnel in supporting organizations that perform headquarters-related functions. For example, the organizations that support the Army Secretariat and Army Staff are almost three times as large as the Secretariat and Staff, but personnel who perform headquarters-related functions in these organizations are excluded from the limits. All but one of the organizations GAO reviewed have recognized problems in their existing requirements-determination processes. The OSD, the Navy, and the Marine Corps are taking steps to modify their processes, but their efforts are not yet complete. Without a systematic determination of personnel requirements and periodic reassessment of them, DOD will not be well positioned to proactively identify efficiencies and limit personnel growth within these headquarters organizations. Moreover, until DOD determines personnel requirements, Congress will not have critical information needed to reexamine statutory limits enacted decades ago.

Why GAO Did This Study

Facing budget pressures, DOD is seeking to reduce headquarters activities of OSD, the Joint Staff, and the military services' secretariats and staffs, which primarily perform policy and management functions. GAO was mandated to review personnel resources devoted to these headquarters organizations from fiscal years 2001 through 2013. This report (1) identifies past trends in personnel resources for these organizations and any plans for reductions; and (2) evaluates the extent to which DOD determines and reassesses personnel requirements for the organizations. GAO analyzed data on authorized military and civilian positions and contracted services from fiscal years 2001 through 2013. GAO reviewed DOD's headquarters reductions plans and processes for determining and reassessing personnel requirements.

What GAO Recommends

GAO recommends that DOD (1) conduct a systematic determination of personnel requirements at these headquarters organizations; (2) submit the requirements to Congress with adjustments and recommended modifications to the statutory limits; and (3) periodically reassess personnel requirements within OSD and the military services' secretariats and staffs. Congress should consider using DOD's review of headquarters personnel requirements to reexamine existing statutory limits. DOD partially concurred, stating it will use its existing processes, but will investigate other methods to improve the determination and reporting of requirements. GAO believes the recommendations are still valid, as discussed in the report.

For more information, contact John Pendleton at (202) 512-3489 or pendletonj@gao.gov.

Matter for Congressional Consideration

  1. Status: Open

    Comments: In its comments on our report DOD noted that the department has to update DOD Instruction 5100.73, Major DOD Headquarters Activities before it can determine personnel requirements that count against the statutory limits. Until DOD completes its update of the Instruction and provides Congress with information on the number personnel that count against the statutory limits, it will be difficult for Congress to take action. We will continue to monitor actions taken in response to this matter and will provide updated information as appropriate.

    Matter: Congress should consider using the results of DOD's review of headquarters personnel requirements to reexamine the statutory limits. Such an examination could consider whether supporting organizations that perform headquarters functions should be included in statutory limits and whether the statutes on personnel limitations within the military services' secretariats and staffs should be amended to include a prohibition on reassigning headquarters-related functions elsewhere.

Recommendations for Executive Action

  1. Status: Open

    Comments: DOD partially concurred with our recommendation, noting that it will continue to use the processes and prioritization that is part of the Planning, Programming, Budgeting, and Execution process, and will also investigate other methods for aligning personnel to missions and priorities. In December 2014, DOD directed the Deputy Chief Management Officer to develop and implement a manpower requirements validation process for the Office of the Secretary of Defense and Defense Agencies and Field Activities for military and civilian manpower, but this effort has not yet been completed. While DOD indicated that it was taking action in response to our recommendation, it has not provided documentation enabling us to determine what actions have been taken and the extent to which our recommendation has been implemented. We will continue to monitor actions DOD takes in response to this recommendation and will provide updated information as appropriate.

    Recommendation: To ensure that headquarters organizations are properly sized to meet their assigned missions and use the most cost-effective mix of personnel, and to better position DOD to identify opportunities for more efficient use of resources, the Secretary of Defense should conduct a systematic determination of personnel requirements for OSD, the Joint Staff, and the military services' secretariats and staff, which should include analysis of mission, functions, and tasks, and the minimum personnel needed to accomplish those missions, functions, and tasks.

    Agency Affected: Department of Defense

  2. Status: Open

    Comments: DOD partially concurred with our recommendation and stated that it has ongoing efforts to refine and improve its reporting capabilities associated with these requirements, noting that the department has to update DOD Instruction 5100.73, Major DOD Headquarters Activities before it can determine personnel requirements that count against the statutory limits. DOD also did not indicate in its letter whether the department would submit personnel requirements that count against the statutory limits in the Defense Manpower Requirements Report, as we recommend, once the Instruction is finalized. While DOD indicated that it was taking action in response to our recommendation, it has not provided documentation enabling us to determine what actions have been taken and the extent to which our recommendation has been implemented. We will continue to monitor actions DOD takes in response to this recommendation and will provide updated information as appropriate.

    Recommendation: To ensure that headquarters organizations are properly sized to meet their assigned missions and use the most cost-effective mix of personnel, and to better position DOD to identify opportunities for more efficient use of resources, the Secretary of Defense should submit these personnel requirements, including information on the number of personnel within OSD and the military services' secretariats and staffs that count against the statutory limits, along with any applicable adjustments to the statutory limits, in the next Defense Manpower Requirements Report to Congress or through separate correspondence, along with any recommendations needed to modify the existing statutory limits.

    Agency Affected: Department of Defense

  3. Status: Open

    Comments: DOD partially concurred with our recommendation and said that it supports the intent of the recommendation, but such periodic reassessments require additional resources and personnel, which would drive an increase in the number of personnel performing major DOD headquarters activities. Specifically, DOD stated it intends to examine the establishment of requirements determination processes across the department, to include the contractor workforce, but this will require a phased approach across a longer timeframe. However, DOD also did not provide any estimated timeframes for its examination of this process. While DOD indicated that it was taking action in response to our recommendation, it has not provided documentation enabling us to determine what actions have been taken and the extent to which our recommendation has been implemented. We will continue to monitor actions DOD takes in response to this recommendation and will provide updated information as appropriate.

    Recommendation: To ensure that headquarters organizations are properly sized to meet their assigned missions and use the most cost-effective mix of personnel, and to better position DOD to identify opportunities for more efficient use of resources, the Secretary of Defense should establish and implement procedures to conduct periodic reassessments of personnel requirements within OSD and the military services' secretariats and staffs.

    Agency Affected: Department of Defense

 

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