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Defense Outsourcing: Impact on Navy Sea-Shore Rotations

NSIAD-98-107 Published: Apr 27, 1998. Publicly Released: Apr 27, 1998.
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Highlights

Pursuant to a congressional request, GAO reviewed whether the Department of Defense's (DOD) outsourcing of commercial activities reduces the availability of rotational billets for active duty military personnel, focusing on: (1) how the Navy's current outsourcing efforts have affected rotational billets; and (2) whether the Navy has policies and procedures in place to minimize the impact of outsourcing on rotational billets in the future.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense To enhance the likelihood that plans for outsourcing are reasonable and achievable, the Secretary of Defense should take steps to ensure that the Secretary of the Navy, as it develops its strategic plan, involves the major commands to reach agreement on realistic goals and timeframes, and identify areas most conducive to outsourcing.
Closed – Implemented
In August 1998, the Navy implemented a revised sea-shore rotation program for various enlisted specialty skills. In addition, the Navy submitted a master competitive sourcing plan, which included major commands involvement, to OSD in June 1999 and is required to submit detailed plans for their competitive sourcing program in January 2000.
Department of Defense The Secretary of Defense should periodically reassess whether outsourcing savings targets that are used in planning for future years budgets are achievable in the timeframes planned.
Closed – Implemented
Through the Program Budget System Process (POM), DOD reviews the savings targets that are identified by the Navy, as well as the other services. A Master Competitive Sourcing Plan--submitted to OSD in June 1999--shows how the Navy plans to achieve its savings targets. A detailed plan indicating specifically how it will meet their savings targets is required to be submitted in January 2000 and each year thereafter. As a part of DOD's review, it plans to track the services' results. While DOD acknowledges that its program has met with a number of challenges, it believes that none of these challenges are insurmountable and that the savings targets can be achieved.

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Topics

Military cost controlMilitary downsizingNaval personnelNaval procurementPrivatizationReductions in forceStrategic planningU.S. NavyOutsourcingMilitary forces