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DOD Competitive Sourcing: Questions About Goals, Pace, and Risks of Key Reform Initiative

NSIAD-99-46 Published: Feb 22, 1999. Publicly Released: Feb 22, 1999.
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Highlights

Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) use Office of Management and Budget Circular A-76 as a means of realizing an estimated $6 billion savings in support costs between fiscal years (FY) 1997 and 2003, focusing on: (1) identifying the competition and savings goals; (2) assessing the accuracy of the savings estimates provided to Congress; and (3) evaluating the adequacy of planning to support the overall program.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should require DOD to assess to what extent available resources are sufficient to execute the numbers of planned competition within the timeframes envisioned and make such adjustments as needed to ensure adequate program execution.
Closed – Not Implemented
DOD concurred with the recommendation to establish a baseline that would support evaluation of program goals and objectives. However, DOD does not believe that sufficient competitions have been completed to establish accurate metrics. In the interim, DOD will continue the program and budget review process to measure advancements towards goals and make adjustments as necessary.
Department of Defense he Secretary of Defense should require the components to reexamine and adjust as necessary the competitive sourcing study targets, milestones, expected net short-term savings, and the planned operating budget reductions.
Closed – Not Implemented
Through the program budget process, DOD reviews the competitive sourcing study targets, milestones and objectives of the program to measure advancements toward their goals. Program adjustments are made as necessary. DOD feels that while their program targets are aggressive and the program is met by a number of challenges, these targets can be met and the challenges overcome. DOD also feels that enough studies have not yet been completed to establish a baseline that would necessitate a reevaluation of their milestones and objectives. As more studies are completed, it will adjust its study and savings objectives, if necessary.

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Topics

Future budget projectionsMilitary budgetsMilitary cost controlMilitary downsizingPrivatizationProgram evaluationU.S. ArmyU.S. NavyCompetitive sourcingU.S. Air Force