[Human Resources and Defense Productivity]

In a speech before a symposium sponsored by the Office of Naval Research, GAO work on human resources productivity in the Department of Defense (DOD) was described. GAO found that there has been further formalization of productivity responsibilities and improved guidance within DOD. The 1981 DOD Acquisition Improvement Program is aimed at reducing acquisition costs through improved productivity and other efficiency measures. DOD has publicly announced that it is making productivity improvements and other efficiency actions which will save billions of dollars and has repeatedly made public statements regarding its vigorous efficiency efforts. However, GAO questions the lack of full integration of formal productivity programs into DOD operations. In addition, some observers feel that the Acquisition Improvement Program is introducing nothing new and is not achieving much, and DOD is unable to fully substantiate the large cost avoidances which it claims to be achieving. There have been continuing debates over how to measure productivity in the defense environment. GAO must determine whether productivity enhancement measures are really working to cut cost in DOD and whether the GAO National Productivity Group will add impetus to ongoing and future work related to productivity in DOD and at its contractors. However, the ultimate responsibility for demonstrating to Congress that productivity enhancements are effective and are reducing defense costs rests with DOD and the defense contractor community.