Evaluation of Defense's Comments on a Critical Report:

Were Transfers of Army Pacific Support Functions Mismanaged?

FPCD-79-50: Published: Apr 23, 1979. Publicly Released: Apr 23, 1979.

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In an earlier report, the Army's retaining funded personnel spaces were questioned after support functions employing the personnel were transferred to other services, which gained new personnel spaces for increased work loads.

Unjustified recurring budget increases totaled $25 million. The Army transferred over 20 support functions to other services. The Secretary of Defense provided $10 million in new personnel spaces for the services taking over the support functions. The Secretary also provided the gaining services an additional $15 million to $30 million in new personnel spaces for the transferred functions. The Army was not required to reduce its personnel spaces to offset the gain in spaces for the other services. It was recommended that the Committees on Appropriations ask the Secretary of Defense to show why the fiscal year 1980 defense budget should not be reduced by at least $25 million. Also recommended was that the Secretary take specific actions to improve Department of Defense (DOD) work force planning. Officials in each service presented a paradox. They emphasized that all available data had been provided on the manpower changes resulting from the Pacific realignment program, yet they maintained that the analysis was based on imcomplete data. Some of the remaining comments wander far from the specific pivotal actions discussed in the report and may obscure significant issues. The most conspicuous omission was the failure to mention that the Army was permitted to transfer the functions without the related funded personnel spaces. DOD comments were not responsive to the significant problems in resource management, nor did they justify changes in recommendations.

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