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Highlights

In 2004, the Navy completed a study of how many selected reserve personnel are needed to support the active force in meeting current and future mission requirements. The Ronald W. Reagan National Defense Authorization Act for 2005 mandated that GAO assess several aspects of the Navy's study. This report addresses (1) the criteria and process the Navy used to conduct the review and what limitations affected the Navy's analyses and implementation plan; and (2) how the recommendations from the review will affect the reserve's personnel, funding, and command and control relationship with the active force.

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense 1. To assist the Navy in meeting its human capital strategy goals and ensure that ongoing and future Navy active and reserve manpower requirement assessments result in the most cost-effective force, the Secretary of Defense should direct the Secretary of the Navy to develop and implement guidance to ensure that (1) ongoing and future workforce reviews include cost analyses to determine the most costeffective mix of active and reserve manpower and (2) the methodology for and results of cost analyses are documented.
Closed - Implemented
The Navy articulated new procedures in Department of the Navy Instruction 1000.16K, which was approved in August 2007. This instruction includes guidance that the Navy consider cost-effectiveness in its total force manpower requirements determination. Specifically, the instruction states that a position is military when military provide a more cost effective source of support and that manpower requirements can be designated as contractor requirements unless military or civilian manpower can be demonstrated to be more cost effective. Further, the instruction states that total forces requirements shall reflect the appropriate mix of manpower consistent with applicable laws, policies, and regulations as articulated in DOD Instruction 1100.22 and Section 129a of US Code Title 10, which require the Secretary of Defense to use the least costly form of personnel, require workforce mix decisions to be fiscally informed, and require a manpower requirements report to provide complete justification for converting from one form of personnel to another.
Department of Defense 2. To assist the Navy in meeting its human capital strategy goals and ensure that ongoing and future Navy active and reserve manpower requirement assessments result in the most cost-effective force, the Secretary of Defense should direct the Secretary of the Navy to allocate the required resources to maintain current Navy mission documents that would provide a valid baseline for ongoing and future workforce reviews.
Closed - Implemented
Navy mission documents are derived from Navy Required Operational Capabilities/Projected Operating Environment documents, which are reviewed on a rotating two-year cycle. Navy shore manpower documents are derived from mission/task/function instructions, which are revalidated on a rotating three-year cycle. The Navy believes that this dynamic process provides the requisite level of periodicity for maintaining current, valid baseline information.

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