Recommendation: The Secretary of Defense should ensure that the Deputy Secretary of Defense makes a determination as to how the CMO is to direct the business-related activities of the military departments. (Recommendation 1)

Agency: Department of Defense
Status: Open
Priority recommendation

Comments: DOD concurred with this recommendation. The National Defense Authorization Act for Fiscal Year 2020 mandated that DOD assess the CMO's position, and the accompanying conference report indicated that the conferees intend to disestablish the position, pending the outcome of DOD's assessments. We continue to believe that DOD needs a CMO, codified in statute as a separate position, at the right level, and with the adequate amount of resources and appropriate authority to be responsible and accountable for its business transformation efforts. In light of pending requirements to assess the CMO position, GAO will continue to monitor the department's response to these recommendations as those assessments and any related actions are completed.

Recommendation: The Secretary of Defense should ensure that the Deputy Secretary of Defense makes a determination regarding the CMO's relationship with the DAFAs, including whether additional DAFAs should be identified as providing shared business services and which DAFAs will be required to submit their proposed budgets for enterprise business operations to the CMO for review. (Recommendation 2)

Agency: Department of Defense
Status: Open
Priority recommendation

Comments: DOD concurred with this recommendation. The National Defense Authorization Act for Fiscal Year 2020 mandated that DOD assess the CMO's position, and the accompanying conference report indicated that the conferees intend to disestablish the position, pending the outcome of DOD's assessments. We continue to believe that DOD needs a CMO, codified in statute as a separate position, at the right level, and with the adequate amount of resources and appropriate authority to be responsible and accountable for its business transformation efforts. In light of pending requirements to assess the CMO position, GAO will continue to monitor the department's response to these recommendations as those assessments and any related actions are completed.

Recommendation: The Secretary of Defense should ensure that the CMO and Chief Information Officer (CIO) conduct an analysis to determine which responsibilities should transfer from the CIO to the CMO, including identifying any associated resource impacts, and share the results of that analysis with the Congress. (Recommendation 3)

Agency: Department of Defense
Status: Open

Comments: DOD concurred with this recommendation. The National Defense Authorization Act for Fiscal Year 2020 mandated that DOD assess the CMO's position, and the accompanying conference report indicated that the conferees intend to disestablish the position, pending the outcome of DOD's assessments. We continue to believe that DOD needs a CMO, codified in statute as a separate position, at the right level, and with the adequate amount of resources and appropriate authority to be responsible and accountable for its business transformation efforts. In light of pending requirements to assess the CMO position, GAO will continue to monitor the department's response to these recommendations as those assessments and any related actions are completed.

Recommendation: The Secretary of Defense should ensure that the Deputy Secretary of Defense, on the basis of the determinations regarding the CMO's statutory and discretionary authorities, codify those authorities and how they are to be operationalized in formal department-wide guidance. (Recommendation 4)

Agency: Department of Defense
Status: Open
Priority recommendation

Comments: DOD concurred with this recommendation. The National Defense Authorization Act for Fiscal Year 2020 mandated that DOD assess the CMO's position, and the accompanying conference report indicated that the conferees intend to disestablish the position, pending the outcome of DOD's assessments. We continue to believe that DOD needs a CMO, codified in statute as a separate position, at the right level, and with the adequate amount of resources and appropriate authority to be responsible and accountable for its business transformation efforts. In light of pending requirements to assess the CMO position, GAO will continue to monitor the department's response to these recommendations as those assessments and any related actions are completed.

Recommendation: The Deputy Secretary of Defense, in his capacity as the CMO and in coordination with the DOD DCMO, should take action, as appropriate and necessary, to improve the monitoring of the military departments' performance on business transformation efforts. This could be done by revising the Defense Business Council's charter to make the council responsible for monitoring such performance to reflect the responsibilities of the DOD DCMO to monitor performance across the entire department.

Agency: Department of Defense
Status: Open

Comments: DOD concurred with this recommendation. In response to an Office of Management and Budget (OMB) memorandum requiring agencies to develop a reform plan to improve the efficiency, effectiveness, and accountability, the Deputy Chief Management Officer issued a memorandum requiring each DOD component--including the military departments--to conduct a thorough review of business operations and to propose reform initiatives to improve the efficiency, effectiveness, and accountability within their respective organizations. For those initiatives selected for implementation, components were required to provide additional information on their initiatives, to include performance goals and measures. DOD submitted its agency reform plan to OMB in September 2017, which included military department-level reform initiatives. According to an Office of the Chief Management Officer (OCMO) official, OCMO was in the process of incorporating the military department-level reform initiatives into weekly updates to the Deputy Secretary of Defense and monthly reports to the Secretary of Defense. Once the military department-level reform initiatives are incorporated into these regular reporting mechanisms, we believe DOD's efforts will meet the intent of our recommendation. As of December 2019, DOD has not provided additional information related to this recommendation.