Section 277 of the same act required DOD to develop a 5-year plan to consolidate and restructure its laboratories and test and evaluation centers. DOD’s Acquisition Workforce Is Smaller, but Potential Savings Are Difficult to Track and May Be Offset

Our analysis of data obtained from the Defense Manpower Data Center (DMDC) indicates that DOD is still on schedule to achieve acquisition workforce reductions of 25 percent by the end of fiscal year 2000. In addition, some of the potential savings DOD anticipates it will achieve through these reductions may be offset by other costs. Potential Savings From Personnel Reductions Cannot Be Precisely Tracked in DOD’s Budget

DOD’s civilian acquisition workforce comprises nearly 40 percent of DOD’s overall civilian workforce and is paid primarily through operations and maintenance (O&M) and RDT&E funding. For example, potential savings from acquisition workforce reductions may be offset in part by contracting with private entities for some services previously performed by government personnel (i.e., substituting one workforce for another). In response to congressional direction, DOD has developed a new way to define its acquisition workforce that it believes (1) more accurately reflects the numbers of personnel performing acquisition functions throughout the agency and (2) has the potential to directly link the management of acquisition personnel to DOD’s overall manpower and budgeting systems and processes. Under this approach, various segments of that workforce have been exempted. For example, it could (1) improve significantly, DOD’s ability to effectively manage the acquisition workforce in budgeting and planning for training and (2) allow DOD to more directly identify and track the impacts of changes in the acquisition workforce, such as reductions and potential savings. In a review of a major Air Force laboratory reorganization, however, we found that DOD’s efforts focused more on management efficiencies than actual infrastructure reductions. Conclusions

DOD has reduced its acquisition workforce and associated costs.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) acquisition workforce reductions, focusing on: (1) DOD's progress in reducing its workforce in acquisition organizations by 25 percent; (2) the potential savings associated with these personnel reductions; (3) the status of DOD efforts to redefine its acquisition workforce; and (4) DOD's efforts to consolidate and restructure acquisition organizations.

What GAO Found

GAO noted that: (1) DOD has been reducing its acquisition workforce at a faster rate than its overall workforce and is on schedule to accomplish a 25-percent reduction by the end of fiscal year 2000; (2) however, potential savings from these reductions cannot be precisely tracked in DOD's budget; (3) in addition, some of the potential savings from acquisition workforce reductions may be offset by other anticipated costs; (4) such costs include those for contracting with private entities for some services previously performed by government personnel; (5) DOD developed a new definition for the acquisition workforce and is using it to identify individuals who perform acquisition functions throughout the Department; (6) DOD is also exploring a process by which it can, for the first time, link management of the acquisition workforce to DOD's overall manpower and budget processes; (7) although far from assured, success in this arena could allow better planning and budgeting for workforce training and tracking changes in the workforce; (8) GAO recently reported that DOD's efforts to streamline and consolidate the research, development, test, and evaluation segment of its acquisition organizations have not resulted in significant infrastructure reductions; and (9) GAO's further analysis of the results of one Air Force effort confirmed GAO's earlier conclusions that such initiatives have been unable to overcome numerous obstacles, which often impede them.