Our prior work has shown that DOD has relied heavily on contractor  personnel to augment its in-house workforce. In addition, each military service has  its own corresponding acquisition offices that develop additional service- specific guidance, and provide management and oversight of its  workforce. AT&L Lacks Comprehensive Information on the Use of Contractor Personnel in Its Acquisition Workforce

DOD lacks critical departmentwide information on the use and skill sets of  contractor personnel performing acquisition-related functions. As such, contractor personnel  comprise about 29 percent of DOD’s total acquisition workforce. DOD also lacks information on factors driving program offices’ decisions  to use contractor personnel rather than hire in-house personnel. The 30 program offices, which provided reasons for using  contractor personnel, cited the following key factors:  22 cited a shortage of civilian personnel with a particular expertise,  18 cited staffing limits on civilian personnel,  17 cited that the particular expertise sought is generally not hired by  the government,  15 cited the ease or speed of bringing on contractor personnel,  9 cited having a short-term requirement,  8 cited funding not being available for civilian personnel, and  1 cited the cost of contractor personnel being less than civilian  personnel  (See appendix III for information on the number of program offices  reporting the reasons for using contractor personnel by component.) In comparison with DOD’s practices, we found that leading organizations  maintain and analyze data on their contractor personnel in order to  mitigate risks, ensure compliance with in-house regulations and security  requirements, and ensure that reliance on contractor personnel creates  value for the company. We also found that leading organizations take a  business-oriented approach to determining when to use contractor  support. AT&L Lacks Key Pieces of Information Necessary to Conduct Workforce Gap Analyses

AT&L lacks key pieces of information that hinder its ability to determine  gaps in the number and skill sets of acquisition personnel needed to meet  DOD’s current and future missions. However, AT&L  lacks information on both what it has and what it needs. Not having this  information in its assessments not only skews analyses of workforce gaps,  but also limits DOD’s ability to make informed workforce allocation  decisions. With regard to information on the personnel it has, AT&L lacks complete  information on the skill sets of the current acquisition workforce— including contractor personnel—and whether these skill sets are sufficient  to accomplish its missions. AT&L also lacks complete information on the acquisition workforce  needed to meet DOD’s mission. In comparison with DOD’s practices, we found that leading organizations  identify gaps in the workforce by assessing the competencies of its  workforce and comparing those with the overall competencies the  organization needs to achieve its objectives. Recent Workforce Initiatives May Not Yield the Additional Information DOD Needs

AT&L has begun to respond to recent legislative requirements aimed at  improving DOD’s management and oversight of its acquisition workforce,  including developing data, tools, and processes to more fully assess and  monitor its acquisition workforce. The Secretary of Defense recently announced that efforts will begin in  fiscal year 2010 to increase the size of the acquisition workforce by  converting 11,000 contractor personnel to government positions and hiring  an additional 9,000 government personnel by 2015. Although these efforts are promising, it is too early to determine the extent  to which these efforts will improve the department’s management and  oversight. Related GAO Products

Department of Defense: Additional Actions and Data Are Needed to  Effectively Manage and Oversee DOD’s Acquisition Workforce.
Why GAO Did This Study

Since 2001, Department of Defense's (DOD) spending on goods and services has more than doubled to $388 billion in 2008, while the number of civilian and military acquisition personnel has remained relatively stable. To supplement its in-house workforce, DOD relies heavily on contractor personnel. If it does not maintain an adequate workforce, DOD places its billion-dollar acquisitions at an increased risk of poor outcomes and vulnerability to fraud, waste, and abuse. This testimony is based on GAO's March 2009 report and addresses DOD's efforts to assess the sufficiency of the total acquisition workforce and to improve its management and oversight of that workforce. It also discusses selected practices of leading organizations that may provide DOD with insights for its efforts.

What GAO Found

Although contractor personnel are a key segment of its total acquisition workforce, DOD lacks critical departmentwide information on the use and skill sets of these personnel. DOD also lacks information on why contractor personnel are used, which limits its ability to determine whether decisions to use contractors to supplement the in-house acquisition workforce are appropriate. GAO found that program office decisions to use contractor personnel are often driven by factors such as quicker hiring time frames and civilian staffing limits, rather than by the nature or criticality of the work. In comparison with DOD's practices, leading organizations maintain and analyze data on their contractor personnel and take a business-oriented approach to determining when to use contractor support. DOD also lacks key pieces of information that limit its ability to determine gaps in the acquisition workforce it needs to meet its missions. In addition to lacking information on contractor personnel, DOD lacks complete information on the skill sets of its in-house personnel. DOD also lacks information on the acquisition workforce it needs to meet its mission. Not having this information not only skews analyses of workforce gaps, but also limits DOD's ability to make informed workforce allocation decisions and determine whether the total acquisition workforce--in-house and contractor personnel--is sufficient to accomplish its mission. In comparison with DOD's practices, leading organizations identify gaps in the workforce by assessing the competencies of their workforces and comparing those with the overall competencies the organization needs to achieve its objectives. DOD recently initiated several efforts aimed at improving the management and oversight of its acquisition workforce, such as plans for overseeing additional hiring, recruiting, and retention activities. DOD is also planning to increase its in-house acquisition workforce by converting 11,000 contractor personnel to government positions and hiring an additional 9,000 government personnel by 2015. The success of DOD's efforts to improve the management and oversight of its acquisition workforce, however, may be limited without comprehensive information on the acquisition workforce it has and needs.