	Introduction

In each of the past four fiscal years, Congress has directed the Administration to reduce the size of the Department of Defense (DOD) acquisition workforce—the DOD employees who participate in the development and procurement of weapons and equipment for the military services. These mandates to reduce the size of the DOD acquisition workforce reflected Congress' view that the workforce has not been downsized enough—that reductions continue to lag in proportion to the decline in the size of the overall defense budget, in general, and the acquisition portion of the defense budget, in particular. Over the past three years, as Congress and the Administration have debated the future of the defense acquisition workforce, policymakers have sought to answer the basic question: What, precisely, is the DOD acquisition workforce? How many people are in it, where in DOD are they located, and what, exactly, are their functions? Defining the Defense Acquisition Workforce

There is no commonly accepted definition of the DOD acquisition workforce. Jefferson Solutions issued its report in September 1997. The study revealed that the largest acquisition workforce group consisted of scientists and engineers (about 43 percent), followed by computer systems analysts and logistical and program managers (about 16 percent), and contractors, purchasers, or procurement support personnel (about 15 percent). Notably, the report did not provide statistics on the extent to which DOD used private-sector contractors to perform acquisition-related functions. Issues for Congress

In the wake of the Jefferson Solutions Report and legislation in the FY 1998 and FY 1999 defense authorization bills, Congress will confront a number of important issues regarding the defense acquisition workforce, including the following:

		Adequacy and Usefulness of New Definition

Should Congress adopt the definition of the defense acquisition workforce presented in the Jefferson Solutions Report? If so, it will result in a significant reduction in the DOD's official count of defense acquisition personnel. Will savings be achieved through attrition, reductions-in-force, removals, early buyouts, or retirements? Will potential savings be offset by associated administrative costs, as well as costs of increased service contracts for work previously performed by government personnel? On November 20, 1998, Deputy Secretary of Defense (for Acquisition and Technology) Jacques S. Gansler issued a memorandum to defense agencies on his review of the recommendations of the Acquisition Workforce Identification Working Group. This group was formed in response to requirements in Section 912(b). He required each agency to conduct a workforce analysis based on the modified Packard definition, revise the personnel count, and report their findings by December 30, 1998.
In each of the past four fiscal years (FY1996-FY1999), Congress has directed the Administration to reduce the size of the Department of Defense (DOD) acquisition workforce—defined as the employees who participate in the development and procurement of weapons, equipment, and provisions for the military services. These mandates reflect a view in Congress that the workforce has not been downsized in proportion to the decline in of the overall defense budget in general, nor of the acquisition portion of the defense budget, in particular.
As Congress and the Administration have debated the future of the defense acquisition workforce, participants have encountered basic questions: What, precisely, is the DOD acquisition workforce? How many people are in it, and what, exactly, are their functions? At present, there is no commonly accepted definition of the DOD acquisition workforce. Previous attempts, within the decade, to define the workforce have produced estimates ranging from 25,000 to 582,000 personnel.
In early 1997, DOD hired the Jefferson Solutions Group, a private consulting firm, to define the size and composition of the acquisition workforce. Jefferson Solutions issued its report in September 1997. It estimated that the overall workforce included about 189,000 people, and that the largest acquisition workforce group consists of scientists and engineers (about 43 percent), followed by computer systems analysts and logistical and program managers (about 16 percent), and contractors, purchasers, or procurement support personnel (about 15 percent). Notably, the study did not address the issue or provide statistics on the extent to which DOD relied on private-sector contractors to perform acquisition-related functions.
In response to Section 912(b) of the FY1998 Defense Authorization Act, Deputy Secretary of Defense (for Acquisition and Technology) Jacques S. Gansler issued a memorandum to defense agencies on November 20, 1998, having determined that DOD would use a modified version of the definition used by the Packard Commission Report. Each agency is required to conduct a functional workforce analysis, revise its personnel count, and report findings by December 30, 1998.
Currently, two major questions confront Congress in regard to the acquisition workforce. First, should the new definition constructed by the Jefferson Solutions Group be adopted formally? If so, it will result in a significant reduction in DOD's official count of acquisition personnel. Second, to what extent will savings achieved through reductions be offset by additional, unanticipated costs? Such costs may include: (1) hiring contractors to perform acquisition-related functions previously performed by government employees; (2) separation costs, such as early buyouts, retirements, and severance pay; and, (3) overtime costs due to both personnel shortages and inexperienced personnel.