	DOD’s Progress in Addressing Challenges in Rebuilding the Capacity of the Acquisition Workforce

DOD has made some progress in rebuilding the capacity of the civilian  acquisition workforce and in completing competency assessments, which  identify the current skills and capabilities of the workforce and help  identify areas that needed further management attention. Included among  the workforce issues facing DOD are (1) determining the right size of the  acquisition workforce, (2) updating acquisition training based on ongoing  competency assessments and measuring the effect of training on  acquisition outcomes, and (3) identifying personnel outside the acquisition  workforce who have a role in acquisition. Data provided by the USD/AT&L  indicate that DOD hired about 5,900 individuals using the Defense  Acquisition Workforce Defense Fund as well as through insourcing in  fiscal year 2010. The department’s plans for growing the acquisition workforce remain  uncertain. DOD Efforts to Identify Competencies and Update Acquisition Workforce Training

Just as important as increasing the size of the acquisition workforce is  building workforce skills and expertise. Thus,  competency assessments have now been completed in the areas of  contracting, life-cycle logistics, and program management. DOD is  drafting the final report for another six competency assessments. One area where DOD still faces challenges is determining the  effectiveness of its training in improving acquisition outcomes. We  reported in 2010 that if DOD is to fully assess performance  improvements, it needs to go beyond measuring the size of the  workforce. DOD did not concur with the  recommendation stating that it believed existing metrics were sufficient to  assess the effect of its training efforts on acquisition outcomes. We  continue to believe DOD needs to develop additional metrics. DOD Needs to Look Beyond the Formally Defined Acquisition Workforce

To help improve acquisition outcomes, our September 2011 report noted  that DOD needed to assess the skills and competencies of and training  provided to those people outside what DOD has defined as the  acquisition workforce. We recommended  that DOD establish criteria for identifying these personnel, assess the  critical skills needed to perform their roles in the acquisition process, and  designate an organization that has the responsibility to track DOD’s  progress in identifying, developing, and overseeing personnel outside the  defined acquisition workforce. DOD concurred with the recommendations. Rebuilding DCMA’s Capacity

The challenges DCMA is experiencing in rebuilding its capacity is  illustrative of those faced by DOD. DCMA performs a critical role in  helping to manage and oversee contractor performance. Since 2008, DCMA has been rebuilding its workforce, and to do so, has  made increasing use of the Defense Acquisition Workforce Development  Fund. For example, in fiscal year 2011, DCMA reported it hired 1,221 new  employees under this authority, a substantial increase from 166 hired in  fiscal year 2009. Our  November 2011 report noted that by the late 1990s, DCMA had lost the  majority of its contract cost/price analysts, which, according to DCMA,  meant many of its pricing-related contract administration responsibilities,  such as negotiating forward pricing rate agreements and establishing final  indirect cost rates and billing rates, were no longer performed to the same  level of discipline and consistency as in prior years. As a result, DCMA  reported that DOD’s acquisitions were subjected to unacceptable levels of  cost risks. Over the last 2 years, DCMA reports it has hired 279 new contract  cost/price analysts and cost monitors (bringing the agency’s total number  to about 400), extensively using the Defense Acquisition Workforce  Development Fund to do so. DCMA officials said the center has helped  to hire contract cost/price analysts for its contract management offices. This is a work of the U.S. government and is not subject to copyright protection in the  United States.
Why GAO Did This Study

The Department of Defense (DOD) is the government's largest buying entity and has recognized that rebuilding the acquisition workforce is a strategic priority. The federal government's current budget and long-term fiscal pressures underscore the importance of a capable and well-functioning workforce. GAO and others have long recognized that the size and capabilities of the workforce across the government warrant the attention of the Congress. This statement discusses (1) DOD's progress in addressing challenges faced in rebuilding the capacity of the acquisition workforce, and (2) insights into the efforts by the Defense Contract Management Agency (DCMA) to rebuild its contract oversight capacity. This statement is drawn from our broad body of work on DOD contract management and acquisition workforce as well as a report issued earlier this month on DCMA's efforts to rebuild capacity. We also obtained updated information from DOD with regard to its acquisition workforce competency assessments and workforce hiring..

What GAO Found

DOD has made some progress in rebuilding the capacity of the acquisition workforce. For example, DOD reported that it hired about 5,900 civilians into the acquisition workforce in fiscal year 2010 using the Defense Acquisition Development Workforce Fund or as a result of decisions to convert functions previously performed by a contractor to performance by government personnel. DOD's plans for further growing the acquisition workforce remain uncertain because of budget issues. Building workforce skills and expertise is just as important, however, as increasing the size of the acquisition workforce. DOD also made progress in completing competency assessments, which identify the current skills and capabilities of the workforce and help identify areas that needed further management attention. DOD officials reported that DOD has completed three assessments, including contracting, life cycle logistics, and program management, and is drafting final reports for another six assessments. One area where DOD still faces challenges is determining the effectiveness of its training in improving acquisition outcomes. GAO recommended in 2010 that if DOD is to fully assess performance improvements, it needs to go beyond measuring the size of the workforce. DOD did not concur with the recommendation, stating that it believed existing metrics were sufficient to assess the impact of its training efforts on acquisition outcomes. GAO continues to believe DOD needs to develop additional metrics. Further, to help improve acquisition outcomes, GAO reported that DOD needed to assess the skills and competencies of and training provided to those people who have a role in acquisition but who are outside what DOD has formally defined as the acquisition workforce. GAO recommended that DOD establish criteria for identifying these personnel, assess the critical skills needed to perform their role in the acquisition process, and designate an organization that has the responsibility to track DOD's progress in identifying, developing, and overseeing personnel outside the defined acquisition workforce. DOD concurred with these recommendations. The challenges DCMA is experiencing in rebuilding its capacity are illustrative of those faced by DOD. DCMA performs a critical role in helping to manage and oversee contractor performance. GAO's November 2011 report found that DCMA is attempting to rebuild its workforce, making increased use of the Defense Acquisition Workforce Development Fund. For example, in fiscal year 2011, DCMA reported it hired 1,221 new employees under this authority, a substantial increase from 166 hired in fiscal year 2009. GAO also noted that by the late 1990s, DCMA had lost the majority of its contract cost/price analysts, which, according to DCMA, meant many of its pricing-related contract administration responsibilities, such as negotiating forward-pricing rate agreements and establishing final indirect cost rates and billing rates, were no longer performed to the same level of discipline and consistency as in prior years. As a result, DCMA reported that DOD's acquisitions were subjected to unacceptable levels of cost risks. Over the last 2 years, DCMA reports it has hired 279 new contract cost/price analysts and cost monitors (bringing the agency's total number to about 400), extensively using the Defense Acquisition Workforce Development Fund to do so.

What GAO Recommends

GAO is not making any new recommendations in this statement. GAO has previously made recommendations to DOD to help address DOD's workforce challenges. DOD generally agreed with most of the recommendations and has efforts under way to implement them.