Several DOD organizations have responsibilities related to major DOD  headquarters activities, including those summarized below. Department-Wide Efficiency Initiatives That Include Headquarters Are Under Way

Since 2014, and in part to respond to congressional direction, DOD has  undertaken initiatives intended to improve the efficiency of its business  processes, which include headquarters organizations, and identify related  cost savings, but it is unclear to what extent these initiatives will help the  department achieve the savings it has identified. Through this review, ODCMO identified $62 billion to $84 billion in  potential cumulative savings opportunities across the six business  processes for fiscal years 2016 through 2020. The four initiatives  were not completed, or their results were not available, in time for us to  assess their effect, and therefore it is unclear to what extent they will  contribute toward the savings identified by the Core Business Process  Review. DOD Does Not Have Reliable Data on Headquarters Functions and Costs, Which Hinders Assessment

DOD has taken steps to improve some available data on headquarters  organizations, but does not have reliable data for assessing headquarters  functions and associated costs. In addition, DOD is working to identify which organizations or portions of  organizations meet a new definition of major DOD headquarters activities  that was included in the National Defense Authorization Act for Fiscal  Year 2016, and intends to revise its headquarters instruction upon  completion of this effort. Finally, the department plans to update a key  resource database, the Future Years Defense Program (FYDP), to  improve visibility of headquarters resources. However, the one  department-wide data set that identifies specific DOD headquarters  functions contains unreliable data because the department has not  aligned these data with its definition of major headquarters activities, nor  does it have plans to collect information on the costs associated with  functions within headquarters organizations. DOD’s  limited information on which positions perform which headquarters  functions and their associated costs hinders its ability to identify potential  cost savings associated with opportunities to consolidate and streamline  these headquarters functions. Recommendations for Executive Action

To further DOD’s efforts to identify opportunities for more efficient use of  headquarters-related resources, we recommend that the Secretary of  Defense direct the Deputy Chief Management Officer, in coordination with  the Under Secretary of Defense for Personnel and Readiness, the  Chairman of the Joint Chiefs of Staff, the Secretaries of the military  departments, and the heads of the defense agencies and DOD field  activities, to take the following two actions: align DOD’s data on department-wide military and civilian positions  that have headquarters-related DOD function codes with the revised  definition of major DOD headquarters activities in order to provide the  department with reliable data to accurately assess headquarters  functions and identify opportunities for streamlining or further analysis;  and once this definition is published in DOD guidance, collect reliable  information on the costs associated with functions within headquarters  organizations—through revisions to the IGCA Inventory or another  method—in order to provide the department with detailed information  for use in estimating resources associated with specific headquarters  functions, and in making decisions, monitoring performance, and  allocating resources. DOD concurred with these two  recommendations. This report (1) describes the status of  DOD’s initiatives since 2014 to improve the efficiency of headquarters  organizations and identify related cost savings; and (2) assesses the  extent to which DOD has reliable data to assess headquarters functions  and their associated costs.
Why GAO Did This Study

Facing budget pressures, DOD is seeking to reduce its headquarters activities by identifying streamlining opportunities. DOD has multiple layers of headquarters activities with complex, overlapping relationships, such as OSD, the Joint Staff, the military service secretariats and staffs, and defense agencies.
Committee reports accompanying bills for the National Defense Authorization Act for Fiscal Year 2015 included provisions for GAO to identify DOD's headquarters reduction efforts to date and patterns in functional areas related to DOD's headquarters activities. This report (1) describes the status of DOD's initiatives since 2014 to improve the efficiency of headquarters organizations and identify related cost savings, and (2) assesses the extent to which DOD has reliable data to assess headquarters functions and their associated costs.
GAO assessed DOD-wide headquarters-related efficiency efforts, and a DOD-wide data set that identifies positions with headquarters functions.

What GAO Found

Since 2014, and in part to respond to congressional direction, the Department of Defense (DOD) has undertaken initiatives intended to improve the efficiency of headquarters organizations and identify related cost savings, but it is unclear to what extent these initiatives will help the department achieve the potential savings it has identified. In a 2015 review of its six business processes, DOD identified $62 billion to $84 billion in potential cumulative savings opportunities for fiscal years 2016 through 2020. According to DOD officials, the department is currently pursuing four headquarters-related initiatives, but these were not completed, or results were not available, in time for GAO to assess their effect. The table below provides a description of these initiatives.
Source: GAO analysis of DOD information. GAO-16-286
DOD has taken steps to improve some available data on headquarters organizations, but does not have reliable data for assessing headquarters functions and associated costs. Consistent with a GAO recommendation, DOD has established a framework for major DOD headquarters activities, is working to identify which organizations or portions of organizations meet a new definition of major DOD headquarters activities, and plans to update a key database to improve visibility of headquarters resources. However, the one department-wide data set that identifies military and civilian positions by specific DOD headquarters functions contains unreliable data because DOD has not aligned these data with its revised headquarters definition. Further, DOD does not have plans to collect information on costs associated with functions within headquarters organizations. This may hinder DOD's ability to conduct an in-depth review for purposes of consolidating and streamlining headquarters functions. Without alignment of headquarters function data with the revised headquarters definition and collection of reliable information on costs associated with headquarters functions, DOD may be unable to accurately assess specific functional areas or identify potential streamlining and cost savings opportunities.

What GAO Recommends

To further DOD's efforts to identify headquarters-related efficiency opportunities, GAO recommends that DOD align its data on positions that have headquarters-related DOD function codes with the revised definition of major DOD headquarters activities and collect information on costs associated with functions within headquarters organizations. DOD concurred with the recommendations.