The President’s Management Agenda has  identified rightsizing as one of the administration’s priorities. In fiscal year 2004, Congress mandated the establishment of the Office of  Rightsizing within State. Accurate Data on Personnel Overseas Not Yet Available; U.S. Government Rightsizing Efforts Under Way

Almost 5 years into the President’s Management Initiative on rightsizing,  the U.S. government does not yet have accurate data on the size and  composition of the U.S. overseas presence at embassies and consulates;  however, State is working on a unified database which, if periodically  updated by posts, should provide an accurate depiction of the overseas  presence. In addition,  State estimated that there are approximately 78,000 U.S. government  positions overseas, as of December 2005. Several agencies reported that they have added staff overseas as a result of  new mission requirements, and others reported that they have relocated or  reduced their personnel to better meet mission needs and respond to the  rightsizing efforts. Since its formation,  some of the activities of the office have included coordinating staffing  requests of U.S. government agencies, developing guidance for and  analyzing post rightsizing reviews, and formulating a rightsizing review  plan. Non-State agencies have voiced a number of concerns related to  interactions with the Office of Rightsizing, including their desire to be more  involved in the rightsizing process. It is unclear how the rightsizing review decisions, such as  elimination of duplicative functions, will be implemented at each post,  according to officials at post and in State’s regional bureaus. Between late 2004 and summer 2005, about 35 posts  participated in the first cycle of reviews, and the office conducted formal  analyses of the posts’ reviews in late 2004 and early 2005. The Office of  Rightsizing reported over $50 million in costs saved or avoided to the U.S.  government based on its analysis of the first cycle of reviews. In addition, we found that  the Office of Rightsizing did not have a systematic process to quantify costs  saved or avoided as a result of post staffing reductions stemming from  reviews in the spring 2005 cycle. Posts Identified Challenges in Conducting Rightsizing Reviews

A number of management officers identified various challenges in  conducting the reviews at their post, including resistance by non-State  agencies at posts to address rightsizing measures. Moreover, after a slow start,  State’s Office of Rightsizing is beginning to achieve momentum in  coordinating government-wide rightsizing efforts. We recognize that efforts are currently under way to develop  accurate data; however because of the importance of having accurate data  on overseas staffing and the length of time it has taken to develop this data,  management oversight may be needed to ensure completion of this task. Recommendations for Executive Action

To ensure that the U.S. government’s overseas presence under chief of  mission authority is accurately accounted for and to ensure that the U.S.  government’s rightsizing goals are being coordinated and that posts can  maximize savings and gain efficiencies through rightsizing, we recommend  that the Secretary of State take the following three actions:  Provide oversight to ensure the timely development and use of a single  database that accurately accounts for U.S. overseas personnel staffing  numbers and has accountability measures to encourage posts and  agencies to keep the database accurate and up to date;  Increase outreach activities with non-State agencies so that all relevant  agencies with an overseas presence can discuss and share information  on rightsizing initiatives on a regular and continuous basis; and  Require that posts develop action plans to transition to and meet the  agreed upon outcomes of their rightsizing reviews. We spoke with officials in the Office of Rightsizing about the rightsizing  process and reviewed rightsizing guidance and related documentation. GAO Comments

1. We modified our text to show that, although we have not been able to  independently assess the Office of Rightsizing’s estimates, it has  presented evidence to show that some major cost avoidance and cost  savings have occurred. 2. 3.
Why GAO Did This Study

In 2001, the administration identified the rightsizing of embassies and consulates as one of the President's management priorities. Rightsizing initiatives include: aligning staff overseas with foreign policy priorities and security and other constraints; demonstrating results by moving administrative functions from posts to regional or central locations; and eliminating duplicative functions at posts. This report (1) discusses the size and recent trends in the U.S. government overseas presence, (2) assesses the congressionally mandated Office of Rightsizing's progress in managing the U.S. government's overseas rightsizing efforts, and (3) assesses the process and outcomes of the legislatively mandated rightsizing reviews of overseas posts.

What GAO Found

Almost five years into the President's Management Initiative on rightsizing, the U.S. government does not yet have accurate data on the size of the U.S. overseas presence. At various times, we received estimates ranging from 66,000 to 69,000 American and non-American personnel. In addition, State estimated that there are approximately 78,000 U.S. government positions overseas, as of December 2005. State Department (State) officials said that they are working on a unified database which, if periodically updated by posts, will provide an accurate depiction of the overseas presence. State officials indicated that the database will be completed later this year. Because of the importance of having accurate data on overseas staffing and the length of time it has taken to develop this data, management oversight may be needed to ensure completion of this task. Several agencies reported that they have added staff overseas as a result of new mission requirements, and other agencies reported that they have repositioned their personnel to better meet mission needs and in response to rightsizing efforts. State established the congressionally mandated Office of Rightsizing the United States Government Overseas Presence (Office of Rightsizing) in 2004, which, after a slow start, has begun to provide overall direction to the government-wide rightsizing process. Some of the office's activities have included coordinating staffing requests of U.S. government agencies, developing guidance for and analyzing post rightsizing reviews, and formulating a rightsizing review plan. We found that coordination on rightsizing issues between State and other agencies with an overseas presence was initially slow, but has since improved. Nevertheless, non-State agencies have voiced a number of concerns regarding their interaction with the Office of Rightsizing, including their desire to be more included in the rightsizing process. Congress requires Chiefs of Mission to conduct rightsizing reviews at every overseas post at least once every 5 years. Between late 2004 and summer 2005, about 35 posts participated in the first cycle of reviews. However, the Office of Rightsizing provided limited guidance to posts on how the reviews should be conducted and did not have a systematic process for reporting the outcomes of the reviews. In fall 2005, officials in the Office of Rightsizing developed more comprehensive guidance, which posts we interviewed found useful. We found that cost was not considered a key element in the post reviews. Nevertheless, the Office of Rightsizing reported over $150 million in cost savings or avoidance to the U.S. government based on its analysis of these reviews. Although we have not been able to independently assess the Office of Rightsizing's estimates, it has presented evidence to show that some major cost avoidance and cost savings have occurred. Management officers identified various challenges to the review process, such as resistance from non-State agencies and a lack of time to conduct the review. It is unclear how posts will implement the rightsizing review decisions, such as elimination of duplicative functions, according to post officials and officials in State's regional bureaus.