	Background

DOD’s 19 defense agencies and 8 DOD field activities are defense  organizations separate from the military departments. DOD Has Not Comprehensively or Routinely Assessed the Continuing Need for Its DAFAs

		DOD’s Past and Current Efforts to Assess the DAFAs Have Limitations

Although DOD has taken some steps to assess the continuing need for  the DAFAs, we found that these steps have been neither comprehensive  nor routine, especially since 2012. At the time of our review, section  192(c) of title 10 of the United States Code required the Secretary of  Defense to review the services and supplies each DAFA provides to  ensure that (1) there is a continuing need for each DAFA; and (2) the  provision of services and supplies by each DAFA, rather than by the  military departments, is a more effective, economical, or efficient manner  of providing those services and supplies or of meeting the requirements  for combat readiness. From 1987 to 2012, DOD issued biennial reports to Congress to record its  response to this statute, but the methodology and quality of those reports  varied. Although DOD reviews the budget proposals for  each DAFA, DOD could not provide evidence that the annual budget  process includes a specific review of the continuing need for each  DAFA, or that the use of the DAFAs ensures the most efficient  provision of services across DOD. Through the development of internal guidance that provides  clear direction for conducting and recording DOD’s response to the  required review of the DAFAs, the department could more clearly define  or target the scope of those reviews and any resulting reports to make  effective use of the resources devoted to that process. Without clear internal guidance that defines the requirements for a high- quality review of its DAFAs and the associated recording of the results of  those reviews, DOD and congressional decision makers may not have  reasonable assurance that there is a continuing need for the DAFAs and  that the provision of services and supplies is effective, economical, and  efficient. Nevertheless, at least six organizations within  DOD, including three DAFAs and the three military departments, provide  human resources services to other defense agencies or organizations. Inefficient Overlap and Fragmentation Have Resulted in Negative Effects to the Department

The fragmentation and overlap among the DAFAs that provide human  resources services to other defense offices or organizations have resulted  in negative effects, such as inconsistent performance information,  inefficiencies resulting from fragmented information technology (IT)  systems, and inefficiencies related to overhead costs. Additionally, DOD officials stated that there are more than 800 learning  management systems employed across the department, which are used  to deliver training to personnel and store and record training records. With consistent human resources performance information, clear time  frames in place, and comprehensive information on overhead costs, the  team would be better positioned to thoroughly assess the department’s  system for human resources service delivery, and to develop and  implement long-term solutions for better coordination or consolidation of  this function. DOD Has Taken Some Steps to Monitor its Efficiency Initiatives but Does Not Consistently Establish a Baseline and Evaluate Results

DOD has taken some steps to monitor and evaluate the results of its  efficiency initiatives, but it has not consistently done so. For example, in the case of  DOD’s Core Business Process Review initiative, DOD has not evaluated  whether the effort achieved any of its intended savings or led to expected  efficiencies. Without  ensuring that efficiency initiatives are fully monitored and evaluated  against established baselines over time, DOD lacks a systematic basis for  evaluating whether its various initiatives have improved the efficiency or  effectiveness of its programs or activities. Conclusions

While DOD has long been required to periodically review the DAFAs to  ensure, among other things, that the provision of their services and  supplies are economical, efficient, and effective, it has relied on existing  processes to fulfill this requirement, rather than with comprehensive and  routine assessment. However, the  human resources management reform team has not collected  comprehensive information, such as performance information on hiring  time frames and overhead costs for providing human resources services  and time frames for these efforts, which would enable the department to  best address inefficiencies among the DAFAs that provide human  resources services. Appendix I: Objectives, Scope, and Methodology

This report evaluates the extent to which (1) the Department of Defense  (DOD) has assessed the continuing need for each defense agency and  DOD field activity (DAFA); (2) any overlap or fragmentation among the  DAFAs that provide human resources services has affected the delivery  of those services; and (3) DOD has monitored and evaluated the results  of its efficiency initiatives that affect the DAFAs.
Why GAO Did This Study

DOD spends billions of dollars annually to maintain business functions that support the warfighter. Many of these functions are performed by the DAFAs—DOD's 19 defense agencies and 8 field activities intended to provide department-wide consolidated support functions. GAO has previously identified instances of fragmentation, overlap, and duplication among the DAFAs.
Senate Report 115-125, accompanying a bill for the National Defense Authorization Act for Fiscal Year 2018, included a provision that GAO review the DAFAs. This report evaluates the extent to which (1) DOD has assessed the continuing need for each DAFA; (2) any overlap or fragmentation among the DAFAs that provide human resources services has affected service delivery; and (3) DOD has monitored and evaluated the results of its efficiency initiatives that affect the DAFAs. GAO reviewed legal requirements, assessed prior DOD reports, and analyzed DOD's human resources activities and documentation tracking past efficiency initiatives.

What GAO Found

The Department of Defense (DOD) does not comprehensively or routinely assess the continuing need for its defense agencies and DOD field activities (DAFAs). DOD was statutorily required to review the services and supplies each DAFA provides to ensure there is a continuing need for each and that the provision of services and supplies by each DAFA, rather than by the military departments, is more effective, economical, or efficient. A DOD directive requires the recording of the review. DOD previously issued biennial reports to Congress to record its review. Since 2012, DOD has relied on existing processes to fulfill the requirement; such as the annual budget process and the day-to-day management of the DAFAs. However, DOD did not provide sufficient evidence that these processes satisfy the statute. For example, while DOD reviews the DAFAs during the budget process, it does not specifically review the provision of services by the DAFAs rather than the military departments. Further, DOD does not have internal guidance that provides clear direction for conducting and recording its response to the statutory requirement. Without such guidance, DOD is limited in its ability to clearly define or target the scope of its reviews and any resulting reports. As such, DOD and congressional decision makers may not have reasonable assurance of a continuing need for the DAFAs, or that the provision of services and supplies is effective, economical, and efficient.
There is fragmentation and overlap within the DAFAs that provide human resources services to other defense agencies or organizations within DOD. At least six DOD organizations, including three DAFAs, perform human resources services for other parts of the department. One DAFA receives human resources services from all six organizations. This has resulted in negative effects, such as inconsistent performance information regarding hiring, fragmented information technology systems, and inefficiencies associated with overhead costs. For example, DOD officials stated that there are over 800 fragmented information technology systems used to store and record training records across the department, which are costly to maintain. DOD established a reform team to reduce inefficiencies within this business function. However, the team lacks comprehensive information on overhead costs that could guide reform and does not have time frames or deliverables for completing certain reform initiatives. With consistent human resource performance information, comprehensive information on overhead costs, and clear time frames in place, the team would be better positioned to thoroughly assess the department's system for human resources service delivery and develop and implement long-term solutions for better coordination or consolidation of this function.
DOD has taken some steps to monitor and evaluate the results of key efficiency initiatives that affect the DAFAs. However, DOD has not always established baselines or performed ongoing monitoring of its initiatives. Further, DOD has focused on whether steps have been taken, rather than outcomes achieved. For example, DOD did not evaluate whether a prior efficiency initiative called the Core Business Process Review achieved any of its intended savings or led to expected efficiencies. Without ensuring that efficiency initiatives are fully monitored and evaluated against established baselines over time, DOD lacks a systematic basis for evaluating whether its various initiatives have improved the efficiency or effectiveness of its programs or activities.

What GAO Recommends

GAO is making five recommendations, including for DOD to develop internal guidance to conduct and record its reviews of DAFAs; collect consistent performance information and comprehensive overhead cost information; establish time frames and deliverables for key reform efforts; and ensure routine and comprehensive monitoring and evaluation of ongoing efficiency initiatives. DOD concurred with GAO's recommendations.