SECDEF GATES PLAN TO REDUCE THE BUDGET (Part 2)

by H. Thomas Hayden on August 11, 2010

Yesterday, I covered the overall plan of SecDef to reform the way the Pentagon does business. Gates summarized his overall plan to reduce the budget as follows:

First, over the last decade the DoD has seen a dramatic increase in the use of service support and advisory contractors of all kinds, from 26 percent of the total DOD workforce cost in 2000 to 39 percent a year ago, not counting contractors supporting the war effort in Iraq and Afghanistan.

Second, and directly related to contractors, is the issue of the dramatic growth in size and expense in the Office of the Secretary of Defense, the Defense agencies and the combatant command staffs.

Third, the proliferation of new staff and more layers of bureaucracy is a natural consequence of the substantial increase in the most senior leadership, general and flag officers, career senior executives and political appointees requiring Senate confirmation. Over the past decade, the department has added to what was already a high historical baseline for senior personnel.  For example, since September 2001, the number of general and flag officers has grown by more than a hundred, including now 40 four-star positions. And the number of senior civilian executive positions has increased by more than 300. 

Fourth, there are great benefits to be gained in cost and efficiency from taking advantage of economies of scale.  The problem is that too many parts of the department, especially in the information technology arena, cling to separate infrastructure and processes.  All of our bases, operational headquarters and Defense agencies have their own IT infrastructures, processes and application ware. 

Fifth, this department is awash in taskings for reports and studies.  In 1970, the Pentagon produced a total of 37 reports for the Congress, a number that topped off at more than 700 reports in last year’s cycle. 

Sixth, the department has set up numerous outside boards and commissions — 65 in the case of OSD alone — to oversee DoD activities and provide independent advice. 

Seventh, it’s no great secret that, since September 11th, the U.S. Government has seen a proliferation in new intelligence organizations and operations.  This was partly due to the war on terrorism and partly due to massive intelligence requirements associated with fighting two wars. 

Eighth, the last decade has also seen a significant growth of new offices and organizations Networks and Information Integration including two new combatant commands and five new Defense agencies. DoD will eliminate the Office of Networks and Information Integration and the J-6 organizations. These functions will come under the chief information officer, or CIO, and under its umbrella responsibility for daily operations will be assigned to the Defense Information Systems Agency. 

Finally, the Joint Forces Command was originally established to infuse and to some degree compel jointness into everything the military does, especially through training, doctrine development and the provision of forces for operations. This has happened – all Services and Combatant Commands are well established in jointness. The responsibilities of JFCOM will be assumed by assignment of its force-management and sourcing functions to the joint staff. The activities to be assumed by the Services or other combatant commands is still under study.

In closing the SecDef said that this is about reforming and reshaping priorities to ensure that, in tough budgetary and economic times, we can focus defense resources where they belong:  in America’s fighting forces, investment in future capabilities and, most important, on our men and women in uniform.

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