United States General Accounting Office
GAO Report to the Senate and House
Committees on Armed Services and
Subcommittees on Defense, Senate and
House Committees on Appropriations
March 2003
DEFENSE
INFRASTRUCTURE
Personnel Reductions
Have Not Hampered
Most Commissaries’
Store Operations and
Customer Service
GAO-03-417
March 2003
DEFENSE INFRASTRUCTURE
Personnel Reductions Have Not
Highlights of GAO-03-417, a report to Hampered Most Commissaries’ Store
Senate and House Committees on Armed
Services and Subcommittees on Defense, Operations and Customer Service
Senate and House Committees on
Appropriations
In response to concerns about the The Defense Commissary Agency’s commissary operations and
impact of proposed cuts in the customer services have been maintained at the same level, and in some
Defense Commissary Agency’s cases improved, despite the recent reductions in workforce. As of
workforce, the House Armed December 31, 2002, the agency had completed most of its 3,047 planned
Services Committee placed in its personnel reductions in full-time positions. It accomplished this primarily
report on the Bob Stump National
Defense Authorization Act for
by achieving efficiencies or eliminating vacant positions in the stores. Only
Fiscal Year 2003 a requirement 122 employees have been separated and 341 retired as a result of the
that we evaluate the effect of the personnel cutbacks.
personnel reductions. Specifically,
we assessed (1) the status of A major focus of DeCA’s personnel reductions, as outlined in its strategic
personnel reductions and how they plan, was to reshape the workforce and develop a more efficient
have affected store operations and organization. We found that commissaries are making greater use of
customer service, and (2) whether part-time employees because of the reductions. This has allowed some
the agency uses a reliable stores to increase their operating hours to better meet customer needs. It
methodology to measure customer has also given store managers more flexibility in meeting workload
satisfaction with its commissaries. fluctuations. However, DeCA’s strategic plan does not include specific goals
for achieving a certain full-time/part-time workforce mix in stores. As a
result, the planned percentage of part-time positions varies widely by store.
We are recommending that the A recent customer satisfaction survey showed that commissary patrons
Under Secretary of Defense expressed high satisfaction with their overall shopping experience, as well
(Personnel and Readiness) require as with such key indicators as time waiting in line and convenient hours.
the Director of the Defense However, the managers of the smaller commissaries reported concerns over
Commissary Agency to: (1) update balancing workload and maintaining store operations.
the agency’s strategic plan to
include goals that identify the We found that the Commissary Customer Satisfaction Survey methodology
percentage of the store workforce is reasonable. However, some improvements in the analysis of survey data
that is expected to be full- and could ensure that the findings are more complete and consistent. Such
part-time, (2) reassess management
changes could include adjusting survey results for the volume of sales at
staffing for small stores, (3) adjust
customer survey results on the individual stores or for the number of shoppers who refuse to fill out the
basis of a store’s sales volume, questionnaire. Furthermore, the current survey does not collect information
(4) collect data on customers who on the number of, and reasons why, potential customers do not shop at their
refuse to fill out survey forms, and local commissaries.
(5) examine potential survey
methods to periodically determine
how many potential customers do Planned Personnel Reductions by Organizational Level
not shop at commissaries and the
Reductions in full-time positions
reasons why not. The Department
Fiscal year 2000
of Defense agreed with four of our
Organization baseline Planned Actual 12/31/02
five recommendations. It disagreed
Headquartersa 911 187 116
with the recommendation to
identify goals for the projected Regional offices 590 170 170
workforce mix. Stores 16,565 2,690 2,316
Total 18,066 3,047 2,602
www.gao.gov/cgi-bin/getrpt?GAO-03-417
Source: DeCA.
To view the full report, including the scope a
Includes field operating activities.
and methodology, click on the link above.
For more information, contact Barry Holman
at (202) 512-8412 or holmanb@gao.gov.
Contents
Letter 1
Results in Brief 2
Background 3
Personnel Reductions Have Not Hampered Most Commissaries’
Store Operations or Customer Satisfaction 4
Customer Satisfaction Survey Methodology Is Reasonable, but
Analysis Could Be Improved 10
Conclusions 11
Recommendations for Executive Action 12
Agency Comments and Our Evaluation 12
Scope and Methodology 13
Appendix I Commissary Customer Service Survey Questionnaire 16
Appendix II Comments from the Department of Defense 17
Tables
Table 1: Planned Personnel Reductions by Organizational Level 5
Table 2: Planned Personnel Reductions at Store Level, by Method 6
Table 3: Range of Percentages of Part-time Positions Planned by
Stores, by Region and by Store Band at the End of
Fiscal Year 2003 8
Table 4: Customer Satisfaction Scores on Recent Surveys, for
Product and Service Categories 9
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Page i GAO-03-417 Defense Infrastructure
United States General Accounting Office
Washington, DC 20548
March 6, 2003
Congressional Requesters
In January 2001, the Defense Commissary Agency (DeCA), which operates
276 stores in the United States and abroad for military personnel and
retirees, issued a strategic plan that outlined initiatives to reduce its unit
operating costs by 7 percent by fiscal year 2004. A major focus of the unit
cost reduction objective was to reshape the workforce by reducing
full-time positions and developing a more efficient organization. This plan
called for the elimination of over 3,000 full-time positions—about 2,700
in stores through efficiencies, closures, and contracting out some
functions and about 350 through efficiencies in the regional offices and
headquarters.1 The agency expects these actions to save about $82 million
without any loss of service to its customers.2 As a result of these savings,
DeCA reduced its fiscal year 2003 budget request.
In response to a requirement in the Committee on Armed Services House
of Representatives’ report accompanying the Bob Stump National Defense
Authorization Act for Fiscal Year 2003, we reviewed DeCA’s plan to reduce
personnel.3 Our objectives were to assess (1) the status of personnel
reductions and their effect on store operations and customer service, and
(2) whether the agency uses a reasonable methodology to measure
customer satisfaction.
1
The elimination is of full-time equivalent positions.
2
The reduction plan, which also includes savings through non-manpower reductions
such as utility and transportation costs, is to reduce DeCA’s appropriation by a total of
$137 million in fiscal year 2003 and reduce annual operating costs through the out years.
3
H. Rep. No. 107-436.
Page 1 GAO-03-417 Defense Infrastructure
DeCA’s store operations and customer service have been maintained
Results in Brief and in some cases improved despite the personnel reductions. As of
December 31, 2002, DeCA had eliminated 2,602, or 85 percent, of the
planned 3,047 full-time positions, mostly at the stores by implementing
new staffing standards or eliminating vacant positions; very few of these
employees have been separated from the agency by a reduction in force.
We found that greater use of part-time employees, as a result of the
reductions, has provided store directors with flexibility to meet workload
fluctuations and enabled some stores to increase their operating hours to
meet customer needs. However, DeCA’s strategic plan, which addresses its
force downsizing and reshaping initiatives, does not include specific goals
for achieving a certain full-time/part-time workforce mix in stores. As a
result, the planned percentage of part-time positions varies widely by
individual store and region. The November 2002 Commissary Customer
Service Survey showed scores stayed the same or increased slightly
compared to the past two surveys for overall high customer satisfaction,
and for such key indicators as time waiting in line and convenient hours.
However, managers of some small stores are having difficulty balancing
their workloads as a result of the reductions in management positions.
DeCA officials are aware of but have not yet identified a plan to address
the small store management issue.
DeCA’s Commissary Customer Service Survey methodology is a
reasonable approach to collect customer feedback. It adheres to standard
questionnaire design standards and seeks to survey shoppers in an
unbiased manner. However, some improvements in the analysis of the
survey data could be made to ensure that results are more precise and
consistent. For example, the agency does not explicitly adjust survey
results for actual store sales volumes or document the number of shoppers
who refuse to complete the survey questionnaire. Because these factors
are not considered, overall survey results could be distorted to some
degree. Furthermore, the current survey does not collect information on
the number of and reasons why, potential customers do not shop at
a commissary.
We are making recommendations to the Under Secretary of Defense
(Personnel and Readiness) to help DeCA achieve its strategic objective of
reshaping the workforce as well as improve its customer satisfaction
survey process. In comments on a draft of this report, the Department of
Defense agreed with four of our five recommendations. It disagreed with
our recommendation that the Under Secretary direct the Director, Defense
Commissary Agency, to update its strategic plan to include goals that
Page 2 GAO-03-417 Defense Infrastructure
identify the percent of store workforce that is expected to be full-
and part-time.
DeCA, headquartered at Fort Lee, Virginia, is the Department of Defense’s
Background designated agency for managing commissaries on a worldwide basis. A
Commissary Operating Board, which is comprised of representatives
from each of the military services, has day-to-day operational oversight
responsibilities for DeCA. The Under Secretary of Defense (Personnel
and Readiness) exercises overall supervision of the commissary system.
DeCA operates four regional offices that oversee the management of its
commissaries. Commissaries are located in 46 states and 14 foreign
countries. As of November 7, 2002, the agency had 276 stores and more
than 16,000 employees under its purview. Its annual sales in fiscal year
2002 amounted to about $5 billion.
In meeting its mission of providing groceries at a savings to the customer,
in the most efficient and effective manner possible, DeCA strives to
provide the lowest cost possible, charging patrons only for the cost of
goods plus a 5-percent surcharge.4 DeCA receives about $1 billion in direct
appropriations from Congress for its annual operating costs. These funds
pay for employees’ salaries, transportation, some above-store-level
information technology, and other expenses. DeCA also operates a resale
stock fund for the purchase and sale of products. To the extent that
savings in operating costs occur, they reduce the need for appropriated
funds. The savings in store operating costs do not have an effect on the
cost of merchandise sold to customers.
In January 2001, DeCA issued its current strategic plan. This plan included
objectives to reduce unit operating costs and reshape the workforce while
maintaining or improving customer service and satisfaction. A major focus
of the unit cost reduction objective was to reduce positions as well as
streamline operations and develop a more efficient organization. To
reshape the workforce, DeCA planned to determine the appropriate mix
of skills and expertise and the appropriate level of part-time employees
to carry out the reductions to reach a more efficient organization.
4
The funds generated by the surcharge are used to maintain and repair existing stores and
construct new facilities.
Page 3 GAO-03-417 Defense Infrastructure
DeCA conducts a biannual Commissary Customer Service Survey to
assess customer views of products and services. 5 A team appointed by
each store director administers the survey. Customers are systematically
selected while waiting in checkout lines. A predetermined number of
questionnaires are collected during three periods (morning, midday, and
evening) each day for 10 consecutive days during May and November each
year. The survey questions are multiple choice with space available for
written comments. See appendix I for a copy of the questionnaire. The
completed forms are mailed to DeCA headquarters for analysis, and
customer service scores are calculated for DeCA overall and for each
region and store.
Despite the workforce reductions, store operations and customer service
Personnel Reductions have been maintained at the same level, and in some cases improved.
Have Not Hampered DeCA has used various measures to eliminate 2,602 full-time positions, or
85 percent of the planned reductions as of December 31, 2002; very few
Most Commissaries’ employees have been separated from the agency. While downsizing and
Store Operations or reshaping were occurring, regional officials stated that they encouraged
store directors to use part-time positions to maintain store operations.
Customer Satisfaction DeCA officials stated the use of part-time employees has enabled store
directors to better manage workload fluctuations, expand hours of
operation, and thereby improve customer service. However, because
DeCA’s strategic plan does not include specific goals for achieving a
certain full-time/part-time workforce mix in stores, the planned percentage
of part-time positions varies widely by individual store and region. Despite
personnel reductions, scores for the customer satisfaction surveys
completed since DeCA began the personnel reductions show the same or
slightly increasing levels of customer satisfaction with the stores.
Notwithstanding the improvements, managers of small stores report
having difficulty balancing store operations and duties, as a result of the
reductions in the number of management positions.6
5
Prior to 2002, the survey was conducted once a year rather than twice annually.
6
DeCA categorizes its stores into six bands based on average monthly sales volume
and days of operation. Small stores are those with average monthly sales of less
than $1 million. Medium and large store categories have sales ranges from $1 million to
$2 million and $2 million and higher, respectively. A few medium stores have sales less
than $1 million.
Page 4 GAO-03-417 Defense Infrastructure
Savings Achieved Through DeCA is using workforce reductions as the primary means to achieve its
Personnel Reductions goal of reducing operating costs by fiscal year 2004. As table 1 shows,
DeCA plans to reduce its workforce by 3,047 full-time positions, a
decrease of 17 percent from its fiscal year 2000 staff. Of these positions,
the largest number (2,690) will come from reductions at the store level
while 187 will come from headquarters and 170 from regional offices.
Table 1: Planned Personnel Reductions by Organizational Level
Reductions in full-time positions
Fiscal year 2000
Organization baseline Planned Actual 12/31/02
a
Headquarters 911 187 116
Regional offices 590 170 170
Stores 16,565 2,690 2,316
Total 18,066 3,047 2,602
Source: DeCA.
a
Includes field operating activities.
As of December 31, 2002, DeCA had completed all of its workforce
reductions at the regional offices and 62 percent of its planned
headquarters’ reductions. It accomplished this by eliminating 137 vacant
positions (114 in headquarters and 23 in the regional offices). It reduced its
regional staff by another 147 positions through organizational changes and
other efficiencies, including closing two area offices in one region.
By the same date, DeCA had completed most of its planned workforce
reductions at the store level, eliminating 2,316, or 86 percent of the
2,690 positions that it had targeted. As table 2 indicates, most of the
planned store-level reductions (51 percent) are being achieved by
implementing efficiency measures within stores. Efficiencies are being
derived by implementing new staffing standards for each department
within a store based on sales volume and other measures. The remaining
reductions are accomplished by other methods, including eliminating
vacant positions, closing stores, and contracting out some functions.
Page 5 GAO-03-417 Defense Infrastructure
Table 2: Planned Personnel Reductions at Store Level, by Method
Method Number Percent
Achieve efficiencies through new staffing standards 1,374 51
Eliminate vacant positions 812 30
Close stores 361 13
Contract out 143 5
a
Total 2,690 99
Source: DeCA.
a
Percentages do not add to 100 due to rounding.
A breakdown of completed and planned workforce reductions at the store
level are as follows:
• 1,113 positions were eliminated by implementing the new store staffing
standards based on sales volume. The remaining 261 efficiency reductions
are planned in fiscal year 2003.
• 812 vacant positions were eliminated. A DeCA official stated that vacant
positions existed because stores had historically been funded at only
90 percent of their required staffing. The elimination of these positions
resulted in no personnel losses and produced no savings.
• 304 positions were eliminated as a result of 15 store closings. Closings can
stem from Base Realignment and Closure recommendations or Under
Secretary of Defense (Personnel and Readiness) approval of DeCA’s
recommendations from internal assessments. An additional 49 positions
will be eliminated at two stores scheduled to close in fiscal year 2003.7
• 87 positions were eliminated by contracting out such store functions as
receiving, handling, and stocking. An additional 30 positions at various
stores will be eliminated in this way in fiscal year 2003. The remaining
26 planned reductions were canceled to provide positions for a new
computer-aided ordering function.
Although DeCA had eliminated most of the planned 2,690 positions from
its stores by the end of 2002, only 122 store employees were separated
from the agency by a reduction in force and an additional 341 employees
retired. Other employees were reassigned or moved to lower graded
positions through the reduction process.
7
Stores at Rhein Main and Bad Aibling, both in Germany, are scheduled to close.
Page 6 GAO-03-417 Defense Infrastructure
Stores Plan Greater As part of the effort to reshape the workforce, all stores have begun to,
Reliance on Part-time or plan to, increase the use of part-time positions to manage workloads
Positions but Lack Specific and meet the needs of customers. However, since DeCA’s strategic plan
does not include specific goals for achieving a certain full-time/part-time
Goals for Workforce Mix workforce mix in stores, the planned percentage of part-time positions
varies widely by individual store and region.
The available data shows that the number of part-time positions in stores
has increased since the personnel reduction plan went into effect. For
example, the number of part-time employees rose by 8 percent in stores in
the Midwest region between April 2001 and October 2002. Store directors
told us that using part-time employees improved their ability to manage
fluctuations in store workloads more effectively. For example, a store
director said that part-time employees were used during weekends and
holidays to save money. Another store director pointed out that part-time
employees are available to work if there is work to do in a department or
cover a peak shopping period, but they can be sent home if the work is
completed. In addition, some store directors told us that a greater use
of part-time workers has allowed them to increase their store operating
hours. We found that 30 stores have increased their hours of operation by
relying more heavily on part-time employees. For example, one store with
a part-time workforce of nearly 60 percent increased its operating hours
by 6 hours a week.
In addition, current individual store plans call for a growth in the number
of part-time positions in stores as of the end of fiscal year 2003. The
Eastern and Midwest regions estimate that about 56 percent of their store
positions will be part-time, and the Western Pacific region estimates
46 percent of its store positions will be part-time. Table 3 shows the range
in the percentage of part-time positions that stores within each sales band
plan to employ.
Page 7 GAO-03-417 Defense Infrastructure
Table 3: Range of Percentages of Part-time Positions Planned by Stores, by Regiona
b
and by Store Band at the End of Fiscal Year 2003
Eastern Midwest Western Pacific
Store band region region region
1 25-100 7-67 14-45
2 28-71 45-68 47-57
3 41-56 24-61 7-67
4 27-72 34-71 21-65
5 34-76 42-78 24-64
6 40-70 50-67 23-66
Average part-time
positions in region 53 56 46
Source: DeCA.
a
The European Region was not included in the scope of work.
b
Stores are categorized into six bands according to their average monthly sales volume and days of
operation.
As table 3 shows, the planned percentage of part-time positions varies
widely by individual store and region. For example, one Eastern region
store expects to convert all of its store positions to part time while another
store in the Western Pacific region plans to have only 7 percent of its
workforce as part time. While some stores are close to the 75 to 80 percent
industry average for part-time positions in commercial grocery stores,
the overall regional average of part-time positions indicates that there
are opportunities to achieve more efficiencies through greater use of
part-time positions.
Store directors have the flexibility of changing the mix of full-time and
part-time positions in their stores. Some store directors told us they used
part-time positions primarily to meet their budget goals. One store director
said that part-time positions were created to meet the store’s budget and
that there were no plans to increase part-time positions in the store once
the needed reductions were made. However, nearly all of the store
directors we interviewed said that they could operate their stores with
more part-time positions rather than full-time positions. As indicated
earlier, they recognized that part-time positions provide flexibility to
manage workload fluctuations more effectively. A regional director said
that agencywide goals for part-time workers need to be incorporated into
the strategic plan to optimize agency efforts to reshape the workforce.
Page 8 GAO-03-417 Defense Infrastructure
Customer Satisfaction According to recent surveys, customer satisfaction with commissary
Remains High Despite stores has shown a modest, but steady, improvement between
Workforce Reductions October 2001 and November 2002, the period when personnel reductions
were being made. These improvements were registered in the overall
score, ranging from 4.33 to 4.39, as well as in specific products and service
categories. Table 4 includes results for 6 of the 14 questions, as well as the
overall score.
a
Table 4: Customer Satisfaction Scores on Recent Surveys, for Product and
Service Categories
October May November
Category 2001 2002 2002
Produce quality/selection 4.22 4.26 4.27
Meat quality/selection 4.30 4.35 4.37
Checkout waiting time 4.34 4.39 4.39
Convenient hours 4.33 4.36 4.38
Courteous, friendly and helpful
employees 4.64 4.64 4.66
Overall satisfaction 4.49 4.52 4.53
Overall score 4.33 4.38 4.39
Source: DeCA.
Note: DeCA also collects data on bakery and deli operations, which are both operated by contractors.
a
Scores are based upon a scale of 1 (very poor) to 5 (very good).
These scores reflect continuing satisfaction including those likely to
be most immediately affected by changes in personnel levels such as
checkout waiting time.
Reductions in Management As part of the effort to reshape the workforce, many directors of small
Positions at Small Stores Is stores (bands 1 and 2) told us they had to eliminate one managerial
Causing Some Concerns position. Small stores that have less than $60,000 in average monthly sales
were required to reduce the number of managers to one manager. Small
stores with $60,000 to $500,000 in average monthly sales had to reduce
their number to two managers. The managers of 15 of the 28 band 1 stores
told us that they are having difficulties balancing store operations with
their own managerial and administrative duties along with doing the
work of absent employees. Some store directors said they typically
Page 9 GAO-03-417 Defense Infrastructure
have to work more than 40 hours a week to perform all these duties.8
Eighty-seven percent of these 15 band 1 stores are open more than
40 hours a week. Because DeCA policy requires that a manager be present
in the store when it is open for customers, when the second manager or
an employee is absent, the on-duty manager has to carry his/her own
workload and administrative functions, as well as the load of the absent
manager or employee, typically working over the usual 40-hour work
week. DeCA headquarters officials have recognized the concerns raised by
managers in small stores and the need to balance their overall workload
but have not yet developed a plan for doing so.
Overall, DeCA’s customer satisfaction survey methodology is a
Customer Satisfaction reasonable approach to obtain customer feedback. It adheres to standard
Survey Methodology questionnaire design principles, and attempts to select shoppers in an
unbiased fashion. However, some improvements in the analysis of survey
Is Reasonable, but data could be made to provide more precise and complete customer
Analysis Could information. For example, it could adjust survey results for actual sales
volumes, or report and possibly adjust for shoppers who refuse to
Be Improved complete the survey questionnaire. Because these factors are not
considered, overall survey results could be distorted to some degree.
Furthermore, the current survey does not collect information on the
number of service members who do not shop at a commissary and reasons
why they do not.
Weighting Survey DeCA’s current methodology appropriately attempts to obtain more survey
Responses by responses from stores with higher sales volumes than stores with smaller
Current Sales Volume sales volumes. DeCA places commissaries into three groups according to
sales volume. They do this so that survey responses of customers in
Categories May Give greater sales volume stores receive more emphasis than those in lower
Incomplete Results volume stores. For example, stores in the largest sales volume group are
required to collect 150 responses, stores in the next largest sales group
collect 100 responses, and those in the lowest sales volume group collect
50 responses. However, sales volume can vary significantly among the
stores in the same group as well as between groups. A more precise
methodology would entail weighting survey responses by the relative sales
volume of individual stores. This approach could help DeCA avoid
8
The management staffing standards show store management structure based on sales
volume. Managers of small stores typically manage from 3 to 40 employees.
Page 10 GAO-03-417 Defense Infrastructure
potential over- or underreporting of survey results, and evaluate changes
in survey results that may be impacted by changes in sales volume.
Number of DeCA does not document the number of customers who refuse to
Non-respondents Needs participate in the customer satisfaction survey. DeCA officials told us
to Be Recorded that most customers selected to participate in the survey willingly
respond, but they acknowledge that documenting the number of
non-respondents would enhance survey reporting. Survey literature
indicates that even nominally low levels of non-responses can influence
the interpretation of survey results. There may be a particular sub-group
of customers that does not respond to the questionnaire and that would
not be reflected in DeCA results. By not adjusting for non-response,
DeCA is assuming that respondents have similar satisfaction scores as
non-respondents. Also, by collecting data on non-respondents, the agency
may be able to determine if the results omit customer subgroups whose
opinions may be important. For example, some dependents of service
personnel may not feel comfortable participating in the survey because of
language barriers.
Assessing Why Eligible DeCA does not conduct systematic assessments of the number and types
Shoppers Do Not Shop of personnel who do not shop at commissaries. The customer satisfaction
at Commissaries survey is conducted in the stores, and thus reflects the views of those who
shop at the commissaries. They do not capture the views of those who do
not shop there. Although DeCA’s strategic plan addresses the need to
attract more military personnel to use the commissary, DeCA officials do
not know to what extent eligible customers are not shopping at a
commissary and the reasons why not.
Realignment of the workforce, through greater use of part-time employees,
Conclusions has enabled many stores to increase their operating hours and maintain
or improve customer service. However, DeCA’s strategic plan does not
include specific goals for the full-time/part-time workforce mix. As a
result, the extent of part-time employees varied among the stores and is
significantly less than current industry practice. Opportunities to achieve
even more efficiencies may exist through greater use of part-time
positions. In addition, small store directors have concerns about balancing
their workload and maintaining store operations. Although DeCA’s
customer satisfaction survey questionnaire is reasonable, survey results
could be subject to some under- or over- stated because the current
methodology does not explicitly weight stores’ results by sales volume and
Page 11 GAO-03-417 Defense Infrastructure
does not collect data on non-responding customers. Finally, DeCA
does not know how many eligible service members do not shop at a
commissary and the reasons they do not.
We recommend that the Under Secretary of Defense (Personnel and
Recommendations for Readiness), in consultation with the Chairman, Commissary Operating
Executive Action Board, require the Director, Defense Commissary Agency, to
• update the strategic plan to include goals that identify the percent of
the store workforce that is expected to be full- and part-time to
achieve further efficiencies from reshaping the workforce;
• reassess the management reductions at small stores to ensure managers
can balance their workload and maintain store operations;
• adjust the customer survey results on the basis of sales volume and
customer expenditure data;
• document the number of survey non-respondents and their reasons for not
completing the questionnaire; and
• examine potential methods and analyses to periodically determine how
many and why eligible personnel do not shop at commissaries, to identify
ways to improve service and increase the number of potential customers
using the commissary benefit.
In commenting on a draft of this report, the Under Secretary of
Agency Comments Defense (Personnel and Readiness) concurred with four of our five
and Our Evaluation recommendations and outlined actions to be taken to address the four
recommendations the department concurred with. He disagreed with our
recommendation that the Defense Commissary Agency update its strategic
plan to include goals that identify the percent of the store workforce that
is expected to be full- and part-time, expressing the view that staff in
Washington should not prescribe the full-part-time mix for stores. The
intent of our recommendation was not for the Under Secretary to
prescribe the workforce mix for stores but rather have the Defense
Commissary Agency include agencywide goals on the projected workforce
mix in its strategic plan to help achieve the goal of reshaping the
workforce. Rather than being arbitrary or prescriptive, such goals, if based
on considered research or best practices, could provide an important term
of reference to guide staffing decisions at the local level to optimize
organizational performance and cost effectiveness. We continue to believe
the recommendation is an appropriate one for the Defense Commissary
Agency to implement. The department’s comments are reprinted in
appendix II.
Page 12 GAO-03-417 Defense Infrastructure
We performed our work at DeCA headquarters located at Fort Lee,
Scope and Virginia, and DeCA’s three regional offices in the continental United States
Methodology (the Eastern Regional Office in Virginia Beach, Virginia; the Midwest
Regional Office in San Antonio, Texas; and the Western Pacific Regional
Office in Sacramento, California). Due to travel costs and time constraints,
we did not do any work at the European Regional Office in Germany;
however, the total number of reductions shown for DeCA does include
positions in the European Region.
To determine the status of DeCA’s personnel reduction plan, we
obtained data from DeCA headquarters and each regional office on the
number of reductions planned by region by store as well as made as of
December 31, 2002. We also analyzed reduction-in-force data to determine
the actual or estimated impact on store employees. We also reviewed
DeCA’s strategic plan to document DeCA’s plans for reducing unit
operating costs and reshaping the workforce. We did not validate the cost
savings reported by DeCA.
To determine how store operations and customer service have been
affected by the personnel reductions, we interviewed officials at DeCA
headquarters and the three regional offices in the United States. We
also interviewed store directors at eight stores that were near the
Eastern and Midwest regional offices. In addition, we also conducted
telephone interviews with either the store directors or managers for
38 band 1 and 2 stores in the continental United States (defined as
having average monthly sales volume of less than $1 million), resulting in
interviews of all 41 band 1 and 2 stores in the continental United States.
We also determined the planned use of part-time positions by each store in
the three regional offices visited. Finally, we also reviewed and discussed
the Commissary Customer Service Survey results for the surveys
conducted in October 2001 and May and November 2002, to identify
changes in the satisfaction scores as the personnel reductions were
being implemented.
To determine if the DeCA customer satisfaction survey methodology is
reasonable, we reviewed DeCA’s questionnaire and methodology and
contrasted these to standard questionnaire design and statistical sampling
procedures used in industry and government research. We also
interviewed DeCA officials responsible for administering the survey
regarding their analysis of survey results. We also observed the survey
being conducted at the Fort Myer store in Virginia in November 2003.
Page 13 GAO-03-417 Defense Infrastructure
We conducted our review from July 2002 through January 2003 in
accordance with generally accepted government auditing standards.
We are sending copies of this report to the Secretary of Defense; the
Under Secretary of Defense (Personnel and Readiness); the Chairman,
Commissary Operating Board; Director, Defense Commissary Agency; and
the Director, Office of Management and Budget. In addition, the report will
be available at no charge on GAO’s Web site at www.gao.gov and to others
upon request.
Please contact me at (202) 512-8412 if you or your staff have any
questions concerning this report. Major contributors to this report
were Michael Kennedy, Leslie Gregor, Betsy Morris, Curtis Groves,
and Nancy Benco.
Barry W. Holman
Director, Defense Capabilities
and Management
Page 14 GAO-03-417 Defense Infrastructure
List of Congressional Committees
The Honorable John Warner
Chairman
The Honorable Carl Levin
Ranking Minority Member
Committee on Armed Services
United States Senate
The Honorable Ted Stevens
Chairman
The Honorable Daniel K. Inouye
Ranking Minority Member
Subcommittee on Defense
Committee on Appropriations
United States Senate
The Honorable Duncan Hunter
Chairman
The Honorable Ike Skelton
Ranking Minority Member
Committee on Armed Services
House of Representatives
The Honorable Jerry Lewis
Chairman
The Honorable John P. Murtha
Ranking Minority Member
Subcommittee on Defense
Committee on Appropriations
House of Representatives
Page 15 GAO-03-417 Defense Infrastructure
Appendix I: Commissary Customer Service
Appendix I: Commissary Customer Service
Survey Questionnaire
Survey Questionnaire
Page 16 GAO-03-417 Defense Infrastructure
Appendix II: Comments from the Department
Appendix II: Comments from the
of Defense
Department of Defense
Page 17 GAO-03-417 Defense Infrastructure
Appendix II: Comments from the Department
of Defense
Page 18 GAO-03-417 Defense Infrastructure
Appendix II: Comments from the Department
of Defense
(350243)
Page 19 GAO-03-417 Defense Infrastructure
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Defense Infrastructure: Personnel Reductions Have Not Hampered Most Commissaries' Store Operations and Customer Service
Published by the Government Accountability Office on 2003-03-06.
Below is a raw (and likely hideous) rendition of the original report. (PDF)