oversight

Defense Management: Opportunities Exist to Improve Information Used in Monitoring Status of Efficiency Initiatives

Published by the Government Accountability Office on 2012-12-04.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

United States Government Accountability Office
Washington, DC 20548




        December 4, 2012

        Congressional Committees

        Subject: Defense Management: Opportunities Exist to Improve Information Used in Monitoring
        Status of Efficiency Initiatives

        In May 2010, 1 the Secretary of Defense publicly announced that the Department of Defense
        (DOD) was to undertake a department-wide initiative to assess how the department is staffed,
        organized, and operated with the goal of reducing excess overhead costs and reinvesting
        those savings in sustaining DOD’s current force structure 2 and modernizing its weapons
        portfolio. The Secretary’s initiative targeted both short- and long-term improvements and set
        specific goals and targets for achieving cost savings and efficiencies, which are expected to be
        achieved between fiscal years 2012 and 2016. As part of this effort, the Secretary of Defense
        tasked the military departments and other components, including U.S. Special Operations
        Command (SOCOM), to find savings of about $100 billion in overhead costs over the specified
        time period. On January 6, 2011, the Secretary of Defense publicly stated that while about
        one-third of these savings would be used to fund higher-than-expected operating costs, the
        remaining two-thirds—over $70 billion—would be reinvested in high-priority military capabilities
        over five years. Of this amount, around $11 billion was projected to be achieved in fiscal year
        2012 and available for reinvestment.

        Information accompanying DOD’s fiscal year 2012 budget request outlined specific efficiency
        initiatives identified by the military departments and SOCOM. Prior to the beginning of fiscal
        year 2012, DOD’s Comptroller and Deputy Chief Management Officer (DCMO) began
        developing an approach for entities, including the military departments and SOCOM, to track
        and report on their efforts to implement efficiency initiatives and realize savings. In information
        accompanying its fiscal year 2013 budget request, DOD identified additional efficiency
        initiatives expected to generate $60 billion in savings for the period of fiscal years 2013 to
        2017.

        The National Defense Authorization Act for Fiscal Year 2012 required GAO to assess the
        extent to which DOD has tracked and realized the savings proposed pursuant to the initiative
        to identify at least $100 billion in efficiencies during fiscal years 2012 through 2016. 3 This
        report addresses (1) the extent to which the military departments and SOCOM have taken
        steps to internally track the implementation of their efficiency initiatives, and (2) DOD’s

        1
          Remarks as delivered by former Secretary of Defense Robert M. Gates, Abilene, Kansas, May 8,
        2010.
        2
          Force structure is the number, size, and composition of units that comprise U.S. defense forces (e.g.,
        divisions, brigades, ships, air wings, and squadrons).
        3
          Pub. L. No. 112-81, § 1054 (2011). Under this section, GAO is required to conduct this assessment
        and submit a report yearly for each of fiscal years 2012 through 2016. See id. We provided a draft of
        this report to your offices on October 30, 2012, to satisfy the requirement for fiscal year 2012.


        Page 1                                                              GAO-13-105R Defense Management
progress in developing an approach for reporting on the status of efficiency initiatives on a
department-wide basis.

To determine the extent to which the military departments and SOCOM have internally tracked
the implementation of their efficiency initiatives, we reviewed programmatic and financial data,
such as progress reports and budgetary documents, that included information on the status of
the efficiency initiatives. To determine DOD’s progress in developing an approach for reporting
on the status of efficiency initiatives on a department-wide basis, we identified DOD guidance
and mechanisms established to capture data on the efficiency initiatives. We also analyzed
financial and program information contained in existing databases, progress reports, and
briefing documents compiled for senior DOD decisionmakers. We assessed DOD’s approach
for reporting information using prior GAO reports on best practices for reporting information
internally and also relied on other GAO reports that focused on specific efficiency initiatives at
DOD and other agencies. For both of our objectives, we interviewed officials within the Office
of the Secretary of Defense, including the offices of the Comptroller and DCMO, the military
departments, and SOCOM.

To gain a better understanding of how the military departments and SOCOM internally tracked
implementation of their respective initiatives, we selected a nongeneralizable sample of seven
individual efficiency initiatives, including two each from the Army, Air Force, and Navy, and
one from SOCOM. We designed the case study sample to ensure that a range of efficiency
initiatives were represented in terms of the type of programs and chose initiatives that had
estimated savings in fiscal year 2012. For the initiatives selected, we reviewed program and
financial data and the processes used within the military departments and SOCOM to track,
monitor, and report on the status of these initiatives. We also interviewed officials who
implemented the programmatic actions associated with the efficiency initiatives and monitored
the progress of implementation. We discuss our scope and methodology in more detail in
enclosure I.

We conducted this performance audit from January 2012 to December 2012 in accordance
with generally accepted government auditing standards. Those standards require that we plan
and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis
for our findings and conclusions based on our audit objectives. We believe that the evidence
obtained provides a reasonable basis for our findings and conclusions based on our audit
objectives.

Summary

The military departments and SOCOM have taken various steps to track the implementation of
their efficiency initiatives. For example, prior to or during fiscal year 2012, they identified
necessary programmatic actions to implement initiatives and began to carry out these actions,
such as reassigning personnel from organizations being consolidated and terminating weapon
system programs. They also set up approaches for senior officials to review progress,
including using existing governance structures as a means for officials to review relevant
financial and programmatic information, such as expected completion dates for actions related
to implementing the initiatives and progress in meeting estimated savings targets. To track
savings related to the initiatives, the military departments and SOCOM identified the
appropriation accounts and areas within these accounts from which they expected to achieve
savings, the specific dollar amounts, and areas where savings were to be reinvested. They
also took actions intended to prevent reinvestments in the areas from which savings were



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taken, such as issuing guidance that required internal justification or approval before changes
to efficiencies could occur.

DOD has developed an approach for the military departments and SOCOM to follow in
reporting information on the status of efficiency initiatives; however, DOD’s approach has
some limitations that result in incomplete reporting, which may limit the visibility of senior
leaders in monitoring progress in achieving programmatic and financial goals. Specifically, in
emails, briefings, and training, the offices of the DCMO and Comptroller directed the military
departments and SOCOM to compile information on their efficiency initiatives, such as risk,
implementation status, and realized savings, enter this data into a database, and also prepare
briefings for senior leadership using some of the same types of information entered into the
database. DCMO and Comptroller officials stated that they are primarily interested in
maintaining visibility for senior leaders over high- and medium-risk initiatives, but gave the
military departments and SOCOM flexibility to report on the efficiency initiatives that they felt
were important. In practice, the Army, Air Force, and SOCOM have reported on all of their
efficiency initiatives, while the Navy has reported on only a subset of its initiatives based on
what it deems to be at medium or high risk of experiencing implementation issues or adversely
affecting the Navy’s ability to carry out its mission.

With respect to reporting on realized savings, Comptroller officials stated that reported data on
realized savings was expected to reflect net savings. However, the general directions did not
specify whether the military departments and SOCOM should include all of the costs
associated with implementing their efficiency initiatives, including costs not initially identified.
For the case studies we reviewed, the military departments and SOCOM reported they were
on track to realize estimated savings, but we found some instances where certain costs were
not considered. For example, for its initiative to reduce fleet shore command personnel from
U.S. Pacific Fleet and U.S. Fleet Forces Command, the Navy did not account for potential
increases in relocation costs for moving fleet shore command personnel from U.S. Pacific
Fleet and U.S. Fleet Forces Command to other areas within the Navy.

We have previously reported that a process with written guidance for monitoring achieved
savings from efficiency initiatives can help organizations measure actual performance against
planned results. 4 In addition, a key part of ensuring that the information being measured is
reportable in a consistent fashion is using standardized definitions and methodologies. 5
Without guidance that clearly outlines the information to be provided, DOD cannot be assured
that senior leaders are getting complete information needed to enhance their visibility over the
status of efficiency initiatives. GAO is recommending that DOD develop guidance with
standardized definitions and methodologies for the military departments and SOCOM to use in
reporting their efficiency initiatives and savings. In commenting on a draft of our report, DOD
generally concurred with our recommendation and stated that prior to the next round of
briefings in the February 2013 timeframe, it plans to issue additional formal guidance. Our
comments on DOD’s letter are on page 12 and DOD’s comments are reprinted in enclosure III.
The department also provided technical comments on our draft report, which we incorporated
as appropriate.



4
  GAO, VA Health Care: Methodology for Estimating and Process for Tracking Savings Need
Improvement, GAO-12-305 (Washington, D.C.: Feb. 27, 2012).
5
  GAO, Defense Inventory: Actions Underway to Implement Improvement Plan, but Steps Needed to
Enhance Efforts, GAO-12-493 (Washington, D.C.: May 3, 2012).


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Background

As part of its fiscal year 2012 budget request, DOD outlined savings of about $178 billion to be
realized over a 5-year time period beginning in fiscal year 2012. According to DOD, these
savings included about $154 billion of savings from the Secretary’s initiative and $24 billion
from other sources. The savings are as follows.

     •        The military departments and SOCOM identified a total of $100 billion in savings as a
              result of their efforts to support the Secretary’s initiative. A majority of the projected
              savings identified by the military departments and SOCOM (approximately $70 billion,
              or 70 percent) is planned to be reinvested in high-priority military needs—such as
              enhancing weapon systems—while the remainder is planned to be used to address
              operating costs resulting from areas such as health care and training.

     •        In addition to the $100 billion in savings from the military departments and SOCOM,
              the department proposed a $78 billion reduction in its overall budget plan over a 5-year
              time period, covering fiscal years 2012 through 2016, which reflects a 2.6 percent
              reduction from DOD’s fiscal year 2011 budget submission over the same time period.
              Of this amount, $54 billion reflected projected savings identified from a health care
              policy assessment, governmentwide civilian pay freeze, and other specific areas
              identified by the Secretary where immediate action could be taken department-wide.
              The remaining $24 billion reflected revised economic assumptions, projected savings
              from restructuring the Joint Strike Fighter weapon program, and projected savings from
              reducing the size of the Army and Marine Corps.

Information accompanying the budget request catalogued the $100 billion in savings from the
military departments and SOCOM under the following four categories:

     •        reorganizations, such as restructuring headquarters management and eliminating
              unneeded task forces;

     •        better business practices, such as reducing energy consumption;

     •        program reductions and terminations, such as terminating weapon system programs;
              and

     •        reductions in lower priority programs, such as shifting funding requests from military
              construction projects to base operations.

Table 1 shows the specific amounts of projected cost savings reported for each category and
organization.

Table 1: Projected Savings Identified by the Military Departments and SOCOM Under the Secretary of
Defense’s Efficiency Initiative (Fiscal Years 2012 through 2016)
Dollars in billions                                            Fiscal years 2012-2016
Category of reduction                   Army          Navy          Air Force      SOCOM      Total for
                                                                                              fiscal years
                                                                                              2012-2016
Reorganizations                                  5.4          15.4            4.2          0           25.0
Better business practices                       10.3          14.1           20.6         .4           45.4
Program reductions/terminations                 11.0           5.5            3.7        1.3           21.5
Reductions in lower priority programs            2.8             0            4.8         .6            8.2
Total                                           29.5            35           33.3        2.3          100.1
Source: DOD




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Officials stated that after DOD submitted its fiscal year 2012 budget request, the DCMO and
the Under Secretary of Defense (Comptroller)/Chief Financial Officer were assigned as the co-
leads for developing an approach to track and report the implementation of the efficiency
initiatives, including the initiatives identified by the military departments and SOCOM. 6

Under the Consolidated Appropriations Act for 2012, the Secretary of Defense was required to
submit a report to the congressional defense committees on the $100 billion in savings that
derived from the efficiency initiatives identified by the military departments. 7 Among other
things, the Act required the Secretary to report on the following:

    •    the budget account from which each savings identified will be derived;

    •    the number of military personnel and full-time civilian employees of the Federal
         Government affected by such savings;

    •    the estimated reductions in the number and funding of contractor personnel caused by
         such savings;

    •    a specific description of activities or services that will be affected by such savings,
         including the locations of such activities or services; and

    •    certain information regarding each reinvestment planned to be funded with efficiency
         initiative savings. 8

In June 2012, DOD submitted its report to the defense committees and provided at least some
information on the categories above. Among other things, DOD reported that, at that point in
time, it was on track to meet estimated savings targets for all of its initiatives. However, the
report did not include a comprehensive analysis of reinvestments because, according to
DOD’s report, many areas in which reinvestments had occurred due to the efficiency initiatives
included in the fiscal year 2012 President's Budget request had been offset by major force
structure changes and other reductions in its fiscal year 2013 budget request.

We have previously reported on opportunities for federal agencies to improve reporting on cost
savings and efficiencies. For example, in March 2008, we reported that it is important to
update and track base realignments and closures savings over time in order to judge the
financial performance of the realignment and closure recommendations and make adjustments
as necessary to achieve savings goals. 9 In September 2011, we reported that federal
6
  In a statement submitted for a March 2011 testimony before the Senate Armed Services Committee,
Subcommittee on Readiness, the DOD Comptroller/Chief Financial Officer stated that within the Office
of the Secretary of Defense, the Under Secretary of Defense (Comptroller) and DCMO would work
together to monitor compliance and report successes and problems to the Deputy Secretary of Defense,
DOD’s Chief Management Officer. Notably, DOD Directive 5118.03, Under Secretary of Defense
(Comptroller)/Chief Financial Officer, Department of Defense (USD(C)/CFO) (Apr. 20, 2012), assigns
broad responsibility to the Comptroller and DCMO to conduct analyses aimed at increasing the
efficiency of defense spending.
7
  See Pub. L. No. 112-74, § 8123 (2011). Although the provisions do not discuss SOCOM, DOD’s report
included similar information for the command.
8
  See § 8123(1), (2).
9
  GAO, Military Base Realignments and Closures: Higher Costs and Lower Savings Projected for
Implementing Two Key Supply-Related BRAC Recommendations, GAO-08-315 (Washington, D.C.:
Mar. 5, 2008).


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agencies can benefit from having top-level attention placed on tracking the progress of their
efficiency efforts. 10 In a February 2012 report on the Department of Veterans Affairs efficiency
initiatives, we recommended that the department develop a detailed process with written
guidance for tracking achieved savings from its efficiency initiatives. 11 We also found in March
2012 that, as part of the Secretary’s efficiency initiative, DOD has taken some steps to
examine its headquarters resources for efficiencies, but an underlying challenge facing DOD is
that it does not have complete and reliable headquarters information available for making
efficiency assessments and decisions. 12 In July 2012, we reported that, as part of the
Secretary’s efficiency initiative, the Air Force estimated it could save about $1.7 billion in its
training program by reducing live flying hours and taking other steps, such as increasing the
use of virtual training, but it lacks a methodology for determining the costs of virtual training
and therefore did not consider these costs in its estimate. 13

The Military Departments and SOCOM Have Taken Steps to Internally Track Their
Efficiency Initiatives

The military departments and SOCOM have taken various steps to internally track the
implementation of their efficiency initiatives. For example, prior to or during fiscal year 2012,
they identified programmatic actions needed to implement initiatives and began to carry out
those actions; developed approaches to review the progress of the efficiency initiatives using
existing governance structures; and tracked the savings associated with the efficiency
initiatives. We analyzed seven specific case studies to determine how the military departments
and SOCOM applied these steps. Table 2 shows the seven case studies with their realized
savings for fiscal year 2012 as reported by DOD and projected savings for fiscal years 2012
through 2016.

Table 2: Case Study Efficiency Initiatives with Reported Fiscal Year 2012 Savings Amounts and Projected
Savings Amounts through Fiscal Year 2016
Component         Title of Initiative                       Reported Fiscal Year     Projected Savings
                                                            2012 Savings             Through Fiscal Year
                                                                                     2016
Army              Termination of Non-Line of Sight          $605 million             $3.2 billion
                  Launch System
                  Reduction of recruiting and retention     $796 million             $5.9 billion
                  incentives
Navy              Reduction of fleet shore command          $88.3 million            $858.1 million
                  personnel at U.S. Pacific Fleet and U.S.
                  Fleet Forces Command
                  Merger of U.S. Fleet Forces Command       $10.5 million            $100.8 million
                  and U.S. Second Fleet staff
Air Force         Consolidation of air and space            $0.1 million             $96.3 million
                  operations centers and inactivation of
                  numbered air forces
                  Reduction in training costs               $268 million             $1.7 billion
SOCOM             Development of new framework for its      $67 million              $368 million
                  information technology contracts
Source: DOD


10
   GAO, Streamlining Government: Key Practices from Select Efficiency Initiatives Should Be Shared
Governmentwide, GAO-11-908 (Washington, D.C.: Sept. 30, 2011).
11
   GAO-12-305.
12
   GAO, Defense Headquarters: Further Efforts to Examine Resource Needs and Improve Data Could
Provide Additional Opportunities for Cost Savings, GAO-12-345 (Washington, D.C.: Mar. 21, 2012).
13
   GAO, Air Force Training: Actions Needed to Better Manage and Determine Costs of Virtual Training
Efforts, GAO-12-727 (Washington, D.C.: July 19, 2012).


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Enclosure II includes further details on the steps taken by the military departments and
SOCOM to track their implementation of the efficiency initiatives we reviewed for our case
study. The following paragraphs summarize these steps and highlight some examples.

For the case studies we reviewed, the military departments and SOCOM have identified and
begun implementing the programmatic actions necessary to achieve the efficiency initiatives.
For example, in one of our case study initiatives—the Navy’s initiative to reduce fleet shore
command personnel at U.S. Pacific Fleet and U.S. Fleet Forces Command—U.S. Pacific Fleet
and U.S. Fleet Forces Command selected the positions to reduce. According to officials, the
Navy’s Office of Manpower, Personnel, Training, and Education then removed these positions
from the Navy’s manpower database, and the Navy Personnel Command reassigned the
personnel from these positions to other areas within the Navy. The Navy’s Office of
Manpower, Personnel, Training, and Education calculated the savings associated with this
efficiency initiative by reviewing the rank and salary data for these positions and removed
these savings from the appropriate program elements in their budget.

In addition, the military departments and SOCOM have developed approaches to periodically
review the progress of the efficiency initiatives—such as expected completion dates for actions
related to implementing the initiatives and progress in achieving planned savings—through
their existing internal governance organizations. For example, the Army’s Planning,
Programming, and Budgeting Council of Colonels reviews the implementation of the Army’s
efficiency initiatives on a monthly basis and the Assistant Secretary of the Army (Financial
Management and Comptroller) and Army DCMO receive quarterly updates on selected
initiatives. As another example, officials in the Office of the Air Force DCMO review monthly
updates on the Air Force’s efficiency initiatives, which they use to update other Air Force
entities and senior officials, such as the Under Secretary of the Air Force and the Vice Chief of
Staff of the Air Force.

Finally, the military departments and SOCOM have also tracked the savings associated with
the efficiency initiatives. Specifically, they have identified the appropriation accounts and
budget categories within these accounts—referred to as sub-activity groups—from which they
expected to achieve savings, the dollar amount of those savings, and the areas where those
savings were to be reinvested. For example, the Air Force reinvested $381 million of its
savings from the efficiency initiatives from various sub-activity groups into its air operations
training sub-activity group. The military departments and SOCOM have also taken action
intended to prevent reinvestment in the areas reduced as a result of the efficiency initiatives.
Specifically, according to officials and documentation, the military departments and SOCOM
require that reinvesting in an area reduced as a result of the efficiency initiatives must receive
internal justification or approval. For example, Army budget guidance indicates that any
changes to the efficiencies must be approved by Army’s Planning Program Budget Committee.

DOD Has Taken Steps to Collect Information Department-wide on the Status of
Initiatives but Its Approach Does Not Ensure That Decision Makers Are Receiving
Complete Information

DOD has developed an approach for the military departments and SOCOM to follow in
reporting information on the status of efficiency initiatives; however, DOD’s approach has
some limitations that result in incomplete reporting, which may limit the visibility of senior
leaders in monitoring progress in achieving programmatic and financial goals. As
communicated by emails, briefings, and training, the offices of the DCMO and Comptroller


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require the military departments and SOCOM to develop and present briefings to senior DOD
leaders on the status of their initiatives and also to enter various types of information into a
database. Due to a lack of guidance that clearly outlines the scope of information to be
reported, the military departments and SOCOM may not be reporting all costs associated with
implementing the initiatives.

DOD Has Developed an Approach for Military Departments and SOCOM to Follow in
Reporting on Efficiency Initiatives

In 2011, the offices of the DCMO and Comptroller, when developing an approach for entities
within the department to track and report on efforts to implement efficiency initiatives and
realize savings, identified various ways for the military departments and SOCOM to report
information on the status of their efficiency initiatives. For example, according to officials and
briefing documents, based on direction from the DCMO and Comptroller, the military
departments and SOCOM develop and present briefings on a semiannual basis to senior DOD
leaders, which include the following types of information:

•   program risk—risk to program(s), mission(s), and resources affected by the efficiency
    initiative—characterized as low, medium, or high risk;

•   milestone risk—implementation status of the efficiency—characterized as on track, off
    track but able to meet major milestones, or off track;

•   calculation of savings realized to date; and

•   description of the mechanisms used by the military departments and SOCOM to track and
    oversee the efficiency initiatives, such as specific procedures and governance structures.

According to Comptroller officials, they view the briefings as a way to facilitate senior DOD
leaders’ visibility over the efficiency initiatives. For example, in the semiannual briefings, the
military departments and SOCOM have an opportunity to present progress in implementing
their initiatives, highlight any potential problems, and seek assistance as needed from senior
leaders to find solutions. As of October 2012, the military departments and SOCOM had
briefed the Deputy Secretary of Defense’s Advisory Working Group in July 2011 and
subsequently briefed the DCMO and Comptroller in January 2012 and August 2012. In
addition to these briefings, the DCMO and Comptroller have also prepared briefing information
on the status of efficiency initiatives and presented it to senior DOD leaders. For example, in
March 2012, they presented such a briefing to the Deputy’s Management Advisory Group. In
their briefings, the military departments and SOCOM have generally reported their efficiency
initiatives were on track and that they expected to achieve the savings targets outlined in
DOD’s fiscal year 2012 budget request. DOD also indicated in its June 2012 report to the
congressional defense committees that the military departments and SOCOM were on track to
achieve all of their expected savings—specifically, total amounts for “current” and “original”
savings were identical.

In addition to requiring the military departments and SOCOM to prepare briefings, the offices
of the DCMO and Comptroller directed them in a May 2011 briefing to enter information on
their efficiency initiatives into the DOD Enterprise Performance Management System
(DEPMS), an existing database designed to capture performance management data. Similar
to the types of data collected in the briefings, information to be entered into DEPMS was to



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include implementation status, risk, and current savings. According to officials, this information
was to be updated on a semiannual basis. Officials initially intended to draw information from
DEPMS for purposes of developing the semiannual briefings for senior leaders but were not
able to do so because, in practice, sometimes the briefings were created prior to information
being updated in DEPMS. Comptroller officials told us they intended to use the data in DEPMS
to maintain a consolidated view of metrics on the efficiency initiatives and to allow tracking of
the efficiency initiatives department-wide. They also said they review the database for such
things as ensuring that data has been input for all required categories. They told us that they
do not view their role as requiring them to independently verify the data reported by the military
departments and SOCOM in the database, and that they do not have the resources to do so.
In addition to their review of the database, officials stated that as part of their routine reviews
of the military departments’ and SOCOM’s budget execution data, they also review
expenditures related to areas affected by the efficiency initiatives to determine whether funding
has increased in those areas.

DCMO and Comptroller officials initially chose to adapt DEPMS to collect information on the
efficiency initiatives in lieu of developing a new database to track them. In August 2012, they
discontinued the use of DEPMS for this purpose. According to officials, using DEPMS was too
resource intensive. For example, it required a significant amount of training to teach users how
to input and maintain data in DEPMS. Comptroller officials identified a different database for
the military departments and SOCOM to use. They began reporting data in this database in
August 2012. Officials explained that the database captures the same metrics that were in
DEPMS that are pertinent to tracking the implementation and savings of the initiatives, such as
current and planned savings.

Military Departments and SOCOM Reporting Differs As to Whether They Include Information
on All or a Subset of their Efficiency Initiatives and They May Not Be Reporting All Costs

In practice, the three military departments and SOCOM report the same types of information
on the status of their efficiency initiatives in response to general direction from the DCMO and
Comptroller, but they differ in whether they report this information for all or a subset of their
initiatives, and they may not be reporting all costs. To guide reporting, the offices of the DCMO
and Comptroller provided general direction in a series of emails, training sessions, and
briefings. According to DCMO and Comptroller officials, they collaborated with the military
departments and SOCOM to determine which efficiency initiatives would be reported in the
semiannual briefings and the DEPMS database. Further, Comptroller officials stated that the
military departments and SOCOM had flexibility to only report on those efficiencies that they
felt required senior-level visibility. Specifically, Comptroller officials stated that at a minimum
they wanted to maintain visibility of efficiencies that were at medium and high risk of not being
implemented but that it was up to the military departments and SOCOM to decide on whether
to also report on low-risk initiatives. The Navy requested to report on a subset of its efficiency
initiatives that included medium- and high-risk initiatives. According to Comptroller officials,
they gave the Navy permission prior to the July 2011 briefing to senior DOD leaders to not
report on low-risk efficiency initiatives. Officials also told us that the Army, Air Force, and
SOCOM reported on all of their efficiency initiatives because they track all their initiatives
internally and did not ask for permission to only report to the DCMO and Comptroller on a
subset. Therefore, in the July 2011 and January 2012 briefings, the Army, Air Force, and
SOCOM reported the milestone and program risk for all of their efficiency initiatives, while the
Navy reported the same information for only a subset of its efficiency initiatives. This subset
reflected around $10 billion in savings of the $35 billion in total expected savings the Navy



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reported it will generate through fiscal year 2016 in information accompanying its fiscal year
2012 budget request.

While the military departments and SOCOM periodically report information on their efficiency
initiatives, they are not reporting all costs related to implementation of their efficiency initiatives
in either the database or briefings. Specifically, Comptroller officials told us that they intended
the military departments and SOCOM to report net savings that take into account
implementation costs for the efficiency initiatives. However, during our review, we found
instances where some costs were not tracked and reported that could affect the validity of the
reported savings. For example, for its initiative to reduce fleet shore command personnel from
U.S. Pacific Fleet and U.S. Fleet Forces Command, the Navy reduced 1,785 positions at
ashore headquarters offices and increased at-sea positions that support operations more
directly. The savings the Navy reported for this efficiency initiative included the salaries
associated with the reduced headquarters positions. However, the Navy did not report
relocation costs for moving those personnel whose positions were reduced from U.S. Pacific
Fleet and U.S. Fleet Forces Command to other areas within the Navy. According to Navy
officials, because they did not expect these costs to be significant enough to affect their
realized savings, they did not track them separately. Navy officials stated that they tried to
minimize these costs by moving personnel who were already scheduled to rotate to new
assignments or relocating personnel to available positions at nearby locations, but
acknowledged that any costs incurred could affect realized savings. Additionally, we have
previously reported that the Air Force did not consider certain costs in its estimate of savings
for its efficiency initiative related to aircrew training. Specifically, as part of the Secretary’s
efficiency initiative, the Air Force estimated it could save about $1.7 billion in its training
program by reducing live flying hours and taking other steps, such as increasing the use of
virtual training. However, the Air Force has not estimated additional expenses such as those
incurred for aircrew to travel to simulators, contractor personnel to schedule and operate
simulators, and purchase of additional simulators. The Air Force did not consider the potential
costs associated with the increase in virtual training in its initial estimate of cost savings
because it had not developed a methodology to collect and track information on the cost of its
virtual training program. We recommended that the Secretary of Defense direct the Secretary
of the Air Force to develop a methodology for collecting and tracking cost data for virtual
training. In response, DOD agreed and stated that the Air Force is developing a standard
methodology of accounting and tracking the programming and execution of program funds
through improved visibility into cost categories. 14

The military departments and SOCOM may not be reporting complete cost information
because they have not received written guidance with standardized definitions and
methodologies. Specifically, the offices of the DCMO and Comptroller provided general
direction in emails, briefings, and training for what information to include in DEPMS and the
follow-on database and to present in the semiannual briefings, but no detailed written
guidance was provided on whether implementation costs were to be considered in net savings
estimates. Officials acknowledged that the military departments and SOCOM may not be
including all implementation costs and agreed that additional guidance could be beneficial. We
have previously reported that a process with written guidance for monitoring achieved savings
from efficiency initiatives can help organizations measure actual performance against planned
results. In addition, a key part of ensuring that the information being measured is reportable in
a consistent fashion is using standardized definitions and methodologies. In the absence of
standardized definitions and methodologies for reporting, the military departments and

14
     GAO-12-727.


Page 10                                                           GAO-13-105R Defense Management
SOCOM have been reporting incomplete cost data related to implementation of the efficiency
initiatives. Consequently, DOD may not have a complete picture of net savings for all
efficiency initiatives for monitoring purposes.

Conclusions

With the efficiency initiatives set in motion by the Secretary, the department has the
opportunity to target high-priority areas for further investment while cutting or reducing low-
priority programs. In order to enhance its ability to monitor progress of the military departments
and SOCOM in achieving savings, DOD needs access to complete information from these
components. Providing written guidance to the military departments and SOCOM that clearly
specifies the types of information needed for senior leaders to exercise effective and efficient
oversight of the efficiency initiatives would further ensure that the information they receive is
complete, not only in regard to the department’s current initiatives, but also for any future
initiatives it may pursue.

Recommendation for Executive Action

To ensure more complete and consistent reporting on the status of efficiency initiatives, we
recommend that the Secretary of Defense direct the Under Secretary of Defense (Comptroller)
and the Deputy Chief Management Officer to take the following action aimed at improving their
ability to monitor the efficiency initiatives of the military departments and SOCOM:

   •   develop guidance with standardized definitions and methodologies for the military
       departments and SOCOM to use in reporting their efficiency initiatives and savings.
       This guidance should define reporting requirements for such things as the specific
       types of costs associated with implementing the initiatives, including implementation
       costs that were not initially identified in calculations of net savings.




Page 11                                                        GAO-13-105R Defense Management
Agency Comments and Our Evaluation

In written comments on a draft of this report (reprinted in enclosure III), DOD stated that it
agreed with the spirit and intent of our recommendation. DOD noted that detailed instructions
were provided to the military services, defense agencies, and U.S. Special Operations
Command in various forms (emails, meetings, training sessions, etc.). DOD also stated that
prior to the next round of briefings in the February 2013 timeframe, it plans to issue additional
formal guidance. DOD also provided technical comments, which we have incorporated where
appropriate.


As described in our report, we recognize that DOD provided general direction in emails,
briefings, and training for what information to include in the semiannual briefings and
database, but it had not provided detailed written guidance with standardized definitions and
methodologies for the military departments and SOCOM to use in reporting their efficiency
initiatives and savings. We are encouraged that the department plans to issue formal guidance
and continue to believe the guidance should define reporting requirements for such things as
the specific types of costs associated with implementing the initiatives, including
implementation costs that were not initially identified in calculations of net savings.

                                              -----

We are sending copies of this report to appropriate congressional committees; the Secretary
of Defense; the Secretaries of the Army, Navy, and Air Force; the Under Secretary of Defense
(Comptroller)/Chief Financial Officer; and the Deputy Chief Management Officer. In addition,
this report will be available at no charge on our website at http://www.gao.gov.

If you or your staffs have any questions about this report, please contact me at (202) 512-9619
or pickups@gao.gov. Contact points for our Offices of Congressional Relations and Public
Affairs may be found on the last page of this report. GAO staff who made major contributions
to this report are listed in enclosure IV.



Sharon L. Pickup
Director
Defense Capabilities and Management
Enclosures – 4




Page 12                                                        GAO-13-105R Defense Management
List of Committees


The Honorable Carl Levin
Chairman
The Honorable John McCain
Ranking Member
Committee on Armed Services
United States Senate

The Honorable Daniel K. Inouye
Chairman
The Honorable Thad Cochran
Ranking Member
Subcommittee on Defense
Committee on Appropriations
United States Senate

The Honorable Howard P. McKeon
Chairman
The Honorable Adam Smith
Ranking Member
Committee on Armed Services
House of Representatives

The Honorable C.W. Bill Young
Chairman
The Honorable Norman D. Dicks
Ranking Member
Subcommittee on Defense
Committee on Appropriations
House of Representatives




Page 13                          GAO-13-105R Defense Management
Enclosure I


                                       Scope and Methodology

We conducted this work in response to a statutory mandate in the National Defense
Authorization Act for Fiscal Year 2012 that requires GAO to assess the extent to which the
Department of Defense (DOD) has tracked and realized the savings proposed pursuant to the
initiative to identify at least $100 billion in efficiencies during fiscal years 2012 through 2016. 15
The mandate requires GAO to conduct this assessment and submit a report yearly for each of
fiscal years 2012 through 2016. 16 This report addresses (1) the extent to which the military
departments and SOCOM have taken steps to internally track the implementation of their
efficiency initiatives, and (2) DOD’s progress in developing an approach for reporting on the
status of efficiency initiatives on a department-wide basis.

For both of our objectives, we selected and assessed a sample of DOD efficiency initiatives
included within the $100 billion of efficiency initiatives identified by the military departments
and U.S. Special Operations Command (SOCOM). We used the Department of Defense
Efficiency Initiatives Fiscal Year 2012 Budget Estimates justification book to select a sample of
seven efficiency initiatives to use as case studies—two initiatives each from the Army, Navy,
and Air Force and one initiative from SOCOM. For all seven initiatives, we selected: 1)
efficiency initiatives that had realized savings in fiscal year 2012, indicating that they were fully
or partially implemented when we conducted our review; 2) efficiency initiatives that had been
reviewed in previous GAO engagements; and 3) efficiency initiatives that represented a range
of efficiency types (i.e., reorganizations, better business practices, program reductions or
terminations, reduced lower priority programs). The results from this nonprobability sample
cannot be used to make inferences about all of the efficiency initiatives because the sample
may not reflect all characteristics of the population.

To determine the extent to which the military departments and SOCOM have internally tracked
the implementation of their efficiency initiatives, we interviewed officials and reviewed progress
reports and budgetary documents to identify the processes the military departments and
SOCOM had in place and the steps they had taken to track the implementation of their
efficiency initiatives and resulting savings. We also interviewed officials who implemented the
programmatic actions associated with the efficiency initiatives and reviewed documentation
from those offices to determine whether actions had been taken to implement the efficiency
initiatives in our case study. We reviewed budgetary documents to determine whether funding
had been removed from accounts associated with the efficiency initiatives. In addition, we also
met with and collected data from offices in the military departments and SOCOM that had
responsibilities related to the efficiency initiatives, including the military departments’ deputy
chief management offices, financial management and budget offices, and comptroller offices.

To determine DOD’s progress in developing an approach for reporting on the status of
efficiency initiatives on a department-wide basis, we reviewed data maintained in the Office of
the Secretary of Defense’s DOD Enterprise Performance Management System (DEPMS) and
in electronic spreadsheets on all of the efficiency initiatives, as well as status briefings on the
efficiency initiatives given to the Offices of the Under Secretary of Defense (Comptroller) and
the DOD Deputy Chief Management Officer (DCMO). We assessed information in DEPMS,
electronic spreadsheets, and the briefings using prior GAO reports with best practices for
reporting information internally as well as reports on DOD and other agencies’ efficiency
initiatives. In addition, we interviewed appropriate officials in the military departments and

15
     See Pub. L. No. 112-81, § 1054 (2011).
16
     See id.


Page 14                                                           GAO-13-105R Defense Management
Enclosure I


SOCOM about what information they provide to the DCMO and Comptroller. We focused our
questions on efficiency initiatives that were part of our case study analysis. We also reviewed
emails and briefings issued by the Comptroller and DCMO that guided the military
departments and SOCOM in the types of information they reported to the Comptroller and
DCMO. We interviewed Comptroller and DCMO officials about their monitoring of the
efficiency initiatives, including the roles they play and their usage of the data and briefings they
received. We assessed DOD’s approach for reporting information using prior GAO reports that
focused on specific efficiency initiatives at DOD and other agencies.

We interviewed officials and, where appropriate, obtained documentation from the
organizations listed below:

Office of the Secretary of Defense
    • Office of the Deputy Chief Management Officer
    • Office of the Director of Cost Assessment and Program Evaluation
    • Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer

SOCOM
  • Office of Special Operations Financial Management
  • Information Technology Management Division

Department of the Army
   • Assistant Deputy Chief of Staff of the Army/Army Deputy Chief Management Officer
   • Office of the Assistant Secretary of the Army (Financial Management and Comptroller)
         o Principal Deputy Assistant Secretary of the Army, Assistant Secretary of the
             Army (Financial Management and Comptroller)
         o Office of the Director, Army Budget
         o Office of the Deputy Assistant Secretary of the Army, Assistant Secretary of the
             Army (Financial Management and Comptroller)—Cost and Economics
   • Director of Business Operations, Office of Business Transformation
   • Office of Program Analysis and Evaluation

Department of the Navy
   • Office of the Deputy Under Secretary of the Navy/Navy Deputy Chief Management
      Officer
   • Office of the Assistant Secretary of the Navy, Manpower and Reserve Affairs
   • Office of Manpower, Personnel, Training, and Education
   • U.S. Fleet Forces Command
   • U.S. Pacific Fleet

Department of the Air Force
   • Office of the Air Force Deputy Chief Management Officer
   • Office of the Assistant Secretary of the Air Force (Financial Management and
      Comptroller)
   • Office of Manpower, Organization, and Resources
   • Office of Operations

We conducted this performance audit from January 2012 to December 2012 in accordance
with generally accepted government auditing standards. Those standards require that we plan
and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis


Page 15                                                         GAO-13-105R Defense Management
Enclosure I


for our findings and conclusions based on our audit objectives. We believe that the evidence
obtained provides a reasonable basis for our findings and conclusions based on our audit
objectives.




Page 16                                                      GAO-13-105R Defense Management
Enclosure II


    Description of the Military Departments’ and U.S. Special Operations Command’s
              Tracking of Efficiency Initiatives Included in Our Case Study

The military departments and U.S. Special Operations Command (SOCOM) have taken
various steps to internally track the implementation of their efficiency initiatives. For example,
prior to or during fiscal year 2012, they identified programmatic actions needed to implement
initiatives and began to carry out those actions; developed approaches to review the progress
of the efficiency initiatives using existing governance structures; and tracked the savings
associated with the efficiency initiatives. The following sections describe how the military
departments and SOCOM tracked their efficiency initiatives, including for the case studies we
reviewed.

Army

The Army took steps to internally track the implementation of its efficiency initiatives, including
the case studies we reviewed—the termination of the Non-Line of Sight Launch System and
the reduction of recruiting and retention incentives. Under the initiative to terminate the Non-
Line of Sight Launch System, the Army determined the program was not necessary after
conducting a comprehensive review of support capabilities relative to current and projected
threats. Under the initiative to reduce recruiting and retention incentives, the Army reduced the
enlistment bonuses offered to new recruits, reduced the number of enlistment bonuses
offered, and reduced the anniversary bonuses given to current personnel, according to
documentation and Army officials. The Army officials stated that the Army could reduce these
incentives while still maintaining its force structure given the current and projected economic
environments.

    •   As part of its general process, the Army identified and began carrying out the actions
        needed to implement its initiatives.

               •   Under the Non-Line of Sight Launch System initiative, the Army Budget Office
                   removed the funding for the system from its fiscal year 2012 through fiscal year
                   2016 program objective memorandum, which totaled $3.2 billion in savings
                   through fiscal year 2016. The Army closed its operations related to the program
                   and reassigned or terminated the personnel involved in the program,
                   completing these actions in June 2011.

               •   Under the initiative to reduce recruiting and retention incentives, the Army
                   Budget Office removed funding from the fiscal year 2012 through fiscal year
                   2016 program objective memorandum to achieve the efficiency: $5.9 billion
                   through fiscal year 2016. According to documentation and Army officials, the
                   Army took other actions to implement the initiative—including reducing
                   enlistment bonuses to new recruits and offering enlistment bonuses to fewer
                   recruits—and tracked its expenditures specific to recruitment and retention
                   efforts to ensure those expenditures did not exceed the amount of funds
                   allocated in the budget for those purposes.

    •     The Army also reviewed the progress of its efficiency initiatives using its internal
          governance structure.




Page 17                                                           GAO-13-105R Defense Management
Enclosure II


               •   The Army completed the Non-Line of Sight Launch System initiative in 2011 by
                   cancelling the program and therefore did not need to use internal governance
                   structures to track it.
               •   Under its initiative to reduce recruiting and retention incentives, the manning
                   program evaluation group reports progress on this initiative to the Army Budget
                   Office on a monthly basis, and the Secretary of the Army receives updates on
                   this initiative on a quarterly basis, according to Army officials.

    •     Finally, the Army has taken steps to track the savings associated with its initiatives.

               •   For all of its initiatives, including our two case studies, the Army identified sub-
                   activity groups where it reinvested the resulting savings. The Army Budget
                   Office also reviewed its fiscal year 2013 through fiscal year 2017 program
                   objective memorandum and its fiscal year 2014 through fiscal year 2018
                   program objective memorandum to ensure the Army did not reinvest in the
                   areas reduced as a result of the efficiency initiatives, according to Army
                   officials. In addition, the Army specifically cited its initiatives in fiscal year 2014
                   through fiscal year 2018 program objective memorandum guidance, which also
                   indicates that any changes to the efficiencies must be approved by the Army’s
                   Planning Program Budget Committee.

Navy

The Navy took steps to track the implementation of its efficiency initiatives, including the case
studies we reviewed—the reduction of fleet shore command personnel by five percent at U.S.
Pacific Fleet and U.S. Fleet Forces Command and the merger of U.S. Fleet Forces Command
and U.S. Second Fleet staff. For the reduction of fleet shore command personnel, more
effective training has decreased shore manpower needs, freeing up manpower for operational
ships at sea. For the merger of U.S. Fleet Forces Command and U.S. Second Fleet staff, the
Navy found that the missions of the two organizations had converged over time and decided
that an integrated staff could better adapt to changing missions than two separate staffs and
the merger could eliminate redundant personnel.

    •   As part of its general process, the Navy identified and began carrying out the actions
        necessary to implement its initiatives.

               •   Under its initiative to reduce fleet shore command personnel, U.S. Pacific Fleet
                   and U.S. Fleet Forces Command selected the positions to reduce—606 officers
                   and 1,127 enlisted active military positions and 10 reserve officer and 42
                   enlisted reserve positions—which the office of the Chief of Naval Operations
                   approved, according to Navy officials. Officials stated that the Navy’s Office of
                   Manpower, Personnel, Training, and Education removed these positions from
                   the Navy’s manpower database and the Navy Personnel Command reassigned
                   the personnel to other areas within the Navy. The Navy’s Office of Manpower,
                   Personnel, Training, and Education calculated the savings associated with this
                   efficiency initiative, which totaled $858 million through fiscal year 2016, by
                   reviewing the rank and salary data for these positions.

               •   Under its initiative to merge U.S. Fleet Forces Command and U.S. Second
                   Fleet staff, the Navy’s Office of Manpower, Personnel, Training, and Education
                   removed the positions from U.S. Second Fleet—57 officers and 104 enlisted


Page 18                                                              GAO-13-105R Defense Management
Enclosure II


                   active military positions and 117 reserve officer and 67 enlisted reserve
                   positions—and the Navy Personnel Command reassigned the personnel within
                   U.S. Fleet Forces Command. The Office of Manpower, Personnel, Training,
                   and Education calculated the savings associated with this efficiency, which
                   totaled $100.8 million through fiscal year 2016, by reviewing the rank and salary
                   data for these positions.

    •   The Navy also reviewed the progress of its efficiency initiatives using its internal
        governance structure, according to Navy officials.

               •   For all of its initiatives, including the two case studies here, the Office of the
                   Navy Deputy Chief Management Officer (DCMO) coordinated with the
                   appropriate Navy offices to ensure they implemented the efficiency initiatives as
                   planned. Officials stated that medium- and high-risk initiatives are elevated for
                   discussion at pre-existing forums, which include the DCMO and Assistant
                   Secretaries of the Navy.

    •   Finally, the Navy has taken steps to track the savings associated with its initiatives.

               •   For all of its initiatives, including the two case studies here, the Navy identified
                   the sub-activity groups where it reinvested the savings resulting from both of
                   these initiatives. Navy officials stated that any changes to its efficiencies would
                   require internal approval.

Air Force

The Air Force took steps to track the implementation of its efficiency initiatives, including the
case studies we reviewed—the initiative to consolidate air and space operations centers and
inactivate three numbered air forces and the initiative to decrease training costs by reducing
the Air Force’s live flying hour program for its legacy fighter and bomber aircraft by 5 percent
and its Air Force Reserve Command F-16 flying hour program by 10 percent. For its initiative
to consolidate air and space operations centers and inactivate three numbered air forces, the
Air Force consolidated the 617th Air and Space Operations Center, which supports U.S. Africa
Command, with the 603rd Air and Space Operations Center, which supports U.S. European
Command and inactivated the 13th (Air Forces Pacific), the 17th (Air Forces Africa) and 19th
Air Force, which supports Air Education and Training Command. For its initiative to decrease
training costs by reducing the Air Force’s live flying hour program for its legacy fighter and
bomber aircraft by 5 percent and its Air Force Reserve Command F-16 flying hour program by
10 percent, the Air Force stated that it expected to offset any effect on readiness caused by a
reduction in live flying hours by increasing its use of simulators.

    •   As part of its general process, the Air Force identified and began carrying out the
        actions necessary to implement its initiatives.

               •   Under its initiative to consolidate air and space operations centers and
                   inactivate three numbered air forces, the Air Force eliminated 212 civilian
                   positions and reassigned 162 military positions, which resulted in $96.3 million
                   in savings through fiscal year 2016. The Air Force’s major commands moved
                   these reassigned positions to other areas within the Air Force.




Page 19                                                             GAO-13-105R Defense Management
Enclosure II




               •   Under its training reduction initiative, the Air Force removed $1.7 billion through
                   fiscal year 2016 from its budget, which it derived by multiplying the cost of live
                   training for its legacy fighter and bomber aircraft by the number of hours of live
                   training reduced by the initiative.

    •   The Air Force also reviews the progress of its initiatives using internal governance
        structures.

               •   For all of its initiatives, including our two case studies, the priority owners—
                   officials assigned responsibility for the initiatives—update the progress of these
                   initiatives on a monthly basis in the Air Force’s Integrated Master Schedule,
                   which lists the date the initiatives began, the expected completion date of the
                   initiatives, and the percentage of each initiative that has been completed. Air
                   Force Comptroller officials review the Integrated Master Schedule to ensure the
                   initiatives are on track. Air Force DCMO officials also review this information;
                   they use the data in the Integrated Master Schedule to update other Air Force
                   entities and senior officials, such as the Under Secretary of the Air Force and
                   the Vice Chief of Staff of the Air Force.

    •   Finally, the Air Force has taken steps to track the savings associated with its initiatives.

               •   For all of its initiatives, including our two case studies, the Air Force identified
                   the sub-activity groups where it reinvested the savings resulting from its
                   initiatives. In addition, Air Force budget officials tracked its expenditures specific
                   to the programs reduced as a result of the initiatives to ensure those
                   expenditures did not exceed the amount of funds allocated in the budget for
                   those purposes. According to Air Force officials, the Air Force Chief
                   Management Officer must approve any reinvestments in the areas reduced as
                   a result of the efficiency initiatives.

SOCOM

SOCOM took steps to track its efficiency initiatives, including the case study initiative we
reviewed—the initiative to establish a new contract framework for its information technology
services. According to officials, SOCOM’s Information Technology Management Division
established a new contract framework for its information technology services that reduces
SOCOM’s costs by awarding funds directly to the organizations that provide the services on a
competitive basis rather than through an intermediary that selects the organizations that
provide the information technology services and by adopting other best practices for
procurement, such as providing performance-based incentives.

    •   As part of its general process, SOCOM identified and began carrying out the actions
        necessary to implement its initiatives.

               •   According to officials, under SOCOM’s initiative to restructure its information
                   technology contract framework, SOCOM established this new framework and
                   removed $368 million through fiscal year 2016 from its budget for these
                   purposes.




Page 20                                                              GAO-13-105R Defense Management
Enclosure II


    •   SOCOM also reviewed the progress of its initiatives using its internal governance
        structure.

               •   Under its information technology initiative, the Information Technology
                   Management Division has briefed Special Operations Financial Management
                   twice on the implementation of this initiative and reports quarterly on the
                   progress of the initiative to SOCOM’s Joint Resources Management Board,
                   which is co-chaired by the Director of Special Operations Financial
                   Management and the Chief Financial Officer.

    •   Finally, SOCOM has taken steps to track the savings associated with its initiatives.

               •   For all of its initiatives, including our case study initiative, SOCOM identified the
                   sub-activity groups where it reinvested the savings resulting from its initiatives.
                   SOCOM highlighted the programs affected by its efficiency initiatives in its
                   budgetary system and issued internal guidance for the preparation of the fiscal
                   year 2014 to fiscal year 2018 program objective memorandum stating that any
                   programmatic changes affecting the efficiencies programs would have to be
                   justified.




Page 21                                                             GAO-13-105R Defense Management
Enclosure III


                Comments from the Department of Defense




Page 22                                        GAO-13-105R Defense Management
Enclosure III




Page 23         GAO-13-105R Defense Management
Enclosure IV


                        GAO Contact and Staff Acknowledgments

GAO Contact

Sharon L. Pickup, (202) 512-9619 or pickups@gao.gov

Staff Acknowledgments

In addition to the contact named above, Patricia Lentini, Assistant Director; Usman Ahmad;
Susannah Hawthorne; Charles Perdue; Michael Shaughnessy; Michael Silver; Erik Wilkins-
McKee; and Sam Wilson made key contributions to this report.




(351700)



Page 24                                                     GAO-13-105R Defense Management
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