Survey of the Military Command Structure in Europe and Its Relationship to the U.S. Readiness Posture

Published by the Government Accountability Office on 1977-07-11.

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

                         DOCUMENT   RESUME

02764 - [A1993041]

(Survey of the Military Command Structure in Europe and Its
Relationship to the U.S. Readiness Posture]. LCD-77-431;
iB-183257. Jujy 11, 1977. 2 p. + enclosure (11 pp.S.

Report to Secretary, Department of Defense; by   Fred J.   Shafer,
Directcr, Logistics and Communications Div.

Issue Area: Military Preparedness  lans: Military Forces
    Readiness (805).
Contact: Logistics and Communications Div.
Budget Function: National Defense: Department of Defense -
    Military (except procurement & contracts) (051).
Congressional Relevance: House Committee on Armed Services;
    Senate Committee on Armed Services.
Authority: DOD Directive 5100.73.

         A recent review of the U.S. Command Structure in Europe
snowed that a number of management headquarters functions in
Europe were not  eing reported.  Findings/Conclusions: Reasons
that some of the functions were not reported included: (1) the
Department of Defensc's (DOD's) current practice of identifying
organizations (the organizational approach) rather than
personnel performing management functions (the functional
approach) to identify management headquarters activities does
not give an accurate picture of the number of personnel actually
performing management headquarters functions; (2) the size of
management headquarters in Europe has lot been accurately
reported under the existing organizational approach, primarily
because of the omissions of certain support activities and some
indirect hire civilian personnel; and 3) some activities which
meet DOD's definition of management headquarters are not being
counted. A GAO report in April 1976 concluded that accounting
for management headquarters personnel under the organizational
approach is inadequate and recommended that DOD gradually
implement a system to account for headquarters personnel on the
basis of type of work performed. DOD did not agree with this
recommendation and stated that the current organizational
approach is adequate. Recommendations: The Secretary of Defense
should reconsider the DOD position and evaluate the potential
for gradually implementing a system to account for headquarters
personnel on the basis of type of work performed. (St)
       ex ,\'X'V~~"~
                l                    UNITED STATES GENERAL ACCOUNTING OFFICE
 )                                           WASHINGTON, D.C.   20548

               DIVISION                                                 JUL 1 1977

Ox-       B-183257
CO        The Honorable
          The Secretary of Defense

          Dear Mr. Secretary:

               In 1972 the Committee on Appropriations, House of
          Representatives, expressed concern about getting more accurate
          and meaningful information on military headquarters activities.
          In response, in 1973 the Department of Defense (DOD) issued
          DOD Directive 5100.73 titled "Department of Defense Manage-
          ment Headquarters" to establish a system for the management
          and control of the number and size of headquarters activities.
          The directive was revised in 1975 to clarify the criteria for
          designating an activity as a management headquarters or a
          headquarters support activity. Data on the size and number
          of management headquarters are furnished to the Congress as
          part of DOD's budget sbmission.

                During ur recent review of the U.S. Command Structure
           in Europe we found a number of management headquarters func-
           tions in Europe that were not being reported because:

                   -- DOD's current practice of identifying organizations
                      (organizational approach) rather than personnel per-
                      forming management functions (functional approach)
                      to identify management headquarters activities does
                      not give an accurate picture of the number of per-
                      sonnel actually performing management headquarters

                   -- The size of management headquarters in Europe has not
                      been accurately reported, under the existing organiza-
                      tional approach, primarily because of the omissions of
                      certain support activities and some indirect hire
                      civilian personnel.

                   -- Some activities which meet DOD's definition of manage-
                      ment headquarters are not bing counted.

          These matters are discussed in more detail in the enclosure
          to this letter.


     Our report to the Congress titled "Suggested Improvements
in Staffing and Organization of Top Management Headquarters in
the Department of Defense" (FPCD-76-35, April 20, 1976), con-
cluded that accounting for management headquarters personnel
under the organizational approach is inadequate. We recom-
mended that DOD gradually implement a system to account for
headquarters personnel on the basis of type of work performed.
DOD did not agree with this recommendation and stated that
the current organization approach is adequate.

     We realize that it is difficult to implement a system
for functional accounting of personnel and that existing man-
pnwer systems, except for that of the Air Force, are not
ca.able of handling the requirement of functional accounting.
We also recognize functional accounting at all organizational
levels may not be necessary since virtually all of the func-
tions of lower level organizations are es& .tially operational
in nature. We continue to believe, however, that functional
accounting nhances the identification and accounting of man-
agement headquarters and support personnel. Accordingly, we
recommend that you reconsider the DOD position and evaluate
the potential for gradually implementing a system to account
for headquarters personnel on the basis of type of work per-

     We want to invite your attention to the fact that sec-
tion 236 of the Legisl, ive Reorganization Act of 1970 requires
the head of a Federal agency to submit a written statement on
actions he has taken on our recommendations to the House Com-
mittee on Government Operations and the Senate Committee on
Governmental Affairs not later than 60 days after the date
of the report and to the House and Senate Committees on
Appropriations with the agency's first request for appropria-
tions made more than 60 days after the date of this report.

     we would like to be advised of any actions resulting
from this letter.  We are sending copies to the House and
Senate Committees on Appropriations and Armed Services, the
House Committee on Government Operations, and the Senate
Committee on Governmental Affairs.

                              Sincerely yours,

                              F. J. Shafer


ENCLOSURE I                                          ENCLOSURE I

                          AN   ;NALYSIS OF



     In its report of September 11, 1972, on the Department
of-Defense (DOD) Appropriation Bill for fiscal year 1973, the
House Appropriations Committee instructed the Office of the
Secretary of Defense (OSD) to establish (1) a DOD-wide defi-
nition of headquarters activities, (2) an OSD-approved list
of DOD headquarters components, and (3) a common method of
accounting for the manpower spaces authorized to perform an-
agement headquarters functions. Later, in July 1974, the
Committee directed its Surveys and Investigations Staff to
inquire concerning the compliance by the military services
with the then new DOD Direct-,e 5100.73, entitled "Depart-
ment of Defense Management Headquarter-," the purpose of
which was to establish a system for the management and con-
trol of the number and size of headquarters activities.

     In March 1975 the Surveys and Investigations Staff is-
sued its report and criticized the DOD on its progress toward
complying with the Committee instructions. Data was presented
on headquarters throughout DOD and visits were made to several
Navy headquarters in the United States and Hawaii. The staff
did not visit any European headquarters.

     On April 11, 1975, shortly after the investigation re-
sults were released, OSD revised DOE Directive 5100.73 to
clarify criteria for designating an activity as a manage-
ment headquarters or a headquarters support activity.

     The DOD criteria required that organizations be desig-
nated as management headquarters activities when, as their
primary mission, they perform the following functions for
lower echelon organizations.

     -- Policy development and guidance.

     -- Long-range planning, programing, and budgeting.

     -- Management and distribution of resources.

     -- Program performance review and evaluation.

     Organizations whose primary mission was to provide di-
rect support to a designated management headquarters were
to be designated as management headquarters support activi-
ties. This included staff extensions, agencies, activities,

ENCLOSURE I                                     ENCLOSURE I

centers, and other types of organizations which may have
been organizationally separate from the management head-
quarters, yet rovide it with support integral to its ef-
fective operation. Generally, direct support may take the
form of providing analysis for or assisting in the formula-
ticn of policies and procedures, or in otherwise providing
professional, technical, administrative, or logistical sup-
port essential to the execution of the management head-
quarters mission.

     DOD's definition of a management headquarters is based
on an organizational approach rather than a functional ap-
proach. Under an organizational approach, an organization is
designated and counted as a mnanagement headquarters activity
if its primary mission is to perform management functions for
lower levels.  On the other hand, under a functional approach
management functions are identified and defined; then depart-
mental components and authorized personnel performing these
functions are determined. These personnel are then reported
on the basis of the type of work they perform, regardless of
their organization and primary mission.

     As a result of using the organizational approach, many
personnel performing management functions in organizations
not classified as management headquarters are not being made
visible to the Congress.  For example, the 17 U.S. Air orce
wing and group organizations in Europe are considered as op-
erationl or support units, not classified as management head-
cuarter;.  However, our analysis of the manning document for
a typical fighter wing--the 36th Tactical Fighter Wing--
disclosed that about 300 of the approximate 3,900 personnel
of -he wing appeared to be involved in "headquarters" func-

     The General Accounting Office, in a report dated April 20,
1976, entitled, "Suggested Improvements in Staffing and Organ-
ization of Top Management Headquarters in the Department of
Defense," concluded that accounting or management headquar-
ters personnel under the organizational approach is inade-
quate. So long as DOD follows this approach, the apparent
size of DOD management headquarters activities will be dis-

     Considering the special interest expressed by Congress
and the recent push to cut back on the size of headquarters
activities, we believe it is important that the number of per-
sonnel performing management functions be reported as accu-
rately as possible.

ENCLOSURE I                                                                   ENCLOSURE I

     In its fiscal year 1976 budget submission,
that 11 U.S. management headquarters               DOD reported
                                       staffs with 5,024 person-
nel authorized were in Europe. We found,
headquarters are actually authorized         however, that these
                                      about   5,705 personnel, a
difference of 681, or 14 percent over
                                        that  reported. Further,
we noted four other Army headquarters,
personnel, which appear to meet the      authorized  about 3,000
                                     criteria for management
headquarters but were not classified
                                      or reported as su-h by
DOD. A comparison of the staffing
                                    levels reported by DOD and
the staffing levels found by GAO is
                                     shown below.
                                    STAFFING OF U.s. MANAGEMIENT
                                      HEADUARTERS     Ea OP
        Headquarters                      Staffing level
          reported                                          Staffing level
                                            reported           found by
           by DOD                            by DOD              GAO         Difference
        U.S. European Command                       660          743                  83
               U.S. Army, Europe                1,438
               Southern European                               1,593              155
                 Task Force                         236
               5th Signal Command                                236              -
                                                    182          555              373
                  Total Army                    1,856          2,384              528
       Navy and Marine Crps

              U.S. Naval Forces, Europe     '       143
              Sixth Fleet                                        344             201
                                                    144          142               2)
                  Total Navy and Marine
                    Corps                           287          486             199
       Air Porce

              U.S. Air Forces in Europe      1,657
              3rd Air Force                                   1,591              (66)
                                                52               Si               (1)
              16th Air Force                    48
              17th Air Force                                     47               (1)
                                                41               43                2
              European Communications
                Area                                23          360              (63)
                 Total Air Force            2,221             2,092             (129)
      TOTAL                                 5,024             5,705             681
      Headquarters not reported
        by DOD

            V Corps
                Corps                           U              825              625
            21st Support Command                0
            4th Transportation Brigade                         662              662
                                                0              487              48'
      TOTAL                                     0             ,163            3,163
                 TOTAL                     5,024         8,868           3,844
      Note:    The DOD staffing level was bascd on
                                                   estimated fiscal year 1975
               authorized positions, and the staffing
                                                      level used by GAO was
               based on actual 1975 authorized positions
                                                         as much a possible.

ENCLOSURE I                                       ENCLOSURE I

Reasons for differences between
actual and rerorted staffing

     The differences between actual and reported staffing of
the management headquarters in Europe were caused primarily
by (1) omissions of certain support activities and some in-
di:ect hire civilian employees in headquarters staffing and
(2) simply understating the size of headquarters.  The fol-
lowing examples illustrate this.

     Headquarters, United States
     Eurpean Command
     In its fiscal year 1976 budget submission, DOD reported
the size of Headquarters, United States European Command
tUSEUCOM), as 660 authorized positions. We could not deter-
mine DOD's basis for the 660 figure. We found, however, that
the actual size of Headquarters, USEUCOM--including its di-
rect support elements--is about 743 authorized positions, a
difference of 83, or about 13 percent.

     For mianagement headquarters reporting purposes, Head-
quarters, USEUCOM, considers its size to be 630 positions
consistirg of 550 for the headquarters itself and 80 posi-
tions authorized for the data services center. Based on an
analysis of the missions of other USEUCOM staff elements,
we believe the following should also be included because
their missions are primarily in direct support of the head-

    -- SILK PURSE (55 positions).   This unit's mission is to
       operate and maintain the United States Commander-in-
       Chief, Europe (USCINCEUR) airborne command post. The
       airborne command post flies out of Mildenhall, England,
       and provides USCINCEUR an alternate means of communi-
       cating with higher authority and certain subordinate
       units. It also provides an alternate command center
       from which USCINCEUR can accomplish certain of his
       operational responsibilities.

    -- USEUCOM Special Activities, Intelligence Security
       Support (34 positions).  This unit provides special
       security communications for Headquarters, USEUCOM.

    -- Headquarters, Support Operations Task Force  24 posi-
       tions).  This unit plans for the conduct of uncon-
       ventional and psychological warfare in military con-
       flict. According to the Deputy Director of the
       Headquarters, USEUCOM Operations Directorate, this
       unit is the unconventional warfare staff element

ENCLOSURE I                                        ENCLOSURE I

for Headquarters, USEUCOM, in peacetime.  In wartime, it be-
comes a subordinate command reporting to Headquarters, USEUCOM.

     Headquarters, United States Army Europe

     In its fiscal year 1976 budget submission, DOD reported
the size of Headquarters, U.S. Army, Europe (USAREUR), as
1,438 authorized positions. This reported staffing evel was
understated by 155 positions primarily because--under Depart-
ment of Army guidance--USAREUR did not include indirect hire
civilians in its management headquarters reports.  In Germany,
where Headquarters, USAREUR, is located, foreign national em-
ployees are classifed as indirect hire. The foreign national
employees at Headquarters, Southern European Task Force, how-
ever, are classified as direct hire and included in manage-
ment headquarters reports. We believe that civilian employees
performing headquarters functions should be included in the
appropTiate manpower reports regardless of whether they are
direct or indirect hials.  The following table shows the ef-
fect of excluding indirect hire civilians from the manage-
ment headquarters reported staffing of Headquarters, USAREUR.

                      HEADQUARTERS, USAREUR
                          STAFFING LEVEL

                                    Direct     Indirect
                      Military       hire        hire
Staff element         personnel    civilians   civilians   Total
Reported by DOD

      USAREUR            681           393         0       1,074
    Staff Support
      Activities         263           101         0         364

        Total            944           494         0       1,438

Actual staffing

      USAREUR            605           380        80       1,065
    Staff Support
      Activities         280           147       101         528

        Total            885           527       181       1,593

ENCLOSURE I                                       ENCLOSURE I

     The 5th Signal Command

     In its fiscal year 1976 budget submission, DOD reported
the size of the 5th Signal Command (then called Army Communi-
cations Command-Europe) as 182 authorized positions. We found
that there were in fact 555 authorized positions for the head-
quarters and its direct support elements. These 555 positions
were made up of 248 positions carried on the headquarters au-
thorization documents and an additional 307 positions carried
on a service company authorization. The 5th Signal Command
could not explain the difference between the 182 reported posi-
tions and the 248 positions we found.

     The service compan-- positions should have been classified
as a part of the headquarters staffing since they are an inte-
gral part of the headquarters organization and are in fact
listed on the headquarters organization chart as such.   For
example, the Command Control Center Division, a part of the
Deputy Chief of Staff for Plans and Operations, is carried on
the service company, not the headquarters, authorization. The
same is true of the Military Personnel Division of the Dep-
uty Chief of Staff for Personnel and Administration and the
Financial Resources Division of the Deputy Chief of Staff for
Resources. Carrying these headquarters functions on the serv-
ice company authorization--and not including the service com-
pany as a part of the headquarters--understates the actual
size of the headquarters.

     Headquarters,   nited States Navy,   urope
     In its fiscal year 1976 budget submission DOD reported
the size of Headquarters, United States Navy, Europe (USNAVEUR),
as 143 authorized positions. This should have included the
staffing of the headquarters itself and a spport unit called
the Fleet Operations Control Center. We found that the staff-
ing of the headquarters and Fleet Operations Control Center
was 344 a/ authorized positions comprised of 228 and 116 posi-
tions, r-epectively.

     USNAVEUR believes that the difference between actual and
reported staffing is due to a misunderstanding on DOD's part.
DOn apparently did not include the staffing of the Fleet O0-
erations Control  enter in the reported size of Headquarters,
USNAVEUR, even though the Navy reported the staffing of both

a/USNAVEUR reported only 286 positions.  This number was sub-
  sequently increased by 58 as a result of a change in the
  Navy's method of accounting for billets.

ENCLOSURE I                                     ENCLOSURE I

organizations to be 143 positions each. DOD apparently mis-
took this report to mean 143 combined positions.

     USNAVEUR officials also told us that as a result of the
1975 report by the Surveys and Investigation staff of the
House Appropriations Committee, it initiated a "clean-up" of
accounting for billets in dire.ct support of management head-
quarters. They stated that as a result of this "clean-up,"
the manpower reports on the staffing of management headquarters
are now accurate and in conformance with DOD criteria.
     While we did not evaluate the functions of all the larger
headquarters in Europe, we ;Aentified several headquarters
which appear to be perform.y many management headquarters
type functions, but were not reported as such by the DOD.
This has apparently resulted from inconsistencies in applying
the criteria established by DOD.
     The transfer of management functions to lower headquar-
ters through reorganizations or eliminations of management
headquarters has in effect created more organizations per-
forming management type functions. Yet, personnel in those
organizations are not being counted despite the fact that
they are performing management functions.
     A major distinction between a management headquarters
and a nonmanagement headquarters in Europe appears to be
at the point where a headquarters assumes an operational
or tactical mission.
     All three services classify their theater component
command headquarters as management headquarters. However,
there is inconsistency in how the components classify sub-
ordinate commands.
     The Army, for example, classifies the Southern European
Task Force as a management headquarters but does not so clas-
sify its European corps headquarters or its major support
organizations. The Air Force and the Navy classify their
intermediate headquarters--the 3rd, 16th, and 17th Air Force
and the Sixth Fleet--as management headquarters. USAREUR
and USNAVEUR have appealed through service channels the clas-
sification of the Southern European Task Force and the Sixth
Fleet as management headquarters, principally because of
their operational mission responsibilities. We were subse-
quently informed that Sixth Fleet has been deleted from DOD's
list of management headquarters as requested by the Navy.

ENCLOSURE I                                          ENCLOSURE I

     There appears to be considerable latitude in applying
DOD criteria in determining exactly what a management head-
quarters is. As will be shown by the following, the incon-
sistent application of this criteria has resulted in some
headquarters performing the functions of management head-
quarters but not being classified as such.

Army management headquarters
In Europe
     In addition to the three Army management headquarters
in Europe (USAREUR, Southern European Task Force, and 5th
Signal Command) identified to the Congress by DOD, we noted
four other headquarters which are performing management type
functions.  Through various reorganizations over the years,
which have resulted in the elimination of some management
headquarters in Europe, the Army has in effect created other
management headquarters by delegating management functions
to existing headquarters which prevously had not beer clas-
sified as management headquarters.

      The four Army headquarters in Europe which we identi-
fied as performing management heaaquarters functions are
those of the two corps, the 21st Support Command, and the
4th Transportation Brigade. These headquarters are among
the larger Army headquarters in Europe and perform the full
range of management functions outlined in DOD Directive
5100.73.   Not only have the respohsibilities of these four
headquarters increased, but their size as well. These in-
creases occurred without the level of scrutiny and disclo-
sure required for organizations classified as management
 :eadquarters.  For example, changes of 5 percent in the
size of management headquarters have to be approved by the
Department of Defense whereas the changes in the size of
these headquarters had only to be approved by the Depart-
ment of the Army. The size of these headquarters for fis-
cal years 1974 and 1975 is shown below.

                             Authorized Personnel
               Fiscal year   Fiscal year                Increase
Headquarters       1974          1975      Increase      Dercent
V Corps              341             825       484         142
VII Corps            572           1,189       617         108
21st SuoDort
  Command            389             662       273          70
4tn Transporta-
  tion Brigade       293             487       194          66

    Total          1,595           3,163     1,568          98

 ENCLOSURE I                                        ENCLOSURE I

     Corps Headquarters
     The two corps headquarters perform on a day-to-day basis
the functions listed in DOD Directive 5100.73 but are not
classified as management headquarters. Many of the manage-
ment functions currently performed by the corps headquarters
were si`ted to them as a result of reorganizations within
the Arm, in Europe- particularly Proje;t CHASE (Consolidation
of Headquarters and Area Support Elements) during 1974.   Exam-
ples of the functions the corps are currently responsible
include (1) base logistics operations in the corps area, (2)
management of community organizations in the corps area, (3)
facilities engineering    activities in the corps area, (4) per-
sonnel administration and manpower management within the
corps, and (5) logistic support for tactical units within the
corps. The latter responsibility resulted primarily from te
change in Army doctrine to make corps more self-sufficient
unrder the new "logistics echelons above division" concept.

     Headquarters, 21st Support Command
     The 21st Support Command headquarters grew in size and
responsibilities as a result of Project CHASE. It currently
is responsible for the maintenance and storage of the Army's
prepositioned equipment stored in Europe and for the manage-
ment of combat service support and community organizations
outside the two corps areas.
     This Command calls itself the largest brigade in the
Army, has a budget of about $248 million, commands 14 major
subordinate units with 16 battalion equivalents and nearly
16,000 people, and serves a population of about 145,000 mili-
tary and civilian employees and their dependents.
     Plans are now underway to expand the responsibilities
of the 21st Support Command. These plans     lude
to support the BENELUX (Belgium, Netherlands, and projects
line of communication program and the assumption of manage-
ment of supply depots through a reorganization of the Army's
logistics structure in Europe.
     The 21st Support Command headquarters functions as de-
fined in DOD Directive 5100.73 for both itself and its sub-
ordinate units.
     Headquarters, 4th Transportation Brigade
     The 4th Transportation Brigade headquarters is responsi-
ble for managing and operating a theater-integrated

ENCLOSURE I                                      ENCLOSURE I

transportation service in support of the U.S. Forces in Cen-
tral Europe. As such, it provides for:
     (1) Operation of a military highway transportation serv-
     (2) Operation of military and/or contractually supervised
         water terminals.
     (3) Operation of the theater railway service, less main-
     (4) Reception, processing, movement, and onward transpor-
         tation of military units deploying to-and from Europe.
     (5) Movement control of personnel and material (less
         pipeline operations).
     (6) Operation of a theater transportation data collection
     (7) Traffic management for U.S. Forces in Central Europe.
     (8) Preparation and distribution of the USAREUR Wartime
         Movement Program.
     (9) An intra-theater airlift service utilizing U.S. Air
         Force aircraft and employing U.S. Army rotary-wing
    (10) Highway regulation services for U.S. Forces in Cen-
         tral Europe.
     The 4th Transportation Brigade headquarters in perform-
ing the above duties also performs for itself and its sub-
ordinate units the functions meeting the criteria of DOD
Directive 5100.73. Many of the current duties of the Brigade
were consolidated into the headquarters by the absorption of
several subordinate units through various reorganizations, in-
cluding Project CHASE. With its special responsibilities
and quasi-independent status as a theater-integrated trans-
portation manager serving not just the Army but all three
services, the 4th Transportation Brigade headquarters is per-
forming many management headquarters functions.
Other headguarters in Europe
performing management functions
     Although we did not verify the full scope of management
functions in all the headquarters in Europe, we noted other

ENCLOSURE I                                        ENCLOSURE I

headquarters which also may perform management headquarters
functions.  Some of these headquarters supervise the activi-
ties of relatively large subordinate command structures
in many ways may be responsible for the functions listed and
DOD Directive 5100.73.                                    in
                        Some of the Army headquarters which
may meet this criteria are listed below along with
                                                   their fis-
cal year 1975 staffing levels.

              Headquarters                         Personnel
    U.S.   Army Medical Command, Europe               295
    32nd   Army Air Defense Command                   391
    59th   Ordnance Group                             388
    U.S.   Army Commander, Berlin                     117
     Similarly, the Air Force has a Military Airlift Command
headquarters in Europe, the 435th Tactical Airlift
                                                    Wing, which
supervises the airlift operations in Europe. The responsibili-
ties of the 435th Tactical Airlift Wing may qualify
                                                     it as a
management headquarters.

     The Navy has a shore-based headquarters in
Italy--Fleet Air Mediterranean--which has comm.adNaples,
                                                   and area
coordination over some 38 shore installations and activities
in the Mediterranean and Morocco, as well as the shore-based
fleet of Navy patrol aircraft.  The scope of its responsibili-
ties may qualify the Fleet Air Mediterranean headquarters
a management headquarters.                                  as