DEFENSE REORGANIZATION DOD’s Efforts to Streamline the Transportation Command / Illllllllll111 142674 RELEASED --- RESTRICTED --Not to be released outside the General Accounting Offlce unless speciflcally approved by the Office of Congressional Relations. ..,.,-....- . -- - .-,,- <;AO,‘NSIAD-91-:lfiRK. “, “I( “,I ,,m” ..I I “” “11” _ _ _ ,... .._..... .._ “- -.- ..-_-.----- _______ -~_- --- - United States General Accountlug Office Washlugton, D.C. 20648 National Security and International Affairs Division B-240714 October 26,199O The Honorable Nicholas Mavroules Chairman, Subcommittee on Investigations Committee on Armed Services House of Representatives Dear Mr. Chairman: As you requested, we reviewed the implementation of recommendations concerning the U.S. Transportation Command contained in a February 1988 Department of Defense (DOD) task force report. The report was entitled Review of Unified and Specified Command Headquarters (com- monly referred to as the Vander Schaaf Report) and recommended, among other things, the elimination of the separate component com- mand headquarters. You wanted to know what progress had been made in eliminating the separate Army, Navy, and Air Force component com- mand headquarters and thereby creating a single integrated headquar- ters for the U.S. Transportation Command. In particular, you requested information on command staff reductions, and any other actions taken by the commands that would affect the organizational relationships between headquarters and components. We briefed members of your staff on the preliminary results of our efforts. This letter provides additional details on the matters discussed. It must be recognized that the information for this letter was developed prior to the initiation of Operation Desert Shield. Thus, it does not address the activities of the Transportation Command in moving large payloads of equipment and personnel to Saudi Arabia. Our review showed the following: Results in Brief . The Secretary of Defense did not accept the February 1988 report’s rec- ommendation to eliminate the separate service component command headquarters. He directed that 204 positions be eliminated from Com- mand and component headquarters instead of the 1,O15 positions recom- mended in the report. However, due to budget reductions since the Secretary’s decision, over 250 additional positions have been eliminated. l The Transportation Command was established as a command oriented toward wartime and national emergencies. In peacetime the component commands operate within their respective services, and the Transporta- tion Command does not function as a fully operating unified command. Page 1 GAO/NSIAD-91-36BR Transportation Command 6 It I B-240714 The Commander of the Transportation Command stated the Command should be given comparable responsibility for peacetime operations as it has for wartime. . The Transportation Command’s Reorganization Task Force, which included representatives from Command headquarters, the service com- ponent commands, and the Joint Staff, reviewed the command’s opera- tions and recommended a number of changes. The Task Force’s recommendations, designed to improve operations and submitted to the Joint Chiefs of Staff in July 1990, are currently under review. The Transportation Command, headquartered at Scott Air Force Base, Background Illinois, was established in April 1987. It was established as a unified’ command to provide global air, land, and sea transportation to meet national security needs. The Command has three service component commands: the Military Traffic Management Command (MTMC), the Mili- tary Sealift Command (M%), and the Military Airlift Command (MAC). MTMC,the Army’s component command, is headquartered in Falls Church, Virginia. It serves as the single manager for land transportation and controls procurement of commercial transportation for movement of cargo. MTMChas three major subordinate field commands with field offices. MSC,the Navy’s component, is headquartered in Washington, D.C. Its pri- mary mission is to provide strategic sealift in support of U.S. military forces worldwide. MSChas four subordinate commands with field offices overseas. Most MSCfield offices are located with, or very near, MTMC field offices. MAC,the Air Force’s component, is headquartered at Scott Air Force Base, Illinois. Its mission is to provide global military airlift during both peace and war. The major MAL=components are the Zlst and 22nd Air Forces, which operate the airlift system. Because of its proximity to the Transportation Command headquarters, personnel in 94 MACpositions also perform functions for the Transportation Command. Currently, the same person serves as the commander of both the Transportation Com- mand and MAC. In a memorandum dated December 14,1987, the Secretary of Defense directed that the DOD Deputy Inspector General conduct a review of the ‘unifiedcommands are composed of force3 from two or more services. Page 2 GAO/NSIAD91-36B1& Tmuwportation Command unified and specified command headquarters. The primary objective of the review was to reduce staff levels and overhead costs, giving partic- ular attention to overlapping responsibilities, duplication of functions, and excessive organizational layering. The task force issued its report in February 1988. The task force recommended eliminating 1,015 of the 7,317 positions it identified as associated with headquarters functions of the Transporta- tion Command, its component commands, and field offices of the compo- nents. A major part of the proposed personnel reductions would have resulted from eliminating service component command headquarters, which are subordinate to the Transportation Command. The Secretary of Defense did not agree to eliminate the 1,015 positions Component Command that the task force recommended. Instead, the Secretary directed, in Headquarters Have September 1988, that Command headquarters and component staffs be Not Eken Eliminated, reduced by 204 positions. The Secretary indicated he was persuaded by a compelling case made by senior military leadership that the service but Staffs Have Been components of the unified commands needed to be retained. Therefore, Reduced he rejected most of the proposed reductions associated with that recommendation. According to Transportation Command officials, their headquarters received only minor cuts because it was a new command that was not fully operational at the time of the task force report. DOD recognized that headquarters staffing had not yet reached planned levels and based its cuts accordingly. Table 1 shows the Command’s authorized staff base- line used by the task force, the changes recommended by the task force, and the changes that were directed by the Secretary of Defense. Page 3 GAO/NSIAD-9136BR Transportation Command B-240714 Table 1: Command Baseline Staff Levels, Proposed Task Force Changes, and DOD Baseline staff Proposed task DOD directed Directed Changes -- levels force changes staff changes Transportation Command 388 +2,468 -- ______-.--- -4 Major component ----- headquarters MTMC 604 -604 - -50 -~-MSC 508 __... -354 __-.- -45 MAC -.---.-- 2,512 -2,345~-..~- -105 Subtotal 4,012 -835 --~~-... -204 Subordinate offices ___-- ..~ - MTMC --.-.- 1,271 ___ ...____..-.0 ~--____ 0 MSC - 1,125 -180 0 MAC ____.- 909 0 0 Subtotal 3,305 -____- -180 0 Total 7,317 -1.015 -204 Transfer MSC headquarters to Navy activities -~ (a) 154 0 Transfer MAC headquarters to Special Operations Command (4 167 0 aNot applicable The task force recommended eliminating 1,O15 positions by transferring positions from the service component headquarters to the Transporta- tion Command and eliminating positions from MSC subordinate activities. The task force recommended transferring 154 positions representing service unique functions from MSC headquarters to other Navy activities. In addition, the task force recommended transferring 167 positions rep- resenting the special operations portions of the 23rd Air Force from MAC headquarters to the Special Operations Command. Effective May 22, 1990, the Air Force established the Air Force Special Operations Command as a major command and component of the U.S. Special Operations Command, absorbing all MAC special operations func- tions. This action, in effect, implemented the task force recommendation to transfer MAC special operations functions to the Special Operations Command. Since the implementation of the staff reductions directed by the Secre- tary of Defense, additional reductions have been made. As shown in table 2, staff authorizations have generally decreased from fiscal years 1988 through 1991. These decreases reflect both the 204 positions cut as a result of the task force’s recommendations and general budget cuts imposed by the services on the component commands. Page 4 GAO/NSIAD-91-36BR Transportation Command I * B240714 Table 2: Transportation Command Staff Authorizations-Fiscal Years 1988 Fiscal year Chan e Through 1991 1988 1989 1990 1991 1988-fl 1 -_--- Transportation Command 302__- 371 411 390 --. +88 Service component headquarters -____- __---- -. MTMC 628 593 596 575 -53 MSC 501 502 428 416 -85 -.--___ MAC .___ 2,538 2,495 2,396 2,247 ---‘--?iii Subtotal ___- 3,969 3,961 3,831 3,628- -34i- Subordinate offices -____- MTMC 1,328 1,354 1,230 1,278 ~_----. -50- MSC 1,117 1,117 1,115 1,115 -2 MAC ..-.-.- ____ 906 1.126 896 799 -107 Subtotal 3,351 3,597 3,241 3,192 -159 Total 7,320 7,558 7,072 6,820 -500 Transportation Command officials said they expect substantial staffing changes in future years. The services are currently planning major cuts in component headquarters and subordinate staff manning levels for fiscal year 1992 and succeeding years, These cuts will reflect the compo- nent’s proportionate share of the overall staff reductions required by its respective service. Transportation Command officials expect that, by the end of fiscal year 1993, the total cuts will exceed those recom- mended in the task force report. Under its charter, the Transportation Command has, during wartime Transportation and national emergencies, authority over airlift, sealift, and land trans- Command Given portation required for strategic mobility. The services-through MTMC, Limited Peacetime MSC, and MAC-retain peacetime operational authority. The service com- ponents have operational control of forces assigned to the Transporta- Authority tion Command and responsibility for service-unique missions, as well as control of industrial funds.2 Each component is a major command of its parent service, which organizes, trains, and equips its forces. To perform as a fully operating unified command, Transportation Com- mand officials believe that the command should be responsible for oper- ation of strategic lift during peace, war, and national emergencies. This change, which command officials believe would insure a smooth transi- tion to war and a more efficient peacetime operation, would require the Secretary of Defense’s approval to amend its charter. 2An industrial fund provides working capital for industrial and commercial activities that provide common services within DOD. Page 6 GAO/NSIAD-Sl-36BR Transportation Command , i B-240714 As evidence of the need to change its charter, command officials cited the results of an exercise conducted in October 1989. At that time, the Transportation Command participated in its first major joint exercise since the command’s formation. In its December 20,1989, report, a senior evaluation team suggested that the command consolidate some peacetime tasks at the command’s headquarters. The team suggested that the consolidation begin with traffic management and contracting functions to improve the coordination between transportation modes. Such changes, the team believed, would help facilitate the transition from peacetime to wartime operations. The Transportation Command’s Reorganization Task Force has pro- Transportation posed major changes designed to improve transportation operations, Command Task Force reduce staff requirements, and increase management efficiency. These Has Recommended proposals are under consideration by the Joint Chiefs of Staff and the Office of the Secretary of Defense. Changes The Commander of the Transportation Command directed that a Reor- ganization Task Force conduct a functional review of the Command structure, including the service component commands. The objectives were to strengthen capabilities, improve operating efficiencies, and better utilize resources. The Reorganization Task Force included repre- sentatives from Command headquarters, the service component com- mands, the services, and the Joint Staff. The Task Force began work in March 1990 and submitted its recommendations to the Joint Staff in July 1990. The recommendations are currently under review. The Task Force proposed amending the Transportation Command’s charter to include responsibility for strategic lift during peacetime, as well as during war and national emergencies. The Commander of the Transportation Command envisions a fully operating unified Command that functions as the single DOD manager for transportation in both peace and war. The service component commands would be retained, and the services would retain control over service unique functions per- formed by the components. Another proposed change would involve centralizing peacetime traffic management functions at Transportation Command headquarters. In addition, there has been a proposal to consolidate the three individual service industrial funds managed by MTMC, MX, and MACinto one com- bined fund at Transportation Command headquarters. However, because of stiff opposition from the services to losing their industrial Page 8 GAO/NSIAD9136BR Transportation Command funds, the Task Force recommended a 3-phased gradual transition. The Command expects to achieve many of the same staff savings and oper- ating efficiencies through its Reorganization Task Force that were origi- nally recommended by the DOD Inspector General’s task force. However, the extent of such savings has not yet been identified. We conducted our review primarily at the Transportation Command Scopeand headquarters, Scott Air Force Base, Illinois. We discussed the com- Methodology mand’s implementation of the task force report with command officials and obtained documents related to changes in authorized staff levels and other aspects of the task force recommendations. We conducted our review from April through August 1990 in accordance with generally accepted government auditing standards. We did not obtain written agency comments, but we discussed the infor- mation contained in this letter with Transportation Command officials and included their comments where appropriate. Unless you announce its contents earlier, we plan no further distribution of this report until 30 days from the date of this letter. At that time, we will send copies to the Chairmen, House Committees 0%Armed Services, Appropriations, and Government Operations, and the Chairmen, Senate Committees on Armed Services, Appropriations, and Governmental Affairs; the Director, Office of Management and Budget; and other inter- ested parties. We will make copies available to others upon request. Please contact me at (202) 275-3990 if you or your staff have any ques- tions concerning this briefing report. Other major contributors to this briefing report are listed in appendix I. Sincerely yours, Paul L. Jones Director, Defense Force Management Issues Page 7 GAO/NSLADBl-B6BR Transportation Command Appendix I Major Contributors to This Report George E. Breen, Jr., Assistant Director National Security and International Affairs Division, Washington, D.C. Gary L. Billen, Assistant Regional Manager St. Louis Sublocation Gregory J. Symons, Evaluator-in-Charge Diane S. Gadberry, Staff Evaluator (891123) Page 8 GAO/NSIAD-91-36BR Transportation Command - -. .-...- ..--- .._. ..__ .-- .._. “ll.. .,l” ., _ _,-*.. I( “~II-. “I “.ll .s” . _“----l------. L, -p---- Ordering Inform;tt.ion ‘l’ht~ first. five copit*s of t??achGAO report are free. Addit,ional copies ilrt’ $2 each. Orders sl~ould be sent Co the following address, accom- lmnit~d by 8 check or money order made out to the Slrp~rint.enderIt of Ilot-uments, when nect?ssary. Orders for 100 or more copies to be mailthd to in single address are discount,ed 25 percent,. ITS. General Accounting Office I’.( 1. 130x 60 15 Gaithersburg, MI) 20877 Ordthrs may also he placed by calling (202) 278-6241. First-Class Mail Postage & Fees Paid GAO Permit No. GlOO
Defense Reorganization: DOD's Efforts to Streamline the Transportation Command
Published by the Government Accountability Office on 1990-10-26.
Below is a raw (and likely hideous) rendition of the original report. (PDF)