oversight

Defense Headquarters: Status of Efforts to Reduce Headquarters Personnel

Published by the Government Accountability Office on 1999-02-17.

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

                  United States General Accounting Office

GAO               Report to the Chairman, Committee on
                  Armed Services, House of
                  Representatives


February 1999
                  DEFENSE
                  HEADQUARTERS
                  Status of Efforts to
                  Reduce Headquarters
                  Personnel




GAO/NSIAD-99-45
             United States
GAO          General Accounting Office
             Washington, D.C. 20548

             National Security and
             International Affairs Division

             B-281623

             February 17, 1999

             The Honorable Floyd Spence
             Chairman, Committee on Armed Services
             House of Representatives

             Dear Mr. Chairman:

             Concerned with the adequacy of the pace and scope of the Department of
             Defense’s (DOD) efforts to reduce the size and cost of its headquarters
             activities, you requested that we review the Department’s efforts to reduce
             its headquarters positions. Specifically, our report discusses the status of
             DOD’s efforts to reduce, as of the end of fiscal year 1998 (1) headquarters
             positions and associated costs in the Office of the Secretary of Defense
             (OSD) and Washington Headquarters Services,1 as required by the National
             Defense Authorization Act for Fiscal Year 1997 and (2) headquarters
             positions across DOD as required by the National Defense Authorization
             Act for Fiscal Year 1998. In addition, our report discusses the reporting of
             personnel on temporary assignment to OSD from other DOD components.
             You also requested that we review DOD’s revised directive on headquarters
             management activities. As agreed with your office, we will report
             separately on this issue after the directive has been implemented.


             Believing DOD’s efforts to reduce its infrastructure, including the size of its
Background   headquarters activities, lagged behind cuts in operational forces, Congress
             directed DOD to reduce positions in OSD, including Washington
             Headquarters Services and other defense support activities, by 25 percent
             from fiscal year 1994 levels by the end of fiscal year 1999.2 Furthermore,
             Congress directed DOD to reduce the number of positions in all DOD
             headquarters activities by 25 percent from fiscal year 1997 levels by the
             end of fiscal year 2002.3 Noting that it had already reduced personnel in
             heardquarters activities starting in fiscal year 1992, DOD believed these cuts
             would create an unreasonable burden on personnel who perform essential
             headquarters functions. DOD asked Congress to repeal this provision in
             March 1998. However, Congress did not rescind it. DOD noted that the
             congressionally mandated 25-percent reduction, when combined with the


             1
              Washington Headquarters Services provides administrative and operational support to certain DOD
             activities in the national capital region.
             2
              National Defense Authorization Act for Fiscal Year 1997 (P. L. 104-201).
             3
              National Defense Authorization Act for Fiscal Year 1998 (P.L. 105-85).



             Page 1                                                    GAO/NSIAD-99-45 Defense Headquarters
                   B-281623




                   Department’s previously programmed reductions, would reduce these
                   components by over 40 percent for the fiscal year 1992-2000 time period.

                   In October 1997, we reported that the number of management
                   headquarters’ personnel and costs were significantly higher than reported
                   by DOD.4 During fiscal years 1985-96, DOD reported steady decreases in its
                   management headquarters and headquarters support personnel—a
                   31-percent decline from about 77,000 to 53,000. However, these data did
                   not include personnel at most of DOD’s noncombat organizations that are
                   subordinate to management headquarters. In our review of selected
                   subordinate organizations, nearly three of every four of them were
                   primarily performing management or headquarters support functions and
                   should have been reported to Congress by DOD. We recommended that the
                   Secretary of Defense revise the directive on management headquarters
                   and headquarters support activities to expand its coverage and simplify its
                   criteria.

                   In the November 1997 Defense Reform Initiatives (DRI) report, the
                   Secretary of Defense directed OSD to reduce the number of personnel. To
                   achieve reductions, the Secretary directed that OSD eliminate redundancy
                   and obsolete functions, consolidate related functions, and transfer
                   operational and program management functions to other DOD
                   organizations. In addition, the Secretary directed that OSD’s “hidden
                   staff”—components that directly support OSD but were not included as part
                   of OSD’s formal organizational structure or reported in its personnel
                   strengths—be absorbed into OSD. Finally, the Secretary directed the
                   military departments and their major commands, defense agencies,
                   defense field activities, joint staff, and unified commands to reduce the
                   number of headquarters positions.

                   OSD’s  Administrative Instruction 53, “Temporary Staff Augmentations,”
                   states that temporary staff may be used for emergencies, for unforeseen
                   temporary requirements or workload surges, or for jobs for which the
                   skills are not otherwise available within the organization. Temporary staff
                   are not to be used to perform continuing office functions.


                   To comply with the requirement in the National Defense Authorization Act
Results in Brief   for Fiscal Year 1997, DOD plans to reduce OSD and its support activities by
                   about 1,373 positions, or 27 percent, from its fiscal year 1994 levels by the

                   4
                    Defense Headquarters: Total Personnel and Costs Are Significantly Higher Than Reported to Congress
                   (GAO/NSIAD-98-25, Oct. 30, 1997).



                   Page 2                                                 GAO/NSIAD-99-45 Defense Headquarters
                         B-281623




                         end of fiscal year 1999. As of the end of fiscal year 1998, the Department
                         had cut 1,123 positions. The majority of the cuts were based on DOD’s
                         November 1997 DRI report, which recommended that some offices be
                         reorganized and that operational and program management functions be
                         transferred to other DOD activities. Although the positions in OSD and its
                         support activities have been reduced, civilian salary costs (in constant
                         dollars) have not decreased because many of the positions eliminated
                         were vacant and annual civilian pay raises have exceeded the inflation
                         rate. DOD plans to eliminate the remaining 250 positions in fiscal year 1999.

                         DOD may not be accurately accounting for all personnel assigned to OSD.
                         Some personnel temporarily assigned to OSD by other DOD components are
                         functioning more as permanent staff and are not being reported as OSD
                         personnel.

                         DOD  has plans to cut about 5,600 positions across its headquarters
                         activities by the end of fiscal year 2002. This is less than half of the 13,300
                         cuts required by the National Defense Authorization Act for Fiscal
                         Year 1998. According to OSD officials, DOD did not develop plans consistent
                         with the legislation because the Secretary of Defense had sought relief
                         from the 1998 legislative requirement. However, when Congress did not
                         repeal the provision, the services proposed that a task force be established
                         to develop alternatives for reducing the headquarters’ structure.


                         DOD  plans to cut 1,373 positions in OSD and its support activities by the end
OSD and Its Support      of fiscal year 1999. These reductions would be 2 percentage points more
Activities Expect to     than the 25-percent cut mandated in the National Defense Authorization
Have Over 25 Percent     Act for Fiscal Year 1997. Although the number of positions has been
                         reduced, civilian salary costs (in constant dollars) have not decreased. In
Fewer Personnel by       addition, some service and defense agency personnel assigned to OSD are
the End of Fiscal Year   not counted as part of OSD.
1999




                         Page 3                                      GAO/NSIAD-99-45 Defense Headquarters
                                         B-281623




DOD’s Planned Cuts                       DOD’splan to achieve the cuts is shown in table 1. Appendix I shows the
                                         changes by office within OSD.

Table 1: Planned Reductions in the
Office of the Secretary of Defense and                                          Fiscal year           Fiscal year            Change
the Washington Headquarters Services     Activity                             1994 baseline           1999 target          Total      Percent
Between Fiscal Year 1995 and 1999
                                         OSDa                                            3,062               2,002        (1,060)            (35)
                                         Washington Headquarters
                                         Services                                        1,960               1,647          (313)            (16)
                                         Total                                           5,022               3,649        (1,373)            (27)
                                         a
                                          The end of fiscal year 1994 baseline includes 718 positions in five defense support activities and
                                         207 overstrengths (personnel over an organization’s authorized number of positions).

                                         Source: Our analysis of OSD data.



                                         As of the end of fiscal year 1998, DOD had cut 1,123 positions, or 82 percent
                                         of the planned reductions—858 positions in OSD and 265 positions in
                                         Washington Headquarters Services (see table 2).

Table 2: Changes in the Office of the
Secretary of Defense and the                                                                                      Positions
Washington Headquarters Services as      Activity                                                      Eliminated      Transferred       Total
of the End of Fiscal Year 1998
                                         OSD                                                                   (402)            (456)     (858)
                                         Washington Headquarters Services                                      (430)            165       (265)
                                         Total                                                                 (832)            (291) (1,123)
                                         Source: Our analysis of OSD data.



                                         Our analysis indicates that OSD eliminated 402 positions primarily by
                                         abolishing vacant positions, reducing the number of overstrength
                                         positions, eliminating military positions after the incumbents rotated, and
                                         abolishing positions by using early-out incentives. Some positions were
                                         also eliminated through organizational changes. For example, the Office of
                                         the Under Secretary of Defense for Policy reorganized and eliminated one
                                         assistant secretary position as well as several support positions.

                                         OSD also reduced the size of its staff by transferring positions to other DOD
                                         organizations. For example, in fiscal year 1997, OSD transferred 278
                                         positions from a defense support activity to a DOD field activity.5 Positions
                                         in DOD field activities are not counted as part of OSD. Furthermore, DRI

                                         5
                                          These positions were at the Defense Manpower Data Center. The Center was merged with another
                                         defense support activity to form the DOD Human Resources Activity, which is classified as a field
                                         activity.



                                         Page 4                                                   GAO/NSIAD-99-45 Defense Headquarters
                                 B-281623




                                 directed that OSD transfer positions that were considered operational or
                                 involved in program management to other DOD organizations. In fiscal
                                 year 1998, OSD transferred approximately 240 positions to other
                                 organizations. The major transfers that occurred during fiscal year 1998
                                 are the following:

                             •   The Office of the Under Secretary of Defense for Personnel and Readiness
                                 transferred 48 positions for managing DOD’s TRICARE medical program to
                                 the TRICARE management activity, a DOD field activity.
                             •   OSD transferred 47 positions supporting various boards and commissions
                                 to the Washington Headquarters Services.
                             •   The Office of the Under Secretary of Defense for Policy transferred 42
                                 positions at the U.S. Mission to the North Atlantic Treaty Organization to
                                 the Department of the Army.
                             •   The Office of the Assistant Secretary of Defense for Public Affairs
                                 transferred 28 positions that managed the freedom of information and
                                 security review programs to the Washington Headquarters Services.

                                 As of the end of fiscal year 1998, DOD had reduced Washington
                                 Headquarters Services by a net of 265 positions. Approximately 300
                                 positions were cut by contracting out the Pentagon cleaning service, and
                                 another 130 were cut primarily by eliminating vacant positions and
                                 positions vacated through early-out incentives. However, these cuts were
                                 partly offset by an increase of 165 positions from functions transferred
                                 into Washington Headquarters Services, primarily from OSD.

                                 To complete the planned cuts, DOD plans to cut 250 positions (202 in OSD
                                 and 48 in Washington Headquarters Services) in fiscal year 1999. To
                                 achieve its cuts, OSD plans to eliminate 130 positions and transfer another
                                 72 positions. As of November 1998, OSD had identified 32 of the positions
                                 to eliminate and told us it had completed 40 of the planned transfers.
                                 Washington Headquarters Services plans to cut 72 positions, which will be
                                 partly offset by an increase of 24 positions for new missions as well as the
                                 expansion of current missions. As of October 1998, Washington
                                 Headquarters Services had cut 19 positions by transferring positions in the
                                 executive motor pool and travel function to the Department of the Army.
                                 According to Washington Headquarters Services officials, the remaining
                                 positions will be eliminated by consolidating contracting offices and
                                 through early-out incentives.


Civilian Salary Costs Have       Although about 1,125 positions were eliminated in or transferred from OSD
Not Decreased                    and Washington Headquarters Services between fiscal year 1994 and 1998,


                                 Page 5                                    GAO/NSIAD-99-45 Defense Headquarters
                         B-281623




                         there was no proportional decrease in civilian salaries during this time
                         frame. Our analysis indicates that OSD civilian salary costs increased by
                         $7 million (4 percent), from $172 million in fiscal year 1994 to $179 million
                         in fiscal year 1998 (constant 1998 dollars). Likewise, Washington
                         Headquarters Services civilian salary costs increased by $2 million
                         (2 percent) from $84 million to $86 million during this same period. Salary
                         costs did not decline commensurate with the personnel reductions partly
                         because many of the positions eliminated were vacant and annual civilian
                         pay raises exceeded the inflation rate. In addition, OSD incurred some
                         one-time costs associated with incentives to encourage personnel to leave
                         early. For example, DOD paid $1.4 million in such incentives in fiscal
                         year 1998.


Some Positions Are Not   The military services and defense agencies temporarily assign personnel to
Counted as Part of OSD   OSD that are not counted as part of OSD. While DRI recommended that
                         personnel in the defense support activities and overstrength positions be
                         counted as part of OSD, it did not discuss personnel temporarily assigned to
                         OSD. DOD does not have a central database that identifies such positions or
                         people, known as detailees, but the number could be large. For example,
                         an official from the Office of the Assistant Secretary of Defense for
                         Command, Control, Communications and Intelligence (ASD/C3I) said that
                         115 people were temporarily assigned to ASD/C3I as of August 1998. The
                         Office of the Under Secretary of Defense for Policy said it had about 26
                         detailees, and the Office of the Under Secretary of Defense for Acquisition
                         and Technology said it had about 10 detailees.

                         Our review of ASD/C3I information on the 115 detailees’ assignments
                         showed that some of the detailees met the requirements of OSD’s
                         administrative instruction on temporary staff. For example, an ASD/C3I
                         official noted that his office could not recruit temporary staff with the
                         required skills to deal with Year 2000 issues. ASD/C3I was using 20 military
                         service and defense agency people to work on such issues. Another 36
                         ASD/C3I detailees were either liaisons with the various intelligence agencies
                         or individuals from other agencies on developmental assignments.
                         According to an ASD/C3I official, these positions are permanent within the
                         organization, and personnel occupying these positions change every 2 to
                         3 years.

                         The remaining 59 positions being filled by detailees appeared to be a
                         permanent part of ASD/C3I. According to an ASD/C3I official, approximately
                         30 detailees had been assigned to work on specific projects but did not



                         Page 6                                     GAO/NSIAD-99-45 Defense Headquarters
                                  B-281623




                                  return to their home organizations when the projects ended. For example,
                                  the Defense Information Systems Agency sent 17 people to ASD/C3I to
                                  support the corporate information management initiative; however, they
                                  did not return when the project was terminated. ASD/C3I officials said they
                                  were developing a plan to incorporate the policy-related positions into OSD
                                  and return the other positions to their parent organizations by fiscal
                                  year 2000. The remainder of the detailees were in ASD/C3I’s Defense
                                  Airborne Reconnaissance Office. According to an ASD/C3I official, they plan
                                  to downsize the office from 27 to 18 and either transfer the function to one
                                  of the military departments or make it a permanent part of ASD/C3I.


                                  DOD  does not have a plan to reduce management headquarters and
DOD Does Not Have a               headquarters support personnel DOD-wide by 25 percent by the end of
Plan to Reduce                    fiscal year 2002, as required by the National Defense Authorization Act for
Headquarters                      1998. The act requires DOD to cut about 13,300 positions in its headquarters
                                  activities. Rather, DOD has plans to reduce the number of headquarters
Activities by 25                  positions by about 5,600, or 11 percent, by the end of fiscal year 2002 (see
Percent                           table 3). In November 1998, the military services proposed establishing a
                                  task force to develop alternatives for reducing their headquarters
                                  structure.

Table 3: Changes in DOD
Headquarters Activities Between                                                Fiscal year                Change
Fiscal Year 1997 and 2002         Activity                                      1997         2002       Total      Percent
                                  Military departments                        35,621      31,073       (4,548)          (13)
                                  Joint staff                                  1,391        1,256        (135)          (10)
                                  Unified commands                             6,526        6,268        (258)           (4)
                                  Defense agencies/DOD field
                                  activities                                   4,548        4,215        (333)           (7)
                                  Office of the Secretary of Defense           2,376        2,002        (374)          (16)
                                  International organizations                  2,712        2,733          21             1
                                  Total                                       53,174      47,547       (5,627)          (11)
                                  Source: OSD, the military departments, and defense agencies.



                                  As seen in table 3, the military departments account for about 4,500 of the
                                  cuts planned to DOD headquarters activities by the end of fiscal year 2002.
                                  (See apps. II, III, and IV for a breakdown by military department.) These
                                  cuts were directed primarily in the Quadrennial Defense Review and DRI.
                                  For example, as part of the Quadrennial Defense Review, the Navy
                                  planned to reduce its Atlantic and Pacific Fleet headquarters staff by



                                  Page 7                                               GAO/NSIAD-99-45 Defense Headquarters
                       B-281623




                       approximately 1,260, or 20 percent, and the Marine Corps planned to
                       reduce its management headquarters by about 200 positions. A Navy
                       official noted that some of the cuts planned in the fleet headquarters are
                       being revised in the fiscal year 2000 budget. On the other hand, the Army
                       and the Air Force had planned to reduce their headquarters by less than
                       the 10 percent required by DRI. As a result, the Air Force had to cut about
                       1,150 and the Army about 700 additional positions in headquarters to meet
                       DRI threshold. Both military departments allocated the additional cuts
                       primarily on a fair-share percentage basis across their headquarters
                       activities.

                       The Joint Staff plans to cut 135 positions and the unified commands about
                       260 positions by the end of fiscal year 2002. The Joint Staff plans to
                       transfer about 75 military positions to the U.S. Strategic Command, return
                       about 40 military positions to the military departments, and eliminate
                       about 20 civilian positions. Finally, the reductions in the defense agencies
                       are a combination of cuts directed in the Quadrennial Defense Review and
                       DRI.


                       In November 1998, the military departments proposed the establishment of
                       a task force, chaired by the Under Secretary of the Army, to develop
                       alternatives for reducing DOD’s headquarters structure. The task force
                       would (1) identify processes and transactions, by functional area, that are
                       significant drivers for the number of headquarters personnel; (2) inventory
                       the number of workyears associated annually with the transactions and
                       processes, by functions; and (3) assess the number of personnel that could
                       be eliminated if transactions and processes were reengineered, automated,
                       outsourced, or canceled. Each service will be allowed to reinvest any
                       personnel and dollar savings from reducing headquarters activities. The
                       proposal calls for the task force to issue its report to Congress in
                       June 1999.


                       We recommend that the Secretary of Defense determine the number and
Recommendation         purpose of all personnel temporarily assigned to OSD by other DOD
                       components. Detailees that do not meet OSD’s requirements of temporary
                       staff should either be counted as OSD personnel or returned to their parent
                       organizations.


                       In comments on a draft of this report (see app. V), DOD concurred with our
Agency Comments        recommendation and noted that it is developing a system to account for all
and GAO’s Evaluation

                       Page 8                                    GAO/NSIAD-99-45 Defense Headquarters
              B-281623




              personnel detailed to OSD from other DOD components. As part of this
              process, DOD plans to determine the validity and continued need for
              current detailees. DOD also noted that the report was technically accurate,
              but believed it needed to provide a more balanced treatment of the
              Department’s efforts to downsize its headquarters activities. Specifically,
              DOD said the report does not include (1) the reason it requested relief from
              the 25-percent reduction required by the National Defense Authorization
              Act for Fiscal Year 1998 and (2) the principal reason civilian pay costs did
              not come down between fiscal year 1994 and 1998. According to DOD, it
              requested relief because headquarters activities have been reduced
              significantly since fiscal year 1992. We clarified the report to reflect DOD’s
              position and included information provided by DOD on personnel
              reductions in management headquarters activities back to fiscal year 1992.
              Regarding OSD civilian pay costs, DOD said the principal reason they did not
              decrease between fiscal year 1994 and 1998 was that nearly 200 civilians
              who worked for OSD, but were attributed to the pay accounts of other DOD
              elements, were transferred into the OSD civilian pay account in fiscal year
              1998. Our analysis of changes in civilian pay accounted for these transfers.
              Still, key reasons civilian pay costs did not decline were that many of the
              positions eliminated were vacant, annual pay raises exceeded inflation
              costs, and the department incurred one-time costs associated with
              incentives to encourage people to leave early.


              To obtain information on DOD’s plans to achieve the 25-percent reduction
Scope and     in OSD and Washington Headquarters Services positions, we interviewed
Methodology   officials in OSD’s Office of the Director, Administration and Management,
              and reviewed files that documented the cuts during fiscal years 1995-98
              and planned for fiscal year 1999. In addition, we reviewed the Defense
              Reform Initiative report. We obtained civilian salary costs for OSD, the
              defense support activities, and Washington Headquarters Services for
              fiscal years 1994-98 from the Washington Headquarters Services,
              Directorate for Budget and Finance. To determine how DOD plans to
              achieve the 25-percent reduction in personnel at all its headquarters
              activities, we interviewed officials in the Office of the Under Secretary of
              Defense, Comptroller, and manpower officials in each of the military
              departments and the Joint Staff. In addition, we identified the position cuts
              to headquarters activities programmed between fiscal year 1997 and 2002
              in the Fiscal Year 1999 Future Years Defense Program.

              We conducted our work from June to December 1998 in accordance with
              generally accepted government auditing standards.



              Page 9                                     GAO/NSIAD-99-45 Defense Headquarters
B-281623




We are providing copies of this report to other appropriate congressional
committees; the Secretaries of Defense, the Air Force, the Army, and the
Navy; the Chairman, Joint Chiefs of Staff; and the Director, Office of
Management and Budget. We also will provide copies to other interested
parties on request.

Please call Marvin Casterline, Assistant Director, on (202) 512-9076 if you
or your staff have any questions concerning this report. Major contributors
to the report were Michael Kennedy, Ronald Leporati, and Justin Bernier.

Sincerely yours,




Henry L. Hinton, Jr.
Assistant Comptroller General




Page 10                                   GAO/NSIAD-99-45 Defense Headquarters
Page 11   GAO/NSIAD-99-45 Defense Headquarters
Contents



Letter                                                              1


Appendix I                                                         14
Changes in the Office
of the Secretary of
Defense Positions
Between Fiscal Year
1994 and 1999
Appendix II                                                        15
Changes in Army
Positions in
Headquarters
Activities Between
Fiscal Year 1997 and
2002
Appendix III                                                       16
Changes in Air Force
Positions in
Headquarters
Activities Between
Fiscal Year 1997 and
2002




                        Page 12   GAO/NSIAD-99-45 Defense Headquarters
                       Contents




Appendix IV                                                                                       17
Changes in Navy
Positions in
Headquarters
Activities Between
Fiscal Year 1997 and
2002
Appendix V                                                                                        18
Comments From the
Department of
Defense
Tables                 Table 1: Planned Reductions in the Office of the Secretary of               4
                         Defense and the Washington Headquarters Services Between
                         Fiscal Year 1995 and 1999
                       Table 2: Changes in the Office of the Secretary of Defense and the          4
                         Washington Headquarters Services as of the End of Fiscal Year
                         1998
                       Table 3: Changes in DOD Headquarters Activities Between Fiscal              7
                         Year 1997 and 2002




                       Abbreviations

                       ASD/C3I    Assistant Secretary of Defense for Command, Control,
                                       Communications and Intelligence
                       DOD        Department of Defense
                       DRI        Defense Reform Initiatives
                       OSD        Office of the Secretary of Defense


                       Page 13                                   GAO/NSIAD-99-45 Defense Headquarters
Appendix I

Changes in the Office of the Secretary of
Defense Positions Between Fiscal Year 1994
and 1999

                                     Fiscal year                    Positions                         Change                  Fiscal year
Office                             1994 baseline            Eliminated         Transferred          Total     Percent         1999 target
Secretary of Defense                              76                 (33)                  7          (26)          (34)                 50
                             a
Acquisition and Technology                       720                (146)                (88)        (234)          (33)                486
Policy                                           597                 (87)               (104)        (191)          (32)                406
                         b
Personnel and Readiness                          600                 (66)               (330)        (396)          (66)                204
Comptrollerc                                     374                 (67)                 16          (51)          (14)                323
   d
C3I                                              334                 (88)                 32          (56)          (14)                278
Public Affairs                                   129                 (25)                (29)         (54)          (42)                 75
Legislative Affairs                               39                   (8)                (1)           (9)         (23)                 30
Operations, Test, and Evaluation                  43                   (6)                 4            (2)          (5)                 41
General Counsel                                   55                   (5)                 7             2            4                  57
Administration and Management                     30                   (7)                (2)           (9)         (30)                 21
Intelligence Oversight                              9                  (1)                 •            (1)         (11)                  8
Special programse                                 56                 (27)                 (6)         (33)          (41)                 23
Boards and commissionsf                                               34                 (34)
Total                                          3,062                (532)               (528)      (1,060)          (34)               2,002
                                     a
                                      Fiscal year 1994 baseline includes 230 positions in the Acquisition and Technology Defense
                                     Support Activity.
                                     b
                                         Fiscal year 1994 baseline includes 300 positions in the Defense Manpower Data Center.
                                     c
                                      Fiscal year 1994 baseline includes 29 positions in the Management Systems Support Office and
                                     39 positions in the Plans and Program Analysis Support Center.
                                     d
                                         Fiscal year 1994 baseline includes 120 positions in the Intelligence Program Support Group.
                                     e
                                      Includes consultants, reimbursable details, and the administrative support and assistance
                                     program.
                                     f
                                     Boards and commissions were not identified separately until fiscal year 1996.

                                     Source: Office of the Secretary of Defense.




                                     Page 14                                                    GAO/NSIAD-99-45 Defense Headquarters
Appendix II

Changes in Army Positions in Headquarters
Activities Between Fiscal Year 1997 and
2002

                                                                       Fiscal year            Change
              Activity                                                  1997    2002        Total     Percent
              Army Staff                                               1,707   1,534         (173)            (10)
              Secretariat                                                828     865           37               5
                                      a
              Department support                                         488     295         (193)            (40)
              Functional commandsb                                     6,536   5,666         (870)            (13)
                                          c
              Combatant commands                                       1,903   1,862           (41)            (2)
              Subtotal                                                11,462 10,222        (1,240)            (11)
              Unified commandsd                                        1,372   1,310           (62)            (5)
              International organizations                              1,504   1,549           45               3
              Total                                                   14,338 13,081         1,257              (9)
              a
               Includes the Concepts Analysis Agency, Command and Control Support Agency, and
              Information Management Support Agency.
              b
               Includes headquarters elements of the Army Materiel Command, the Corps of Engineers,
              Intelligence and Security Command, Medical Command, Military District of Washington, Training
              and Doctrine Command, Criminal Investigations Command, and Forces Command.
              c
               Includes Third Army, Eighth Army, U.S. Army Pacific, U.S. Army Europe, U.S. Army South, and
              the Military Traffic Management Command.
              d
                  Does not include positions in Special Operations Command.

              Source: Department of the Army.




              Page 15                                                 GAO/NSIAD-99-45 Defense Headquarters
Appendix III

Changes in Air Force Positions in
Headquarters Activities Between Fiscal Year
1997 and 2002

                                                                        Fiscal year              Change
               Activity                                                  1997     2002         Total       Percent
               Air Staff, Air National Guard, and Air Force
               Reserve Headquarters                                     1,553    1,357          (196)           (13)
               Secretariat                                                931      871           (60)            (6)
               Department supporta                                        542      392          (150)           (28)
               Functional commandsb                                     4,081    3,628          (453)           (11)
               Combatant commandsc                                      6,171    5,439          (732)           (12)
               Subtotal                                                13,278 11,687          (1,591)           (12)
               Unified commandsd                                        1,874    1,872            (2)             •
               International organizations                                432      378           (54)           (13)
               Total                                                   15,584 13,937          (1,647)           (11)
               a
                Includes the Air Force Pentagon Communications Agency (Air Force support) and direct
               supporting staff.
               b
                Includes headquarters elements of the Air Force Material Command, the Air Education and
               Training Command, the Air Intelligence Agency, the Air Force Program Executive Office, the Air
               Force Reserve Command, and the Air Force Pentagon Communications Agency (Office of the
               Secretary of Defense Support).
               c
                Includes the Pacific Air Forces, Air Force Space Command, U.S. Air Forces in Europe, Air
               Combat Command, and Air Mobility Command.
               d
                   Does not include positions in Special Operations Command.

               Source: Department of the Air Force.




               Page 16                                                 GAO/NSIAD-99-45 Defense Headquarters
Appendix IV

Changes in Navy Positions in Headquarters
Activities Between Fiscal Year 1997 and
2002

                                                                         Fiscal year            Change
               Activity                                                  1997        2002     Total     Percent
               Chief of Naval Operations                                1,071        1,006      (65)             (6)
               Commandant of the Marine Corps                             354         360         6               2
               Secretariat                                                877         879         2               •
               Department supporta                                        233         179       (54)            (23)
               Functional commandsb                                     4,114        3,505     (609)            (15)
               Combatant commandsc                                      4,232        3,235     (997)            (24)
               Subtotal                                                10,881        9,164   (1,717)            (16)
               Unified commandsd                                        1,693        1,550     (143)             (8)
               International organizations                                776         806        30               4
               Total                                                   13,350 11,520         (1,830)            (14)
               a
               Includes the Naval Support Activity and the Field Support Activity.
               b
                Includes headquarters elements of the Naval Air Systems Command, Naval Sea Systems
               Command, Naval Supply Systems Command, Naval Facilities Engineering Command, Naval
               Space and Warfare Systems Command, Office of the Chief of Naval Research, Chief of Navy
               Education and Training, Naval Medical Command, Naval District of Washington, Naval
               Intelligence Command, Naval Oceans Command, Naval Security Group, Naval Reserve Force,
               Naval Computer and Telecommunications Command, and Marine Corps Staff Management
               Agency.
               c
                Includes the Military Sealift Command; Commander in Chief, Pacific Fleet; Commander in Chief,
               Atlantic Fleet; Commander in Chief, Navy, Europe; and Navy Space Command.
               d
                   Does not include positions in U.S. Special Operations Command.

               Source: Department of the Navy.




               Page 17                                                 GAO/NSIAD-99-45 Defense Headquarters
Appendix V

Comments From the Department of Defense




             Page 18        GAO/NSIAD-99-45 Defense Headquarters
Appendix V
Comments From the Department of Defense




Page 19                                   GAO/NSIAD-99-45 Defense Headquarters
Appendix V
Comments From the Department of Defense




Page 20                                   GAO/NSIAD-99-45 Defense Headquarters
           Appendix V
           Comments From the Department of Defense




(701144)   Page 21                                   GAO/NSIAD-99-45 Defense Headquarters
Ordering Information

The first copy of each GAO report and testimony is free.
Additional copies are $2 each. Orders should be sent to the
following address, accompanied by a check or money order
made out to the Superintendent of Documents, when
necessary. VISA and MasterCard credit cards are accepted, also.
Orders for 100 or more copies to be mailed to a single address
are discounted 25 percent.

Orders by mail:

U.S. General Accounting Office
P.O. Box 37050
Washington, DC 20013

or visit:

Room 1100
700 4th St. NW (corner of 4th and G Sts. NW)
U.S. General Accounting Office
Washington, DC

Orders may also be placed by calling (202) 512-6000
or by using fax number (202) 512-6061, or TDD (202) 512-2537.

Each day, GAO issues a list of newly available reports and
testimony. To receive facsimile copies of the daily list or any
list from the past 30 days, please call (202) 512-6000 using a
touchtone phone. A recorded menu will provide information on
how to obtain these lists.

For information on how to access GAO reports on the INTERNET,
send an e-mail message with "info" in the body to:

info@www.gao.gov

or visit GAO’s World Wide Web Home Page at:

http://www.gao.gov




PRINTED ON    RECYCLED PAPER
United States                       Bulk Rate
General Accounting Office      Postage & Fees Paid
Washington, D.C. 20548-0001           GAO
                                 Permit No. G100
Official Business
Penalty for Private Use $300

Address Correction Requested