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GAO-14-491R 1 (2014-05-19)

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G      A              U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548


May 19, 2014


The Honorable Carl Levin
Chairman
The Honorable James M. Inhofe
Ranking Member
Committee on Armed Services
United States Senate

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

Defense Acquisitions: Update on DOD's Efforts to Implement a Common Contractor
Manpower Data System

The Department of Defense (DOD), the federal government's largest purchaser of contractor-
provided services, reported that it obligated about $187 billion-more than half of its total
contract obligations-on service contracts in fiscal year 2012. DOD relies on contractors to
perform functions as varied as professional and management support, information technology
support, medical services, and weapon system and intelligence support. In recent years,
Congress has enacted legislation to improve DOD's ability to manage its acquisition of services;
to make more strategic decisions about the right workforce mix of military, civilian, and
contractor personnel; and to better align resource needs through the budget process to achieve
that mix. For example, Section 2330a of title 10 of the U.S. Code requires DOD to annually
compile and, for the military services and defense agencies to review, an inventory of services
contracted for or on behalf of DOD during the preceding fiscal year, in part, to help provide
better insight into the number of contractor full-time equivalents (FTE) providing services to the
department. Further, the military services and defense agencies are required to use the
inventory to inform strategic workforce planning decisions, and DOD is required to use the
inventory to better align resource needs through the budget process. Within DOD, the offices of
the Comptroller and the Under Secretaries of Defense for Acquisition, Technology, and
Logistics (AT&L), and Personnel and Readiness (P&R) have shared responsibility for issuing
guidance for compiling and reviewing the inventory.

We have previously reported on DOD's efforts to compile and review its inventory of contracted
services, including initiatives to standardize contractor manpower data collection across the
department.1 In January 2011, we recommended that DOD develop a plan of action to facilitate

1GAO, Defense Acquisitions: Continued Management Attention Needed to Enhance Use and Review of DOD's
Inventory of Contracted Services, GAO-i 3-491 (Washington, D.C.: May 23, 2013); GAO, Defense Acquisitions:
Further Actions Needed to Improve Accountability for DOD's Inventory of Contracted Services, GAO- 12-357


GAO-14-491R DOD Inventory of Contracted Services


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