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GAO-13-105R 1 (2012-12-04)

handle is hein.gao/gaobacgsb0001 and id is 1 raw text is: i AGAO Accontab ity * egrity -Reliaqblity United States Government Accountability Office Washington, DC 20548 December 4, 2012 Congressional Committees Subject: Defense Management: Opportunities Exist to Improve Information Used in Monitoring Status of Efficiency Initiatives In May 2010,1 the Secretary of Defense publicly announced that the Department of Defense (DOD) was to undertake a department-wide initiative to assess how the department is staffed, organized, and operated with the goal of reducing excess overhead costs and reinvesting those savings in sustaining DOD's current force structure2 and modernizing its weapons portfolio. The Secretary's initiative targeted both short- and long-term improvements and set specific goals and targets for achieving cost savings and efficiencies, which are expected to be achieved between fiscal years 2012 and 2016. As part of this effort, the Secretary of Defense tasked the military departments and other components, including U.S. Special Operations Command (SOCOM), to find savings of about $100 billion in overhead costs over the specified time period. On January 6, 2011, the Secretary of Defense publicly stated that while about one-third of these savings would be used to fund higher-than-expected operating costs, the remaining two-thirds-over $70 billion-would be reinvested in high-priority military capabilities over five years. Of this amount, around $11 billion was projected to be achieved in fiscal year 2012 and available for reinvestment. Information accompanying DOD's fiscal year 2012 budget request outlined specific efficiency initiatives identified by the military departments and SOCOM. Prior to the beginning of fiscal year 2012, DOD's Comptroller and Deputy Chief Management Officer (DCMO) began developing an approach for entities, including the military departments and SOCOM, to track and report on their efforts to implement efficiency initiatives and realize savings. In information accompanying its fiscal year 2013 budget request, DOD identified additional efficiency initiatives expected to generate $60 billion in savings for the period of fiscal years 2013 to 2017. The National Defense Authorization Act for Fiscal Year 2012 required GAO to assess the extent to which DOD has tracked and realized the savings proposed pursuant to the initiative to identify at least $100 billion in efficiencies during fiscal years 2012 through 2016.3 This report addresses (1) the extent to which the military departments and SOCOM have taken steps to internally track the implementation of their efficiency initiatives, and (2) DOD's 1 Remarks as delivered by former Secretary of Defense Robert M. Gates, Abilene, Kansas, May 8, 2010. 2 Force structure is the number, size, and composition of units that comprise U.S. defense forces (e.g., divisions, brigades, ships, air wings, and squadrons). 3 Pub. L. No. 112-81, § 1054 (2011). Under this section, GAO is required to conduct this assessment and submit a report yearly for each of fiscal years 2012 through 2016. See id. We provided a draft of this report to your offices on October 30, 2012, to satisfy the requirement for fiscal year 2012. GAO-13-105R Defense Management Page 1

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