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NSIAD-94-17R 1 (1993-10-07)

handle is hein.gao/gaobackks0001 and id is 1 raw text is: G~o United States General Accounting Office Washington, D.C. 20548 National Security and International Affairs Division B-254879 October 7, 1993 The Honorable Earl Hutto Chairman, Subcommittee on Readiness Committee on Armed Services House of Representatives Dear Mr. Chairman: This correspondence responds to your request that we provide information on (1) the status of the Defense Management Review (DMR) program budgetary savings and (2) the impact of DMR budgetary reductions. RESULTS IN BRIEF The DMR initiatives are in various stages of implementation and some savings have been achieved, and the Department of Defense (DOD) comptroller officials project that additional savings will occur in the future. However, our prior work, and Army and Navy audit agency work have addressed the difficulty of validating and tracking savings to specific initiatives. Moreover, the extent to which savings have resulted from the initiatives or from other factors such as reduced workloads, changes in force structure, or defense downsizing is not easy to determine. Finally, according to DOD officials, budgetary reductions from the DMR initiatives have not had any adverse impact on their operations. BACKGROUND The DMR report, issued in July 1989, outlined actions needed to improve DOD management. In January 1990, DOD issued a status report containing specific management improvement actions intended to save an estimated $39 billion between fiscal years 1991 and 1995. To achieve these savings, DOD planned on reducing and consolidating various functions and activities, streamlining operations, and reducing the number of civilian and military personnel associated with these activities. NSIAD-94-17R Defense Management Review

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