Sec. 905. Additional requirements for streamlining of Department of Defense management headquarters
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On July 31, 2013, the then Secretary of Defense stated that the Department would reduc[e] the Department’s major headquarters budgets by 20 percent…Although the 20 percent cut applies to budget dollars, organizations will strive for a goal of 20 percent reductions in government civilians and military personnel. The then Secretary further stated that these management reforms…will reduce the Department’s overhead and operating costs by...$10 billion over the next five years. . Furthermore, the President’s budget request for the Department of Defense for fiscal year 2015 stated that reductions to management headquarters staff and consolidation of duplicative efforts across the Department would result in a savings of $5.3 billion over 5 years—through fiscal year 2019.
However, as noted by the Government Accountability Office in a January 2015 report (GAO–15–10), the Department accounted for $5.3 billion as efficiency savings in its budget request, but has not provided specific details on the reductions to management headquarters’ staff it plans to make. In June 2014, the Government Accountability Office found (in GAO–14–439) that the Department did not have an accurate accounting of the resources being devoted to management headquarters to use as a starting point for tracking reductions to such headquarters.
In April 2015, the Government Accountability Office reported (in GAO–15–404SP) that focusing reductions on management headquarters budgets and personnel, which tend to be inconsistently defined and often represent a small portion of the overall headquarters, shields much of the resources identified for potential reduction. It is the sense of Congress that— the Secretary of Defense’s commitment in July 2013 to a goal of a 20 percent reduction in headquarters budgets and personnel and a goal of $10 billion in cost savings over five years is worthwhile and should be fully implemented; without a clear baseline for management headquarters, it is difficult to demonstrate and track progress achieving actual savings; any reduction in personnel should not be implemented as an across-the-board cut, but rather should be strategically designed to retain critical functions, capabilities, and skill sets—including but not limited to depots and the acquisition workforce—and eliminate unnecessary or redundant functions or skill sets that do not benefit or support mission requirements; functions should be performed at the lowest appropriate organizational level and those organizations should be empowered and held accountable; duplicative functions at higher level organizations should be eliminated; and the movement of a function from a management headquarters to a different Department of Defense organization or a lower level organization does not result in an efficiency, since the same budget is still required to perform that function.
Section 904 of the National Defense Authorization Act for Fiscal Year 2014 ( Public Law 113–66 ; 10 U.S.C. 111 note) is amended by adding at the end the following new subsection: The Secretary of Defense shall implement the 20 percent reduction directed by the Secretary in July 2013 in management headquarters budget and personnel by September 30, 2019, for the covered organizations in the National Capital Region (as defined in section 2674(f) of title 10, United States Code).
Such reductions shall be strategically designed to retain critical functions, capabilities, and skill sets. Management, functions, programs, or offices shall be moved to the lowest appropriate organizational level. In any report issued pursuant to subsection (d), the Secretary may not claim a cost savings solely based on moving management, functions, programs, or offices from one organization to another. . Section 904 of the National Defense Authorization Act for Fiscal Year 2014 ( Public Law 113–66 ; 10 U.S.C. 111 note) is further amended by adding at the end the following new subsection:
In implementing the 20 percent reduction referred to in subsection (e), the Secretary of Defense may not reduce the number of Department of Defense civilian employees whose salaries are funded from working-capital funds except in accordance with section 2472 of title 10, United States Code. . Section 904(a) of the such Act is amended by striking 180 days after the date of the enactment of this Act and inserting March 31, 2016 . Section 904(b) of such Act is amended— by redesignating paragraphs (1), (2), and
(3)as paragraphs (2), (3), and (4), respectively; by inserting before paragraph (2), as so redesignated, the following new paragraph (1): An accurate baseline accounting of defense headquarters budgets and personnel as of fiscal year 2014, including what is and is not included as part of management headquarters accounting, and a detailed description of the number of personnel, budgets, functions, capabilities, and skill sets. ; in paragraph (2), as so redesignated— by inserting actual and before planned changes ; by striking staffing and inserting personnel ; and by inserting before the period at the end the following: , set forth separately by fiscal year, from fiscal year 2014 through fiscal year 2019 ; in paragraph (3), as so redesignated— by striking description of the planned changes and inserting detailed description of the actual and planned changes ; and by inserting before the period at the end the following: , set forth separately by fiscal year, from fiscal year 2014 through fiscal year 2019 ; and in paragraph (4), as so redesignated, by striking fiscal year 2015, and estimated savings to be achieved for each of fiscal years 2015 through 2024 and inserting fiscal year 2014, and estimated savings to be achieved, along with associated changes or reductions in budget, for each of fiscal years 2014 through 2024 . Section 904(d) of such Act is amended— in paragraph (1), by striking 180 days after the date of the enactment of this Act and inserting March 31, 2016 ; and in paragraph (2)— in subparagraph (C), by striking including and all that follows through the end of the subparagraph and inserting the following: and specific detailed information on how the changes, consolidations, or reductions were prioritized and resulted in functions no longer being performed, in the fiscal year covered by such report. ; in subparagraph (F), by striking , including and all that follows through management review ; and by adding at the end the following new subparagraph: A separate description of— the management functions, programs, or offices that were eliminated and how each represents a redundant management or oversight function; and the management, functions, programs, or offices that were moved, and how moving each will result in efficiency. .
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Sec. 905
Additional requirements for streamlining of Department of Defense management headquarters
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