Sec. 346. REDUCTION IN AMOUNTS AVAILABLE FOR DEPARTMENT OF DEFENSE HEADQUARTERS, ADMINISTRATIVE, AND SUPPORT ACTIVITIES
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## SEC. 346 REDUCTION IN AMOUNTS AVAILABLE FOR DEPARTMENT OF DEFENSE HEADQUARTERS, ADMINISTRATIVE, AND SUPPORT ACTIVITIES **[**[10 U.S.C. 111 note](/us/usc/t10/s111)**]** ###
(a)Plan for Achievement of Cost Savings ####
(1)In general Commencing not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall implement a plan to ensure that the Department of Defense achieves not less than $10,000,000,000 in cost savings from the headquarters, administrative, and support activities of the Department during the period beginning with fiscal year 2015 and ending with fiscal year 2019. The Secretary shall ensure that at least one half of the required cost savings are programmed for fiscal years before fiscal year 2018. ####
(2)Treatment of savings pursuant to headquarters reduction Documented savings achieved pursuant to the headquarters reduction requirement in subsection (b), other than savings achieved in fiscal year 2020, shall count toward the cost savings required by paragraph (1). ####
(3)Treatment of savings pursuant to management activities Documented savings in the human resources management, health care management, financial flow management, information technology infrastructure and management, supply chain and logistics, acquisition and procurement, and real property management activities of the Department during the period referred to in paragraph
(1)may be counted toward the cost savings required by paragraph (1). ####
(4)Treatment of savings pursuant to force structure revisions Savings or reductions to military force structure or military operating units of the Armed Forces may not count toward the cost savings required by paragraph (1). ####
(5)Reports The Secretary shall include with the budget for the Department of Defense for each of fiscal years 2017, 2018, and 2019, as submitted to Congress pursuant to section 1105 of title 31, United States Code, a report describing and assessing the progress of the Department in implementing the plan required by paragraph
(1)and in achieving the cost savings required by that paragraph. ####
(6)Comptroller general assessments Not later than 90 days after the submittal of each report required by paragraph (5), the Comptroller General of the United States shall submit to the congressional defense committees a report setting forth the assessment of the Comptroller General of the report and of the extent to which the Department of Defense is in compliance with the requirements of this section. ###
(b)Headquarters Reductions ####
(1)In general Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall modify the headquarters reduction plan required by section 904 of the National Defense Authorization Act for Fiscal Year 2014 (Public Law 113-66; 127 Stat. 816; 10 U.S.C. 111 note) to ensure that it achieves savings in the total funding available for major Department of Defense headquarters activities by fiscal year 2020 that are not less than 25 percent of the baseline amount. The modified plan shall establish a specific savings objective for each major headquarters activity in each fiscal year through fiscal year 2020. The budget for the Department of Defense for each fiscal year after fiscal year 2016 shall reflect the savings required by the modified plan. ####
(2)Baseline amount For the purposes of this subsection, the baseline amount is the amount authorized to be appropriated by this Act for fiscal year 2016 for major Department of Defense headquarters activities, adjusted by a credit for reductions in such headquarters activities that are documented, as of the date that is 90 days after the date of the enactment of this Act, as having been accomplished in earlier fiscal years in accordance with the December 2013 directive of the Secretary of Defense on headquarters reductions. The modified plan issued pursuant to paragraph
(1)shall include an overall baseline amount for all of the major Department of Defense headquarters activities that credits reductions accomplished in earlier fiscal years in accordance with the December 2013 directive, and a specific baseline amount for each such headquarters activity that credits such reductions. ####
(3)Major department of defense headquarters activities defined In this subsection, the term “major Department of Defense headquarters activities” means the following: #####
(A)Each of the following organizations: ######
(i)The Office of the Secretary of Defense and the Joint Staff. ######
(ii)The Office of the Secretary of the Army and the Army Staff. ######
(iii)The Office of the Secretary of the Navy, the Office of the Chief of Naval Operations, and Headquarters, Marine Corps. ######
(iv)The Office of the Secretary of the Air Force and the Air Staff. ######
(v)The Office of the Chief, National Guard Bureau, and the National Guard Joint Staff. #####
(B)######
(i)Except as provided in clause (ii), headquarters elements of each of the following: ######
(I)The combatant commands, the sub-unified commands, and subordinate commands that directly report to such commands. ######
(II)The major commands of the military departments and the subordinate commands that directly report to such commands. ######
(III)The component commands of the military departments. ######
(IV)The Defense Agencies, the Department of Defense field activities, and the Office of the Inspector General of the Department of Defense. ######
(V)Department of Defense components that report directly to the organizations specified in subparagraph (A). ######
(ii)Subordinate commands and direct-reporting components otherwise described in clause
(i)that do not have significant functions other than operational, operational intelligence, or tactical functions, or training for operational, operational intelligence, or tactical functions, are not headquarters elements for purposes of this subsection. ####
(4)Implementation Not later than 120 days after the date of the enactment of this Act, the Secretary shall revise applicable guidance on the Department of Defense major headquarters activities as needed to— #####
(A)incorporate into such guidance the definition of the term “major Department of Defense headquarters activities” as provided in paragraph (3); #####
(B)ensure that the term “headquarters element”, as used in paragraph (3)(B), is consistently applied within such guidance to include— ######
(i)senior leadership and staff functions of applicable commands and components; and ######
(ii)direct support to senior leadership and staff functions of applicable commands and components and to higher headquarters; #####
(C)ensure that the budget and accounting systems of the Department of Defense are modified to track funding for the major Department of Defense headquarters activities as separate funding lines; and #####
(D)identify and address any deviation from the specific savings objective established for a headquarters activity in the modified plan issued by the Secretary pursuant to the requirement in paragraph (1). ####
(5)Manner of carrying out reductions #####
(A)In general The Secretary of Defense shall implement the headquarters reduction plan referred to in paragraph (1), as modified pursuant to that paragraph, so that reductions in major Department of Defense headquarters activities pursuant to the plan are carried out only after consideration of— ######
(i)the current manpower levels of major Department of Defense headquarters activities; ######
(ii)the historic manpower levels of major Department of Defense headquarters activities; ######
(iii)the mission requirements of major Department of Defense headquarters activities; and ######
(iv)the anticipated staffing needs of major Department of Defense headquarters activities necessary to meet national defense objectives. #####
(B)Conforming modification of plan for achievement of cost savings The Secretary of Defense shall modify the plan for achievement of cost savings required by subsection
(a)to take into account the requirement specified in subparagraph (A). ####
(6)Certifications on cost savings achieved Not later than 120 days after the date of the enactment of this paragraph, and not later than 60 days after the end of each of fiscal years 2018 through 2020, the Director of Cost Assessment and Program Evaluation shall certify to the Secretary of Defense, and to the congressional defense committees, the following: #####
(A)The validity of the cost savings achieved for each major Department of Defense headquarters activity during the previous fiscal year, including the cost of personnel detailed by another Department entity to the headquarters activity. #####
(B)Whether the cost savings achieved for each major Department of Defense headquarters activity during that fiscal year met the savings objective for the headquarters activity for that fiscal year, as established pursuant to paragraph (1). ###
(c)Comprehensive Review of Headquarters and Administrative and Support Activities ####
(1)In general The Secretary of Defense shall conduct a comprehensive review of the management and operational headquarters of the Department of Defense for purposes of consolidating and streamlining headquarters functions and administrative and support activities. ####
(2)Elements The review required by paragraph
(1)shall address the following: #####
(A)The extent, if any, to which the staff of the Secretaries of the military departments and the Chiefs of Staff of the Armed Forces have duplicative staff functions and services and could be consolidated into a single service staff. #####
(B)The extent, if any, to which the staff of the Office of the Secretary of Defense, the military departments, the Defense Agencies, and temporary organizations have duplicative staff functions and services and could be streamlined with respect to— ######
(i)performing oversight and making policy; ######
(ii)performing staff functions and services specific to the military department concerned; ######
(iii)performing multi-department staff functions and services; and ######
(iv)performing functions and services across the Department of Defense with respect to intelligence collection and analysis. #####
(C)The extent, if any, to which the Joint Staff, the combatant commands, and their subordinate service component commands have duplicative staff functions and services that could be shared, consolidated, eliminated, or otherwise streamlined with— ######
(i)the Joint Staff performing oversight and execution; ######
(ii)the staff of the combatant commands performing only staff functions and services specific to the combatant command concerned; and ######
(iii)the staff of the service component commands of the combatant commands performing only staff functions and services specific to the service component command concerned. #####
(D)The extent, if any, to which reductions in military and civilian end-strength in management or operational headquarters could be used to create, build, or fill shortages in force structure for operational units. #####
(E)The extent, if any, to which revisions are required to the Defense Officers Personnel Management Act, including requirements for officers to serve in joint billets, the number of qualifying billets, the rank structure in the joint billets, and the joint qualification requirement for officers to be promoted while serving for extensive periods in critical positions such as program managers of major defense acquisition programs, and officers in units of component forces supporting joint commands, in order to achieve efficiencies, provide promotion fairness and equity, and obtain effective governance in the management of the Department of Defense. #####
(F)The structure and staffing of the Joint Staff, and the number, structure, and staffing of the combatant commands and their subordinate service component commands, including, in particular— ######
(i)whether or not the staff organization of each such entity has documented and periodically validated requirements for such entity; ######
(ii)whether or not there are an appropriate number of combatant commands relative to the requirements of the National Security Strategy, the Quadrennial Defense Review, and the National Military Strategy; and ######
(iii)whether or not opportunities exist to consolidate staff functions and services common to the Joint Staff and the service component commands into a single staff organization that provides the required functions, services, capabilities, and capacities to the Chairman of the Joint Chiefs of Staff and supported combatant commanders, and if so— ######
(I)where in the organizational structure such staff functions, services, capabilities, and capacities would be established; and ######
(II)whether or not the military departments could execute such staff functions, services, capabilities, and capacities while executing their requirements to organize, train, and equip the Armed Forces. #####
(G)The statutory and regulatory authority of the combatant commands to establish subordinate joint commands or headquarters, including joint task forces, led by a general or flag officer, and the extent, if any, to which the combatant commands have used such authority— ######
(i)to establish temporary or permanent subordinate joint commands or headquarters, including joint task forces, led by general or flag officers; ######
(ii)to disestablish temporary or permanent subordinate joint commands or headquarters, including joint task forces, led by general or flag officers; ######
(iii)to increase requirements for general and flag officers in the joint pool which are exempt from the end strength limitations otherwise applicable to general and flag officers in the Armed Forces; ######
(iv)to participate in the management of joint officer qualification in order to ensure the efficient and effective quality and quantity of officers needed to staff headquarters functions and services and return to the services officers with required professional experience and skills necessary to remain competitive for increased responsibility and authority through subsequent assignment or promotion, including by identifying— ######
(I)circumstances, if any, in which officers spend a disproportionate amount of time in their careers to attain joint officer qualifications with corresponding loss of opportunities to develop in the service-specific assignments needed to gain the increased proficiency and experience to qualify for service and command assignments; and ######
(II)circumstances, if any, in which the military departments detail officers to joint headquarters staffs in order to maximize the number of officers receiving joint duty credit with a focus on the quantity, instead of the quality, of officers achieving joint duty credit; ######
(v)to establish commanders’ strategic planning groups, advisory groups, or similar parallel personal staff entities that could risk isolating function and staff processes, including an assessment of the justification used to establish such personal staff organizations and their impact on the effectiveness and efficiency of organizational staff functions, services, capabilities, and capacities; and ######
(vi)to ensure the identification and management of officers serving or having served in units in subordinate service component or joint commands during combat operations and did not receive joint credit for such service. ####
(3)Consultation The Secretary shall, to the extent practicable and as the Secretary considers appropriate, conduct the review required by paragraph
(1)in consultation with such experts on matters covered by the review who are independent of the Department of Defense. ####
(4)Report Not later than March 1, 2016, the Secretary shall submit to the congressional defense committees a report setting forth the results of the review required by paragraph (1). ###
(d)Sunset No action is required under this section with respect to any fiscal year after fiscal year 2019. # TITLE IV MILITARY PERSONNEL AUTHORIZATIONS ## Subtitle A Active Forces
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Sec. 346
REDUCTION IN AMOUNTS AVAILABLE FOR DEPARTMENT OF DEFENSE HEADQUARTERS, ADMINISTRATIVE, AND SUPPORT ACTIVITIES
Stat.127 Stat. 816
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