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Report of the Defense Science Board Task Force on Outsourcing and Privatization.
DEFENSE SCIENCE BOARD WASHINGTON DC
Pagination or Media Count:
Outsourcing is expanding rapidly in the private sector, and a robust new industry has developed to provide a wide range outsourcing services to U. S. companies revenues are estimated at 100 billion per year. While cost savings are a factor in the growth of outsourcing, access to better technology and better qualified people is the primary reason. Moreover, many companies have turned to outsourcing to free up the time and energies of management to focus on the companies core competencies. Public sector entities at the state and local level as well as at the Federal level have demonstrated the value of outsourcing in terms saving money 30 plus savings and providing better, more responsive service. The Task Force believes that all DoD support functions should be contracted out to private vendors except those functions which are inherently governmental, are directly involved in warfighting, or for which no adequate private sector capability exists or can be expected to be established. Most defense agencies are prime outsourcing candidates. Specifically, the Task Force recommends that DoD consider outsourcing major portions of the Defense Commissary Agency DeCA, the Defense Information Systems Agency DISA, and the Defense Finance and Accounting Agency DFAS as initial steps toward streamlining DoDs support infrastructure. Many support functions performed primarily by military personnel e.g., individual training and support services in military hospitals are also ripe for outsourcing.
APPROVED FOR PUBLIC RELEASE