Defense Outsourcing: Challenges Facing DOD as It Attempts to Save Billions in Infrastructure Costs,
GENERAL ACCOUNTING OFFICE WASHINGTON DC NATIONAL SECURITY AND INTERNATIONAL A FFAIRS DIV
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DOD defines infrastructure as activities that generally operate from fixed locations to support missions like those carried out by combat forces. Infrastructure includes installation support central training central medical central logistics force management acquisition infrastructure central personnel and central command, control, and communications. DOD recognizes that its support structure is inefficient and that its costs continue to absorb a large share of the defense budget and diverts funding that could be used for modernization. DOD has implemented various reform initiatives in the past to achieve efficiencies and reduce costs. The Defense Management Review DMR, base realignment and closure BRAC process, National Performance Review, the bottom-up review, and other efforts proposed various actions intended to achieve these objectives. More recently, the Commission on Roles and Missions CORM and the Defense Science Board DSB have identified similar problems with DODS support structure and processes, but have made outsourcing and privatization the centerpiece of their reforms to reduce infrastructure and support costs. DOD defines outsourcing as the transfer of functions performed inhouse to outside providers and privatization as the transfer or sale of government assets to the private sector.
- Economics and Cost Analysis
- Personnel Management and Labor Relations