Defense Management: DOD Faces Challenges Implementing Its Core Competency Approach and A-76 Competitions
Highlights
The Department of Defense (DOD) is pursuing a new initiative involving a core competency approach for making sourcing decisions--that is, sourcing decisions based on whether the function is core to the agency's warfighting mission. In determining how to best perform non-core functions, DOD's position is that its components should look beyond just the use of public-private competitions under Office of Management and Budget (OMB) Circular A-76 in making sourcing decisions, and consider other alternatives such as partnering or employee stock ownership. GAO was asked to assess (1) the department's progress in assessing its core functions as a basis for sourcing decisions, (2) the plans and progress DOD has made in identifying and implementing alternatives to A-76, and (3) the current status of DOD's A-76 program.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense, through the Senior Executive Council, should clarify its expectations for DOD components in making sourcing decisions based on core competency assessment results and provide additional guidance identifying the range of additional factors to be considered once the determination is made that a function is not considered core. |
Closed – Not Implemented
The Senior Executive Council no longer exists within DOD. There is no longer a formal core competency program in DOD to assess. Therefore, the recommendation is no longer applicable and the recommendation was closed as not implemented.
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| Department of Defense | The Secretary of Defense should require DOD components to ensure that decisions to convert functions performed by military personnel to performance by civilians or contractors are predicated on having clearly identified sources of funding to support those decisions. |
Closed – Implemented
House Report 109-359, FY 06 Defense Appropriations, directed the department to include comprehensive data on the military to civilian conversion program in future budget justification materials.In an Office of the UnderSecretary of Defense, Comptroller memo, dated January 17, 2006, for the Fiscal Year 2007 budget justification book, the following was required by all military components in regards to military civilian conversions: The Components are to include within their budget justification materials an exhibit that includes:(a) the number of conversions completed in two prior fiscal years, (b) the number of positions filled by civilian contractors or goveernment employees, (c) the number of conversions expected to occur in the budget year, (d)the number of civilian contractors and government employees expected to be hired, and (e) a detailed explanation of cost estimates. In addition, the Department of the Army, in a memo dated, October 19, 2005 on Army Military to Civilian Conversions stated the following: "After process reviews are complete and a business case is made for a civilian position, develop, program and identify offsets (savings) to fully fund civilian backfills. . ." According to an official from the Office of the Undersecretary of Defesne, Personnel and Readiness, for the Navy and Air Force, end strength will be reduced by military positions identified for conversion. Therefore, the military personnel account will be decreased, allowing funds to be approved for movement to the O&M account which funds either government civilian or contractor employees.
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