The agency announcements came just after the General Accounting Office questioned whether the Defense Department will be able to achieve the savings it projects from the earlier announced contracting schedule, a saving the Pentagon already has built into its future budget plans. DoD estimates savings of more than $11 billion in that time and more than $3 billion each year afterward from studying the 230,000 positions. Those savings include not only lower bids from contractors but also efficiency improvements in in-house operations that occur when jobs are put up for bid. GAO and many other experts believe the job review target may be unachievable. Also, GAO notes that while contracting has produced dollar savings in the past, projections of savings often prove later to be inflated. Despite those concerns, the current budget plan is even more optimistic about the pace of studies than was the previous one, GAO noted in its report (NSIAD-00-11).
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