The plans include consolidating offices to create what secretary Hagel called a “true DoD-wide management office” to improve coordination and integration of the department’s business affairs – including performance management and compliance.
According to the briefing, the plan eliminates four deputy assistant secretary of defense positions and their corresponding support structures through a consolidation and realignment of the policy staff overall structure.
It also strengthens the deputy chief management officer, the DCMO position, by realigning the office of the director of administration and management and its components under the DCMO structure (a review found that the DCMO has lacked the necessary resources and mandate to effectively fulfill its role as a DoD-wide manager).
Hagel said he plans to transfer specific responsibility for business IT systems from the DCMO to DoD’s chief information officer, while the undersecretary of defense for acquisition, technology and logistics would continue to be responsible for acquisitions of IT systems.
Hagel also directed the Office of the Assistant to the Secretary of Defense for Intelligence Oversight and the Defense Privacy and Civil Liberties Offices to be combined into a single office that will be aligned under the new DCMO organization.
The Office of Net Assessment, ONA, will report to the undersecretary of defense for policy but will otherwise remain a distinct entity.
Further, Hagel approved plans to eliminate the five remaining deputy undersecretaries of defense that are not presidentially appointed or Senate confirmed – as was directed by Congress.
Most of the reductions in OSD staff would occur through a process of natural attrition, Halgel said, but added that additional sequestration cuts on the order of $500 billion over the next 10 years could require additional steps.
