Federal Manager's Daily Report

Defense secretary Robert Gates has announced a series of initiatives designed to reduce overhead, duplication, and waste at DoD, saying the department cannot expect to have budget increases approved each year unless the department is working to operate as efficiently as possible.

The initiatives follow an effort undertaken earlier in the summer to cut costs and improve efficiency and effectiveness, many of which will be reflected in the fiscal 2012 budget, but some of which are ready for immediate action.

The Secretary directed a reduction of funding for support contractors by 10 percent a year for each of the next three years in order to reduce the number of contractors performing inherently governmental functions.

At the same time, Gates also called for an end – after fiscal 2010 – to the in-sourcing practice of creating OSD positions to replace contractors except for critical needs.

He announced as well a comprehensive assessment of the Office of the Secretary of Defense, defense agency and COCOM staffing and organization. 

That will include a review to determine what people should be doing, where, and at what level of rank in light of the department’s most urgent priorities by November 1.

Already, a freeze in the number of OSD, defense agency and COMCOM billets at the fiscal 2010 levels for next three years has been ordered.