Federal Manager's Daily Report

DoD Secretary Mark Esper has outlined a series of savings initiatives for the department to pursue this year, saying that while the recent “Defense-Wide Review” found more than $5 billion in savings and more than $2 billion in activities that could be run more efficiently, that represents “only a down payment on the level of effort needed.”

“In short, I expect leaders across the department to approach reform as an opportunity to support the strategy, rather than as a tax that can be avoided . . . we must accomplish a mindset shift where leaders think critically about the optimal application of every dollar in their respective budgets to advance the strategy,” he wrote in a memo.

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The memo identifies three areas of emphasis:

* The chief management office “will focus on reforming business processes, overseeing resource planning and allocation, and evaluating each organization’ s performance against business goals. The CMO will establish methods to strengthen oversight, continue reform momentum, and instill fiscal discipline across organizations and accounts.”

* A series of reviews with individual combatant commands, “the intent of which is to focus on strategic priorities, harvest opportunities to reduce costs, and realign forces/manpower” to better support priorities and readiness.

* The military services are to “establish and execute aggressive reform plans, including detailed “cleansheet” budget reviews, in order to free up resources” to support priorities, using the same methodology used in the defense-wide review.

See also, Who Actually Owns that Defense Contractor? GAO Advises Closer Look