```
                                                                 
Acquisition Workforce: Department of Defense's Plans to Address  
Workforce Size and Structure Challenges (30-APR-02, GAO-02-630). 
                                                                 
The Department of Defense (DOD) downsized its acquisition	 
workforce by half in the past decade. It now faces serious	 
imbalances in the skills and experience of its remaining	 
workforce and the potential loss of highly specialized knowledge 
if many of its acquisition specialists retire. DOD created the	 
Acquisition 2005 Task Force to study its civilian acquisition	 
workforce and develop a strategy to replenish personnel losses.  
In response to a legislative mandate, DOD reported on its plans  
to implement the task force's recommendations as required by the 
National Defense Authorization Act for Fiscal Year 2002. DOD's	 
report shows that it has made progress in reshaping its 	 
acquisition workforce. For example, DOD is working to remove	 
barriers to its strategic planning initiative; continuing to test
various human capital innovations; and has begun making 	 
significant changes to its acquisition workforce-training	 
program. DOD's report provides information on implementation of  
the task force's recommendations and their status. However, for  
many initiatives, DOD did not clearly describe the actions taken 
or when they occurred, nor did it identify all planned actions	 
and schedules for completing the initiatives.			 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-02-630 					        
    ACCNO:   A03066						        
  TITLE:     Acquisition Workforce: Department of Defense's Plans to  
Address Workforce Size and Structure Challenges 		 
     DATE:   04/30/2002 
  SUBJECT:   Education or training				 
	     Human resources utilization			 
	     Labor force					 
	     Military downsizing				 
	     Military personnel 				 
	     Military training					 
	     Personnel management				 
	     Reductions in force				 
	     Reporting requirements				 
	     Strategic planning 				 
	     DOD Acquisition 2005 Task Force			 
	     DOD Defense Planning Guidance			 
	     DOD Quadrennial Defense Review			 

******************************************************************
** This file contains an ASCII representation of the text of a  **
** GAO Product.                                                 **
**                                                              **
** No attempt has been made to display graphic images, although **
** figure captions are reproduced.  Tables are included, but    **
** may not resemble those in the printed version.               **
**                                                              **
** Please see the PDF (Portable Document Format) file, when     **
** available, for a complete electronic file of the printed     **
** document's contents.                                         **
**                                                              **
******************************************************************
GAO-02-630
     
Report to Congressional Committees

United States General Accounting Office

GAO

April 2002 ACQUISITION WORKFORCE

Department of Defense?s Plans to Address Workforce Size and Structure
Challenges

GAO- 02- 630

Page 1 GAO- 02- 630 Acquisition Workforce

April 30, 2002 The Honorable Carl Levin Chairman The Honorable John Warner
Ranking Minority Member Committee on Armed Services United States Senate

The Honorable Bob Stump Chairman The Honorable Ike Skelton Ranking Minority
Member Committee on Armed Services House of Representatives

In the past decade, the Department of Defense (DOD) has downsized its
acquisition workforce by half. 1 It now faces what it considers to be
serious imbalances in the skills and experience of its remaining workforce
and the potential loss of highly specialized knowledge if many of its
acquisition specialists retire. In view of this concern, DOD created the
Acquisition 2005 Task Force to study its civilian acquisition workforce and
develop a strategy to replenish personnel losses. The Task Force made a
series of recommendations to DOD in October 2000. 2 On March 1, 2002, in
response to the mandate in the National Defense Authorization Act for Fiscal
Year 2002, DOD reported on its plans to implement these recommendations. 3
The same mandate required us to assess, within 60 days of the date DOD
submitted its report, the status of DOD?s reported plans to reshape the
workforce and to specifically examine the reported status of its efforts to
implement the task force?s recommendations. Because of the time frames
involved, we did not evaluate the effectiveness of DOD?s reported efforts.

1 DOD refers to its acquisition workforce as its acquisition, technology,
and logistics workforce. 2 Acquisition 2005 Task Force, Shaping the Civilian
Acquisition Workforce of the Future

(Department of Defense, October 2000). 3 Report to the Committees on Armed
Services of the Senate and House of Representatives: Implementation of the
Acquisition Workforce 2005 Task Force Recommendations (Department of
Defense, March 2002).

United States General Accounting Office Washington, DC 20548

Page 2 GAO- 02- 630 Acquisition Workforce

As required by the National Defense Authorization Act for Fiscal Year 2002,
DOD?s report summarizes its actions and plans to implement the task force?s
recommendations. Moreover, the report shows that DOD has made progress
laying a foundation for reshaping its acquisition workforce. For example,
DOD is working to remove barriers to its strategic planning initiative;
continuing with an effort to test various human capital innovations; and has
begun making significant changes to its acquisition workforce- training
program. We did not assess the effectiveness of these initiatives, but they
do target key Task Force concerns. Additionally, DOD recognizes the need as
well as the substantial challenges involved in implementing a strategic
approach to shaping the acquisition workforce. Consequently, DOD views
implementation of these initiatives as long- term efforts with specific
outcomes taking years to achieve.

Regarding DOD?s efforts to implement the Task Force?s specific
recommendations, DOD?s report generally provides information about actions
taken to implement them and their status. However, for many initiatives, DOD
did not clearly describe the actions it has taken or when they occurred, or
identify all planned actions and schedules for completing the initiatives.

Having the right people with the right skills to successfully manage
acquisitions is critical for DOD. The Department spends about $100 billion
annually to research, develop, and acquire weapon systems and tens of
billions of dollars more for services and information technology. Moreover,
this investment is expected to grow substantially. At the same time, DOD,
like other agencies, is facing growing public demands for better and more
economical delivery of products and services. In addition, the ongoing
technological revolution requires a workforce with new knowledge, skills,
and abilities.

Between 1989 and 1999, DOD downsized its civilian acquisition workforce by
almost 50 percent to about 124,000 personnel as of September 30, 1999. These
reductions resulted from many DOD actions including the implementation of
acquisition reforms, base realignments and closures, and congressional
direction. DOD estimates that as many as half of the remaining acquisition
personnel could now be eligible to retire by 2005. 4

4 DOD?s estimate of personnel eligible to retire includes early retirement
programs and individuals eligible for retirement with reduced annuities
based on March 2001 data from the Defense Manpower Data Center. Results in
Brief

Background

Page 3 GAO- 02- 630 Acquisition Workforce

DOD believed that these actual and projected reductions could be exacerbated
by increased competition for technical talent due to a fullemployment
economy and a shrinking labor pool. As a result of the years of personnel
reductions and the increasing competition for replacement talent, DOD
concluded that its acquisition workforce was on the verge of a crisis- a
retirement- driven talent drain.

In responding to this concern, the Under Secretary of Defense for
Acquisition, Technology and Logistics (USD/ AT& L) created the Acquisition
2005 Taskforce in April 2000 to examine how the acquisition workforce could
be reshaped. The Task Force consisted of representatives from the military
services, defense agencies, and offices of the secretary of defense
supported by contractor teams to help collect information and it sought
input from the acquisition community as well as outside experts. The Task
Force identified new initiatives as well as existing DOD programs that were
considered innovative approaches to recruiting, developing, and retaining
its future acquisition workforce. Specifically, the Task Force recommended
31 new initiatives, 8 ongoing initiatives that it believed should continue
to be fully supported, and 7 innovative programs that it identified as best
practices to be implemented throughout DOD?s acquisition organizations.

Reshaping a workforce is challenging for any agency. As we have previously
reported, 5 because mission requirements, client demands, technologies, and
other environmental influences change rapidly, a performance- based agency
must continually monitor its talent needs. It must be alert to the changing
characteristics of the labor market. It must identify the best strategies
for filling its talent needs through recruiting and hiring and follow up
with the appropriate investments to develop and retain the best possible
workforce. This includes continuously developing talent through education,
training, and opportunities for growth. In addition, agencies must match the
right people to the right jobs and, in the face of finite resources, be
prepared to employ matrix management principles, maintaining the flexibility
to redeploy their human capital and realigning structures and work processes
to maximize economy, efficiency and effectiveness.

5 U. S. General Accounting Office. Human Capital: A Self- Assessment
Checklist for Agency Leaders. GAO/ OCG- 00- 14G. Washington, D. C.:
September 2000. Challenges Involved in

Reshaping a Workforce

Page 4 GAO- 02- 630 Acquisition Workforce

A key to overcoming these challenges is to develop and sustain commitment to
a strategic, results- oriented approach to human capital planning- one that
incorporates financial management, information technology management, and
results- oriented goal- setting and performance measurement. Within high-
performing organizations, this begins by establishing a clear set of
organizational intents- mission, vision, core values, goals and objectives
and strategies- and then integrating human capital strategies to support
these strategic and programmatic goals. Taking a strategic approach to human
capital planning can be challenging in itself. First, it requires a shift in
how the human resource function is perceived, from strictly a support
function to one integral to an agency?s mission. Second, agencies may also
find that they need some of the basic tools and information to develop
strategic plans, such as accurate and complete information on workforce
characteristics and strategic planning expertise. 6

DOD?s report to the armed services committees shows progress in its efforts
to revitalize the workforce. Specifically, as discussed below, DOD is
working to remove barriers to its strategic planning initiatives; continuing
with an effort to test various human capital innovations; and beginning to
make significant changes to its acquisition workforce- training program. We
did not assess the effectiveness of DOD?s initiatives, but they do target
some of the root problems hampering the acquisition workforce, and they
recognize the substantial challenges involved in adopting a strategic
approach to reshaping the workforce.

The task force?s first recommendation was to develop and implement human
capital strategic planning for the acquisition workforce. DOD recognizes
that human capital strategic planning is fundamental to effective overall
management. DOD has worked to identify and address problems that have been
hampering this effort, which include a lack of accurate, accessible, and
current workforce data; mature models to forecast future workforce
requirements; a link between DOD?s planning and budgeting processes; and
specific planning guidance.

6 U. S. General Accounting Office. Exposure Draft: A Model of Strategic
Human Capital Management. GAO- 02- 373SP. Washington, D. C.: March 2002. DOD
Is Making

Progress in Addressing Acquisition Workforce Size and Structure Concerns

Strategic Planning

Page 5 GAO- 02- 630 Acquisition Workforce

As shown in figure 1, DOD recognizes that it will take a considerable amount
of time just to lay a good foundation for strategic planning. Part of this
long- term effort will involve making a cultural shift- from viewing human
capital as a support function to a mission function- as well as developing
better data on the work and models to project needs and potential
shortfalls.

Figure 1: DOD?s Framework for Developing a Mature Human Capital Strategic
Planning System

Source: DOD.

DOD reports that it is establishing a workforce data management strategy to
improve the collection and storage of personnel data. The intent is to
identify new data requirements and information needs for strategic planning.
DOD is also working to develop more sophisticated modeling

Page 6 GAO- 02- 630 Acquisition Workforce

tools. Such tools are intended to help DOD components 7 to identify gaps
between future workforce requirements and the expected workforce inventory-
a critical part of the process needed for addressing acquisition workforce
size and structure issues such as recruiting, training, and career
development. DOD also has taken steps to link its planning effort to its
budget process. For example, DOD?s report states that it is developing a new
budget exhibit that will identify workforce requirements during the budget
process and improve DOD?s ability to fund those requirements. Such actions
are intended to enable DOD to identify and obtain the necessary funding to
implement programs needed to close the gaps.

Though DOD is taking good steps toward developing a strategic plan, it may
well find that additional effort is needed to provide planners with
effective tools. For example, DOD reports that it has provided more planning
guidance, such as the updated Defense Planning Guidance and Quadrennial
Defense Review, to help planners identify future workforce requirements
during its second strategic planning cycle. However, DOD recognizes that
this guidance may not be specific and articulate enough at the operational
business unit level to help planners to identify future acquisition
workforce requirements.

DOD?s report states that the Acquisition Workforce Personnel Demonstration
Project is an ongoing initiative that addresses various acquisition
workforce size and structure issues. The demonstration project started in
February 1999 to experiment with various concepts in workforce management,
such as those pertaining to recruiting, hiring, and retention. For example,
the demonstration project is testing simplified job announcements by
combining information such as the job description, availability, and
workforce characteristic requirements into a single document. In another
example, the demonstration project is also testing broadbanding 8 concepts
that are intended to allow managers to set pay

7 DOD components refer to the military services (e. g., Air Force, Army, and
Navy) and the civilian defense agencies. Strategic plans were prepared by
the Air Force, Army, and Navy and three defense agencies: the Defense
Contract Audit Agency (DCAA), Defense Contract Management Agency (DCMA), and
the Defense Logistics Agency (DLA). According to a DOD official, these three
defense agencies account for 92% of the defense agency acquisition
workforce.

8 According to DOD?s Acquisition Workforce Personnel Demonstration Project,
broadbanding is a replacement of the current General Schedule or ?GS? system
and General Manager or ?GM? system with a system consisting of broad ?bands?
of career paths. Acquisition Workforce

Personnel Demonstration Project

Page 7 GAO- 02- 630 Acquisition Workforce

and facilitate pay progression. Broadbanding would allow managers to recruit
candidates at differing pay rates and to assign employees within broad job
descriptions consistent with the needs of the organization and the skills
and abilities of the employee.

However, participation in this project is fairly limited. As of September
2001, 5,300 acquisition personnel across DOD are participating in the
demonstration project out of a maximum 95,000 personnel allowed by statute.
9

DOD reports that it is aggressively transforming its acquisition training
approach to reshape the acquisition workforce and address human capital
resource challenges. Specifically, DOD?s Defense Acquisition University
(DAU) plans to change its course content and training methods to provide
more relevant training to an expected influx of new acquisition personnel
hired to replace retiring workers. For example, DAU is working with teams in
each career field to revise course content to reflect recent acquisition
reforms and eliminate duplicate material. Also, DAU is increasing the number
of web- based courses available and opening additional training centers near
large acquisition workforce populations to meet the training needs and to
reduce the cost of providing this training. In addition, in conjunction with
USD/ AT& L officials, DAU is establishing partnerships with colleges and
professional organizations to reciprocate certification course credits for
DOD?s employees as well as for employees from other agencies and the
potential employees from the private sector. DAU has recently experienced
budget cuts and while DAU officials did not anticipate that the cuts would
significantly affect these ongoing initiatives, student throughput may be
reduced.

The National Defense Authorization Act for Fiscal Year 2002 required DOD to
summarize its actions and plans to implement the task force?s
recommendations. For each of the Task Force?s recommendations, DOD was to
specifically include a summary of actions taken and specific milestones and
dates for completion. DOD was also to provide reasons for not implementing
recommendations, any planned alternate initiatives to the recommendations,
and any additional planned initiatives. DOD?s report

9 10 U. S. C. section 1701 note. Restructured Training

Program DOD?s Report Generally Complies with Congressional Requirements

Page 8 GAO- 02- 630 Acquisition Workforce

generally provides this information- not just for the 31 recommendations but
also for two additional DOD initiatives. 10

The report provides detailed information about some of DOD?s actions, such
as human capital strategic planning and the demonstration project, as
described in more detail in appendix I. However, information on other
actions was unclear or incomplete. Specifically:

DOD?s report does not clearly present the overall status of the 31 new
recommendations. DOD?s report states that 14 recommendations are ?in

implementation?, 14 recommendations have been ?merged? into follow- on
strategies, and 3 recommendations will not be pursued. Although our review
did show that DOD did not plan to pursue these 3 recommendations, we
concluded, as shown in appendix I, that actions addressing 24
recommendations are in the process of being implemented, and 4 are actually
completed. 11

DOD?s report does not consistently provide enough information about actions
taken on some recommendations. For example, the report cites two actions as
addressing the recommendation to ?Provide More CareerBroadening
Opportunities?: ?DCMA- Professional Enhance Program? and

?DISA- Executive Development Leadership Program.? The report provided no
information about the objectives or scope of these programs and as a result,
it is unclear how these programs relate to providing careerbroadening
opportunities.

The report did not address at all the best practices identified by the Task
Force and does not always identify when actions for ongoing initiatives are
to be accomplished or reasons for not implementing them. For example, the
report identified actions taken for the ongoing initiative to establish
career development plans but provided no schedule for when these plans are
to be completed. In another example, the report stated that DOD is not
pursuing the development of legislation for a phased retirement program that
was identified as an ongoing initiative by the Task

10 DOD added initiatives to (1) improve workforce data management and (2)
establish a Student Education, Employment, and Development Program. 11 Those
completed recommendations were: Maximize Use of Existing Authorities to Make
Pay More Competitive; Develop a Functional Manager?s Recruiting, Hiring, and
Retention Handbook; Assess the Effect of FERS on the DOD Workforce; and
Component Assessment of High- Grade Requirements.

Page 9 GAO- 02- 630 Acquisition Workforce

Force. The report offered no explanation for DOD?s not pursuing the
legislation.

DOD?s report also does not consistently provide the dates for actions taken
or scheduled milestones for completing implementation of the
recommendations. For example, the report provides milestones and schedules
for each of the overarching strategies, but these milestones and schedules
are difficult to correlate with the individual Task Force recommendations
that were grouped into the strategies. Further, the report does not identify
the future milestones required for completing implementation of the
recommendations it is pursuing, as required by the congressional mandate.

In addition to addressing specific recommendations, DOD also concluded that
it needed to group the recommendations into broader strategies, or
functional areas, so that it would have a framework for coordinating
component efforts and targeting future initiatives. The areas include (1)
career development, (2) certification, (3) hiring, and (4) marketing,
recruiting, and retention. DOD has established metrics to measure the impact
of actions being taken to address acquisition workforce challenges. DOD also
has designated its office of acquisition education, training and career
development to collect data on the actions taken and assess progress in
addressing the challenges identified by the Task Force and the USD/ AT& L
goal to revitalize the quality and morale of its workforce.

We received comments via email from DOD. DOD generally agreed with our
findings and provided technical comments and an update on the status of
DOD?s establishing and collecting metrics on the initiatives. We
incorporated these comments where appropriate.

To assess the extent that DOD?s report to the committees addressed the
Acquisition 2005 Task Force?s concerns about the size and structure of the
workforce, we reviewed the Task Force?s report ?Shaping the Civilian
Acquisition Workforce of the Future.? We interviewed officials from offices
of the under secretaries of defense for acquisition, technology and
logistics, and personnel and readiness; headquarters offices of the military
services; and other officials representing the defense agencies. We
interviewed these officials to (1) obtain their views about acquisition
workforce size and structure issues identified by the Task Force, and (2)
determine the processes that the services and agencies used to identify
actions being taken within their organizations to address those issues. In
Agency Comments

and Our Evaluation Scope and Methodology

Page 10 GAO- 02- 630 Acquisition Workforce

addition, we obtained relevant documents and interviewed DOD and contractor
officials involved in DOD?s strategic planning efforts and DOD?s Acquisition
Workforce Personnel Demonstration Project. Finally, we reviewed the DOD
report to determine whether it addressed the Task Force?s concerns and
contained information consistent with that we obtained during discussions
with DOD and contractor officials.

To assess the extent that DOD?s report summarizes DOD?s actions and plans to
implement the Task Force?s recommendations, we reviewed the DOD report to
ascertain whether the report clearly (1) summarized DOD?s actions taken to
address the Task Force recommendations, (2) identified milestones to be
achieved and the schedule for achieving them, and (3) described how DOD
would manage, oversee, and evaluate its efforts to address the Task Force?s
concerns. We also compared the report?s information with information that we
obtained during discussions with DOD and contractor officials responsible
for the acquisition workforce strategic planning effort and the Acquisition
Workforce Personnel Demonstration Project.

We did not independently identify or verify all actions that DOD reported it
has taken to address the Task Force recommendations. We conducted our review
between December 2001 and April 2002 in accordance with generally accepted
government auditing standards.

We are sending copies of this report to other interested congressional
committees and the secretary of defense; the director, Office of Management
and Budget; and the director, Office of Personnel Management. We will also
make copies available to others upon request. The report will also be
available on GAO?s home page at http:// www. gao. gov.

Page 11 GAO- 02- 630 Acquisition Workforce

Please contact me at (202) 512- 4125 or Hilary C. Sullivan at (214) 777-
5652 if you have any questions. Major contributors to this report were
Frederick G. Day, Michael L. Gorin, Rosa M. Johnson, and Suzanne Sterling.

David E. Cooper Director Acquisition and Sourcing Management

Appendix I: DOD Actions and Milestones for Reshaping the Civilian
Acquisition Workforce

Page 12 GAO- 02- 630 Acquisition Workforce

Task Force recommendations DOD reported actions taken or future milestones a

DOD reported date that action accomplished or scheduled a

GAO assessment of current Status New initiatives

First drafts or cycle of strategic plans submitted from DOD Components. b
August 2001

of the Under Secretary of Defense (AT& L) memorandum initiated second cycle
of Human Capital Strategic Plans. January 2002 Detailed workforce guidance
provided to DOD Components. March 2002 1. Develop and

Implement Comprehensive, NeedsOffice based Human Resource Performance Plans

Second drafts of strategic plans are scheduled for completion. May 2002 In

implementation The DOD Components are continually involved in improving the
hiring process through expanded use of existing authorities and reengineered
processes.

Not provided 2. Maximize the Use of Existing Hiring Authorities

A web- based Acquisition Manager?s Recruiting, Hiring, and Retention
Handbook was developed and is widely available as a quick reference tool
(see #14).

3QFY01 In

implementation Grouped into follow- on strategy ?Hiring?

The Office of the Deputy Assistant Secretary of Defense, Civilian Personnel
Policy issued pay- setting guidance through an updated manual c and interim
policy memoranda.

Not provided 3. Maximize Use of Existing Authorities to Make Pay More
Competitive Compensation flexibilities and opportunities available to
managers

are also included in published Functional Manager?s Recruiting, Hiring, and
Retention Handbook (see #14).

3QFY01 Completed

The DOD Components are restructuring job announcements and marketing
positions more broadly. Not provided OUSD (AT& L) is contracting with a
commercial firm to benchmark marketing and recruiting programs that will be
used to structure a DOD program to attract and hire top quality people into
AT& L workforce.

2QFY02 4. Expand Public and

Private Sector Recruiting Efforts and Make it Easier to Apply for DOD
Acquisition Positions

A pilot program will focus on a specific career field/ portion of the
workforce and expand the successes into other areas of the workforce. The
effort will produce an assessment report and target a pilot program.

FY03 In

implementation Grouped into follow- on strategy ?Marketing, Recruiting, &
Retention?

The military services are already using these programs and expanding to new
locations. Not provided Many defense agencies also use student employment
programs to recruit and hire college students. Not provided 5. Maximize Use
of the

Student Educational Employment Program (SEEP) to Recruit from Colleges and
Other Sources The DOD Components have budgeted for increased use of SEEP.
FY02

In implementation

OUSD (AT& L) established new oversight mechanism to help ensure more timely
training. February 2001 Increase distance learning (DL)/ web- based learning
opportunities. Continuous Expand course equivalencies. Continuous Functional
advisors chartered to advise DAU on training management. FY02 Full
implementation of online registration capability. FY02 6. Provide Timely

Certification Training All the Directors of the Acquisition Career
Management (DACM?s) are actively involved in training resources and training
quota management as a primary function of their offices.

Not provided In

implementation

Appendix I: DOD Actions and Milestones for Reshaping the Civilian
Acquisition Workforce

Appendix I: DOD Actions and Milestones for Reshaping the Civilian
Acquisition Workforce

Page 13 GAO- 02- 630 Acquisition Workforce

Task Force recommendations DOD reported actions taken or future milestones a

DOD reported date that action accomplished or scheduled a

GAO assessment of current Status

Services have well- established career broadening programs. Not provided
Army/ OUSD( AT& L) Rotational Program will be established. 4QFY02 Defense
Contract Management Agency (DCMA) Professional Enhance Program. FY02 7.
Provide More Career

Broadening Opportunities The Defense Information Systems Agency (DISA) -
Executive Development Leadership Program. 2QFY02

In implementation

8. Increase Use of Employee Incentive Program

Handbook published (see #14) to encourage use of existing authorities for
employee incentive programs. 3QFY01 In

implementation DOD Tele- work policy published that requires DOD Components
to offer tele- work to 25 percent of the eligible civilian workforce the
first year of implementation and to increase that by 25 percent in each of
the subsequent 3 years.

1QFY02 DOD also encourages use of other flexibilities such as leave sharing,
sick leave to care for family members, and job sharing. Not provided DOD?s
Components provide health and wellness programs, employee assistance and
family advocacy programs, alternative dispute resolution, and other programs
designed to increase the morale and productivity of the civilian workforce.

Not provided Expand distance learning opportunities. Continuous 9. Ensure a
Work

Friendly Environment Conduct workforce survey to determine workforce
enhancements. FY03

In implementation

OUSD (AT& L) has contracted with a leading firm to benchmark and evaluate
recruiting programs and develop marketing, recruiting, and hiring strategies
to attract and hire top quality people.

2QFY02 10. Promote DOD?s Challenging Work and Rewarding Opportunities

A pilot program is planned that will focus on a specific career field or
portion of the workforce and expand into other areas of the workforce.

FY03 In

implementation Grouped into follow- on strategy

?Marketing,

Recruiting, & Retention? The DOD Components have a number of ongoing
outreach programs, especially to colleges and universities. Not provided
OUSD (AT& L) has contracted to benchmark and develop marketing, recruiting,
and hiring strategies (see action under #10). 2QFY02 11. Develop Acquisition

Workforce Recruiting Programs

OUSD (AT& L) is developing an initiative to partner AT& L functional
communities with colleges and universities in order to facilitate more long-
term relationships.

Not provided In

implementation Grouped into follow- on strategy

?Marketing,

Recruiting, & Retention? 12. Establish a Scholarship Program for the
Acquisition Community

Reason not to implement The DOD Components consider intern programs more
cost effective than scholarship program.

Not pursued

Appendix I: DOD Actions and Milestones for Reshaping the Civilian
Acquisition Workforce

Page 14 GAO- 02- 630 Acquisition Workforce

Task Force recommendations DOD reported actions taken or future milestones a

DOD reported date that action accomplished or scheduled a

GAO assessment of current Status

The DOD Director of Acquisition Career Management (DACM) maintains a public
domain website to invite interest in DOD OUSD (AT& L ) workforce policies,
programs, and job opportunities.

1998 The DOD DACM is currently revising the CRS to include moving to a
totally web- based systems and expanding the types of job announcements.

Not provided DOD anticipates results from the Marketing and Recruiting
follow on strategy will provide guidance on how to best market DOD OUSD (AT&
L) vacancies to the private sector.

Not provided 13. Establish a Central

DOD Acquisition Career Management Website

Based on both of these efforts, DOD will either expand the web based Central
Referral System (CRS) to include the remaining segments or pursue a combined
solution that also addresses the private sector.

Not provided In

implementation Grouped into follow- on strategy

?Marketing,

Recruiting, & Retention?

14. Develop a Functional Manager?s Recruiting, Hiring, and Retention
Handbook

The handbook was published and is available through the OUSD (AT& L)
website. 3QFY01 Completed

15. Reengineer the Hiring Process The DOD Components embrace continuous
improvement, have

metrics to measure the time required to fill vacancies, and are actively
engaged in reengineering, such as the Army?s Staffing Processes
Reengineering and Innovations Group, the Air Force?s PALACE Compass
Reengineering and Development Division, and the Navy?s Human Resource (HR)
Re- engineering Functional Assessment.

Not provided In implementation Grouped into follow- on strategy ?Hiring?

16. Assess Competition on a Location- by- Location Basis

OUSD (AT& L) is planning to conduct a job competitiveness survey with the
private sector. It will develop an action plan to address the problem areas
identified in the survey. The plan may include requests to the Office of
Personnel Management (OPM) for special salary rate considerations.

Not provided In implementation Grouped into follow- on strategy

?Marketing,

Recruiting, & Retention? DOD has researched Computer Adaptive Testing
technology to determine if there is a valid methodology by which personnel
can become certified by test( s).

Not provided OUSD (AT& L) is working with the career field Functional
Advisor Executive Secretaries to establish partnerships with private sector
entities that grant professional certifications and will compare
competencies. This may lead to equivalency agreements.

2QFY02 17. Develop a Mechanism

for Acquisition Certification of Private Sector Accessions

DAU is also moving forward with DL/ web- based training and the formation of
partnerships with professional associations and universities, which can be
leveraged to address this issue.

Not provided In

implementation Grouped into follow- on strategy

?Certification?

Appendix I: DOD Actions and Milestones for Reshaping the Civilian
Acquisition Workforce

Page 15 GAO- 02- 630 Acquisition Workforce

Task Force recommendations DOD reported actions taken or future milestones a

DOD reported date that action accomplished or scheduled a

GAO assessment of current Status

OPM delegated to federal agencies the authority to rehire Federal retirees
without financial offset. However, this authority remains in effect only for
the period of national emergency and pertains only to temporary requirements
directly related to or affected by the attacks of September 11, 2001.

Not provided 18. Rehire Federal Annuitants Without Financial Offset

Further action will be required for DOD to obtain authority to rehire
Federal retirees without financial offset permanently. Not provided

In implementation Grouped into follow- on strategy ?Hiring?

OSD runs the Defense Leadership and Management Program (DLAMP), which
provides multi- functional career opportunities for highly qualified future
leaders throughout DOD.

Not provided 19. Establish Career Paths to Achieve Multifunctional
Acquisition Professionals Career broadening programs within the DOD
Components also all

have multi- functional attributes to them (see #7). Army program, 4QFY02

In implementation Grouped into follow- on strategy ?Career

Development? The Services have studies, programs, projects, or processes
underway to provide recommendations for the development and training of
their future leaders.

Army studies, June 2000 and 2001 The Services also conduct head to head
military/ civilian competition for leadership positions. Not provided 20.
Increase Civilian

Leadership Development Opportunities

The Services have leadership training opportunities. Not provided In

implementation Grouped into follow- on strategy ?Career

Development? 21. Assess the Effect of FERS on the DOD Workforce

RAND published report, through contract with OUSD (P& R), identifying the
effect of the Federal Employee Retirement System (FERS) on the recruitment
and retention of federal employees compared to the Civil Service Retirement
System (CSRS).

2001 Completed 22. Component Assessment of High Grade Requirements

A memorandum from OUSD (P& R) discontinued high- grade controls so no action
required by the DOD Components. November 2000 Completed

23. Improve Management of Personnel Lapse Rates The DOD Components have
constructed models that capture

metrics on lapse rates. The DOD Components are using metrics to reduce the
time to hire employees and, in turn, reduce the lapse rates.

Not provided In implementation Grouped into follow- on strategy ?Hiring?

The Army and Air Force already have their own survey programs, so OSD opted
to postpone any decisions on how to proceed until the services had ample
time to test their own programs.

Not provided 24. Conduct Entrance and Exit Surveys

OSD will then determine the best course of action and develop additional
surveys as needed. 1QFY03

In implementation Grouped into follow- on strategy

?Marketing,

Recruiting, & Retention? 25. Establish a Program to Share Best Practices
within the Acquisition Workforce

OUSD (AT& L) Knowledge System Communities of Practice will include a program
for sharing best practices in the following areas: Program Management,
Contract Finance, and Acquisition Logistics.

FY02 In implementation

Appendix I: DOD Actions and Milestones for Reshaping the Civilian
Acquisition Workforce

Page 16 GAO- 02- 630 Acquisition Workforce

Task Force recommendations DOD reported actions taken or future milestones a

DOD reported date that action accomplished or scheduled a

GAO assessment of current Status

26. Convert Term Appointments to Permanent Appointments Non- Competitively

Legislation is under consideration. FY03 In implementation

OUSD( AT& L) hosted a forum with the private industry representatives
designed to flush out industry concerns. Not provided 27. Establish a DOD/
Industry Two- way Exchange Program Using information from the forum, OUSD(
AT& L) chaired a working

group with representation from the services and DOD agencies to develop a
draft program directive and draft instruction. A legislative proposal is
being staffed to enable this program.

Not provided In

implementation Grouped into follow- on strategy ?Career

Development? The DOD Components encourage mobility through rotational
assignments, long term planning, payment of Permanent Change of Station
(PCS) expenses, and civilian spouse placement programs.

Not provided 28. Encourage Job Mobility, Both Local and Geographic

Legislation is under development to facilitate greater job mobility. FY03 In

implementation A process is in place to assess DOD acquisition personnel
management authorities. Annually OUSD( P& R) is developing a strategic
personnel management plan that addresses the need for additional personnel
management flexibilities.

Annually The DOD Components are also preparing annual human resource
performance plans that will identify areas of need within personnel policy
and practices.

Annually DOD is expecting to conduct a thorough review of personnel systems
in order to prepare for transition to alternative personnel system.

Not provided 29. Assess DOD

Acquisition Personnel Management Authorities

Legislation pending to increase personnel management flexibilities. FY03 In

implementation 30. Allow Employees to Buy Down the Early Retirement Penalty

Reason not to implement. Analysis showed that many employees would not find
it in their best interest to use this authority. DOD also determined that
employees wishing to gain extra retirement income can do so through
annuities available in the marketplace.

Not pursued 31. Maximize Use of Return Home Visit Authority for Temporary
Duty (TDY) Employees and Permit Spouse Travel as an Alternative

Reason not to implement. Since DOD Components already encourage return home
visits, roundtrip travel for spouse is more costly. DOD will not pursue
legislatively authority.

Not pursued

Appendix I: DOD Actions and Milestones for Reshaping the Civilian
Acquisition Workforce

Page 17 GAO- 02- 630 Acquisition Workforce

Task Force recommendations DOD reported actions taken or future milestones a

DOD reported date that action accomplished or scheduled a

GAO assessment of current Status Ongoing initiatives

Much of the hiring processes within DOD have already been automated. Not
provided 1. Automate the hiring process

Are currently reviewing their individual hiring processes to streamline and
find additional automation opportunities where appropriate.

Not provided 2. The Acquisition Workforce Personnel Demonstration Project

As of September 30, 2001, approximately 5,300 employees across DOD were
participating in the project to improve the quality and morale of the AT& L
workforce as well as the management of it.

September 30, 2001

3. Establish career development plans for all acquisition career fields

The Principal Deputy Under Secretary of Defense (AT& L) chartered SES- level
experts to serve as Functional Advisors (Fas) for each AT& L career field to
act as subject matter experts on the qualifications and career development
requirements for their assigned career fields.

February 2001 4. Establish special pay rates for information technology
specialists

OPM established higher pay rates for new and currently employed computer
specialists, computer engineers, and computer scientists at grades GS- 5, 7,
9, 11, and 12.

January 2001 5. Increase bonus ceilings The Managerial Flexibility Act of
2001 provided authority to pay

larger recruitment and relocation bonuses based on the length of an agreed-
upon period.

2001 6. Permit initial conversion of 401K plans and allow immediate
contributions to Government?s Thrift Savings Plan

Authority was granted. FY 2001 The FY 2002 National Defense Authorization
Act includes VERA and VSIP authority for workplace restructuring in FY 2002
and FY 2003.

FY 2002 7. Expand voluntary early retirement (VERA)/ voluntary separation
incentive program (VSIP) authority The Administration has introduced
legislation to make authority

permanently available throughout the federal workforce. Not provided 8.
Develop a phased retirement program DOD is not pursuing legislation allowing
this program.

Best practices

1. Army Acquisition Corps Career Development Not provided. Not provided 2.
Navy Acquisition Intern Program Not provided. Not provided 3. Air Force
Materiel Command Human Resource Strategic Management Planning

Not provided. Not provided

Appendix I: DOD Actions and Milestones for Reshaping the Civilian
Acquisition Workforce

Page 18 GAO- 02- 630 Acquisition Workforce

Task Force recommendations DOD reported actions taken or future milestones a

DOD reported date that action accomplished or scheduled a

GAO assessment of current Status

4. Defense Logistics Agency (DLA) Mid- level Development Program

Not provided. Not provided 5. Defense Leadership and Management Program

Not provided. Not provided 6. Secretary of Defense Corporate Fellows Program

Not provided. Not provided 7. Automated Referral System and Resume Database

Not provided. Not provided

a We did not independently verify or assess actions or dates reported by
DOD.

b The taskforce received the first draft of strategic plans from the Defense
Logistics Agency (DLA), Defense Contract Audit Agency (DCAA), Defense
Contract Management Agency (DCMA), and the Department of the Air Force,
Department of the Army, and Department of the Navy.

c The Department of Defense Civilian Personnel Manual (DOD 1400.25- M).

(120112)

The General Accounting Office, the investigative arm of Congress, exists to
support Congress in meeting its constitutional responsibilities and to help
improve the performance and accountability of the federal government for the
American people. GAO examines the use of public funds; evaluates federal
programs and policies; and provides analyses, recommendations, and other
assistance to help Congress make informed oversight, policy, and funding
decisions. GAO?s commitment to good government is reflected in its core
values of accountability, integrity, and reliability.

The fastest and easiest way to obtain copies of GAO documents at no cost is
through the Internet. GAO?s Web site (www. gao. gov) contains abstracts and
fulltext files of current reports and testimony and an expanding archive of
older products. The Web site features a search engine to help you locate
documents using key words and phrases. You can print these documents in
their entirety, including charts and other graphics.

Each day, GAO issues a list of newly released reports, testimony, and
correspondence. GAO posts this list, known as ?Today?s Reports,? on its Web
site daily. The list contains links to the full- text document files. To
have GAO e- mail this list to you every afternoon, go to www. gao. gov and
select ?Subscribe to daily E- mail alert for newly released products? under
the GAO Reports heading.

The first copy of each printed report is free. Additional copies are $2
each. A check or money order should be made out to the Superintendent of
Documents. GAO also accepts VISA and Mastercard. Orders for 100 or more
copies mailed to a single address are discounted 25 percent. Orders should
be sent to:

U. S. General Accounting Office 441 G Street NW, Room LM Washington, D. C.
20548

To order by Phone: Voice: (202) 512- 6000 TDD: (202) 512- 2537 Fax: (202)
512- 6061

Contact: Web site: www. gao. gov/ fraudnet/ fraudnet. htm E- mail: fraudnet@
gao. gov Automated answering system: (800) 424- 5454 or (202) 512- 7470

Jeff Nelligan, managing director, NelliganJ@ gao. gov (202) 512- 4800 U. S.
General Accounting Office, 441 G Street NW, Room 7149 Washington, D. C.
20548 GAO?s Mission

Obtaining Copies of GAO Reports and Testimony

Order by Mail or Phone To Report Fraud, Waste, and Abuse in Federal Programs

Public Affairs
*** End of document. ***
```