United States Government Accountability Office

Washington, DC 20548

June 20, 2012

Congressional Committees

Subject: Defense Acquisition Workforce: Improved Processes, Guidance, and Planning Needed 

to Enhance Use of Workforce Funds 

The Department of Defense (DOD) obligated about $375 billion in fiscal year 2011 to acquire 

goods and services to meet its mission and support its operations in the United States and 

abroad.

1 GAO’s work, as well as that of others, has documented shortcomings in DOD’s

strategic and acquisition planning, contract administration and oversight, and acquisition 

workforce. In our February 2011 high-risk report, for example, we noted that DOD needed to 

ensure that its acquisition workforce was adequately sized, trained, and equipped to meet 

department needs.

2

 Lack of an adequate number of trained acquisition and contract oversight 

personnel contributed to unmet expectations and has placed DOD, at times, at risk of potentially 

paying more than necessary. 

To help alleviate some of these long standing challenges and provide additional funds for the 

recruitment, training, and retention of acquisition personnel, in 2008 Congress established the 

Defense Acquisition Workforce Development Fund (DAWDF).

3 The fund supports expanded 

emphasis in these areas; for example, DOD expects to use DAWDF to hire approximately

10,000 new acquisition personnel through fiscal year 2015. Approximately $1.8 billion was 

allocated to the fund through February 2012. 

In the conference report accompanying the Consolidated Appropriations Act, 2012,

4 the

conferees noted that Congress was reducing the amount requested by DOD for the fund by 

$200 million, in part because the fund had large unobligated balances that it has carried over for 

the past several years.5 The conferees directed the Secretary of Defense to submit a report 

providing recommendations for appropriate funding levels for DAWDF by June 20, 2012. 

Further, to assist DOD in developing a revised strategic human capital plan for the acquisition 

workforce, required by August 1, 2012, the conference report directed that GAO examine the 

funding mechanisms, statutory limits established for the fund, and potential improvements, if 

any, that could be implemented to the overall funding process. In response, we are reporting on: 

(1) the DAWDF funding process and the execution of the fund; and (2) efforts to align DAWDFfunded activities with larger DOD acquisition workforce plans. 

To meet these objectives, we reviewed relevant legislation and key documents, including the 

2008 DAWDF charter, the July 2011 Workforce Management Group Charter, and other related 

documents; DOD’s 2009 and 2010 annual reports to Congress on DAWDF execution; and 

 

1

Contract obligations as of February 2012, reported by DOD in the Federal Procurement Data System – Next 

Generation.

2

GAO, High-Risk Series: An Update, GAO-11-278 (Washington, D.C.: Feb. 16, 2011). 3

National Defense Authorization Act for Fiscal Year 2008, Pub. L. No. 110-181, § 852 (2008), codified at 10 U.S.C. 

§ 1705. 4

Pub. L. No. 112-74 (2011). 5

H.R. Conf. Rep. No. 112-331 at 581 (2011).
Page 2 GAO-12-747R Defense Acquisition Workforce

DOD’s most recent Defense Acquisition Workforce Improvement Strategy, which was published 

in 2010. We reviewed DAWDF financial data, including appropriations, obligations, and 

expenditures for fiscal year 2008 to the present, as well as mandated annual funding amounts 

for DAWDF and reviewed draft DOD funding plans for future years. We identified how DAWDF 

funding transfer shares are determined for each DOD component and agency, and compared 

collected amounts with distributed amounts. We assessed the timeliness of DAWDF collections, 

distributions and obligations. To the extent possible, we identified aspects of DOD’s funding 

processes or practices that may be hindering DAWDF’s implementation or compliance with the 

law. We conducted a data reliability assessment of the systems from which key data was 

provided for this audit by interviewing agency officials knowledgeable about the data. We found 

the systems and data to be sufficiently reliable for the purposes of this audit. We also

interviewed representatives from the Office of the Under Secretary of Defense (Comptroller); the

Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics (Human 

Capital Initiatives); the offices of the Director of Acquisition Career Management for the Army, 

Navy, and Air Force, respectively; the Defense Acquisition University; the Defense Contract 

Audit Agency; the Defense Contract Management Agency; and the National Security Agency. 

We shared our preliminary findings with DOD officials on May 22, 2012.

We conducted this performance audit from March 2012 to June 2012 in accordance with 

generally accepted government auditing standards. Those standards require that we plan and 

perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our 

findings and conclusions based on our audit objectives. We believe that the evidence obtained 

provides a reasonable basis for our findings and conclusions based on our audit objectives. 

Results in Brief

DOD has identified DAWDF as a key tool used to address gaps in the acquisition workforce 

through additional hiring and training initiatives. For example, DOD officials noted they used 

DAWDF funds to hire about 5,855 new acquisition staff through fiscal year 2011 and enabled 

the Defense Acquisition University to provide 19,000 additional classroom seats, among other 

improvements. However, DOD’s ability to effectively execute hiring and other initiatives has 

been hindered by delays in the DAWDF funding process and the absence of clear guidance on 

the availability and use of related funds. DOD has not collected and distributed funds within 

required timeframes, sometimes delaying distribution to components until the following fiscal 

year. For example, only about 39 percent of the total amount of fiscal year 2011 transfer funds 

were distributed before the end of the fiscal year. These delays can result in uncertainty about 

the availability of funds, and negatively impact the components’ ability to execute according to 

their approved plans for the year. Additionally, DOD officials noted that the delays contributed, 

at least in part, to the amount of unobligated funds that were carried over to future years. DOD 

acknowledges that improved guidance that clarifies when DAWDF funds will be available and 

how they can be used would help improve the execution of program initiatives. 

While DOD considers rebuilding its acquisition workforce a strategic priority, it lacks an 

overarching strategy that clearly aligns DAWDF with its acquisition workforce plan. Further, the 

Department has not developed outcome-related metrics, such as the extent to which DAWDF is 

helping DOD address its workforce skills and competency gaps. Constrained budgets are 

leading the Department to reassess future workforce growth and related requirements, thus 

future mandated funding amounts will likely exceed DOD’s near-term needs. Acquisition, 

Technology, and Logistics officials are currently planning to submit revised DAWDF funding 
Page 3 GAO-12-747R Defense Acquisition Workforce

estimates to Congress in June 2012 and are preparing an updated strategic human capital plan 

for the acquisition workforce. 

Background

In authorizing DAWDF, Congress noted that its intention was to ensure that the DOD acquisition 

workforce has the capacity, in both personnel and skills, needed to properly perform its mission, 

provide appropriate oversight of contractor performance, and ensure that the department 

receives the best value for the expenditure of resources. To do so, DOD is using DAWDF to 

support initiatives that are intended to grow, enhance, and sustain a high quality workforce (see 

figure 1).

Figure 1: DAWDF Initiatives

DAWDF has largely been funded by money transferred from other operation and maintenance 

accounts for contracted services, although DOD may also request and receive funding as part 

of its annual budget and appropriations process. The transferred funds, known as credits, are 

available for obligation for that fiscal year and two succeeding fiscal years. In contrast, until 

fiscal year 2012, the funds directly appropriated for DAWDF had to be obligated by the end of 

the fiscal year in which the funds were appropriated. The National Defense Authorization Act for 

Fiscal Year 2012 made appropriated funds available for the same time period as credited 

funds.

6 DOD believed this change would reduce the complexity of managing and executing 

DAWDF funds in the future.

As amended, section 1705 of title 10 established funding levels that are expected to be met 

through fiscal year 2015. The legislation requires DOD to attain these levels essentially through 

a combination of credit funding, fund transfers, and new appropriations.7

 

6

National Defense Authorization Act for Fiscal Year 2012, Pub. L. No. 112-81, § 804, amending 10 U.S.C. § 

1705(e)(6).

The legislation permits 

the Secretary of Defense to reduce the specified funding level for a fiscal year if the Secretary 

determines that it is greater than is reasonably needed for that fiscal year. However, the amount 

may not be reduced below 80 percent of the amount specified for that fiscal year. During fiscal 

years 2008, 2011 and 2012, DOD determined that no more than about 80 percent of the amount 

specified was required for fund purposes. For example, in fiscal year 2012, that amount equated 

7

10 U.S.C. § 1705(d)(1). The statute also provides limited authority for transfer of unobligated, expired balances 

provided in certain appropriations accounts. 10 U.S.C. § 1705(d)(3). The law states that in determining the amount to 

be credited through the credit funding process in order to achieve the specified funding level, the amount shall be 

reduced by the amount appropriated to the fund during that fiscal year or transferred from expired accounts. 10 

U.S.C. § 1705(d)(4)
Page 4 GAO-12-747R Defense Acquisition Workforce

to $720 million. Rather than providing that amount solely through credit funding, OSD officials 

offset the collection by the $106 million appropriated by Congress. As of February 2012, a total 

of about $1.8 billion has been invested in DAWDF, including about $1.4 billion from funds 

credited from other accounts and over $400 million in funds directly appropriated for DAWDF. 

Table 1 lists the mandated annual DAWDF funding amounts. 

Table 1: Annual DAWDF funding amounts

Then-year dollars in millions 

Fiscal year Mandated funding amount

Minimum

allowable (80% of

mandated amount) Appropriated

Transfer

Notice amount

2008 $300 $240 $0 $254 

2009 400 320 0 701

2010 100 N/A 100 N/A

2011 770 616 209 400

2012 900 720 106 (pending) 615

2013 1,180 944 (requested) 274 (estimated) 670

2014 1,330 1,064 - - 

2015 1,470 1,176 - - 

Source: 10 U.S.C. § 1705, as amended and DOD data. 

Note: Dollars are rounded to the nearest million. Required transfer amounts are those amounts stated in the Comptroller transfer 

notices sent to components. 

Several offices play key roles in DAWDF’s management and oversight. The Under Secretary of 

Defense for Acquisition, Technology, and Logistics designates a senior official to manage the 

DAWDF fund. In 2011, the Director of Human Capital Initiatives assumed fund management 

responsibilities from the Defense Acquisition University, which had held that position since the 

program began. The fund manager is responsible for conducting periodic reviews of execution 

plans and associated funding amounts with component staff, and for ensuring accountability 

and tracking of fund expenditures.8 The Office of the Under Secretary of Defense (Comptroller) 

is responsible for collecting transfer funds from the components and crediting such funds into 

DAWDF. In addition, DAWDF has two oversight boards -- the Senior Steering Board, which 

provides strategic oversight, and the Workforce Management Group, which oversees the fund’s

operations and management. Table 2 describes the composition and roles of the two oversight 

boards.

 

8

Day to day fund management responsibilities are carried out by the Deputy Director of Human Capital Initiatives.
Page 5 GAO-12-747R Defense Acquisition Workforce

Table 2: DAWDF Management Structure

Board Members Board responsibilities

Senior Steering 

Board • Chaired by the Deputy Under 

Secretary of Defense for Acquisition, 

Technology, and Logistics

• Deputy Chair is the Director of Human 

Capital Initiatives

• Members include the senior leaders 

for acquisition at DOD components, 

the Comptroller, and the fund 

manager for DAWDF

• Responsible for governance and oversight of 

DAWDF

• Alignment of DAWDF with DOD’s Civilian 

Human Capital Strategic Plan and Human 

Capital Initiatives

• Fund allocation to components for execution 

of approved initiatives, based on 

recommendations of the Workforce 

Management Group

Workforce 

Management Group • Chaired by the Director of Human 

Capital Initiatives 

• Members include the principal 

representatives of the Senior Steering 

Board 

• The Comptroller and Under Secretary 

of Defense (Personnel and 

Readiness) are invited to attend

• Advise the Senior Steering Board regarding 

management and use of DAWDF, including 

alignment with strategic objective, guidance, 

component funding levels, changes to 

initiatives and out-of-cycle requirements

• Oversee DAWDF initiatives and execution 

plans, and ensure they support statutory 

intent and strategic objectives

• Assist DOD leadership and components with 

annual update to Congress on the acquisition 

workforce

Source: DOD. 

DAWDF Has Supported Workforce Growth 

Initiatives, but Current Funding Processes Hinder 

Execution 

DOD considers DAWDF a key tool to more proactively address acquisition workforce gaps than 

is usually possible under the annual budgeting process, as well as one which has enabled it to 

fund both workforce growth and related training initiatives. The ability of DOD components to 

effectively plan for and execute efforts supported by DAWDF, however, has been hindered by 

delays in DOD’s funding processes and the absence of clear guidance on the availability and 

use of funds. DOD has not collected and distributed funds within the timeframes established by 

the legislation, sometimes delaying distribution to the components until the following fiscal year.

This cascading effect can preclude the components from executing approved DAWDF-funded 

workforce plans and contributes to the high amount of funds that often remain unobligated and 

carried over to the next fiscal year. In part, this situation arises from different responsibilities and 

views between Human Capital Initiatives and the Comptroller on how best to manage DAWDF 

funding. DOD officials acknowledge that updated guidance on when funds should be available 

and how they can be used, as well as better communication between DAWDF stakeholders and 

users, would help improve the execution of planned program activities. 
Page 6 GAO-12-747R Defense Acquisition Workforce

DAWDF Has Supported Workforce Growth and Training Initiatives 

DOD officials stated that DAWDF has been a key tool to help rebuild the size and capabilities of 

the civilian acquisition workforce, which declined by almost 50 percent between fiscal years

1989 and 1999. Since a large portion of DAWDF funds are collected from service contract 

credits, DAWDF has provided a dedicated funding source to increase the size and improve the 

overall capabilities of the workforce that is not subject to reductions in DOD’s annual budget 

process. DOD officials reported that the civilian acquisition workforce grew from 118,445 in 

fiscal year 2009 to about 135,981 in December 2011, a gain of 17,536. According to DOD 

officials, 5,855 were hired using DAWDF funds, with the other growth attributed to hiring new 

staff using other funding sources, moving contracted work to government employees through 

insourcing, and the reclassifying of existing DOD staff as acquisition personnel. As part of this 

growth, DOD placed special emphasis in priority career fields, including contracting; auditing; 

systems engineering; cost estimating; and program management. Table 3 shows DAWDF 

actual and projected hiring levels by career field as of June 2012. 

Table 3: DAWDF Hiring by Career Field

On-boarda Projected

2009 2010 2011 2012 2013 2014 2015 Total

Auditing 377 131 237 0 0 0 0 745

Contracting 612 1,037 501 362 501 277 101 3,391

Cost estimating 60 71 26 16 16 10 6 205

Facilities engineering 6 50 28 14 19 4 0 121

Financial management 25 85 53 59 39 18 10 289

Industrial and contract 

property management 2 19 13 26 15 14 10 99

Information technology 18 34 55 19 21 10 1 158

Legal 0 0 6 18 5 0 0 29

Life cycle logistics 87 252 227 51 60 17 3 697

Other/TBD 2 9 4 167 434 281 28 925

Production, quality, 

and manufacturing 37 327 98 212 239 208 148 1,269

Program management 43 191 111 83 53 34 20 535

Systems planning, 

research, development, 

& engineering 255 460 226 128 153 123 68 1,413

Test and evaluation 0 49 31 39 3 2 1 125

Total 1,524 2,715 1,616 1,194 1,558 998 396 10,001

Cumulative total 1,524 4,239 5,855 7,049 8,607 9,605 10,001

Source: DOD data. 

a

In addition, DOD officials noted that DAWDF has helped DOD improve its overall training

capacity and curriculum, and also contract oversight efforts to benefit the department at large. 

For example, the Defense Acquisition University received about $260 million between fiscal 

years 2008 and 2012, which has enabled it to add about 19,000 classroom and 100,000 online 

training seats per year, and about 1,300 additional courses. Similarly, the Defense Contract 

Does not include 644 personnel hired with DAWDF funds that were not part of planned DOD workforce growth initiatives. 
Page 7 GAO-12-747R Defense Acquisition Workforce

Management Agency and the Defense Contract Audit Agency collectively received $321 million 

to increase the size of DOD’s contract oversight workforce.9 Human Capital Initiatives and 

military component officials also said that DAWDF-funded retention programs, such as student 

loan repayment, have helped keep employees who might have otherwise left DOD. This 

includes about 10,800 tuition assistance incentives and 3,600 student loan repayments. Some 

components, however, voiced concerns about their contributions to the fund relative to the 

perceived benefits and indicated it was not clear how such decisions were made or whether 

agency-unique needs were considered. The Army, for example, has been the largest contributor 

to the fund, having contributed about $470 million between fiscal year 2008 and 2011, while 

being allocated about $273 million for their DAWDF-funded initiatives. Further, officials from the 

National Security Agency indicated that with few exceptions they are unable to benefit from 

increased staffing at the Defense Contract Audit Agency and the Defense Contract 

Management Agency because they provide only limited support for NSA’s classified contracts.

Current DOD Funding Processes Hinder DAWDF Planning and 

Execution Efforts

The process by which DAWDF funds are collected and distributed to the components has 

hindered their ability to plan and execute workforce growth initiatives. This process comprises 

several steps and includes various stakeholders. The President’s Budget, generally submitted in 

February, identifies the total amount of funds to be requested for DAWDF in the next fiscal year.

DOD’s May 2010 DAWDF guidance calls for components to submit plans by mid-May which 

identify the estimated funding needed to support the component’s projected hiring, training and 

other related-initiatives during the next fiscal year. The components’ plans are to be reviewed 

and approved by August by the Senior Steering Board, although DOD officials told us much of 

the work is performed by the Deputy Director for Human Capital Initiatives. Based on the 

amount specified in the budget, the OSD Comptroller calculates each component’s share of the 

DAWDF credit based on the component’s total operations and maintenance service contract 

obligations from the prior year, offset by the amount, if any, that Congress has appropriated for 

the fund. The OSD Comptroller sends a notice to each component specifying the amount it is to 

contribute, collects these funds from the components, and then credits that amount into the 

fund. The DAWDF fund manager, in turn, allocates funds back to the components based on 

their approved plans for that year. Figure 2 provides a summary of key steps in the funding 

process.

 

9

In November 2011, we reported that after its formation in the early 1990s, DCMA’s workforce numbers declined and 

there was significant erosion of some areas of expertise, such as the cost and pricing function. To build and support 

its workforce, DCMA is using several sources of funding, including DAWDF. For example, in fiscal year 2011 DCMA 

reported it hired 1,221 new employees using DAWDF funding, a substantial increase from 166 hired in fiscal year 

2009. See GAO, Defense Contract Management Agency: Amid Ongoing Efforts to Rebuild Capacity, Several Factors 

Present Challenges in Meeting Its Missions, GAO-12-83 (Washington, D.C.: Nov. 3, 2011). 
Page 8 GAO-12-747R Defense Acquisition Workforce

Figure 2: Key Steps in the DAWDF Funding Process

During the first 2 years of the program, transfers were to be remitted to the fund not later than 

30 days after the end of each fiscal quarter.10 In fiscal year 2010, the DAWDF legislation was 

amended to require components to transfer funding no later than January 31 of each year.11

However, our analysis found that DOD did not collect funds and distribute money to the DAWDF 

program within required timeframes for any year. For example, the funds transfer notice for 

fiscal year 2011 was not issued until March 22 of that year and the fiscal year 2012 funds 

transfer notice was not issued until March 23, 2012. In addition, after the notices have been 

issued, the funds are collected at various points during the year, which results in incremental

distribution to the DAWDF program, often not until subsequent fiscal years. For example, just 

over $700 million was collected for fiscal year 2009. Of that amount, only $96 million was 

actually distributed to the fund in that year, $430 million was later distributed in 2010, and the 

balance was not distributed until fiscal year 2011. Similarly, only about 39 percent of the total 

amount of fiscal year 2011 transfer funds were distributed before the end of the fiscal year. 

Figure 3 shows when the total amounts of funding were distributed to DAWDF in fiscal years 

2008 to 2012. 

 

10Pub. L. No. 110-181, § 852. 11National Defense Authorization Act for Fiscal Year 2010, Pub. L. No. 111-84, § 832 (2009). 
Page 9 GAO-12-747R Defense Acquisition Workforce

Figure 3: Funds Distributed to DAWDF in Fiscal Years 2008 through 2012, as of February 2012

Note: $1.2 million of the 2008 transfer funding was distributed in 2010. In addition, as of February 2012, DOD had not 

collected or distributed transfer funding for 2012 to components. 

OSD Comptroller officials indicated they generally do not begin the process of collecting and 

distributing DAWDF funds before DOD receives its annual appropriations to minimize the 

amount of credit funding collected from other DOD programs. In their view, such funding comes 

at the expense of programs and activities whose budgets had been justified and approved to 

meet other existing requirements and should not be collected until necessary for DAWDF. 

These officials noted it was especially true during a continuing resolution period where DOD’s 

funding is often limited to the prior year’s appropriation level or less, which puts additional stress 

on other programs required to contribute funds to DAWDF. Comptroller officials noted that 

components may request extensions to the date on which they are to remit funds for DAWDF 

use. For example, some components have requested such an extension so that they may use 

expiring funds to meet this requirement.

In turn, however, delays in transfers and appropriated funding contributed to uncertainty on the 

part of DOD officials about whether they would be able to execute approved DAWDF activities. 

Consequently, these officials told us they revised execution plans, including slowing their hiring 

initiatives and deferring other activities until sufficient funds became available. For example, 

increasing acquisition workforce levels has been a primary goal for DOD, and the DAWDF 

program and activities related to recruiting and hiring new staff often involve lead times of 

several months. DAWDF funds can be used to pay salaries for new employees for their first two 
Page 10 GAO-12-747R Defense Acquisition Workforce

to three years, which offsets much of the early cost to the components. However, in cases 

where funding is delayed, component officials told us they prefer to not start the hiring process 

until adequate DAWDF funds are available both at that time and for the future to pay related 

salaries and avoid reductions in force.

Delays in collecting and distributing DAWDF funds led to uncertainty among fund managers 

regarding when future funding will be made available. This, combined with revisions in 

execution plans, contributed to the large amounts of DAWDF funding not being obligated and to 

funds being carried over to the next fiscal year. For example, our analysis shows that in fiscal 

year 2011, the Comptroller distributed $155 million to the DAWDF program, but $120 million, or

77 percent of that amount, was not distributed until the fourth quarter. Human Capital Initiatives 

and Comptroller officials have differing views on how best to manage DAWDF funds allocation, 

including carry over amounts. For example, Comptroller officials acknowledge that while they 

have delayed sending out fund transfer notices and allowed components to delay when they 

remit such funds, they note this is important to minimize disruption to non-DAWDF programs 

that contribute funding. Further, Comptroller officials believe that sufficient funds have been 

available to the DAWDF program as a whole, contingent on the fund manager reallocating funds 

between components as necessary. In general, Comptroller officials noted their preference that 

DAWDF be funded solely through appropriated funds and have its funding determined in light of 

other DOD priorities. Conversely, officials within the Human Capital Initiatives office told us that 

having a dedicated source of funding through the transfer process, rather than solely through 

appropriations, has ensured the viability of the DAWDF program during a period of decreasing 

DOD budgets. Human Capital Initiatives officials would also prefer the Comptroller collect and 

release funding as soon as possible to allow for better planning and execution of program 

activities and ensure that sufficient funds are available for activities continuing into or planned to 

begin in the first quarter of the next fiscal year. Officials from both offices acknowledged that 

with additional guidance and proper planning, carryover funding could be used to address 

program requirements before credit funds are collected and distributed for the following year. 

DOD officials told us that additional guidance could also help address other program concerns.

For example, components have developed differing interpretations regarding the use of DAWDF 

funds, such as whether funds can be used for relocation of new staff and the purchase of new 

computers for training purposes. While the DAWDF fund manager indicated these types of 

decisions are left to the respective components to decide, component officials indicated they 

would prefer OSD guidance clarifying these policies. Standards for Internal Control in the 

Federal Government suggests that management develop detailed policies to ensure risks are 

addressed, and also identify appropriate knowledge needed by staff.12 To the extent that 

policies are unclear to component staff, there is increased risk that funding may not be spent as 

intended. In that regard, DOD fund management officials indicated during the course of our 

review that they intend to provide additional guidance to components to address different 

interpretations of the use of funds.

Despite playing a key role in the DAWDF funding process, OSD Comptroller officials stated that 

they do not have sufficient visibility into components’ expenditure plans, nor are they satisfied 

these plans fully explain how funds will be used. They noted that while they review DOD’s 

expenditure plans with the DAWDF fund manager, they have not consistently participated in the 

more detailed reviews of component expenditure plans conducted by the DAWDF fund manager 

with component staff who have detailed knowledge of these plans. In contrast, OSD Comptroller 

 

12GAO, Internal Control: Standards for Internal Control in the Federal Government, GAO/AIMD-00-21.3.1. 

(Washington, D.C.: Nov. 1999).
Page 11 GAO-12-747R Defense Acquisition Workforce

officials noted that for non-DAWDF accounts, they generally review expenditure plans with the 

individual services. Although these officials believe their prior staff may have attended oversight 

board meetings in the past, they have not been involved recently. The July 2011 Workforce 

Management Group’s charter made the Comptroller’s participation optional. DAWDF fund 

management and OSD Comptroller officials indicated a willingness to increase coordination in 

the near future, including during upcoming expenditure plan reviews and Senior Steering Board 

meetings, and noted that Comptroller representatives recently participated in a mid-year review 

for DAWDF.

DOD Lacks Overarching Strategy and Metrics for 

Managing DAWDF

DOD considers rebuilding its acquisition workforce a strategic priority, and has identified 

DAWDF as a key tool to support those efforts. DOD, however, lacks an overarching strategy 

that clearly aligns DAWDF with its acquisition workforce plan and has not developed metrics to 

assess DAWDF outcomes. Our prior work has shown that strategic workforce planning—an 

integral part of human capital management—helps organizations to determine if they have staff 

with the necessary skills and competencies to accomplish their strategic goals. For example, we 

and the Office of Personnel Management have identified six leading principles which such plans 

should incorporate, including: 

• align workforce planning with strategic planning and budget formulation;

• involve managers, employees, and other stakeholders in planning; 

• identify critical occupations, skills, and competencies and analyze workforce gaps;

• employ workforce strategies to fill the gaps;

• build the capabilities needed to support workforce strategies through steps to ensure the 

effective use of human capital flexibilities; and

• monitor and evaluate progress toward achieving workforce planning and strategic goals.13

While such a framework could have assisted in developing DAWDF guidance and 

implementation plans, DOD has had mixed results in this area. For example, in September 2010 

we reported that while DOD’s April 2010 acquisition workforce plan addressed the legislative 

requirement to identify changes in the number of authorized personnel to address gaps and 

meet the needs of the department, it had not, at the time of that review, identified the funding 

necessary to achieve its efforts.14

 

13GAO, Workforce Planning: Interior, EPA and the Forest Service Should Strengthen Linkages to Their Strategic 

Plans and Improve Evaluation, GAO-10-413 (Washington, D.C.: Mar. 31, 2010).

While DOD later provided funding information for fiscal years 

2008 through 2010, it did not address funding needs for future years as required. Further, we 

noted in November 2011 that DOD has focused much needed attention on rebuilding its 

acquisition workforce and made some progress in terms of growing the workforce, identifying 

the skills and competencies it needed, and used such information to help update its training 

14GAO, Human Capital: Further Actions Needed to Enhance DOD’s Civilian Strategic Workforce Plan, GAO-10-814R

(Washington, D.C.: Sept. 27, 2010). 
Page 12 GAO-12-747R Defense Acquisition Workforce

curriculum. However, we cautioned that fiscal and budget pressures presented DOD with 

additional challenges in meeting its acquisition workforce goals. 

OSD Comptroller and fund management officials indicated that minimum funding amounts 

required by current DAWDF legislation will likely exceed DOD’s requirements in future years. 

Currently, DAWDF legislation mandates that DOD invest a minimum of about $3.2 billion 

between fiscal years 2013 and 2015. However, DOD officials explained that since a large 

portion of the DAWDF hiring goals have already been met, the funding required for ongoing 

sustainment of related training and other non-hiring activities is expected to be substantially 

lower. DOD officials noted that they are attempting to align the revised funding profile that is to 

be submitted to Congress in June 2012 with the strategic workforce plan that is to be submitted 

in August 2012. However, Human Capital Initiatives officials noted that they plan to request an 

extension.

Currently, DOD tracks input-related metrics, including the number of people hired and trained 

with DAWDF funds. However, DOD has generally not developed outcome-related metrics, such 

as the extent to which DAWDF is helping DOD address its workforce skills and competency 

gaps. Acquisition, Technology, and Logistics officials stated that outcome-related metrics are 

being developed, but to date, have not been finalized. Input-related metrics corresponding to 

DAWDF-funded initiatives are also tracked by component fund management officials. For 

example, Air Force officials conduct execution reviews in which projected goals for the current 

fiscal year are compared with achievements to date, such as numbers of instructors being 

funded and tuition assistance grants that have been made. In addition, Army and Navy officials 

track input metrics in areas such as continuous learning and certification levels for their

acquisition workforce. Our prior work has shown that program outcome metrics provide useful 

indicators of the health of programs and whether they are meeting their intended goals. When 

assessed regularly for changes and the reasons that cause changes, these indicators can be 

valuable tools for improving insight into and oversight of programs.15

Conclusions 

 

DOD has focused much needed attention on rebuilding its acquisition workforce and has used 

DAWDF to increase hiring and provide for additional training. However, delays in collecting and 

distributing funds have caused uncertainty among components and affected their ability to 

execute approved hiring plans and related initiatives. Human Capital Initiatives and Comptroller 

officials have differing views on how best to manage the collection and distribution of DAWDF 

funds, the resolution of which is critical to ensure timely execution of DAWDF initiatives, while 

minimizing the impacts on other programs. While there are merits to each of their positions, 

without clear guidance for DAWDF stakeholders and users as to when funds are to be made 

available and how they can be used, current uncertainty and execution issues will remain. 

Going forward, DAWDF’s unique structure could assist DOD in taking a more strategic 

approach to improving the skills and capabilities of the acquisition workforce. However, DOD 

has not clearly aligned DAWDF with overall strategic workforce planning efforts. Consequently, 

until DOD determines its future workforce needs, it will be difficult to determine the level of 

funding necessary to achieve those goals and the most efficient and equitable method to do so. 

DOD is already required by law to submit both a revised DAWDF funding profile and an updated 

acquisition workforce strategy in the upcoming months; such plans could contribute to these 

 

15GAO, Defense Acquisitions: Measuring the Value of DOD’s Weapon Programs Requires Starting with Realistic 

Baseline, GAO-09-543T (Washington, D.C.: Apr. 1, 2009).
Page 13 GAO-12-747R Defense Acquisition Workforce

department-wide assessments and assist in developing future goals and funding requirements 

and enable components to better plan for and execute workforce improvement efforts. Further, 

while DOD uses some input-related metrics, such as hiring numbers, to assess the performance 

of DAWDF, DOD has yet to develop outcome-related metrics to ensure component activities are 

meeting the department’s overall goals and objectives. In times when budgets are becoming 

increasingly constrained, DOD has an opportunity to make prudent mid-course adjustments to 

the fund’s management and execution that it can ill-afford to waste. 

Recommendations for Executive Action 

To maximize DAWDF program benefits, we recommend the Secretary of Defense direct that the 

Under Secretary of Defense for Acquisition, Technology, and Logistics take the following two

actions: 

• Revise existing DAWDF guidance to clarify for all stakeholders when and how DAWDF 

funds should be collected, distributed, and used; and

• Establish key performance metrics for DAWDF to allow senior leadership to track how 

the fund is being used to support DOD’s acquisition workforce improvement goals. 

To ensure that the DAWDF program directly supports DOD strategic acquisition workforce 

plans, we recommend that the Secretary of Defense direct the Under Secretary of Defense for 

Acquisition, Technology, and Logistics and the Under Secretary of Defense (Comptroller) to 

clearly align the revised DAWDF funding strategy with DOD’s strategic human capital plan for 

the acquisition workforce.

Agency Comments

We requested comments on a draft of this report from the Secretary of Defense. On June 18, 

2012, the Associate Director for Military Operations within the Office of the Under Secretary of 

Defense (Comptroller) provided us with oral comments on the draft. In her comments, she 

stated that DOD concurred with each of our recommendations and offered specific actions DOD 

planned to take to address them. With respect to our recommendation that existing guidance 

should be revised to clarify how DAWDF funding should be collected, distributed, and used, the 

Associate Director stated revised guidance will be issued by September 30, 2012. In response 

to our recommendation to establish key performance metrics for DAWDF, she stated that 

creating and sustaining a capable acquisition workforce is a key element of successful 

acquisition outcomes and meeting other DOD challenges. As such, the Department intends to 

continue efforts to measure changes and impact on workforce qualifications and risk areas. 

Finally, with regard to our recommendation that the DAWDF funding strategy and strategic 

human capital plan be clearly aligned, the Associate Director stated that DOD will continue to 

improve alignment of a revised funding strategy so that it supports successful execution of the 

workforce initiatives. We believe that as DOD moves forward, it should be as specific as 

possible in developing the DAWDF funding strategy and metrics.

 

DOD also provided technical comments which we incorporated as appropriate.

- - - - - 

We are sending copies of this report to interested congressional committees; the Secretary of 

Defense; the Under Secretary of Defense for Acquisition, Technology, and Logistics; the Under 
Page 14 GAO-12-747R Defense Acquisition Workforce

Secretary of Defense (Comptroller); and other interested parties. In addition, the report will be 

available at no charge on the GAO website at http://www.gao.gov. 

If you or your staffs have questions about this report, please contact me at (202) 512-4841 or 

DiNapoliT@gao.gov. Contact points for our Offices of Congressional Relations and Public 

Affairs may be found on the last page of this report. 

Timothy J. DiNapoli

Acting Director, Acquisition and Sourcing Management
Page 15 GAO-12-747R Defense Acquisition Workforce

List of Committees 

The Honorable Carl Levin 

Chairman 

The Honorable John McCain 

Ranking Member 

Committee on Armed Services 

United States Senate 

The Honorable Daniel K. Inouye 

Chairman 

The Honorable Thad Cochran 

Ranking Member 

Subcommittee on Defense 

Committee on Appropriations 

United States Senate 

The Honorable Howard P. “Buck” McKeon 

Chairman 

The Honorable Adam Smith 

Ranking Member 

Committee on Armed Services 

House of Representatives

 

The Honorable C.W. Bill Young 

Chairman 

The Honorable Norman D. Dicks 

Ranking Member 

Subcommittee on Defense 

Committee on Appropriations 

House of Representatives
Page 16 GAO-12-747R Defense Acquisition Workforce

Enclosure I: GAO Contact and Staff Acknowledgments 

GAO Contact

Timothy J. DiNapoli, (202) 512-4841 or DiNapoliT@gao.gov

Staff Acknowledgments 

Key contributors to this report were Brian Mullins, Assistant Director, Sean Seales, Heather B. 

Miller, Richard P. Burkard, John Krump, Jean McSween, Roxanna Sun, and Robert Swierczek.

(121047)
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