Human Capital

GAO submitted a proposed agenda of significant management improvements and cost reduction opportunities to the Department of Defense. Billions of dollars in annual savings could be achieved by implementation of several actions: (1) the consolidation of military base support activities; (2) the completion of the excellent work already begun in consolidating supply activities, including the elimination of Marine Corps logistics overlap with other services and centralized ammunition management; (3) the establishment of single management of aircraft depot maintenance; (4) the further application of the single manager concept to transportation activities; (5) the use of both wholesale and retail inventories of parts more effectively; and (6) the consideration of life cycle logistics and backup equipment requirements early in the weapons planning cycle. Four major opportunities which need Secretary of Defense and congressional attention are: (1) better management and more consistent weapons system funding; (2) multiyear contracting; (3) examination of lower cost alternatives before the Secretary of Defense and Congress approve new systems; and (4) identification of impediments to reducing the costs of weapons systems. New leadership is needed in the study of military pay reform. Many issues confront the military retirement system and its financial soundness. The enlisted military force composition needed for the future should be thoroughly evaluated. Use of more civilians in morale, welfare, and recreation activities and a reduction in costs of the military exchange systems are advocated. Reserve Forces manpower management needs a fresh approach.