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DTIC ADA530702: Outsourcing & Privatization of Defense Infrastr...
by Defense Technical Information Center
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The Department of Defense is currently undertaking a
major review--the Quadrennial Defense Review--of its
military strategy and force structure. This exercise may
lead to significant changes in how the Pentagon organizes
and prepares to fight. Left out of this equation will be
how the Pentagon manages the day to day business of
national defense. This omission will be unfortunate since
the need for the Defense Department to fix the way it
manages its service and support infrastructure has never
been more acute. While military leaders continue to
downsize and reorganize the fighting force, spending on
support functions and overhead costs remain stable, and,
in some cases, are growing. Too much of limited defense
dollars goes to support areas--the tail. In fact, support
and infrastructure now consume nearly 70% of all defense
dollars, an annual sum of roughly $160 billion per year.
Such excessive overhead is inexcusable when many
warfighting needs--tooth--remain unmet. How can this
problem be fixed? In the private sector and in state and
local governments nationwide, outsourcing and
privatization have emerged as management innovations that
promote efficiency and improve service. Faced with a
competitiveness crisis in the 1980s, American industry
restructured and reengineered itself and is now the envy
of the world. The Defense Department should try a similar
approach. Pentagon leaders recognize that privatization
and outsourcing make sense. In fact they backed an
aggressive outsourcing policy starting in the mid-1970s.
Yet, only halting progress is being made. Moreover, areas
widely touted as success stories--as BENS notes in our
case studies of the defense travel system and military
housing--reflect privatization in name only. Progress to
date remains limited, and the projected savings exist
only on paper.
Date Published: 2018-08-03 15:33:40
Identifier: DTIC_ADA530702
Item Size: 24021277
Language: english
Media Type: texts
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