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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DTIC Archive; ; BUSINESS EXECUTIVES F... | |
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