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Defense Acquisition Workforce: Issues for Congress (CRS Report for Congress)

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Release Date March 11, 1999
Report Number 98-938
Authors Valerie Bailey Grasso, Foreign Affairs and National Defense Division
Source Agency Congressional Research Service
Summary:

In each of the past four fiscal years (FY1996-FY1999), Congress has directed the Administration to reduce the size of the Department of Defense (DOD) acquisition workforce—defined as the employees who participate in the development and procurement of weapons, equipment, and provisions for the military services. These mandates reflect a view in Congress that the workforce has not been downsized in proportion to the decline in of the overall defense budget in general, nor of the acquisition portion of the defense budget, in particular. As Congress and the Administration have debated the future of the defense acquisition workforce, participants have encountered basic questions: What, precisely, is the DOD acquisition workforce? How many people are in it, and what, exactly, are their functions? At present, there is no commonly accepted definition of the DOD acquisition workforce. Previous attempts, within the decade, to define the workforce have produced estimates ranging from 25,000 to 582,000 personnel. In early 1997, DOD hired the Jefferson Solutions Group, a private consulting firm, to define the size and composition of the acquisition workforce. Jefferson Solutions issued its report in September 1997. It estimated that the overall workforce included about 189,000 people, and that the largest acquisition workforce group consists of scientists and engineers (about 43 percent), followed by computer systems analysts and logistical and program managers (about 16 percent), and contractors, purchasers, or procurement support personnel (about 15 percent). Notably, the study did not address the issue or provide statistics on the extent to which DOD relied on private-sector contractors to perform acquisition-related functions. In response to Section 912(b) of the FY1998 Defense Authorization Act, Deputy Secretary of Defense (for Acquisition and Technology) Jacques S. Gansler issued a memorandum to defense agencies on November 20, 1998, having determined that DOD would use a modified version of the definition used by the Packard Commission Report. Each agency is required to conduct a functional workforce analysis, revise its personnel count, and report findings by December 30, 1998. Currently, two major questions confront Congress in regard to the acquisition workforce. First, should the new definition constructed by the Jefferson Solutions Group be adopted formally? If so, it will result in a significant reduction in DOD's official count of acquisition personnel. Second, to what extent will savings achieved through reductions be offset by additional, unanticipated costs? Such costs may include: (1) hiring contractors to perform acquisition-related functions previously performed by government employees; (2) separation costs, such as early buyouts, retirements, and severance pay; and, (3) overtime costs due to both personnel shortages and inexperienced personnel.