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<classification authority="sudocs">GA 1.13:NSIAD-98-100</classification>
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 <reportNumber>NSIAD-98-100</reportNumber>
 <subject>Personnel management</subject>
 <subject>Military personnel</subject>
 <subject>Human resources utilization</subject>
 <subject>Military cost control</subject>
 <subject>Military downsizing</subject>
 <subject>Civilian employees</subject>
 <subject>Defense contingency planning</subject>
 <subject>Combat readiness</subject>
 <subject>Reductions in force</subject>
 <subject>Military reserve personnel</subject>
 <identifier>DOD Quadrennial Defense Review</identifier>
 <identifier>DOD Future Years Defense Program</identifier>
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<titleInfo>
 <title>Quadrennial Defense Review: All Personnel Cuts and Associated Savings May Not Be Achieved</title>
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<abstract>Pursuant to a congressional request, GAO reviewed the 1997 Report of the
Quadrennial Defense Review (QDR), focusing on the: (1) basis for the
personnel cuts; (2) services&apos; plans to implement personnel cuts; (3)
extent that the services believe cuts will impact their ability to
execute the national military strategy; and (4) Department of Defense&apos;s
(DOD) plans to monitor the services&apos; progress in implementing the cuts.&lt;p/&gt;GAO noted that: (1) DOD&apos;s decision to reduce personnel as part of the
QDR was driven largely by the objective of identifying dollar savings
that could be used to increase modernization funding; (2) DOD officials
concluded that a 10-percent force structure cut would result in
unacceptable risk in implementing the national military strategy and
determined that the review process had not identified sufficient
infrastructure savings to meet DOD&apos;s $60-billion modernization goal; (3)
thus, the Secretary of Defense directed the services to develop plans to
cut the equivalent of 150,000 active military personnel to save between
$4 billion and $6 billion in recurring savings by fiscal year (FY) 2003;
(4) the services proposed initiatives to eliminate about 175,000
personnel and save an estimated $3.7 billion; (5) although the services
relied on some ongoing studies to develop proposals to achieve the cuts,
some of the analyses were limited; (6) moreover, variations existed in
the services&apos; plans; (7) considerable risk remains in some of the
services&apos; plans to cut 175,000 personnel and save $3.7 billion annually
by FY 2003; (8) with the exception of the Air Force, the services have
plans that should enable them to achieve the majority of the active
military cuts by the end of FY 1999; (9) however, the FY 1999 future
years defense program, which is the first to incorporate the QDR
decisions, does not include all of the personnel cuts because the Office
of the Secretary of Defense determined that some of the Air Force&apos;s
active military cuts announced in May 1997 are not politically
executable at this time, according to service officials; (10) moreover,
plans for some cuts are still incomplete or based on optimistic
assumptions about the potential to achieve savings through outsourcing
and reengineering and may not be implemented by FY 2003 as originally
anticipated; (11) the Air Force made an assumption that all military
positions planned to be competed would be replaced by contractors rather
than relying on historical experience that the civilian workforce wins
40 percent of all competitions; (12) the Air Force military personnel
cuts will focus primarily on personnel assigned to infrastructure
activities rather than mission forces and will involve replacing
personnel with less costly civilians or contractors rather than
eliminating functions; and (13) because some aspects of DOD&apos;s plan to
reduce personnel will not occur or will be delayed, it is critical that
the Office of the Secretary of Defense monitor the services&apos; progress in
achieving the personnel cuts and associated savings.</abstract>
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<identifier type="preferred citation">GAO/NSIAD-98-100</identifier>
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<note>Letter Report</note>
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 <searchTitle>GAO/NSIAD-98-100; Quadrennial Defense Review: All Personnel Cuts and Associated Savings May Not Be Achieved;
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<subject>
 <topic>Personnel management</topic>
 <topic>Military personnel</topic>
 <topic>Human resources utilization</topic>
 <topic>Military cost control</topic>
 <topic>Military downsizing</topic>
 <topic>Civilian employees</topic>
 <topic>Defense contingency planning</topic>
 <topic>Combat readiness</topic>
 <topic>Reductions in force</topic>
 <topic>Military reserve personnel</topic>
 <topic>DOD Quadrennial Defense Review</topic>
 <topic>DOD Future Years Defense Program</topic>
</subject>
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  <title>United States Code</title>
  <partNumber>Title 10 Section 10216</partNumber>
  <partNumber>Title 10 Section 2465</partNumber>
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 <identifier type="USC citation">10 U.S.C. 10216</identifier>
 <identifier type="USC citation">10 U.S.C. 2465</identifier>
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 <titleInfo>
  <title>United States Public Law 190 (102nd Congress)</title>
</titleInfo>
 <identifier type="public law citation">Public Law 102-190</identifier>
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