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<classification authority="sudocs">GA 1.13:NSIAD-98-107</classification>
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 <subject>Naval personnel</subject>
 <subject>Navy procurement</subject>
 <subject>Privatization</subject>
 <subject>Strategic planning</subject>
 <subject>Military cost control</subject>
 <subject>Military downsizing</subject>
 <subject>Reductions in force</subject>
 <identifier>DOD Future Years Defense Program</identifier>
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 <type>Letter Report</type>
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<titleInfo>
 <title>Defense Outsourcing: Impact on Navy Sea-Shore Rotations</title>
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<abstract>Pursuant to a congressional request, GAO reviewed whether the Department
of Defense&apos;s (DOD) outsourcing of commercial activities reduces the
availability of rotational billets for active duty military personnel,
focusing on: (1) how the Navy&apos;s current outsourcing efforts have
affected rotational billets; and (2) whether the Navy has policies and
procedures in place to minimize the impact of outsourcing on rotational
billets in the future.&lt;p/&gt;GAO noted that: (1) several Navy Office of Management and Budget
Circular A-76 competitions announced for study in fiscal years (FY) 1997
and 1998 have the potential to eliminate military billets in areas where
rotational shortages exist for personnel returning from sea duty; (2) as
a result, the Navy has decided not to begin some of these A-76 studies
and plans to reinstate funding authorization for the military positions
eliminated when the studies were announced; (3) until recently, the Navy
had not developed specific policies and coordination procedures to
protect rotational billets from outsourcing considerations; (4)
according to Navy officials such policies and procedures were not needed
prior to FY 1997 because the Navy&apos;s outsourcing initiatives were limited
and not centrally managed; (5) in May 1997, Navy officials signed a
memorandum of agreement specifying a coordination process between the
Navy&apos;s headquarters infrastructure officials and military personnel
representatives to ensure that consideration is given to rotation
requirements when determining potential functions for outsourcing; (6)
this memorandum of agreement was further strengthened in September 1997
by a more detailed Navy-wide memorandum of agreement that applied to all
major commands, which the Navy refers to as major claimants, for all
infrastructure reductions, including outsourcing; (7) this coordination
policy should prove important since the Navy&apos;s goal is to have completed
A-76 competitions for 80,500 positions by the year 2002, including about
10,000 military billets; (8) the Navy expects that its outsourcing
efforts will produce savings and accordingly has programmed expected
savings of $2.5 billion into its future years defense plan for FY 2000
through 2003; (9) the Navy has not identified the specific activities
and locations that will be studied to achieve projected savings, but has
tasked its major commands with recommending specific activities and
locations for A-76 competitions to meet this savings goal; (10) the Navy
recently began a series of planning conferences involving appropriate
officials from headquarters and major commands focusing on strategies
for attaining its future years&apos; outsourcing goals; (11) however, given
the Navy&apos;s plans for outsourcing competitions, ongoing coordination and
improved planning between headquarters and major commands is needed to
reach agreement on realistic goals and timeframes; and (12) in addition,
improved planning and coordination could minimize the elimination of
required military shore billets, as well as avoid prematurely
programming savings into future years&apos; budgets.</abstract>
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<identifier type="preferred citation">GAO/NSIAD-98-107</identifier>
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<note>Letter Report</note>
<extension>
 <searchTitle>GAO/NSIAD-98-107; Defense Outsourcing: Impact on Navy Sea-Shore Rotations;
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<subject>
 <topic>Naval personnel</topic>
 <topic>Navy procurement</topic>
 <topic>Privatization</topic>
 <topic>Strategic planning</topic>
 <topic>Military cost control</topic>
 <topic>Military downsizing</topic>
 <topic>Reductions in force</topic>
 <topic>DOD Future Years Defense Program</topic>
 <topic>FYDP</topic>
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