Baseline Organizational Assessment Study Group Decisions

SUBJECT: Track Four Efficiency Initiatives Decisions
As part ofthe Department’s efficiencies effort, on August 16,2010, I directed a series of initiatives designed to reduce duplication, overhead, and excess, and instill a culture ofsavings and cost accountability across the Department of Defense.

I have approved the recommendations resulting from the following Study Groups and direct their immediate implementation:
• Office ofthe Secretary of Deferise, Combatant Command, Defense Agency, and DoD Field Activity Baseline Organizational Assessment efficiencies that save over $4 billion across the Future Years Defense Program (FYDP).

• General/Flag Officer (G/FO) efficiencies that impact 140 ofthe Department’s 952 general and tlag officer positions.

• Civilian Senior Executive (CSE) efficiencies that eliminate 176 civilian senior executive positions and 33 Highly Qualified Experts (HQE).

• Reports, Studies, Boards, and Commissions (RSBC) efficiencies that save over $1 billion across the FYDP.

• Intelligence Review efficiencies that save over $300 million across the FYDP.

• Joint Forces Command Disestablishment that saves nearly $2 billion across the FYDP.

• Business Transformation Agency Disestablishment that saves over $300 million across the FYDP.

• Reducing Reliance on DoD Service Support Contractors that saves over $6 billion across the FYDP.

• Consideration ofCosts in DoD Decision-Making that institutionalizes the requirement to provide a cost estimate for any new proposal or initiative and every report or study.

• Cross Cutting Initiatives that achieve efficiencies across the Office ofthe Secretary of Defense, Defense Agencies, and Field Activities,Approved Track Four Efficiency decisions are incorporated in Resource Management

Decision 700A3 and 703A2 and decisions related to Baseline Organizational Assessments, GIFO, CSE, RSBC, Intelligence Review, and Cross Cutting Initiatives are in the enclosed attachment. You are to assume that all dates for completion in the enclosed attachment are September 30,2011, unless otherwise stated. In the near future, I will issue follow-on guidance establishing the governing process by which these decisions will be tracked and reported, as well as decisions for the remaining Track Four Efficiency initiatives.

For all personnel actions related to these final decisions, I have directed the Under Secretary of Defense for Personnel and Readiness (USD(P&R», Dr. Clifford Stanley, to provide policy guidance for the Department on implementation ofthese affected personnel actions.

Further personnel policy guidance will be forthcoming. USD(P&R) has developed a website to assist with frequently asked questions regarding personnel support at

I expect and appreciate your full support, leadership, and personal engagement as the’ Department implements these decisions.


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