Defense Reform Initiative -- Overview: Current DRI Highlights

Overview

Realized Savings:

Competitive and Strategic Sourcing:	$11.7B from FY 1997 - FY 2005
Purchase Card:	$200M from FY 1994 - FY 1999
DFAS Consolidation:	$1B Reduction in Operating Costs FY 91-99
AF Depot Maintenance Competition:	$2.6B from FY 1997 - FY 2014

Meeting or Exceeding Process Improvement Goals:

90% Paperless Contracting Transactions by CY 2000
90% Purchase Card Use for Goods and Services at or below $2,500 by FY 2000
30% Reduction in Energy Consumption below 1985 levels by CY 2005
50% Reduction in Logistics Response Time by FY 2000 · 90%
Visibility of Logistics Supplies in Storage by FY 2000

Improving Quality of Life:

Increased Military Pay by 4.8% effective CY 2000
Restored Retirement Plan at 50% of Basic Pay at 20 Years of Service
Proposal before the Congress to Eliminate Out-of-Pocket Housing Costs by FY 2005

Tracking Performance:

Created Performance Contracts for Defense Agencies. Significant accomplishments include: a) increased communications between performing organization and customers; b) contracts which articulate performing organization business areas, customers, and assign appropriate resources to each business area; and c) availability of a management tool focused on making continuous improvements in DoD business affairs.

Establishing Short and Long-Term Performance Outcomes for All DRI Elements.

To institutionalize reform as a fundamental approach to conducting business, performance metrics and scorecards will provide Senior Leadership with an effective means of determining performance outcomes. They reflect the short and long-term vision of where the Department is headed and our commitment to be public about our goals-and our ongoing progress toward meeting them.

Partnering with Industry:

September 1999, establishment of the Government/Industry Electronic Commerce (EC) Conference Working Group (ECCWG) to address: a) incentives for the adoption of electronic business (EB) ; b) information security for EB; c) performance measures for EB; and d) software quality and interoperability for EB. Working group final reports due May 2000. Working groups meet regularly - at least once every two weeks - and are currently executing plans of action which include meetings/interviews with Industry and Government organizations engaged in EC/EB. Preliminary findings were briefed to the Deputy Secretary of Defense in February 2000.