United States Department of Defense

Updated Feb. 17, 2011

In May 2010, the Defense Department began
a comprehensive effort to increase efficiencies, reduce overhead costs, and eliminate redundant functions in order to improve the effectiveness of the DOD enterprise. This effort is focused on reprioritizing how DOD can use resources to more effectively support and sustain the force and most importantly the warfighter.

Top Stories

Gates Reveals Budget Efficiencies, Reinvestment Possibilities

WASHINGTON, Jan. 6, 2011 – The Defense Department has found $154 billion in efficiencies over the next five years and will be able to invest $70 billion of that saved money in more deserving accounts, Defense Secretary Robert M. Gates said. Story | Speech

DOD to Prune Senior Ranks, Freeze Staffing

WASHINGTON, Jan. 6, 2011 – The Defense Department will reduce its senior ranks and freeze civilian staffing levels, said Defense Secretary Robert M. Gates. Story

Joint Chiefs Fully Agree With Efficiencies

WASHINGTON, Jan. 6, 2011 – The members of the Joint Chiefs of Staff are fully behind Defense Secretary Robert M. Gates’ proposed efficiencies for the military, said the nation’s top military officer. Story

Department Directs Army, Marine Drawdowns

WASHINGTON, Jan. 6, 2011 – Budget pressures that have proven greater than anticipated mean the Defense Department will trim end strength in its ground forces beginning in four years, said Defense Secretary Robert M. Gates. Story

"Meeting real-world requirements. Doing right by our people. Reducing excess. Being more efficient. Squeezing costs. Setting priorities and sticking to them. Making tough choices. These are all things that we should do as a department and as a military regardless of the time and circumstance."

Defense Secretary Robert M. Gates
At the Pentagon, Jan. 6, 2011
Full Statement

“Ultimately, as leaders in government and industry, we owe it to the men and women in our armed forces to do all we can to provide them with the very best support to complete their mission and return home safely.”

Ashton Carter
Under Secretary of Defense for Acquisition, Technology and Logistics
Sept. 14, 2010

Reform Initiatives

First track: In June, the secretary directed that the military services find more than $100 billion in overhead savings over the next five years. The services will keep any savings they generate to invest in higher priority warfighting and modernization needs. The FY2012 budget will reflect the results when it is submitted in February.

Second track: The department also began seeking ideas, suggestions and proposals from other than official channels, including outside experts, think tanks, the Department’s external boards. The Department also has established a DOD suggestion program to solicit employee ideas.

Third Track: The secretary directed a

comprehensive assessment of every aspect of how this department is organized and operated to inform the President’s Budget 2012 decisions. The review is looking at a number of key areas to affect long-term systemic improvements in DOD operations. Additionally, Under Secretary of Defense for Acquisition, Technology and logistics, Dr. Ashton Carter has recently unveiled acquisition initiatives, which include 23 significant changes to the way the Department contracts for goods and services.

Fourth Track: The secretary has identified several areas where the Department can take action now, ahead of and separate from the normal programming and budget submission process, to reduce inefficiencies and overhead. The secretary has: Press Release

Reduced funding for service support contractors by 10 percent per year for three years. There have been significant efforts to outsource noncore tasks to contractors over the last several decades. However, since 2001, due to a number of factors, the department has experienced a dramatic increase in contract support. Many of the recently outsourced service support and advisory contractors are actually performing functions that should be performed by government employees. The secretary intends to reverse this trend. The task force is establishing a baseline for these contractors and will develop specific targets for reductions.
Frozen the number of Office of the Secretary of Defense, Defense Agency and combatant command positions, at the FY10 levels, and directed a zero based review of each organization. The zero-based review of organizarional missions, funding and staffing is intended to ensure each organization is aligned to the Department’s priorities, and to allow reductions or realignment of personnel and resources as appropriate.
Directed a clean-sheet review to determine what the Department should be doing, where, and at what level of rank, in keeping with the Department’s outlined priorities with results due by Nov. 15.
Frozen, at FY10 levels, the number of senior civilians executives , general and flag officers, and presidentially appointed and senate –confirmed officials. After a senior–level review, the secretary intends to reduce the numbers of these positions. The effort in this area is intended to assist in the transition to fewer organizations and into flatter, mores responsive and agile structures. There are currently two senior study groups reviewing the distribution of senior positions across the Department and expect, at a minimum to substantially trim the growth that has occurred since 2001.5. Authorized each of the military departments to consider consolidation or closure of excess bases and other facilities where appropriate.
Authorizing each of the military departments to consider consolidation or closure of excess bases and other facilities where appropriate.
Is seeking ideas, suggestions and proposals from outside normal official channels, including soliciting input from experts such as think tanks, industry and the department's external boards.
Launched an online contest within the Department to solicit and reward creative ideas to save money and use resources more effectively.
Directed a series of assessments of how the Defense Department is organized and operated to inform the FY12 budget request. This includes launching an initiative to improve the efficiency and reduce costs in the contracting arena to get better buying power for the taxpayer and warfighter in defense goods and services.
Consolidating information technology assets to take advantage of the department's significant economies of scale, thereby creating savings in acquisition, sustainment and manpower costs. This action will allow the increased use by the department of common functions and improve the department’s ability to defend Defense networks against growing cyber threats.
Frozen the overall number of DOD-required oversight reports. Immediately cutting the dollars allocated to advisory studies by 25 percent, and henceforth, publishing the actual cost of preparing each report and study prepared by DOD. Conducting a comprehensive review of all oversight reports by Oct.1, and using the results to reduce the volume generated internally.
Reviewing all outside boards and commissions, to eliminate those that are no longer needed, focusing the efforts of those that continue to be relevant, and cutting the overall funding available for studies tasked by the remaining boards and commissions by 25 percent in FY11.
Directed an immediate 10 percent reduction in funding for intelligence advisory and assistance contracts and freezing the number of senior executive positions in defense intelligence organizations. Conducting a zero-based review of the department's intelligence missions, organizations, relationships and contracts to be completed by Nov. 1.
Eliminated organizations that perform duplicative functions or have outlived their original purpose, including the Office of the Assistant Secretary of Defense for Networks and Information Integration, also known as NII, and organization within the Joint Staff's J6 Command, Control, Communications and Computer Systems, the Business Transformation Agency and recommend the disestablishment of Joint Forces Command.

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Defense Secretary Robert M. Gates and Navy Adm. Mike Mullen, chairman of the Joint Chiefs of Staff, brief the press on proposed efficiencies that mark the next major step in the Defense Department's reform agenda at the Pentagon in Arlington, Va., Jan. 6, 2011. DOD photo by U.S. Air Force Master Sgt. Jerry Morrison

Gates, Mullen Briefing

United States Department of Defense

Top Stories

Gates Reveals Budget Efficiencies, Reinvestment Possibilities

DOD to Prune Senior Ranks, Freeze Staffing

Joint Chiefs Fully Agree With Efficiencies

Department Directs Army, Marine Drawdowns

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