Defense Acquisition Workforce: Issues for Congress

CRS Report for Congress
Defense Acquisition Workforce:
Issues for Congress
Updated March 11, 1999
Valerie Bailey Grasso
Analyst in National Defense
Foreign Affairs, Defense, and Trade Division


Congressional Research Service ˜ The Library of Congress

ABSTRACT
This report discusses recent congressionally mandated reductions in the Department of
Defense (DOD) acquisition workforce. It reviews DOD's varied efforts to define who belongs
to this workforce, and examines potential issues for Congress in identifying and downsizing
the workforce. It includes defense acquisition workforce definitions and estimates by the
Congress, General Accounting Office (GAO), and various defense management reports.
Consequent issues for Congress are identified. Congressional action concerning the defense
acquisition workforce was taken in the Fiscal Year (FY) 1999 defense authorization and
appropriation bills. This report will be updated periodically, as required.



Defense Acquisition Workforce: Issues for Congress
Summary
In each of the past four fiscal years (FY1996-FY1999), Congress has directed
the Administration to reduce the size of the Department of Defense (DOD)
acquisition workforce — defined as the employees who participate in the
development and procurement of weapons, equipment, and provisions for the military
services. These mandates reflect a view in Congress that the workforce has not been
downsized in proportion to the decline in of the overall defense budget in general, nor
of the acquisition portion of the defense budget, in particular.
As Congress and the Administration have debated the future of the defense
acquisition workforce, participants have encountered basic questions: What,
precisely, is the DOD acquisition workforce? How many people are in it, and what,
exactly, are their functions? At present, there is no commonly accepted definition of
the DOD acquisition workforce. Previous attempts, within the decade, to define the
workforce have produced estimates ranging from 25,000 to 582,000 personnel.
In early 1997, DOD hired the Jefferson Solutions Group, a private consulting
firm, to define the size and composition of the acquisition workforce. Jefferson
Solutions issued its report in September 1997. It estimated that the overall workforce
included about 189,000 people, and that the largest acquisition workforce group
consists of scientists and engineers (about 43 percent), followed by computer systems
analysts and logistical and program managers (about 16 percent), and contractors,
purchasers, or procurement support personnel (about 15 percent). Notably, the study
did not address the issue or provide statistics on the extent to which DOD relied on
private-sector contractors to perform acquisition-related functions.
In response to Section 912(b) of the FY1998 Defense Authorization Act,
Deputy Secretary of Defense (for Acquisition and Technology) Jacques S. Gansler
issued a memorandum to defense agencies on November 20, 1998, having determined
that DOD would use a modified version of the definition used by the Packard
Commission Report. Each agency is required to conduct a functional workforce
analysis, revise its personnel count, and report findings by December 30, 1998.
Currently, two major questions confront Congress in regard to the acquisition
workforce. First, should the new definition constructed by the Jefferson Solutions
Group be adopted formally? If so, it will result in a significant reduction in DOD’s
official count of acquisition personnel. Second, to what extent will savings achieved
through reductions be offset by additional, unanticipated costs? Such costs may
include: (1) hiring contractors to perform acquisition-related functions previously
performed by government employees; (2) separation costs, such as early buyouts,
retirements, and severance pay; and, (3) overtime costs due to both personnel
shortages and inexperienced personnel.



Contents
Introduction ................................................... 1
Defining the Defense Acquisition Workforce...........................4
A Historical Perspective.......................................4
Current Approaches..........................................6
Jefferson Solutions Report.....................................7
Pertinent Observations.......................................10
Issues for Congress.............................................11
Adequacy and Usefulness of New Definition......................11
Secretary of Defense’s Report.................................12
Funding Implications........................................13
Conclusion ................................................... 14
Selected Bibliography...........................................15
Appendix A: Title IX, Subtitle B -
Additional Reductions in Defense Acquisition Workforce............16
Appendix B. Title IX, Subtitle A - Further Reductions in
Defense Acquisition and Support Workforce......................18
Appendix C. Acquisition Position Categories.........................19
Appendix D. DOD Acquisition Organizations.........................20
List of Tables
Table 1. Previous Estimates of the Size of the DOD Acquisition Workforce...5
Table 2. Personnel Composition of the DOD Acquisition Workforce........9



Defense Acquisition Workforce:
Issues for Congress
Introduction
In each of the past four fiscal years, Congress has directed the Administration
to reduce the size of the Department of Defense (DOD) acquisition workforce — the
DOD employees who participate in the development and procurement of weapons and
equipment for the military services.
CIn the FY1996 defense authorization act, Congress directed the
Administration to reduce the workforce by 15,000 people by October 1,
1996, and by a total of 25 percent (compared to the 1995 figure) over a
period of five years. The act also required the Secretary of Defense to
report to Congress on ways to restructure functions among DOD’s
acquisition departments and agencies.
CIn the FY1997 defense authorization act, Congress directed the
Administration to reduce the workforce by an additional 15,000 people by
October 1, 1997, and stipulated that this reduction was to be in the form of
actual acquisition personnel, not just acquisition positions.
CIn the FY1998 defense authorization act, Congress directed the
Administration to reduce the workforce by an additional 25,000 people by
September 30, 1998, but permitted the Secretary of Defense to waive a
portion of this reduction if her certifies to Congress by June 1, 1998 that
such reductions would adversely impact military readiness and acquisition
efficiency. The act also required DOD to submit a report to Congress by
April 1, 1998 that provides a plan for future acquisition policy, including
future opportunities to restructure and streamline DOD’s acquisition
organizations, workforce and infrastructure.
CIn the FY1999 defense authorization act, Congress directed the
Administration to reduce the workforce by 25,000 acquisition personnel by
October 1, 1999, lowering it to 12,500 personnel if the Secretary of
Defense certifies that such a reduction would cause an adverse effect on
military readiness or management of the acquisition system.
These mandates to reduce the size of the DOD acquisition workforce reflected
Congress’ view that the workforce has not been downsized enough — that reductions
continue to lag in proportion to the decline in the size of the overall defense budget,
in general, and the acquisition portion of the defense budget, in particular. As a
result, according to this view, DOD has spent more than is necessary to administer its



acquisition programs. Reducing the workforce has been viewed as a necessary
requirement for eliminating wasteful spending, and providing DOD with increased
funding for other priorities.
Congressional interest in reducing the size and associated costs of the DOD
acquisition workforce has been energized by certain outside reports. The May 1995
report of the DOD Commission on Roles and Missions, for example, noted that while
private-sector defense contractors had undertaken large-scale reorganizations
adjusting to a reduced level of defense spending, little corresponding reduction had
been made in the number of DOD acquisition organizations or personnel. 1
Congress and DOD are presently at odds over the need for further reductions in
the defense acquisition workforce. DOD now believes that it has exceeded its
congressional mandates to reduce the acquisition workforce, and that further
acquisition personnel reductions will have an adverse impact. This concern was
expressed in a 1997 report to Congress, required by the FY1996 defense
authorization act. DOD stated that, in FY1996, it had reduced the acquisition
workforce by 23,802 personnel (military/civilian, excluding certain depot trade skill
personnel) employed by or assigned to its acquisition organizations — 8,802 more
than mandated by Congress for that year. DOD stated that without the depot skill-
trades exemption, it reduced personnel in acquisition organizations by 30,377 in
FY1996. In its report, DOD estimated a two-year reduction by the end of FY1997,
of over 56,000 people -- a 13.2 percent reduction. 2
DOD’s current position is that mandated acquisition personnel reductions have
undercut its effort to manage the acquisition workforce, and have adversely impacted
military readiness. In appeals to the FY 1999 defense authorization bill, DOD asked3
Congress to reconsider House Section 901 which requires that, by October 1, 2001,
DOD would phase-in reductions of an additional 70,000 defense acquisition
personnel. DOD believed that Section 901 excluded about 80,000 civilian personnel
performing acquisition functions at depot maintenance depots. In its appeal, DOD
strongly opposed these reductions, having stated that “personnel cuts enacted outside
the manpower planning, programming and budgeting system are inconsistent with


U.S. Department of Defense. Directions for Defense: Report of the Commission on Roles1
and Missions of the Armed Forces, in accordance with Section 954(b) of the National
Defense Authorization Act for Fiscal Year 1994. Washington, 1995, pp. 3-16, 3-17.
U.S. Department of Defense. Office of the Undersecretary of Defense (Acquisition &2
Technology). Right Sizing the Department of Defense Acquisition Workforce: A Report to
the United States Congress. Washington, 1997. (January 28, 1997,) p. 2. This report was
required by Section 906 of the FY1996 Defense Authorization Act. Additional information
was contributed by Dr. James McMichael, Director of Acquisition, Education, Training, and
Career Development, Office of the Undersecretary of Defense (Acquisition &Technology).
Department of Defense Appeals to the FY 1999 Defense Authorization Bill. Office of the3
Under Secretary of Defense (Comptroller), Plans & Systems Directorate. July 2, 1998.

cost-effective management and will require Reductions-in-Force separations, creating
associated unprogrammed separation costs.”4
In the past, the General Accounting Office (GAO) has examined issues facing
DOD’s acquisition workforce. In a 1995 report, before congressionally-mandated
personnel reductions began, GAO concluded that "Even with declines in both the
defense procurement budget and the civilian workforce since 1990, the number of
acquisition organizations remains relatively constant." A 1997 GAO report, using5
data from the Defense Manpower Data Center, stated that for the period ending
March 31, 1997, DOD reduced its acquisition workforce from the 1995 baseline by
50,334 full-time equivalent personnel (FTEs), or 20,223 more than required by
Congress. 6
In 1998, the House National Security Committee asked GAO to review DOD’s
progress in achieving a 25-percent reduction in the acquisition organizations’
workforce, examine the potential savings associated with such reductions, determine
the status of DOD efforts to redefine the acquisition workforce, and examine DOD’s
efforts to restructure acquisition organizations. GAO concluded that:
“DOD has been reducing its acquisition workforce at a faster rate than its overall
workforce and is on schedule to accomplish a 25-percent reduction by the fiscal
year 2000. However, potential savings from these reductions cannot be
precisely tracked in DOD’s budget. In addition, some of the potential savings
from acquisition workforce reductions may be offset by other anticipated costs.
Such costs include those for contracting with private entities for some services
previously performed by government personnel (i.e., substituting one workforce
for another.” 7
Such conflicting opinions on the size of the defense acquisition workforce, and
the potential savings to be achieved, stem from an inability to define it. Over the past
three years, as Congress and the Administration have debated the future of the
defense acquisition workforce, policymakers have sought to answer the basic
question: What, precisely, is the DOD acquisition workforce? How many people are
in it, where in DOD are they located, and what, exactly, are their functions?


Selected DOD Appeals to FY-99 Defense Authorization Conference. Inside the Pentagon.4
July 9, 1998, pp. 11-12.
U.S. Congress. General Accounting Office. Defense Acquisition Organizations: Changes5
in Cost and Size of Civilian Workforce, GAO/NSIAD-96-46, November 1995. Washington,

1995. p. 2.


U.S. Congress. General Accounting Office. Defense Acquisition Organizations: Reductions6
in Civilian and Military Workforce. Washington, 1997. (GAO/NSIAD-98-36R, October

23, 1997) p. 2.


U.S. Congress. General Accounting Office. Defense Acquisition Organizations: Status of7
Workforce Reductions. Report to the Chairman, Committee on National Security, House of
Representatives. GAO/NSIAD-98-161. June 1998. 20 pages.

Defining the Defense Acquisition Workforce
There is no commonly accepted definition of the DOD acquisition workforce.
This has led to confusing and contentious discussions about the workforce, its size
and composition, the significance of reductions DOD has made, and the potential
impact of carrying out further reductions.
A Historical Perspective
There have been at least seven attempts in recent years by Congress and DOD
to define what constitutes the defense acquisition workforce. Each attempt was based
on a study which used differing combinations of occupational and organizational
codes and produced estimates of the size of the workforce ranging from 25,000 to
582,000 personnel. It is important to note that these studies were performed over a
period of more than a decade — a period during which there have been significant
changes in the size of the defense budget, the size of the procurement portion of the
defense budget, the number of uniformed military personnel, and the total number of
DOD civilian employees. An estimate of the acquisition workforce that appears large
or small in an absolute sense should be considered in light of the defense policy
changes that have occurred.
Currently, the most commonly accepted estimates agreed upon by Congress and
DOD range from about 106,000 to 270,000 personnel; the first is an estimate of
personnel whose positions fall under the Defense Acquisition Workforce
Improvement Act (DAWIA). DAWIA is the basis for nearly all of DOD’s education,
training and career development programs for the acquisition workforce. Congress8
enacted DAWIA in the FY1991 Defense Authorization Act. It is codified in Chapter

87, Title 10 of the U.S. Code, and has been amended several times since enactment.


The most recent estimate comes from the FY1998 Defense Authorization Act (Public
Law 105-85), and counts 270,000 personnel.


Public Law 101-510, National Defense Authorization Act for Fiscal Year 1991, Title XII,8
Defense Acquisition Workforce Improvement Act, November 5, 1990.

Table 1. Previous Estimates of the Size of
the DOD Acquisition Workforce
(Arranged by Date)
Source of EstimateDate of Methodology forNumber of
Estimateestimate --personnel
who is counted
FY1999 NationalEnacted into Law,Military and civilianUndetermined
Defense AuthorizationOctober 17, 1998personnel (other than civilian
Bill (Public Law 105-depot personnel) who are
261assigned to, or employed in,
DOD acquisition
organizations as specified by
DOD 5000.58 *
Defense Acquisition1998 Annual Report toAll 14 acquisition-related105,544
Workforcethe President and thepositions (see Appendix C for
Improvement ActCongress, from Secretarya complete listing)
(DAWIA), Public Lawof Defense William
101-510, FY1991Cohen
Defense Authorization
Act, Title XII, Defense
Acquisition Workforce
Improvement Act,
November 5, 1990
Acquisition Corps,1998 Annual Report toA subset of the DAWIA22,641
enacted in Title 10,the President and theworkforce; persons who have
Section 1732, U.S.Congress, from Secretaryqualified for membership
Codeof Defense William
Cohen
FY 1998 NationalEnacted into law,Military and civilian270,000
Defense AuthorizationNovember 18, 1997personnel (other than
Bill (Public Law 105-civilians who are employed at
85)a maintenance depot) in
acquisition organizations
FY 1997 NationalEnacted into law,Military and civilian 320,000
Defense AuthorizationFebruary 10, 1996 personnel in acquisition
Bill (Public Law 104-organizations, with the
201)exception of personnel who
possess technical competence
in trade-skill maintenance
and repair positions involved
in performing depot
maintenance functions
GAO Report, NSIAD-Nov. 13, 1995All personnel in DOD464,000
96-46, “Defenseacquisition organizations and
Acquisitionthe Defense Contract Audit
Organizations: ChangesAgency
in Cost and Size of
Civilian Workforce
DOD Instruction Revised, Jan. 14, 1992All personnel in DOD355,000
5000.58acquisition organizations
Defense ManagementJune 1989All personnel described in582,000
Report, from thethe Packard Commission
Defense ManpowerReport and all in DOD
Data Centeracquisition organizations



The President’s BlueApril 1986Some civilian occupations in150,000
Ribbon Commission onall organizations, acquisition
Defense Managementorganizations and
(Packard Commissioncorresponding military
Report) organizations
Sources: Unless otherwise noted, data in this table were derived from Dr. James S. McMichael, Director of
Acquisition Education, Office of the Secretary of Defense. According to Dr. McMichael, the Defense
Management Report estimated the workforce count at 582,000 in June 1989; DOD and the Defense
Management Data Center have used the same algorithm to arrive at the figure of 582,000; when needed, they
apply this algorithm to the database to obtain a comparable count. DOD’s current estimate is 375,000.
*This definition also includes organizations which the Secretary of Defense may determine to have a
predominately acquisition mission.
Current Approaches
In DOD's personnel system, members of the acquisition workforce can be
identified by using any of three basic approaches, either alone or in combination:
(1) Identification by occupational codes, such as GS-1102, Contracting
Specialist. Contracting specialists are most often thought of as “the acquisition
workforce.” They are the “public face” that is most often associated with
directly buying DOD goods and services, from aircraft carriers to “$600 toilet
seats.” Some contracting specialists directly purchase goods and services;
others manage the buying process between DOD and defense contractors; still
others develop, supervise, and monitor DOD contracting policy. Not all
occupational codes, however, can be neatly classified as either inside or outside
the acquisition workforce. Some managers, engineers, and scientists, for
example, are involved in acquisition-related activities, but also perform other
functions. For example, a manager may be primarily responsible for base
operations and serve as a critical support for the day-to-day running of the
military installation.
(2) Identification by organizational codes, which reflect the mission of the
office in which the person works, such as the Defense Reutilization and
Marketing Service (DRMS), which is responsible for DoD's surplus and excess
property programs. DRMS workers routinely acquire goods and services for
disposal within federal agencies; these goods and services are no longer needed
by DOD. Throughout the defense establishment, some workers are directly
involved in buying and selling, while others support this process. For example,
auditors may have some oversight authority for the financial management
process within a military installation, but have no responsibility for the
contracting process. They may not be involved with the actual “buying” or
“selling,” either directly or indirectly. There are also personnel that perform
“acquisition-related” functions in organizations that do not have an acquisition
mission, while other personnel are assigned to an organization with an
“acquisition-related mission,” but are not involved in the acquisition process.
For example, a child care worker responsible for the installation’s day care
center would be unlikely to have responsibility for procuring goods and services.
Thus, the organizational codes are not always an undisputed identifier.



(3) Direct identification, in which DOD performs a “desk audit”of the actual
performance of tasks by one worker, and compares it with a description of tasks
and duties that make up “acquisition-related functions,” and determines that,
based on empirical evidence, the worker should be considered as part of the
acquisition community. The data is then entered into an information system, and
DOD counts that individual as performing acquisition-related functions. The
direct identification method may be considered the most reliable, but it is also the
most time-consuming.
According to DOD, military and civilian positions that are categorized as part
of the DOD acquisition system fall into one of 14 acquisition position categories as
established by the Undersecretary of Defense for Acquisition and Technology. Each
acquisition position category has standards set according to its level of complexity.
Definitions of each category of acquisition positions can be found in DOD Instruction

5000.58-R and DOD Manual 5000.52-M.9


Although the definition of each acquisition position category appears in DOD
Instruction Manuals, the number of positions made it difficult for Congress to
determine just how many different individuals occupied each position, as well as what
duties each individual performed within the framework of defense acquisition.
Congress sought an objective source for a definition of what constituted the defense
acquisition workforce, and directed DOD to create a new definition that would
answer these questions.
Jefferson Solutions Report
At a 1997 hearing on the DOD acquisition workforce before the military
procurement and readiness subcommittee of the House National Security Committee
(HNSC), DOD was asked to create a new definition of the acquisition workforce10
that could be accepted and used by all participants in the debate. To carry out this
task, DOD hired the Jefferson Solutions Group, a management consulting firm based
in Washington, DC, and headed by Dr. Allan V. Burman, a former administrator of
the Office of Federal Procurement Policy (OFPP.)
Jefferson Solutions issued its report in September 1997. The report used data
gathered from the Defense Manpower Data Center (DMDC) and from interviews with
officials from the Office of the Secretary of Defense, Army, Navy, Air Force, Defense


The following regulations prescribe policies and procedures governing career management9
activities of the acquisition workforce within DOD organizations: DOD Instruction 5000.58-
R, “Defense Acquisition Workforce,” January 14, 1992; DOD Directive 5000.52, “Defense
Acquisition Education, Training, and Career Development Program,” October 25, 1991; and,
DOD 5000.52-M, “Career Development Program for Acquisition Personnel” November 1991,
authorized by DOD Directive, 5000.52, October 25, 1991. For additional information on the
defense acquisition workforce, please contact the Director, Acquisition Career Management,
Office of the Under Secretary of Defense (Acquisition), Room 2A330, The Pentagon,
Washington, DC 20301-2200.
Jefferson Solutions. Review of the Department of Defense Acquisition Workforce.10
Prepared for the Department of Defense. DASW)1-97-M-1847. 55 p.

Manpower Data Center, Defense Logistics Agency, staff from the Senate Armed
Services Committee (SAC) and the House National Security Committee (HNSC),
and analysts from the General Accounting Office (GAO) and the Congressional
Budget Office (CBO). The report examined two approaches for classifying
acquisition workforce personnel: (1) identifying personnel serving in acquisition
organizations identified in DOD Instruction 5000.58-R, and (2) identifying personnel
designated as part of the Defense Acquisition Workforce Improvement Act
(DAWIA). The report reached the following conclusions:
!Relying exclusively on acquisition organizations resulted in too broad a
definition, as it included employees that do not perform acquisition-related
functions (such as police officers, firefighters, health care personnel), or who
perform a variety of functions that are not limited to acquisition.
!Excluding organizations that did not qualify as acquisition organizations would
overlook personnel within these organizations that perform acquisition-related
functions (such as contractors, auditors, and quality assurance experts).
!Since there are only 105,544 acquisition personnel whose positions fall within
statutory requirements for inclusion under DAWIA, using DAWIA as an
identifier would exclude many personnel who perform acquisition-related
functions.
The Jefferson Solutions Report adopted a definition for the acquisition
workforce that revised and expanded on the definition used by the 1986 Packard
Commission. (See Table 1.) The new definition includes (1) all personnel employed
in certain defense acquisition occupations, regardless of the mission of the particular
defense agency in which they work; and, (2) all personnel in acquisition organizations
who are employed in certain “acquisition support” occupations.
The report recommended that DOD adopt this new definition of the acquisition
workforce, ensure that the definition is applied in a “uniform and consistent” manner
across DOD and the services, and validate the data results through an independent
agency, such as the DMDC. To ensure that the data is accurate and complete, the
report recommended that DOD be given an opportunity to adjust the personnel count
on a case-by-case basis. The report also recommended that DOD broaden its
definition of employees covered by DAWIA to include all members of the newly-
defined defense acquisition workforce.
As illustrated in the following table, the various occupational codes included in
the new definition contained a total of 177,613 people. The study group increased
this figure by 6.5 percent to account for administrative and clerical support that the
study group believed were underestimated in the data, bringing the total defense
acquisition personnel estimate to 189,158, as illustrated in the following table. 11


This table includes 13 occupational specialties not included in the 1986 Packard Commission11
report. Jefferson Solutions applied the original Packard definition to the current workforce; most
personnel were employed in acquisition organizations (as defined by DOD Instruction 5000.58).

Table 2. Personnel Composition of the
DOD Acquisition Workforce
Occupational Percentage of Total
SpecialtyDOD Acquisition WorkforcePersonnel
Science/Engineering 42.5% 80,448
Engineering 71,969
Physical Sciences 5,700
Math and Statistics 2,779
Program Management16.1%30,486
Computer Systems13,235
Logistics Management10,798
Supply Program Management 2,783
Computer Science 2,217
General Program Management 1,453
Procurement/Contracting 14.5% 27,934
Contracting 19,963
Purchasing 2,751
Procurement Clerical 4,680
Auditing/Quality Assurance8.2%15,596
Quality Assurance 8,453
Auditing 7,143
Business/Industry/Finance 7.4% 13,969
General Business & Industry 4,207
Budget Analysis 3,480
Production Control 3,055
Industrial Specialist 1,582
Property Disposal 1,099
Industrial Property Mgmt. 546
Clerical/Administrative Support6.1%11,545
Other5.1% 972
Total Acquisition Personnel189,158
Source: Burman, Allan V., Cavallini, Nathaniel M., Harris, Kisha N. Review of the Department
of Defense Acquisition Workforce. Jefferson Solutions. DASW01-97-M-1847. September 1997,
p. 40.



Pertinent Observations
The Jefferson Solutions Report was narrowly focused on the task of developing
a workable definition of who and what constituted the acquisition workforce. The
study combined both occupational and organizational data elements. Most of the
occupations selected for the acquisition workforce were also located in acquisition
organizations. The study revealed that the largest acquisition workforce group
consisted of scientists and engineers (about 43 percent), followed by computer
systems analysts and logistical and program managers (about 16 percent), and
contractors, purchasers, or procurement support personnel (about 15 percent).
Notably, the report did not provide statistics on the extent to which DOD used
private-sector contractors to perform acquisition-related functions. Lack of this
information could handicap the task of estimating the total cost of acquisition-related
activities carried out for DOD, and could hinder policymakers in getting a complete
understanding of the workforce composition. In its 1996 report on the defense
acquisition workforce, GAO pointed out that savings resulting from staff reductions
in acquisition organizations, particularly reductions of engineering, architectural or
computer personnel, may have been offset by increases in spending on private-sector
contractors. GAO reached the same conclusions in a 1998 report on defense12
acquisition organizations -- that since 1995, DOD support service contracts increased
for occupational fields with the largest personnel reductions, and that any potential
savings may be offset by contracting for services previously performed by government
personnel. 13
Since the military services also rely on contractors to varying degrees, the lack14
of data on contractor support could complicate the task of making cross-service
comparisons. It raises the possibility that a simple across-the-board reduction in the
DOD acquisition workforce could impact the military services disproportionately.
Due to the congressional mandate to develop a workable definition for the
defense acquisition workforce, DOD must decide whether to use the
recommendations of the Jefferson Solutions Report. A further observation is that
DOD must consider whether the methodology used in the report can be tracked and
duplicated by the Defense Management Data Center (DMDC). If it can, it will be
easier for DOD to audit the data, and keep abreast of the rate of growth and/or
attrition of both acquisition personnel and positions within DOD and the military


Defense Acquisition Organizations: Changes in Cost and Size of Civilian Workforce, op.12
Cit., p. 2, 22.
U.S. General Accounting Office. Defense Acquisition Organizations: Status of Workforce13
Reductions. Report to the Chairman, Committee on National Security, House of
Representatives. GAO/NSIAD-98-161. June 1998. p. 2-6.
The Air Force, for example, has comparatively fewer acquisition workforce personnel14
because it chooses to use rely extensively on private-sector contractors, while the Department
of the Navy traditionally has relied more heavily on its own in-house acquisition
organizations.

services. Regularly recurring audits, by DMDC, would permit DOD to report on the
cumulative effects of reducing the acquisition workforce by tracking the movement
of displaced workers throughout DOD.
Issues for Congress
In the wake of the Jefferson Solutions Report and legislation in the FY 1998 and
FY 1999 defense authorization bills, Congress will confront a number of important
issues regarding the defense acquisition workforce, including the following:
Adequacy and Usefulness of New Definition
Should Congress adopt the definition of the defense acquisition workforce
presented in the Jefferson Solutions Report? If so, it will result in a significant
reduction in the DOD’s official count of defense acquisition personnel. If it is not
adopted, the debate on just how many acquisition personnel exist will be prolonged,
and probably put DOD further behind in its efforts to streamline the workforce.
How much will the new definition help DOD and Congress to identify
redundancies, streamline the workforce, and achieve savings? They must determine,
to their satisfaction, that the findings of the Jefferson Solutions Report are accurate
and thorough. They will presumably seek agreement on the overall number of
acquisition workforce personnel as well as the diversity of skills represented. Whether
the process based on this particular definition of the workforce will ultimately achieve
savings depends on a variety of factors, including the fate of personnel and positions
classified as “non-acquisition-related.” Will savings be achieved through attrition,
reductions-in-force, removals, early buyouts, or retirements? Or will personnel
shortages result in an unexpected rise in overtime costs? Will newer, less experienced
workers result in greater inefficiencies, with ultimately increased personnel costs?
Will individuals be usefully absorbed into non-acquisition-related functions within
DOD? Will potential savings be offset by associated administrative costs, as well as
costs of increased service contracts for work previously performed by government
personnel? 15
Once a new definition is accepted, DMDC -- the defense agency responsible for
the collection and maintenance of automated databases on manpower, personnel,
training and financial movement -- can collaborate with DOD to provide further
analyses and recommendations to Congress. With DMDC’s assistance, the findings
of the Jefferson Solutions Report could be validated, thus enabling DOD to make
reasonable adjustments to the personnel figures, if such adjustments prove necessary.
Coordinating this function with DMDC would make it easier for DOD to perform
periodic audits, keeping abreast of the rate of growth and/or attrition of both
acquisition personnel and positions within DOD and the military services.


For further discussion on the potential impact of DOD acquisition workforce reductions, see15
GAO Report to the Chairman, Committee on National Security, House of Representatives,
Defense Acquisition Organizations: Status of Workforce Reductions, GAO/NSIAD-98-161.
June 1998, 20 pages.

Secretary of Defense’s Report
Section 912(b) of the FY1998 Defense Authorization Act directed the Secretary
of Defense to submit to Congress a report on acquisition workforce reductions made
since FY1989, by fiscal year, as well as specify definitions used to describe the
defense acquisition workforce. Congress required the Secretary to come up with a
definition of the workforce that could be applied uniformly throughout DOD.
Section 912(c) directed the Secretary to submit to Congress a report on the
reorganization of the defense acquisition workforce. The purpose was to provide a
“road map” for future defense acquisition policy, including future opportunities to
restructure and streamline DOD's acquisition organizations, workforce, and
infrastructure. DOD was directed to identify areas where overlap, duplication, and
redundancy existed among the various acquisition organizations, and to present
alternative consolidation options, methods for performing industry oversight and
quality assurance and ways to shorten the procurement cycle for goods and services.
Section 912(c) also required DOD to explore new opportunities for building cross-
service and cross-functional arrangements within the military services and defense
agencies, consider current and future needs for acquisition personnel, including hiring
systems that provided an alternative to the current civil service, and make
recommendations for legislative remedies that would be necessary to implement policy
and procedural changes.
The Secretary was also required to provide an assessment of the
recommendations in the Jefferson Solutions Report, as well as a discussion of
potential legislative changes viewed necessary to implement policy changes.
In April 1998, the Secretary of Defense submitted to Congress the report
required by Section 912(c). The report, titled Actions to Accelerate the Movement
to the New Workforce Vision, proposed the establishment of five categories of new
initiatives, described in the report as part of the Secretary of Defense’s “vision” for16
the future acquisition workforce. They are: (1) restructure research, development, and
testing, (2) restructure sustainment, (3) increase acquisition workforce education and
training, (4) integrate paperless operations, and (5) other future focus areas.
Rather than provide a comprehensive review of acquisition organizations and
functions, as mandated in Sections 912(c) and (d), the Secretary proposed the
formation of future task forces and focus groups to study these issues. The report did
not propose legislative remedies, nor clarify the various definitions of the defense
acquisition workforce; nor did it propose a new definition but cite the Jefferson
Solutions estimate, based on the revised Packard Commission, as one measure of
defining the defense acquisition workforce. DOD stated that it did not endorse the
report, nor its recommendations. One of the factors for DOD to consider is whether
the methodology used in the study can be tracked and duplicated by DMDC; this
would make it easier for DOD to perform periodic audits, keeping abreast of the rate
of growth and/or attrition of both acquisition personnel and positions within DOD and
the military services. Auditing by DMDC would permit DOD to report on the


Actions to Accelerate the Movement to the New Workforce Vision. Secretary of Defense16
Report to Congress. April 1, 1998, p. 2.

cumulative effects of reducing the acquisition workforce and track the movement of
displaced workers throughout DOD.
On November 20, 1998, Deputy Secretary of Defense (for Acquisition and
Technology) Jacques S. Gansler issued a memorandum to defense agencies on his
review of the recommendations of the Acquisition Workforce Identification Working
Group. This group was formed in response to requirements in Section 912(b). The17
“new” workforce definition includes Science and Technology organization personnel.
The Jefferson Solution study gave DOD a broader view of the breadth and depth of
acquisition-related activities in the total life cycle of weapon acquisition programs;
henceforth, the acquisition workforce will be referred to as the “acquisition and
technology workforce.” Secretary Perry determined that DOD would use a definition
of the acquisition workforce based on a modification of the Packard workforce
definition. He required each agency to conduct a workforce analysis based on the
modified Packard definition, revise the personnel count, and report their findings by
December 30, 1998.
Funding Implications
The Jefferson Solutions Report recommended that DOD seek to broaden the
definition of what personnel are covered under the Defense Acquisition Workforce
Improvement Act (DAWIA), and include all members of the newly-defined defense
acquisition workforce. If DOD agrees with the report’s recommendations, the
decision could have potential funding implications since DAWIA is the vehicle for
nearly all of DOD's acquisition-related education, training and career development
programs. In FY1998, DOD requested a budget of $100 million for DAWIA;
Congress appropriated $95 million. To broaden the membership of DAWIA, from
105,544 personnel to 189,183 personnel, suggests that Congress will have to
appropriate more funds for acquisition-related education, training, and career
development programs.
There are advantages and disadvantages to increasing DAWIA membership; it
will cost more money, initially. In the long run, however, the investment should
eventuate in a better trained DOD acquisition workforce. Under DAWIA, DOD has
developed an organized and systematic approach to career development and training
opportunities, with appropriate benchmarks at each level of complexity within each
program category. By identifying DAWIA’s certification requirements as the
benchmark for all acquisition personnel training and development activities, it appears
that all acquisition support personnel (many of whom have been historically excluded
from training and development due to DAWIA certification and requirements) will
have greater access to opportunities for promotion, advance, and growth; the theory
holds that this should conduce toward a superior in-house, defense acquisition
workforce.


For the full text of the recommendations of the Acquisition Workforce Identification17
Working Group and DOD’s response to the requirements of Section 912(b), see the Defense
Acquisition Reform Home Page Web Site, located at http://camaro.acq.osd.mil/ar/ar.htm, and
review the “Memorandum on the Modified Packard Acquisition and Technology Workforce
Identification.” Issued by the Deputy Secretary of Defense (for Acquisition and Technology)
Jacques S.Gansler. November 20, 1998. 26 pages.

Conclusion
Congress will determine, perhaps through the oversight process, if DOD has met
both the “letter of the law” and the “spirit of the law” as described in Section 912(c)
of the FY1998 Defense Authorization Act, or Section 931 of the FY 1999 Defense
Authorization Act. Notably, DOD leaders, who have called for a "revolution in
business affairs," have been legislatively required to explore innovative and significant
changes to make its acquisition process more efficient. This includes exploring
potential overlap and duplication of processes within DOD’s acquisition
organizations, in the various defense agencies and military services (listed in Appendix
D).
Ultimately, it is Congress that will decide if such changes have been undertaken
and, if so, whether the size and composition of the acquisition workforce have been
adjusted appropriately.



Selected Bibliography
U.S. Congress. General Accounting Office. Defense Acquisition Organizations:
Status of Workforce Reductions. Report to the Chairman, Committee on
National Security, House of Representatives. GAO/NSIAD-98-161. June 1998,

20 pages.


Department of Defense. Actions To Accelerate The Movement To The New
Workforce Vision. A Report to Congress. April 1, 1998. 19 p.
----- Report of the Commission on Roles and Missions of the Armed Forces.
Washington, 1995. May 1995.
----- Right-Sizing the DoD Acquisition Workforce (Section 906 Report). A Report
to Congress. January 28, 1997. 36 p.
General Accounting Office. Defense Acquisition Organizations: Reductions in
Civilian and Military Workforce. GAO/NSIAD-98-36R DOD Workforce
Reductions. Washington, 1997. October 1997. 8 p.
Jefferson Solutions. Commissioned by the Department of Defense. Review of the
Department of Defense Acquisition Workforce, DASWO1-97-1847.
Washington, 1997. September 1997. 55 p.



Appendix A: Title IX, Subtitle B -
Additional Reductions in Defense Acquisition Workforce
NATIONAL DEFENSE AUTHORIZATION ACT
FOR FISCAL YEAR 1998, (PUBLIC LAW 105-85),
TITLE IX, DEPARTMENT OF DEFENSE ORGANIZATION AND
MANAGEMENT, SUBTITLE B- DEFENSE PERSONNEL
MANAGEMENT, ADDITIONAL REDUCTIONS IN DEFENSE
ACQUISITION WORKFORCE, SECTION 912
SEC. 912. DEFENSE ACQUISITION WORKFORCE.
(a) REDUCTION OF DEFENSE ACQUISITION WORKFORCE
(1) The Secretary of Defense shall accomplish reductions in defense acquisition
personnel positions during fiscal year 1998 so that the total number of such
personnel as of October 1, 1998, is less than the total number of such
personnel as of October 1, 1997, by at least the applicable number
determined under paragraph (2).
(2)(A) The applicable number for purposes of paragraph (1) is
25,000. However, the Secretary of Defense may specify a lower
number, which may not be less than 10,000, as the applicable number
for purposes of paragraph (1) if the Secretary determines, and
certifies to Congress not later than June 1, 1998, that an
applicable number greater than the number specified by the
Secretary would be inconsistent with the cost-effective management
of the defense acquisition system to obtain best value equipment
and would adversely affect military readiness.
(B) The Secretary shall include with such a certification a
detailed explanation of each of the matters certified.
(C) The authority of the Secretary under subparagraph (A) may
only be delegated to the Deputy Secretary of Defense.
(3) For purposes of this subsection, the term `defense
acquisition personnel' means military and civilian personnel (other
than civilian personnel who are employed at a maintenance depot)
who are assigned to, or employed in, acquisition organizations of
the Department of Defense (as specified in Department of Defense
Instruction numbered 5000.58 dated January 14, 1992).
(b) REPORT ON SPECIFIC ACQUISITION POSITIONS PREVIOUSLY
ELIMINATED- Not later than 30 days after the date of the enactment
of this Act, the Secretary of Defense shall submit to Congress a
report on reductions in the defense acquisition workforce made
since fiscal year 1989. The report shall show aggregate reductions
by fiscal year and shall show for each fiscal year reductions
identified by specific job title, classification, or position. The
report shall also identify those reductions carried out pursuant to
law (and how the Secretary implemented any statutory requirement
for such reductions, including definition of the workforce subject
to the reduction) and those reductions carried out as a result of
base closures and realignments under the so-called BRAC process.
The Secretary shall include in the report a definition of the term
`defense acquisition workforce' that is to be applied uniformly



throughout the Department of Defense.
(c) IMPLEMENTATION PLAN TO STREAMLINE AND IMPROVE
ACQUISITION ORGANIZATIONS
(1) Not later than April 1, 1998, the Secretary of Defense
shall submit to Congress a report containing a plan to
streamline the acquisition organizations, workforce, and
infrastructure of the Department of Defense. The Secretary shall
include with the report a detailed discussion of the
recommendations of the Secretary based on the review under
subsection (d) and the assessment of the Task Force on Defense
Reform pursuant to subsection (e), together with a request for the
enactment of any legislative changes necessary for implementation
of the plan. The Secretary shall include in the report the results
of the review under subsection (d) and the independent assessment
of the Task Force on Defense Reform pursuant to subsection (e).
(2) In carrying out this subsection and subsection (d), the
Secretary of Defense shall formally consult with the Chairman of
the Joint Chiefs of Staff, the Director of Program Analysis and
Evaluation, the Under Secretary of Defense (Comptroller), and the
Under Secretary for Acquisition and Technology.
(d) REVIEW OF ACQUISITION ORGANIZATIONS AND FUNCTIONS-
The Secretary of Defense shall conduct a review of the organizations
and functions of the Department of Defense acquisition activities
and of the personnel required to carry out those functions. The
review shall identify the following:
(1) Opportunities for cross-service, cross-functional
arrangements within the military services and defense agencies.
(2) Specific areas of overlap, duplication, and redundancy
among the various acquisition organizations.
(3) Opportunities to further streamline acquisition processes.
(4) Benefits of an enhanced Joint Requirements Oversight
Council in the acquisition process.
(5) Alternative consolidation options for acquisition
organizations.
(6) Alternative methods for performing industry oversight and
quality assurance.
(7) Alternative options to shorten the procurement cycle.
(8) Alternative acquisition infrastructure reduction options
within current authorities.
(9) Alternative organizational arrangements that capitalize
on core acquisition competencies among the military services
and defense agencies.
(10) Future acquisition personnel requirements of the
Department.
(11) Adequacy of the Program, Plans, and Budgeting System in
fulfilling current and future acquisition needs of the
Department.
(12) Effect of technology and advanced management tools in
the future acquisition system.
(13) Applicability of more flexible alternative approaches to
the current civil service system for the acquisition workforce.
(14) Adequacy of Department of Defense Instruction numbered

5000.58 dated January 14, 1992.



Appendix B. Title IX, Subtitle A - Further Reductions in
Defense Acquisition and Support Workforce
STROM THURMOND NATIONAL DEFENSE
AUTHORIZATION ACT FOR FISCAL YEAR 1999,
(PUBLIC LAW 105-261), TITLE IX, DEPARTMENT OF DEFENSE
ORGANIZATION AND MANAGEMENT,
SUBTITLE A- DEPARTMENT OF DEFENSE
OFFICERS AND ORGANIZATIONS, SECTION 931
SEC. 931. FURTHER REDUCTIONS IN DEFENSE ACQUISITION AND SUPPORT
WORKFORCE.
(a) REDUCTION OF DEFENSE ACQUISITION AND SUPPORT WORKFORCE- The
Secretary of Defense shall accomplish reductions in defense acquisition and support
personnel positions during fiscal year 1999 so that the total number of such personnel as of
October 1, 1999, is less than the total number of such personnel as of October 1, 1998, by
at least the applicable number determined under subsection
(b) REQUIRED REDUCTION
(1) The applicable number for purposes of subsection (a) is 25,000. However, the
Secretary of Defense may specify a lower number, which may not be less than 12,500, as
the applicable number for purposes of subsection (a) if the Secretary determines, and
certifies to Congress not later than May 1, 1999, that an applicable number greater than
the number specified by the Secretary would be inconsistent with the cost-effective
management of the defense acquisition system to obtain best value equipment and with
ensuring military readiness.
(2) The Secretary shall include with such a certification a report setting forth a detailed
explanation of each of the matters certified. The report shall include
(A) a detailed explanation of all matters incorporated in the Secretary's determination;
(B) a definition of the components of the defense acquisition and support positions; and
(C) the allocation of the reductions under this section among the occupational elements of
those positions.
(3) The authority of the Secretary under paragraph (1) may only be delegated to the
Deputy Secretary of Defense.
(c) LIMITATION ON REDUCTION OF CORE ACQUISITION WORKFORCE- The
Secretary shall implement this section so that the core defense acquisition workforce
identified by the Secretary in the report submitted pursuant to section 912(b) of the
National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat.
1860) is reduced proportionally no more than the other occupational elements included as
defense acquisition and support positions in that report.
(d) DEFENSE ACQUISITION AND SUPPORT PERSONNEL DEFINED- For purposes
of this section, the term `defense acquisition and support personnel' means military and
civilian personnel (other than civilian personnel who are employed at a maintenance depot)
who are assigned to, or employed in, acquisition organizations of the Department of
Defense (as specified in Department of Defense Instruction numbered 5000.58 dated
January 14, 1992), and any other organizations which the Secretary may determine to have
a predominantly acquisition mission.



Appendix C. Acquisition Position Categories
ACQUISITION POSITION CATEGORIES,
DEPARTMENT OF DEFENSE INSTRUCTION 5000.58,
REVISED, JANUARY 14, 1992
F. PROCEDURES
1. Acquisition functions, position categories, career fields and position category
descriptions are as follows:
a. Acquisition Functions, Career Fields, and Position Categories. There
are seven acquisition functions, 12 career fields, and 14 position categories in the
DoD Acquisition Education, Training, and Career Development Program, as
depicted in the chart below. Each function consists of a career field(s) and a
position category(ies). Two position categories, Program Management Oversight
and Education, Training, and Career Development are not career fields and
therefore do not have separate education, training and experience standards
specified in DoD 5000.52-M (reference (g)). Personnel in these positions will
come from the other career fields and must meet those career development
requirements. One position category, Education, Training, and Career
Development, does not belong in any of the seven functions. Personnel in this
position category may belong in either an acquisition or a non-acquisition function.
Acquisition FunctionsPosition Categories
Acquisition ManagementProgram Management, Program
Management Oversight,
Communications-Computer
Systems
Procurement & ContractingContracting, Purchasing, Industrial
Property Management
Systems Planning, Research,Systems Planning, Research,
Development, Engineering, and TestingDevelopment and Engineering, Test
and Evaluation Engineering
ProductionManufacturing & Production,
Quality Assurance
Acquisition LogisticsAcquisition Logistics
Business, Cost Estimating, and FinancialBusiness, Cost Estimating, and
ManagementFinancial Management
Auditing Auditing
Education, Training, and Career
Development



Appendix D. DOD Acquisition Organizations
DOD ACQUISITION ORGANIZATIONS,
DOD INSTRUCTION 5000.58, REVISED JANUARY 14, 1992
DEFENSE ACQUISITION WORKFORCE
Army
Army Acquisition Executive
Army Information Systems Command
Army Materiel Command
Army Strategic Defense Command
Navy
Assistant Secretary of Navy for Research, Development and Acquisition
Office of the Chief of Naval Research
Naval Air Systems Command
Naval Facilities Engineering Command
Navy Program Executive Officer/ Direct Reporting Program Manager Organization
Naval Sea Systems Command
Navy Strategic Systems Program Office
Naval Supply Systems Command
Space and Naval Warfare Systems Command
Marine Corps
U.S. Marine Corps Research, Development and Acquisition Command
Air Force
Office of the Assistant Secretary of Air Force for Acquisition
Air Force Materiel Command
Air Force Program Executive Organization
Department of Defense-Wide
Office of the Under Secretary of Defense (Acquisition & Technology)
Ballistic Missile Defense Office
Defense Logistics Agency
U.S. Special Operations Command, Acquisition Center (SOAC)