The appendices listed below provide further discussion of the decisions described in Chapter 2. The goals of the organizational changes are to eliminate redundancy and consolidate related functions, eliminate obsolete activities, and devolve operational and program management functions to operational activities. The Secretary's intent is that the actions will be completed over the next 18 months. As the Defense Management Council, led by the Deputy Secretary, moves to implement the specific decisions, it may adjust, or add to some of the specific decisions identified in the following appendices.
Appendix C-1
Policy Secretariat
The Under Secretary of Defense for Policy, (USD (Policy)), is the principal OSD staff assistant for formulating national security and defense policy and for integrating and overseeing DoD policy and plans to achieve national security objectives. As indicated in Figure C-1a, the Office of the USD (Policy) is currently organized under four Assistant Secretaries of Defense, (ASDs): International Security Policy (ISP), Strategy & Requirements (S&R), International Security Affairs (ISA), and Special Operations & Low Intensity Conflict (SO/LIC); and the Director of Net Assessment.
To streamline and realign this organization to more effectively deal with the challenges of the post Cold War period, the Department is taking the following actions.
Create a three-ASD Structure in the Office of the USD (Policy): International Security Affairs, Strategy and Threat Reduction, and Special Operations and Humani-tarian Assistance.To meet the new defense policy issues confronting the Nation, reduce the USD (Policy)'s span of control, and to achieve a more effective use of personnel resources, the functions of the Assistant Secretaries in the Office of the USD (Policy) will be aligned as follows:
- The ASD (International Security Affairs) (ASD (ISA)) will continue to formulate and coordinate international security strategy and policy, to include political-military policy on issues of DoD interest that relate to foreign regions and nations, their governments and defense establishments, and oversight of security assistance and foreign military sales programs. The ASD will also direct DoD activities to promote civilian control of the military and of standards of military professionalism respectful of human rights throughout the world.
- The ASD (Strategy and Threat Reduction) (ASD (S&TR)) will be responsible for national security strategy, defense strategy, review of war plans, and DoD requirements in the context of the Revolution in Military Affairs functions formerly assigned to the ASD (S&R). The ASD will also be responsible for the following functions formerly assigned to the ASD (ISP): reducing and countering nuclear, biological, chemical, and missile threats to the United States and its forces and allies; arms control negotiations, implementation, and verification policy; denuclearization, threat reduction, and nuclear safety, security, and dismantlement in the states of the former Soviet Union; counterproliferation; policy and strategy for US nuclear weapons and selected advanced conventional weapons; technology transfer; and relations with Russia, Ukraine and other Newly Independent States.
- The ASD (Special Operations and Humanitarian Assistance) (ASD (SO&HA)) will be responsible for the overall supervision of special operations and low intensity conflict activities within the Department of Defense. Additionally, the ASD will be responsible for peacekeeping and humanitarian assistance affairs, functions formerly assigned to the ASD (S&R); and our broader security relations with Latin America, formerly assigned to the ASD (ISA).
- In addition, responsibility for preparing the Programming Guidance portion of the Defense Planning Guidance will be transferred from the ASD (S&R) to the Director, Program Analysis and Evaluation, under the USD (Comptroller).
Transfer Space Policy functions from the Under Secretary of Defense (Acquisition and Technology)Currently, the Deputy Under Secretary of Defense for Space, (DUSD (Space)), in the Office of the USD (Acquisition &Technology), is responsible for developing and overseeing the implementation of space policy, overseeing DoD participation in government-wide space architectures and space acquisition programs, assessing future space requirements, and recommending changes to technology goals. In order to ensure that space policy decisions are integrated more closely with overall national security policy considerations, the functions of the DUSD (Space) relating to national security policy goals and linkages, national security policy making and coordinating processes, and government-wide community planning will be shifted to the USD (Policy). Responsibility for management of technical development and acquisition programs and activities concerned with space systems and space integration will devolve to the Military Departments and other DoD activities responsible for the implementation of those programs.
In addition to the above realignments, the following offices engaged in performing what are primarily operational and program management functions will be transferred from the USD (Policy) staff to operating activities elsewhere in the Department.
Transfer the Net Assessment Directorate to the National Defense University.The Director of Net Assessment is responsible for the development and coordination of net assessments for the standing, trends, and future prospects of US military capabilities and provides objective analyses and advice regarding policy, doctrine, strategy, goals, and objectives. Transferring the Net Assessment Directorate to the National Defense University (NDU) places these functions in an organization that has compatible responsibilities for strategic research and associated educational activities. (The Institute for National Strategic Studies, for example, is a component of the University.) The Director will report to the President, NDU, but will operate with a great deal of professional and technical independence in carrying out his responsibilities. The Director will receive taskings from USD (Policy) and work directly with clients in OSD.
Transfer the National Security Education Program Directorate to the National Defense University.The National Security Education Program (NSEP) was designed to develop a national capacity to educate US citizens about foreign cultures. Its objective is to enhance international cooperation and security and to strengthen US economic competitiveness by providing grants to outstanding undergraduate and graduate students to study abroad in world areas critical to US interests and by granting awards to US institutions of higher education in order to develop and strengthen their capabilities to educate US citizens in critical languages, foreign areas, and international fields. Transferring the NSEP to the NDU strengthens the program by placing it in an institution deeply involved in national security and foreign area studies and familiar with other institutions of higher learning throughout the world that excel in related academic disciplines. The Director, NSEP, will report to the President, NDU, under this arrangement.
Transfer the Secretary of Defense Strategic Studies Group and the Secretary of Defense Fellows Program Support Staff to the National Defense University.The Secretary of Defense Strategic Studies Group (SDSSG) and the Secretary of Defense Fellows Program (SDFP) consist of a select group totaling 16 military officers chosen for their high flag and general officer potential. Officers in the SDSSG are assigned for a ten-month detail to study issues selected by the Secretary of Defense. Officers in the SDFP are assigned for a ten-month detail in a private business corporation or a public sector institution to gain insights regarding operational and organizational change, and how these changes may influence the culture and operation of DoD. Moving administration of these programs under the President of NDU places them in an educational institution where they can benefit from collocation with related professional development and academic activities, the availability of world-class research facilities and related resources, and access to both resident and visiting scholars. As the Department moves to improve its management practices now and in the future, these programs will play an important role in translating these practices to our future military leaders.
Transfer USD (Policy) Humanitarian Assistance and Humanitarian Demining program management functions to the Defense Security Assistance Agency.Humanitarian Assistance and Humanitarian Demining Programs are currently assigned to two organizations in the Office of the USD (Policy). The DASD (Peacekeeping and Humanitarian Assistance), currently under the ASD (S&R), is responsible for developing, coordinating, and overseeing the implementation of policies, plans and programs related to the participation of the US Armed Forces and other DoD components in United Nations and other international peace operations. The DASD (Policy and Missions), under the ASD (SO/LIC), is responsible for developing and administering the Humanitarian Demining Program. A substantial portion of these organizations, however, is engaged in program management and program implementation functions. Transferring these latter functions to the Defense Security Assistance Agency will free the USD (Policy) staff to concentrate on corporate level policy, planning, and oversight. In addition, it will consolidate program management and resources for humanitarian assistance and humanitarian demining under a single program manager and capitalize on the extensive experience of the Defense Security Assistance Agency staff with respect to managing and coordinating cooperative arrangements and carrying out fiscal control activities in support of security programs. Policy oversight of these activities will be consolidated under the ASD (SO&HA).
Open the Drug Demand Reduction functions of the DoD Counter-drug Program to competition with private sector providers.In order to satisfy the President's National Drug Control Strategy goal to reduce the health and social costs of illegal drug use, the Drug Interdiction and Counter-drug Activities Program was established under the DASD (Drug Enforcement Policy and Support), ASD (SO/LIC) to manage the Department's demand reduction efforts. The program primarily supports drug testing programs for military personnel and demand reduction education and training activities performed at DoD installations worldwide. As there are many private organizations that are involved in drug education and testing (civilian drug testing, for example, is already performed under contractual arrangements), the DASD will be instructed to conduct a formal study to determine the feasibility and cost/benefit implications of securing all or a substantial portion of the demand reduction activities (military drug testing, anti-drug training and education) of the counter-drug program from private sector providers. If the private sector can provide these services at reduced cost, at the same or enhanced level of quality, this effort could result in a substantial savings in the counter-drug effort.
When all of the changes described above are implemented, the USD (Policy) organization will be structured as shown in Figure C-1b.
Figure C-1b.
Appendix C-2
C3I Secretariat
The Assistant Secretary of Defense (Command, Control, Communications, and Intelligence), (ASD (C3I)), is the principal OSD staff assistant for the development and oversight of DoD policies and programs relating to command, control, communications (C3), counterintelligence, security countermeasures, information operations, information management, warning, recon-naissance, intelligence, and intelligence-related activities conducted by the Department. In addition, the ASD (C3I) serves as the Chief Information Officer of the Department. As shown on the organization chart at Figure C-2a, the Office of the ASD (C3I) currently consists of four DASDs: C3, C3I, Acquisition, Intelligence & Security, and Plans & Resources.
The current C3I organization focuses on C3 and intelligence policy, program oversight, and resource allocation matters. It is also involved in program management and acquisition of the tools used for these activities. It is important for the Secretary to have an organization devoted exclusively to the development of intelligence policy and oversight of related plans and programs. Thus, the Department as part of its effort to remove all non-core functions from OSD and to better support the Secretary will institute the following changes:
Disestablish the ASD (C3I); transfer its intelligence functions to a newly established ASD (Intelligence); transfer C3 and acquisition functions to the USD (Acquisition and Technology); and realign the personnel and resources of the C4I Integration Support Activity.The current Office of the ASD (C3I) will be disestablished, and its intelligence functions and associated resources will be transferred to a newly established ASD (Intelligence), (ASD (I)). The office will report directly to the Secretary of Defense, with responsibility for intelligence, counterintelligence, security countermeasures, and information operations; warning, reconnaissance, intelligence, and intelligence-related activities conducted by the Department; and other functions to be determined by the Secretary. The ASD (I) will also oversee the Defense Intelligence Agency, the National Security Agency, the National Imagery and Mapping Agency, the National Reconnaissance Office, and the Defense Security Service.
Responsibility for C3 and information management, and for the development and acquisition of C3 and intelligence, surveillance, and reconnaissance systems, is being transferred to the Under Secretary of Defense (Acquisition and Technology) (USD (A&T)) and organized under a DUSD (C3 Systems). Furthermore, the USD (A&T) will be designated as the Chief Information Officer of the Department, with the DUSD (C3 Systems) serving as the Deputy Chief Information Officer and providing the requisite staff support. In addition, the Defense Information Systems Agency (DISA) will report to the USD (A&T) through the DUSD (C3 Systems).
Coincident with these changes, the C4I Integration Support Activity, (CISA), a Defense Support Activity currently reporting to the ASD (C3I), will be disestablished. CISA personnel and associated resources that support intelligence, counterintelligence, security countermeasures, and information operations functions, will be realigned within the Office of the ASD (I). Those supporting C3, information management, and acquisition-related functions will be realigned within the Office of the USD (A&T) under the DUSD (C3 Systems).
This initiative provides a more effective organizational arrangement for the execution of both OSD intelligence and C3 functions. In addition, it strengthens and enhances the Chief Information Officer function by assigning it to the USD (A&T). It also appropriately places C3, intelligence, surveillance, and reconnaissance systems development and acquisition in the Acquisition secretariat.
At the same time, a staff component of the ASD (C3I) will be eliminated, as follows:
Transfer the United States Nuclear Command and Control System Support Staff from OSD to the Commander, Strategic Command.The Nuclear Command and Control System (NCCS) Support Staff was established in 1988, with the ASD (C3I) designated as the Director on an additional duty basis. The NCCS Support Staff develops plans to assess and monitor the nuclear command and control system, proposes initiatives to improve weaknesses, and prepares an annual report to the Secretary of Defense on mission performance. In addition, it coordinates nuclear command and control research, development, and acquisition activities. The NCCS Support Staff is concerned with operational control systems and is not involved with corporate level policy-making or oversight. It can most effectively carry out its functions by being integrated with the US Strategic Command. Its functions and resources are being transferred to the Commander, Strategic Command.
In addition, the following changes will be made to one of the Defense Agencies currently reporting to the ASD (C3I).
Integrate the DoD Polygraph Institute, the Personnel Security Research Center, and the DoD Security Institute within the Defense Investigative Service (DIS) and redesignate the DIS as the Defense Security Service (DSS).The DoD Polygraph Institute, the Personnel Security Research Center, and the DoD Security Institute currently function as separate and independent organizational elements of the DIS. These organizations will be functionally integrated into the DIS organizational structure and combined, as appropriate, with existing activities in support of the overall DIS mission of providing security services for the Department. This change will enable the functions of these activities to be performed at an enhanced level of effectiveness while achieving reduction in personnel requirements. In addition, DIS will be redesignated as the Defense Security Service in recognition of the broader nature of the Agency's mission and functions.
The new ASD (I) organization will be structured as shown in Figure C-2b.
Figure C-2a.
Figure C-2b.
Appendix C-3
Acquisition & Technology Secretariat
The Under Secretary of Defense (Acquisition and Technology) (USD (A&T)) is the principal OSD staff assistant for all matters relating to the DoD acquisition system, research and development, advanced technology, test and evaluation, production, logistics, military construction, procurement, and environmental issues. As indicated in Figure C-3a, the Office of the USD (A&T) is currently composed of a Principal DUSD, a Director of Defense Research and Engineering, an ATSD for Nuclear and Chemical and Biological Defense Programs, and seven Deputy Under Secretaries of Defense (DUSDs): Advanced Technology, Acquisition Reform, Space, International and Commercial Programs, Logistics, Environmental Security, and Industrial Affairs and Installations.
The reality of downsized Armed Forces and limited development and procurement funding make it essential that the Department streamline and realign the USD (A&T) secretariat to more effectively develop and procure technologically advanced weapons. Accordingly, the Department is taking the following actions.
Realign the internal structure of the Office of the USD (A&T) to strengthen the DDR&E.Research and engineering is especially critical in an era where funds for initiating new weapons systems development and acquisition are becoming increasingly limited. Therefore, it is essential that the Director of Defense Research and Engineering (DDR&E) play a more prominent role in such matters.
The DDR&E currently is responsible for developing and overseeing policies, plans and programs pertaining to the DoD Science and Technology (S&T) program, including all S&T activities supported by funds for research, exploratory development, and advanced development. In order to consolidate policy development for advanced technology programs, the functions and associated resources of the DUSD (Advanced Technology) will be realigned under the DDR&E, where they will be combined with those of the DDR&E's Advanced Technology Directorate. This will eliminate redundancies in policy making for advanced technology.
The DDR&E will assume responsibilities for the corporate-level policy functions currently assigned to the Assistant to the Secretary of Defense for Nuclear and Chemical and Biological Defense Programs, (ATSD (NCB)). These include: serving as the principal advisor on nuclear technology matters and on the nuclear, chemical, and biological survivability of DoD materiel; serving on the Nuclear Weapons Council; serving as the DoD point of contact with the Department of Energy; and overseeing the transmission of information to the Congress, as required by the Atomic Energy Act of 1954. Since these responsibilities are being assumed by the DDR&E, the separate Presidentially Appointed, Senate-confirmed position of ATSD (NCB) will no longer be required. In its place, a Deputy DDR&E for NCB Matters will be established to provide support to the DDR&E for these matters.
Another action affecting USD (A&T) described elsewhere is the decision to transfer Space Policy functions from the USD (A&T). This initiative returns designated space policy functions to the USD (Policy), where they resided prior to 1995 and where they can be effectively integrated with related national security policy considerations.
In addition to these realignments, those A&T secretariat offices engaged in performing functions that are primarily operational and program management functions will be transferred to operating activities elsewhere in the Department, as indicated below.
Transfer the program management functions formerly assigned to the ATSD (NCB) to the Defense Treaty Compliance and Threat Reduction Agency and the Department of the Army.Within the current Office of the ATSD (NCB), the Deputies for Cooperative Threat Reduction, Nuclear Treaty Programs, and Counterproliferation Programs are primarily engaged in managerial activities and overseeing the implementation of operational programs, as distinct from corporate-level policy, planning, and oversight. Except for chemical demilitarization program management which will be transferred to the Department of the Army, these functions and associated resources will be transferred to the new DTC&TRA, which will report to USD (A&T).
Transfer USD (A&T) inter-national armaments cooperation program management activities to the Defense Security Assistance Agency (DSAA).The DUSD (International and Commercial Programs), (DUSD (I&CP)), within the Office of the USD (A&T), is responsible for the development and oversight of DoD policies and programs relating to economic reinvestment, dual-use technology programs, international cooperative development and production programs, and the Defense Export Loan Guarantee program. In addition, the DUSD (I&CP) reports to and advises the Deputy Secretary of Defense on acquisition matters affecting small business. A substantial component of the work performed by that organization, primarily in the Offices of the Assistant DUSDs for Armaments Cooperation and Export Finance, involves program management and associated operational functions. Accordingly, those organizations and their associated resources are being transferred to the DSAA. This places international armaments cooperation programs, formerly performed on the OSD staff, within an agency which is responsible for the management and implementation of security assistance plans and programs, to include weapons sales, technology transfers, and associated financial matters. Remaining DUSD (I&CP) functions will be appropriately realigned and consolidated with other organizations within the Office of the USD (A&T).
Transfer management of the Defense Acquisition University (DAU) and the Defense Systems Management College (DSMC) to the National Defense University (NDU) with oversight by the new Chancellor of Education and Professionial Development.The DAU provides professional education and training for DoD civilian and military acquisition personnel by coordinating DoD acquisition education and training programs throughout the Department to meet the career development requirements of the acquisition community. The DAU includes the DSMC, which conducts advanced courses of study, and conducts research and studies, in defense acquisition management. The DAU and DSMC are organizationally located in the Defense Logistics Agency for administration and support. The President, DAU reports to the USD (A&T), who exercises managerial control and supervision through the Director for Acquisition Education Training and Career Development (AET&CD). The Commandant, DSMC reports to the President, DAU.
In accordance with the effort to remove operational functions from OSD and in keeping with the establishment of a Chancellor for Education and Professional Development at the NDU, the DAU, the DSMC, and the Director (AET&CD) are being transferred to the NDU. The duties of the President, DAU and the Director, AET&CD will be consolidated, and the incumbent of this new position will report to the Chancellor.
Transfer USD (A&T) Electronic Commerce functions and associated resources to the Defense Logistics Agency (DLA) and create a combined DLA/Defense Information Systems Agency (DISA) Electronic Commerce Program Office.As the Department moves to put more of its operations on the Internet and to engage in paper-free operations, a single office that manages the acquisition aspects of electronic commerce is necessary. This will also require the transfer of other offices that handle related functions. Specifically, the functions and resources of the Assistant DUSD for Logistics Business Systems and Technology Development and the Director, Life-Cycle Information Office will be transferred to DLA. It will be consolidated with the DLA elements currently engaged in Electronic Commerce/Electronic Data Interchange activities. The Director, DLA and the Director, DISA, using these and other electronic commerce resources within their respective organizations, will form a joint Electronic Commerce Program Office. This new office will be responsible for accelerating the application of electronic business practices and associated information technologies to improve DoD acquisition processes and supporting sustainment life-cycle practices.
Transfer oversight of the Defense Technical Information Center (DTIC) to the Director, DISA.The DTIC collects, stores, and provides information on planned, ongoing, and completed defense-related research to DoD officials, US Government agencies and their contractors. DTIC is organizationally located in the DLA. However, it reports to and receives day-to-day supervision from DDR&E. In order to both remove an operating function from direct OSD oversight, and place DTIC in an organization better suited to nurture its continued transition to electronic storage and dissemination of information, DTIC will be transferred from DLA to DISA it will be placed under the supervision and management control of the Director, DISA. In addition, the Director, DISA will be instructed to conduct a formal study to determine whether additional efficiency improvements could be realized by opening DTIC functions to competition with the private sector.
Taking all these changes into account, the resulting organization of the OUSD (A&T) will be as shown in Figure C-3b.
Figure C-3a.
Figure C-3b.
Appendix C-4
Personnel & Readiness Secretariat
The Under Secretary of Defense (Personnel and Readiness) (USD (P&R)) is the principal OSD staff assistant for Total Force management, readiness, health affairs, quality of life matters, and National Guard and Reserve component affairs. As shown on the organization chart at Figure C-4a, the current organization consists of two DUSDs (Readiness and Program Integration) and three ASDs (Force Management Policy, Reserve Affairs, and Health Affairs).
It is essential that the Department streamline the P&R secretariat to more effectively deal with the issues we are encountering with recruiting, training, and maintaining our human resources in today's environment. Accordingly, the Department is taking the following actions.
The establishment of a Chancellor for Professional Education & Development has already been discussed. This major new initiative will fall under the policy cognizance of the USD (P&R), who is responsible for overall policy oversight of military and civilian training and professional development throughout the Department.
In addition, the following offices engaged in performing primarily operational and program management functions will be transferred from the USD (P&R) to operating activities elsewhere in the Department.
Transfer Health Care program management functions from the Assistant Secretary of Defense for Health Affairs (ASD (HA)) to a DoD Field Activity.The ASD (HA) is the principal OSD staff assistant for the development and oversight of policies, plans, and programs pertaining to the Department's medical mission. That mission is to provide medical services and support to members of the Armed Forces during military operations and to provide medical services and support to members of the Armed Forces, their dependents, and others entitled to DoD medical care. Because of the immense importance of this function and the extremely difficult problems the Department has had to deal with in recent years, the ASD (HA) staff has expanded to include a large number of personnel engaged in managerial matters, as distinct from corporate-level policy and oversight. These personnel and their associated functions are being transferred from the OSD staff to an operating activity under the cognizance of the ASD (HA). This will enable the ASD (HA) staff to concentrate its time and attention on major issues and initiatives that require the personal attention of the Secretary of Defense or the OSD staff.
Coincident with this transfer, two DoD Field Activities under the cognizance of the ASD (HA), the TRICARE Support Office and the Defense Medical Programs Activity, are being consolidated into a single organization, thereby streamlining the ASD (HA)'s oversight responsibilities. The functions being transferred from the ASD (HA) staff will be integrated within this new organization, as appropriate, and redundancies eliminated.
Transfer all administrative and operating support for USD (P&R) advisory groups to the DoD Human Resources Activity.The staff of the USD (P&R) contains organizational elements that provide administrative and operating support to four standing Federal Advisory Committees: the Reserve Forces Policy Board, the Armed Forces Chaplains Board, the Quadrennial Review of Military Compensation, and the Defense Advisory Committee on Women in the Services. Each of these staffs report to the chairperson of their respective advisory group and provides no support to the USD (P&R) or USD (P&R) staff. These clearly are functions that are not integral to the operation of the P&R secretariat and which should be performed elsewhere. Accordingly, these staffs are being transferred to the DoD Human Resources Activity, a DoD Activity under the cognizance of the USD (P&R), and will continue to report to their respective chairperson who will provide supervision, direction, and management control.
The responsibility of the P&R secretariat staff for exercising operational oversight of subordinate organizations outside of OSD will be reduced by the consolidation of the TRICARE Support Office and the Defense Medical Programs Activity.
Transfer oversight of the Defense Commissary Agency (DeCA) to the Secretaries of the Military Departments.DeCA provides a non-pay compensation to military personnel and retirees by operating approximately 300 commissaries in the U.S. and overseas. The commissaries sell products at acquisition cost, plus a five percent surcharge, resulting in patrons receiving a direct savings of up to 25 percent below the typical market basket. The agency reports approximately $6 billion in sales annually and is funded through two sources: an appropriation in the defense budget and the surcharge collections. The Director, DeCA, reports to the USD (P&R) through the ASD (Force Management Policy), who is assisted in oversight functions by a Defense Commissary Board.
Operating the commissaries is essentially a business enterprise and, as such, is not a function that requires close day-to-day supervision from an OSD staff official. At the same time, the commissary benefit is important to military personnel and retirees, and every effort must be made to make it responsive to their needs. In view of these considerations, day-to-day supervision of DeCA will be devolved to the Secretaries of the Military Departments, who will exercise oversight as a corporate body. This places management oversight closer to the user, an arrangement that should result in resource trade-offs, capital development decisions, and long-range planning that are more responsive to the needs of military personnel, retirees, and their families. Consistent with Title 10, the USD (P&R) will continue to exercise overall supervision, will ensure that DoD policies provide an environment that permits the commissaries to operate efficiently and effectively, and will ensure that there is no erosion of the commissary benefit.
When all of the changes described above are implemented, the P&R secretariat will be structured as shown in Figure C-4b.
Figure C-4a.
Figure C-4b.
*USUHS will be transferred to the supervision and management of the Surgeons General.
**Day-to-day supervision performed by the Secretaries of the Military Departments.
Appendix C-5
Finance Secretariat
The Under Secretary of Defense (Comptroller) (USD (C)), is the principal OSD assistant for budgetary and fiscal matters including financial management, accounting policy and systems, budget formulation and execution, and contract audit administration and organization. As shown in the organization chart at Figure C-5a, the Office of the USD (C) currently consists of a PDUSD (C), the Director, Program Analysis and Evaluation (PA&E), the Deputy Chief Financial Officer (DCFO), and the Deputy Comptroller (Program Budget).
The Office of the USD (C) will divest itself of program management and operational functions by transferring a number of operational and program management functions to operating activities elsewhere in the Department, as indicated below.
Transfer Overseas Military Banking Operations to the Defense Finance and Accounting Service (DFAS).Banking services located on overseas military bases are provided by financial institutions, as defined in contract arrangements through the Overseas Military Banking Program. Management oversight for the program historically has been provided by the USD (C). This is a managerial function, which was placed in OSD at a time when there was no operational activity within the Department with the technical expertise necessary to administer a banking program. The Department now has DFAS, established as a Defense Agency in 1990, which possesses the requisite expertise. Accordingly, management of the Overseas Military Banking Program, along with its associated resources, will be transferred to the Director, DFAS. This change removes an operating function from OSD and places the Overseas Military Banking Program in an organization with resources to achieve much needed management improvement initiatives.
Transfer Defense Property Accountability System (DPAS) implementation to DLA.DPAS is an automated system for improving accountability for DoD-owned property. DPAS is currently being implemented by a number of DoD organizations and is targeted for department-wide implementation during 1999. This program was developed under the auspices of the USD (C); however, supervision of its implementation is fundamentally an operational function. Accordingly, administration of DPAS implementation, along with associated resources, will be transferred from the USD (C) to the DLA. This change removes a management function from OSD and places DPAS in the organization best suited to resolve the logistical issues associated with its implementation.
In addition, the following initiative will be undertaken to eliminate a support organization reporting to the Comptroller secretariat.
Disestablish the Plans and Programs Analysis Support Center (PPASC) and realign its functions and resources to the Director, PA&E, USD (Policy), and USD (A&T).The PPASC is a Defense Support Activity (DSA) reporting to the Director, PA&E. Its mission is to develop, modernize, maintain, and operate computer-based simulation models, data bases, and other sophisticated analytical tools in support of studies and analyses conducted by the Director, PA&E and, to a lesser extent, by the USD (Policy) and USD (A&T). DSAs were originally conceived as an organizational device to provide technical and analytical support to the OSD staff. However, over time, the distinction between OSD and DSA functions became blurred and DSAs are now viewed as little more than extensions of the OSD staff. For this reason, they have been systematically disestablished and their functions and resources either eliminated or returned to the OSD staff, as appropriate. The PPASC is one of only two remaining DSAs and the other, the C4I Integration Support Activity, will be eliminated under a separate initiative described earlier. Accordingly, the PPASC will be disestablished and those functions and associated resources that are essential to the accomplishment of PA&E, Policy, and A&T functions will be integrated within those offices. The remainder will be eliminated. This change will simplify USD (C) organizational arrangements, increase management flexibility, and provide proper accountability for what, in effect, have been OSD resources.
When all of the changes described above are implemented, the Finance secretariat will be structured as shown in Figure C-5b.
Figure C-5a.
Figure C-5b.
Appendix C-6
Other OSD Staff Offices
Transfer the Directorate for Freedom of Information and Security Review from the ASD (Public Affairs) (ASD (PA)) to Washington Headquarters Services.
The Directorate for Freedom of Information and Security Review, within the Office of the ASD (Public Affairs), reviews and approves for public release material prepared by DoD officials (including congressional testimony) and by other sources outside of the Department. In addition, it administers the Freedom of Information program for the OSD, the Joint Staff, and the Combatant Commands, and other assigned activities. While important, these are administrative functions that do not directly support the Secretary of Defense in executing his corporate-level responsibilities. Accordingly, the Directorate for Freedom of Information and Security Review is being transferred from OSD staff to the Washington Headquarters Services (WHS). WHS is an operating organization that provides a wide variety of administrative support to DoD activities in the National Capital Region, including the OSD staff, as well as administering a number of DoD-wide programs. This is yet another step in enhancing OSD's focus on its core functions.
Expand the scope of American Forces Information Service (AFIS) activities that are open to competition with private sector providers.The American Forces Information Service (AFIS) is a DoD Field Activity under the supervision of the ASD (PA). It is responsible for managing DoD internal information programs, developing policies and standards for the management of DoD visual information activities programs, overseeing management of Armed Forces Radio and Television Service (AFRTS) outlets and activities, and providing print, radio, film, and television materials for use in the internal information programs of the Military Departments and other DoD organizations. In addition, AFIS manages the Defense Information, Defense Visual Information, and Defense Photography Schools. AFIS currently competes a number of its functions with the private sector, to include a substantial segment of its depository services. However, there are a large number of additional functions that potentially could be provided by the private sector. Accordingly, the ASD (PA) will be directed to conduct a formal study to determine whether additional efficiencies and improvements could be realized by opening some or all of the functions performed by the following components to competition with the private sector: American Forces Radio and Television Broadcast Center, Print Media Directorate, Current News Analysis and Research Service, Television-Audio Support Activity, school operations and additional depository functions.
Transfer the Defense Privacy Office from the Director, Administration and Management, OSD, to WHS.The Defense Privacy Office, in the Office of the Director for Administration and Management, is responsible for supporting Defense Privacy Board deliberations on privacy issues that affect DoD personnel. The Defense Privacy Board is composed of the Director, Administration and Management, and other senior officials representing the DoD components and is the primary entity responsible for ensuring that the requirements of the Privacy Act are carried out in the Department.
When originally established, the Defense Privacy Office was placed in the OSD to provide high-level visibility for the Privacy Program in order to ensure its implementation by the DoD components. Since that time, the privacy guidelines have become thoroughly integrated into all personnel systems, data collection and record management systems. The Defense Privacy Office is now primarily oriented toward compliance review and the provision of administrative and operating support to the Privacy Board. These are operating functions that need not be performed at the OSD level. Accordingly, the Defense Privacy Office will be transferred to WHS. The membership, functions, and authorities of the Defense Privacy Board will remain unchanged.
Appendix C-7
Joint Staff and Chairman-Controlled Activities
The actions described below will restructure the Joint Staff (JS) and Chairman-controlled activities to clarify staff relationships with OSD, promote integration of respective activities, and eliminate unnecessary duplication.
The Joint Staff comprises about 1,400 personnel, with another 1,200 in Chairman-controlled activities, which report to the Joint Staff. The role of the Joint Staff is to support the Chairman of the Joint Chiefs of Staff (CJCS), in his role as senior military advisor to the President and the Secretary of Defense, and to support the other members of the JCS. The review of the Joint Staff concluded that the Chairman required strong staff support to carry out his core areas of responsibility established in Title 10 legislation:
- Provides independent military advice to the Secretary of Defense, the National Security Council and the President.
- Assists the President and the Secretary of Defense in providing for the strategic direction of the Armed Forces.
- Develops doctrine for the joint employment of the Armed Forces.
- Guides the establishment of warfighting requirements for acquisition programs.
- Provides leadership for the Services and the Combatant Commanders (CINCs) in finding joint solutions to common problems.
The review discovered that since the Goldwater-Nichols Act, the Joint Staff has taken on many additional responsibilities and corresponding staff increases for joint functions. The additional functions have been in many areas: operations, logistics, policy, communications, joint exercises, and joint requirements. Some of the additional responsibilities have been assigned to directorates within the immediate Joint Staff. Other responsibilities have been accomplished by the creation and assignment of Chairman-controlled activities, which are separate organizations reporting directly to the Joint Staff. These additional responsibilities were reviewed carefully. Some are being retained, others transferred to other organizations, and some eliminated.
In addition, the review determined that there are numerous parallel functions that exist in the Joint Staff and OSD. OSD/JS processes were reviewed to ensure that they were complementary, not duplicative. Several instances of overlap were resolved.
The Joint Staff will eliminate or transfer approximately 11 percent of its current strength and about 50 percent of the personnel in Chairman-controlled activities will be transferred.
Organizational: Realign Chairman-controlled activities to operational staffs, departments or agencies.Nine Chairman-controlled activities report to the Joint Staff. They range from large organizations such as the National Defense University, to small entities such as the Inter-American-Defense Board. The review carefully considered the validity of the function and the appropriateness of Joint Staff supervision of each. In all cases, the Chairman-controlled activities were found to be carrying out valid functions. However, most of them were providing support at the tactical and operational levels. It does not make sense for them to report to the Joint Staff, a strategic-level organization. The following Chairman-controlled activities are therefore proposed to be transferred to CINCs or other departments or agencies:
- Joint Communications Support Element
- Joint Command and Control Warfare Center
- Joint Warfighting Center
- Joint Battle Center
- Joint Warfighting Analysis Center
These centers carry out functions in the areas of joint training, joint doctrine and operational concept development, joint warfighting support (including information operations), and joint communications support. In these areas the Joint Staff will maintain a policy, resource allocation, and monitoring role, but the centers will report to lower echelon organizations for operation and supervision.
Personnel: Realign J-1 and USD (P&R) military personnel policy functions.The DASD (Military Personnel Policy) (DASD (MPP)), under the USD (P&R), is responsible for DoD-wide military manpower and personnel policies, plans, and programs. Since 1982, there has been a Director, J-1, on the Joint Staff responsible for assisting the Chairman by providing plans, policy, and guidance on CINC and other joint personnel issues, providing manpower management for the Joint Staff and joint activities reporting to or through the Chairman, and administering Joint Staff personnel programs and the Joint Duty Assignment Management Information System (JDAMIS). In recent years, the J-1 has also become increasingly involved in quality of life and social issues, such as pay and allowances, housing, sexual harassment, adultery, and fraternization. These latter issues are primarily the responsibility of the Services and fall under the policy oversight of the DASD (MPP). Accordingly, the J-1 staff will divest itself of staff responsibility for leading the resolution of quality of life and social issues, while retaining responsibility for managing the Joint Manpower system and for administering Joint Staff personnel programs and the JDAMIS. This will eliminate duplicative staffing between the Joint Staff and OSD in the affected personnel areas.
Policy: Eliminate J-5 coordination on technology transfer issues.There currently is a substantial duplication of effort between the J-5 and the USD (Policy) in staffing technology transfer cases. The USD (Policy) is responsible for the development and oversight of DoD policies and activities related to international technology transfer, and currently exercises authority, direction, and control over the Defense Technology Security Administration (DTSA). DTSA coordinates technology transfer issues with the Military Departments and the Joint Staff. Within the Joint Staff, the J-5 regional offices review these issues, coordinate with their counterparts in the Military Departments, and develop a recommended position for the Director, Joint Staff, who then coordinates on each case. While monitoring technology transfer is becoming increasingly important in the information and technology age, it is unnecessary to have these two organizations performing essentially the same tasks. The Joint Staff needs to be informed of technology transfer issues, but the J-5 will divest itself of staffing responsibility and the Director, Joint Staff, will no longer be required to formally coordinate on technology transfer actions.
Finance: Formalize Relationship between J-8 and the USD (C) for contingency cost management.The J-8 and the USD (C) staffs are both called on to determine the costs of proposed contingency military operations. The two staffs maintain informal contact to identify and coordinate the difficult issues involved in estimating the costs of such operations. Extensive coordination with Service comptrollers is also required. This ad hoc arrangement does not provide an institutionalized arrangement for ensuring the best use of information from the military commands and the Military Departments on projected contingency operations costs and cost reporting, or the timely identification and resolution of issues involved in financing contingency operations. Therefore, the two organizations will establish a joint Contingency Operations Costs Working Group made up of representatives from the J-8 Program and Budget Analysis Division and the USD (C) Operations and Personnel Directorate. This will establish a single source for projected costs of contingency military operations, which are key inputs into major policy decisions.
Physical Security: Eliminate unnecessary physical controls in JCS spaces in the Pentagon.Access to most Joint Staff areas of the Pentagon historically has been restricted and is controlled by perimeter security posts. This arrangement was instituted in part as compensatory protection at a time when Joint Staff vault space did not meet the standards required under departmental and Defense Intelligence Agency physical security guidelines. However, a recent review indicated that structural modifications could be made at a relatively moderate cost that would properly safeguard these areas and allow elimination of much of the restricted area. Upon completion of the required structural modifications, which are currently underway, the security posts that control entry into the Joint Staff restricted area will be eliminated. This action is another step to ensure close coordination between the Joint Staff and other elements of the Department.
As a result of the transfers and reductions highlighted above, the total number of personnel reporting to the Chairman will be reduced by about 750, or 29 percent. The Joint Staff will remain capable of performing core functions defined by the Goldwater-Nichols Act.
Appendix C-8
CINC Headquarters
The actions described below are designed to streamline Headquarters of the Combatant Commanders (CINCs) and focus them on core functions.
The Joint Staff and the CINCs were established by the National Security Act of 1947. Since then Congress has modified their responsibilities and numbers several times. The most significant changes were made by the Goldwater-Nichols Department of Defense Reorganization Act of 1986, which greatly expanded the responsibilities of the Chairman of the Joint Chiefs of Staff and the CINCs and strengthened their supporting staff functions. Currently there are nine CINCs: five with regional responsibilities USCINCPAC, USCINCCENT, USCINCSO, USCINCEUR, and USCINCACOM; four with functional responsibilities USCINCTRANS, USCINCSOC, USCINCSPACE, and USCINCSTRAT. As a part of the Secretary's review of the management of the department, the Chairman directed a review of the Joint Staff, the Chairman's-controlled activities, and the CINC staffs. Together these headquarters staffs comprise about 18,000 personnel.
The review examined all components of the joint headquarters staffs:
- Common functions: normal activities of all major staffs, such as personnel, operations, logistics, plans and policy, communications, and program and budget.
- Unique functions: activities carried out at specific commands, such as the Marshall Center which reports directly to USCINCEUR headquarters; Joint Task Force Full Accounting, which reports directly to USCINCPAC headquarters; Defense Courier Service, which reports directly to USCINCTRANS headquarters.
- Externally controlled functions: offices funded from outside agencies, such as the Joint Intelligence Centers (JICs) funded under the General Defense Intelligence Program and foreign military sales staff funded by the Defense Security Assistance Agency.
The review was conducted using principles established by the Secretary of Defense. Headquarters should concentrate on their core functions of planning and providing for the unified and efficient direction of the Armed Forces. Tactical staff actions, program management, and the delivery of services should be accomplished by subordinate staffs and organizations.
As a result of the review, reductions will be made throughout the joint headquarters staffs:
CINC Headquarters staff will be reduced by approximately 1,000 billets. The functions associated with those billets will be eliminated, consolidated, or assigned to other organizations.Many unique functions now reporting directly to CINC headquarters will be reduced, competed with the private sector, or transferred to lower echelon organizations.
Examples of these actions include: USCINCSOUTH Center for Treaty Implementation will be eliminated; the USCINCPAC and USCINCEUR Stars and Stripes Offices, will be transferred to the American Forces Information Service; many of the communications system functions at USCINCSTRAT will be opened to competition by the private sector; and the Defense Courier Service at USCINCTRANS will be reduced and transferred to the Air Force.
As discussed in Appendix C-7, approximately 600 personnel in five Chairman-controlled activities will be transferred to CINC staffs and there will be additional transfers between CINC staffs.
The CINCs' Joint Intelligence Centers (JICs) will be reduced by 400 billets, or about 10 percent.Ü The net result of these reductions and reorganizations will be more than a 10 percent reduction of the 18,000 personnel assigned to joint headquarters staffs.
Appendix C-9:
Impact on Defense Agencies, DoD Field Activities, and Defense Support Activities
Figure C-9a.
Figure C-9b.
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