$125 Billion in Savings Ignored: Review of DoD’s Efficiency Study

$125 BILLION IN SAVINGS IGNORED: REVIEW OF DOD’S EFFICIENCY STUDY

Full House Committee on Oversight and Government Reform
Hearing Date: March 21, 2017

PURPOSE:

  • To discuss the findings from a DBB study concluding that DoD could save $125 billion by instituting operational reforms and reducing “back-office” (non-combat) operations.
  • To investigate any deliberate suppression of DBB’s findings, as well as DoD’s progress in implementing necessary human resource and administrative cuts.

BACKGROUND:

  • In October 2014, DoD commissioned DBB to perform a comprehensive study to find human resource and back-office administrative cost savings so that the Department could reallocate the funds to war-time operations and maintenance.
  • In December 2016, the Washington Post reported that DoD tried to bury the results of this study when it identified far more wasteful spending than the Department expected.
  • Thirty-one members of the committee sent a letter to DoD seeking information about the study.

TAKEAWAYS:

  • The contract to generate a report on potential savings within DoD totaled $9 million. DoD never finalized the report; the deliverable was limited to a slide deck.
  • This study was treated differently than previous reports published by the DBB
  • DoD testified that the study was widely disseminated, but:
    • The slide deck of the study was not filed under “Reports” section of the website, but instead filed under the “Meeting Minutes” section.
    • A former member of the DBB called to obtain a copy of the study, but was told the DoD declined to print copies of the study.
  • DoD is the only agency that has never conducted a full financial audit, despite a congressional mandate to do so.
  • DoD needs to change its culture to reduce waste.
  • DoD needs to review the balance of contractors vs. civilian employees vs. uniformed personnel

 

Published on Mar 21, 2017

 

 

Chairman Chaffetz (R-UT): “Even just doing a study we can’t figure out what it cost and what it didn’t cost and who got paid and who didn’t do the work. . .whether you’re buying an F-35 or whether you’re buying a study. . .this is the problem in the bureaucracy of the Pentagon”.

 

 

 

Health Care, Benefits, and Administrative Rules Subcommittee Chairman Jim Jordan (R-OH): “So all the other times you use taxpayer dollars, you do a study, find out something important for taxpayers and potentially savings, there’s a normal way that information is presented to the public. . .[this report] wasn’t widely disseminated, wasn’t printed, and was taken off the website. Why was this report treated different?. . .Maybe it was the magnitude of the findings?”

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The most recent reports by the IG for DoD again note many errors:

03-23-2017 – Financial Management: Ineffective Fund Balance With Treasury Reconciliation Process for Army General Fund (Project No. D2016-D000FL-0168.000) DODIG-2017-069 – OASA(FM&C) and DFAS-IN personnel did not have an effective AGF FBWT reconciliation process for the FY 2016 Army Reserve O&M FBWT Funds though some improvements were noted.

03-16-2017 – Financial Management: Strategic Plan Needed for Navy Financial Management Systems (Project No. D2016-D000FS-0073.000) DODIG-2017-068 –  The Navy did not have an information technology strategy to effectively manage its financial management systems.

03-16-2017 – Financial Management: Navy Inaccurately Reported Costs for Operation Freedom’s Sentinel in the Cost of War Reports (Project No. D2016-D000JB-0150.000) DODIG-2017-067 – The Office of the Assistant Secretary of the Navy (Financial Management and Comptroller), Deputy Assistant Secretary of Financial Operations, Accounting and Financial Reporting Division, and Deputy Assistant Secretary for Budget could not support $866.3 million (91.3 percent) in obligations reported in the first quarter FY 2016 CoW reports.

03-07-2017 – Acquisition Processes and Contract Management: The Army Did Not Effectively Monitor Contractor Performance for the Kuwait Base Operations and Security Support Services Contract (Project No. D2016-D000JB-0188.000) DODIG-2017-062  – the Army did not have reasonable assurance that the KBOSSS contractor complied with all contract requirements or earned the entire $13 million in award fees paid during the last two Fee Evaluation Board award periods.   In addition, at least one significant environmental and potential health hazard went unresolved.

(The above are for March 2017 only.  February 2017 has eleven more though not specifically financial and some classified or for office only.)

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I am all for giving more money to help military personnel better do their jobs and to keep them safe and healthy. BUT with Congress holding the power of the purse and IG repeating year after year the same litany of serious fund mismanagement and bad management of construction contracts, building, and follow through. THIS has to end. Withhold every penny that is not already in the pipeline except for soldiers and their specific field needs until the Pentagon stops acting like a petulant child who has no need to account in any way for his behavior.

TWO Trillion Dollars missing the day before 9/11? WTH – if I were a conspiracist this would be major and still a sticking point today. Missing data or bad system is BS. They have had fifteen years to provide better IT and yet have failed to meet the deadline year after year even as reports of aging equipment, soldiers without decent gear, massive lack of ammunition, hand-offs to Middle Eastern countries of our own weapons and supplies, and absolutely lamebrain construction projects like the Afghanistan base that was multi-billion dollar overrun that now sits empty, rotting from disuse — but hey it has great architectural lines, state-of-the-art equipment in boxes somewhere, extremely expensive art work, high comfort furniture, and is possibly a haven for dissidents who definitely have no taste for the finer things in life.

I worked for Navy civil service for a couple of years. Their equipment was old school but at the time some measures for desk changes were happening. Yet I know the start pay for their IT group was over $50,000 per year and there was a whole building of these people who were supposedly working on upgrading the retail group I was part of which included contracts, distribution, and reconciliation. In one way though, to be fair, the technological field is very difficult to keep up with as they have rolled out innovations, new technology, and software programs often on a quarterly basis every year. Still there is a LOT that should have been done and had not been apparently according to IG reports.

I also remember the group being obsessive about purchasing dollars, inventory control numbers, and moving things within the group much less across to others. So it is mystifying to me that DoD which is such a rigid by the manual group can not answer on the dotted line for every question put to it and do so very quickly.

DoD is the only group that has held out and not even tried to explain or correct its problems. Even intelligence groups have been a bit more forthcoming than this department. Time to start answering for their deeds.

This crap did not start under Trump but has built up for at least twenty years – much of which was led by a liberal Democrat congress, two NWO Republicans, and God Help Us two of the worst Democrat presidents EVER.  And Liberals and Democrat Congressmen wonder why most American citizens are so pissed off………………! 

So where are the media’s investigative reporters? Oops I forgot there are few left in MSM. After all, tearing down Trump is far more exciting to the piranha than REAL reporting. Actually finding out their “hero” had feet of clay is still a taboo subject.

–Uriel-

 

 

 

September 10th 2001 Secretary of Defense of the USA declared war on the Pentagon bureaucracy over an alleged $2.3 trillion in unaccounted for funds on expenses, the next day 9/11 happened and the previous day’s headlines were over-shadowed by the start of the Bush administration’s modern-day crusade the ‘War on Terror’ supported by the mythical ‘Coalition of the Willing’ in search of ‘Weapons of Mass Destruction’ and ‘Taliban fighters’ the $2.3 trillion was later quietly ‘found’ to have just been a computer error…

About Uriel

Retired educator and constitutionalist
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2 Responses to $125 Billion in Savings Ignored: Review of DoD’s Efficiency Study

  1. vonMesser says:

    OK. The Navy audits the Air Force.
    And gets to keep 1/2 of the money they find that the Air Force has wasted.
    The Air Force audits the Army. Same rules
    The Army audits the Navy. Same rules
    Marine Corps and Coast Guard audit each other (much smaller than the others). Same rules.

    However, they only get to keep the money IF the full survey results are published.

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