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Honorable Peter LevineDeputy Chief Management OfficerOffice of the Secretary of Defense, Department of Defense
FY 16-17: Agency Priority Goal
Realigning Major DoD Headquarters Activities (MHA)
Priority Goal
Goal Overview
Problem / Opportunity: Given constraints on the DoD budget, and projected reductions in military end-strength, the Department will review whether resources are appropriately allocated to Major DoD Headquarters Activities (MHA). This presents an opportunity to reallocate resources from overhead activities to line to preserve mission capabilities.
Relationship to Strategic Goal and Objective: Improve overall performance, strengthen business operations, and achieve efficiencies, effectiveness, and cost savings within MHA that can be transferred to higher priority needs.
Congressional Input (Relevant Highlights):
1. Section 346, "Reductions in the amounts available for DoD headquarters, administrative, and support activities" - National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2016.
2. Section 905, "Periodic review of DoD management headquarters" - Carl Levin and Howard P. "Buck" McKeon NDAA for FY 2015.
3. Section 8038, Requirement for certification of personnel or financial requirements to establish a field operating agency (e.g., Defense Agency or DoD Field Activity) - Consolidated and Further Continuing Appropriations Act, 2015.
4. Section 8012, Prohibition on managing civilian personnel based on any end-strength limits - Consolidated and Further Continuing Appropriations Act, 2015.
5. Section 904, "Streamlining of Department of Defense management headquarters" - NDAA for FY 2014.
6. Section 906, "Modification of reference to Major DoD Meadquarters Activities (MHA) instruction" - NDAA for FY 2014.
7. Section 955, "Savings to be achieved in civilian personnel workforce and service contractor workforce of the Department of Defense" - NDAA for FY 2013.
8. Section 931, "General Policy for Total Force Management" - NDAA for FY 2012.
9. Section 932, "Revisions to DoD Civilian Personnel Management Constraints" - NDAA for FY 2012.
10. Section 944, "Report on organizational structures of the geographic combatant command headquarters" - Ike Skelton NDAA for FY 2011.
11. Section 1109, "Adjustments to limitations on personnel and requirement for annual manpower reporting" - NDAA for FY 2010.
12. Section 1111, "Exceptions and adjustments to limitations on personnel and reports on such exceptions and adjustments" - Duncan Hunter NDAA for FY 2009.
13. Section 901, "Repeal of limitation on Major DoD Headquarters Activities personnel and related report" - NDAA for FY 2008.
Internal Partners: DoD Component Heads (in coordination with Office of the DCMO (ODCMO), will lead rebaselining of MHA within their component and ensure appropriate ongoing assessment and management of MHA).
External Partners: Office of Management and Budget (will ensure ongoing tracking and assessment of MHA), and Congressional Defense Committee Members (will provide oversight and propose statutory changes to MHA).
Key Barriers and Challenges: Two key challenges include the ability to:
1. Maintain and ensure a consistent understanding, accounting, and tracking of MHA, and
2. Consistently manage MHA to an optimum level of efficiency, effectiveness, and economy.
Strategies
Implementation Plan (Resources, Human Capital, Technology, Information, Doctrine, Training, and Operational Processes): The implementation plan is to re-baseline MHA using a revised policy framework applied consistently across the Department and promulgate revised policy. Management oversight will be strengthened through a review and update of MHA baselines (to include both manpower and budget data). Revised baselines will allow for recognition, validation, and acceptance of the official authoritative data sources.
Targeted Efficiencies: More efficient use of MHA resources
Key External Factors Affecting Achievement: Statutory direction has been given to revise the Department’s MHA policy and reporting, specifically Section 346 of the NDAA for FY 2016 and Section 905 of the Carl Levin and Howard P. “Buck” McKeon NDAA for 2015
Progress Update
FY16 Q1 Progress Update
- Baseline Major DoD Headquarters Activities (MHA) Using a Revised Policy Framework - Completed the baseline of the Office of the Secretary of Defense; the Office of the Inspector General, DoD; and the Defense Agencies and DoD Field Activities in 1 QFY16.
- Generate savings through programmatic changes to be incorporated into the FY17 President's Budget (PB) - Programmatic changes in MHA across the FYDP in two areas are underway.
- Revise the MHA Policy - Milestones established in Q2, Q3, and Q4 FY16.
- Update and maintain authoritative sources - The updates of authoritative sources will begin in 2QFY2016, as planned.
FY16 Q2 Progress Update
- Completed the MHA manpower rebaselining of the Combatant Commands in 2QFY16 and commenced the Military Services and National Guard Bureau (NGB) MHA manpower rebaselining. Significant challenges were encountered due to the expansive volume and complexity of information supporting this effort, which deferred evaluation of the Military Services and NGB into 3QFY16.
- During the Program and Budget Review 2017 (PBR17), specific reductions were identified for FY17 and undistributed Component reductions were approved for FY18-21. Programmatic changes in MHA across the Future Years Defense Program (FYDP) have been levied for the Office of the Secretary of Defense; Office of the Inspector General, DoD; Defense Agencies; DoD Field Activities; Military Departments; Joint Staff; and Combatant Commands.
- The MHA rebaselining work and component inputs are contributing to the development of informed foundational rulesets for MHA policy and will ultimately result in a comprehensive re-issuance of the MHA policy.
- Collection of authoritative MHA Total Obligation Authority (TOA) data is still underway. Once complete, this data and the manpower data will be tracked in the DoD Resources Data Warehouse (DRDW) using the revised policy framework categories. The MHA/nonMHA Program Element (PE) structure will allow for consistent and authoritative MHA data utilization and reporting.
FY16 Q3 Progress Update
- The MHA manpower re-baselining of the Military Services and the National Guard Bureau will be completed during 4QFY16. The MHA Total Obligation Authority (TOA) re-baselining of all major DoD Components is expected to be completed by the end of 4QFY16.
- During the Program and Budget Review (PBR) 17, specific reductions were identified for FY17 and undistributed Component reductions were programmed for FY18-21 accordingly. The adjudication of the undistributed reductions will occur during PBR18 (Fall CY 2016).
- At this time, due to delays in the Department-wide re-baselining effort, the Department has been unable to complete key milestones on the development and coordination of the policy issuance in accordance with the established timeline. This work is complex and sequential in nature. The re-baselining effort and the application of the statutory framework have resulted in the need for the development of specific rules, definitions, and the intersection with affected institutional processes and data systems that will be key elements of the final issuance.
- The Office of the Deputy Chief Management Officer (ODCMO) worked with the Office of the Director, Cost Analysis and Program Evaluation (ODCAPE) and each DoD Component to identify needed Program Element Codes (PECs) and the MHA flags on existing PECs for needed changes. Each DoD Component will submit its re-baselined manpower and Total Obligation Authority (TOA) using the DoD Resources Data Warehouse (DRDW) in its Program Objective Memorandum (POM) submission in 4QFY16.
FY16 Q4 Progress Update
- Completed MHA manpower rebaselining of the Military Services and National Guard Bureau.
- Completed MHA Total Obligation Authority (TOA) rebaselining of all major DoD Components.
- Office of the Director of Cost Assessment and Program Evaluation (ODCAPE) completed creation of new Program Element Codes (PECs) and update of existing PECs and related MHA flags at the MHA category level to ensure that MHA data is appropriately flagged in authoritative data systems.
- Office of the DCMO (ODCMO), ODCAPE, and Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD (OUSD(C)) reviewed MHA in the Program Objective Memorandum (POM) submissions based upon revised baselines and completed programmatic rebaselining and reduction actions to be included in the FY18 President’s Budget (PB18).
- Previous PB17 programmatic reductions for FY18-21 were reviewed and updated based upon revised baselines and appropriate change actions were completed for inclusion in PB18.
FY16 Annual Progress Summary
- Revised manpower and TOA baselines for MHA were established using the headquarters framework codified in Section 346(b) of the National Defense Authorization Act for FY 2016.
- Programmatic changes were directed that resulted in over $1.39B in budget reductions and over 2,000 in manpower reductions to MHA between FY17-22.
- Authoritative data systems were updated with improved tracking and more accurate data for MHA.
Next Steps
FY16 Q1 Next Steps
Baseline Major DoD Headquarters Activities (MHA) Using a Revised Policy Framework - Completed the baseline of the Joint Staff. The next steps are to complete base lining of the Combatant Commands and the Military Departments by 3QFY16.
FY16 Q2 Next Steps
3Q FY16
1. Complete the MHA manpower rebaselining of the Military Services and the NGB by 3QFY16 and the MHA Total Obligation Authority (TOA) rebaselining of all major Components. This will ensure the completion of a Department-wide MHA Baseline under the revised statutory ruleset.
4Q FY16
2. Direct the adjudication of the undistributed reductions programmed for FY18 through FY21 during PBR18, in the Fall of CY16, and distribute to the Components accordingly. Ensure the final MHA rebaseline is codified in the FYDP.
3. As a result of the delays to the rebaselining which, in turn, is informing to the foundational rulesets and guidance for MHA policy, the established milestones for 3Q and 4Q will extend forward accordingly. The remaining milestones will be reached on the following timeline:
• Draft the issuance for formal coordination (4QFY16)
• Draft the issuance for principal signature (4QFY16)
1QFY17
• Finalize the issuance (1QFY17)
Once complete, the revised policy will codify the Departmental MHA framework, thereby increasing transparency of rulesets and procedures and ensure standardization of data collection and reporting.
4. The creation of the MHA/non MHA PE structure will increase both the transparency and consistency of the data; this in turn supports:
• Departmental programming and budgeting
• Congressional reporting
• Development of the President's Budget
FY16 Q3 Next Steps
4Q FY16
- Ensure the MHA rebaselining (both manpower and total obligation authority) is appropriately codified in the DoD Resources Data Warehouse (DRDW) database.
- The Office of the Deputy Chief Management Officer (ODCMO) will work with the Office of the Under Secretary of Defense (Comptroller) (OUSD(C)); the Office of the Director, Cost Analysis and Program Evaluation (ODCAPE); and the DoD Components to adjudicate the undistributed reductions programmed for FY18-21 during PBR18, in the Fall of CY16 and distribute to the Components accordingly.
- Due to the delays in the Department-wide baselining effort, this milestone shifts back one quarter (4QFY16): Draft issuance for formal coordination.
1QFY17
4. Due to the delays in the Department-wide baselining effort, the following milestones shift to completion in 1QFY17: (1) Draft issuance for Principal signature, (2) Final issuance.
5. The ODCMO, in coordination with ODCAPE and OUSD(C), reviews the DoD Component POM submissions during the 2018 Program and Budget Review in 4QFY16 for alignment with the MHA rebaselining and President’s Budget 17 levied reductions.
FY16 Q4 Next Steps
The Department has had significant progress relative to this Performance Goal, overall. However, to mitigate delays in the development of a revised MHA policy issuance, ODCMO will establish MHA governance and processes to ensure that MHA levels are managed proactively and optimally. The governance work is foundational to the codification of the MHA policy and must therefore be accomplished prior to an update of the MHA issuance. Until a more comprehensive and holistic framework for the management of MHA is completed, an update of the MHA policy issuance as a codifying document would be extremely difficult.
In order to more consistently manage MHA to optimum levels of efficiency, effectiveness, and economy, ODCMO will establish governance and processes as directed by the Deputy Secretary’s memorandum on controlling MHA growth. This effort will be reflected as a new Performance Measure with a target of FY17 Q4. Once the governance and processes are developed and implemented, they will inform and enable the development of a codifying policy document.
Expand All
Performance Indicators
Baseline MHA Using a Revised Policy Framework - Baseline the Office of the Secretary of Defense; the Office of the Inspector General, DoD; and the Defense Agencies and DoD Field Activities by 1QFY16
Revise the MHA policy
Program reductions in the Office of the Secretary of Defense; the Office of the Inspector General, DoD; and the Defense Agencies and DoD Field Activities for the FY17 PB by 2QFY16.
ODCAPE will create MHA flags at the category level to coincide with the revised policy framework categories (e.g., B1, B5i) and update the MHA data using the DoD Component data collected and validated by ODCMO by 2QFY16.
ODCMO, in coordination with ODCAPE and OUSD(C), will annually review POM/BES (4Q), and oversee MHA changes during the PBR (1QFY2017).
Baseline the Military Departments, the Joint Staff, and the Combatant Commands by 3QFY16.
Program reductions to MHA across the FYDP in the Military Departments, the Joint Staff, and the Combatant Command headquarters for the FY17 PB by 2QFY16.
Contributing Programs & Other Factors
Contributing Programs Performance Goals: Includes all programs across the Department that are identified as MHA (manpower and/or budget).
Internal Activities:
The Deputy Secretary of Defense directed a 25% reduction in MHA across all appropriations from FY17 – FY20. See memo dated August 24, 2015 subject, “Cost Reduction Targets for Major Headquarters.” The memo contains two actions:
- Reduce all appropriations funding for MHA by 25% from FY17 – FY20 with credit granted for headquarters cost reductions taken pursuant to the 20% reduction previously directed by then Secretary of Defense Chuck Hagel in FY14.
- The Office of the Secretary of Defense staff, Defense Agencies, and DoD Field Activities will also have a 25% reduction in funding for authorized civilian personnel as part of the overall reduction in funding (with credit for reductions taken pursuant to the 20% Hagel reduction since FY14).
Primary Governance Organizations:
- 3-star Programmers
- Defense Business Council
Published DoD Functional or Component Strategic Plans and/or Studies:
- GAO memo dated August 27, 2015, regarding “the status of DoD’s implementation of GAO’s recommendations.”
- GAO-15-10, DoD Needs to Reassess Personnel Requirements for the Office of Secretary of Defense, Joint Staff, and Military Service Secretariats.
- GAO-14-439, DoD Needs to Reevaluate Its Approach for Managing Resources Devoted to the Functional Combatant Commands.
- GAO-12-345, Defense Headquarters: Further Efforts to Examine Resource Needs and Improve Data Could Provide Additional Opportunities for Cost Savings.
Published Performance / Progress Reports:
- “Plan for Streamlining DoD Management Headquarters – Section 904 Initial and Status Report to Congress”, May 14, 2015.
Laws/Regulations/Policies:
- Title 10, United States Code, Section 129 “Prohibition of certain civilian personnel management constraints” and Secton129a “General policy for total force management”.
- Deputy Secretary of Defense Memo, “Cost Reduction Targets for Major Headquarters”, August 24, 2015.
- Deputy Secretary of Defense Memo, “Policy Guidance for Controlling Growth in Major Headquarters (Outside of the Military Departments)”, August 24, 2015
Internal Partners: DoD Component Heads (in coordination with Office of the DCMO(ODCMO), will lead rebaselining of MHA within their component and ensure appropriate ongoing assessment and management of MHA).
External Partners: Office of Management and Budget (will ensure ongoing tracking and assessment of MHA), and Congressional Defense Committee Members (will provide oversight and propose statutory changes to MHA).
No Data Available
