Accession Number : ADA316936

Title :   Report of the Defense Science Board Task Force on Outsourcing and Privatization.

Descriptive Note : Final rept.

Corporate Author : DEFENSE SCIENCE BOARD WASHINGTON DC

PDF Url : ADA316936

Report Date : 28 AUG 1996

Pagination or Media Count : 157

Abstract : Outsourcing is expanding rapidly in the private sector, and a robust new industry has developed to provide a wide range outsourcing services to U. S. companies (revenues are estimated at $100 billion per year). While cost savings are a factor in the growth of outsourcing, access to better technology and better qualified people is the primary reason. Moreover, many companies have turned to outsourcing to free up the time and energies of management to focus on the companies' core competencies. Public sector entities at the state and local level as well as at the Federal level have demonstrated the value of outsourcing in terms saving money (30% plus savings) and providing better, more responsive service. The Task Force believes that all DoD support functions should be contracted out to private vendors except those functions which are inherently governmental, are directly involved in warfighting, or for which no adequate private sector capability exists or can be expected to be established. Most defense agencies are prime outsourcing candidates. Specifically, the Task Force recommends that DoD consider outsourcing major portions of the Defense Commissary Agency (DeCA), the Defense Information Systems Agency (DISA), and the Defense Finance and Accounting Agency (DFAS) as initial steps toward streamlining DoD's support infrastructure. Many support functions performed primarily by military personnel (e.g., individual training and support services in military hospitals) are also ripe for outsourcing.

Descriptors :   *DEPARTMENT OF DEFENSE, *CONTRACT ADMINISTRATION, *TASK FORCES, *MILITARY ORGANIZATIONS, INDUSTRIES, UNITED STATES GOVERNMENT, MARKET RESEARCH, ECONOMICS, GROWTH(GENERAL), COSTS, QUALITY, EXPANSION, SAVINGS, PROFITS.

Subject Categories : Administration and Management
      Economics and Cost Analysis
      Personnel Management and Labor Relations

Distribution Statement : APPROVED FOR PUBLIC RELEASE