Ashton Carter 20% Headquarters Management Reduction Memo 31 July 2013
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The Deputy Secretary of Defense has directed a 20% cut in management headquarters spending throughout the Department of Defense to streamline operations and eliminate lower priority activities. This applies to staffs such as the Office of the Secretary of Defense, Joint Staff, Service Secretaries and Chiefs, combatant commands, and intelligence programs. Components must submit plans for achieving the 20% reduction in headquarters budgets and staffing by September 23 as part of their regular budget submissions.
Ashton Carter 20% Headquarters Management Reduction Memo 31 July 2013
- 1. DEPUTY SECRETARY OF DEFENSE 10 10 DEFENSE PENTAGON WASH I NGTON, OC 20301 -1010 JUL 3 1 2013 MEMORANDUM FOR SECRETARIES OF THE MILITARY DEPARTMENTS CHAIRMAN OF THE JOINT CHIEFS OF STAFF UNDER SECRETARIES OF DEFENSE DEPUTY CHIEF MANAGEMENT OFFICER COMMANDERS OF THE COMBATANT COMMANDS ASSISTANT SECRETARIES OF DEFENSE GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE DIRECTOR, OPERATIONAL TEST AND EVALUATION DIRECTOR, COST ASSESSMENT AND PROGRAM EVALUATION DEPARTMENT OF DEFENSE CHIEF INFORMATION OFFICER ASSISTANTS TO THE SECRETARIES OF DEFENSE DIRECTOR, ADMINISTRATION AND MANAGEMENT DIRECTOR, NET ASSESSMENT DIRECTORS OF THE DEFENSE AGENCIES DIRECTORS OF THE DOD FIELD ACTIVITIES SUBJECT: 20% Headquarters Reductions Secretary Hagel has direetcd a 20% cut in management headquarters spending throughout the Department of Defense (DoD). The cuts, which will take place regardless of the budget levels approved by Congress, are designed to streamline DoD's management through efficiencies and elimination of lower-priority activities. This memorandum defines the nature of these important reductions more specifically. The headquarters cuts will apply to all higher headquarters staffs including Office of the Secretary of Defense Principal Staff Assistants (PSAs) and their associated Defense Agency staffs, Joint Staff, Service Secretary staffs, Service Chief staffs, Service 4-star major commands and Service component commands, lower level Service staffs (down to the appropriate level detennined by the Service Secretaries and Chiefs), and Combatant Command staffs. Intelligence staffs will also be affected (primarily Military Intelligence Program-ftmded Intelligence Centers and, with the concurrence of the Director for National Intelligence, National Intelligence Program-ftmded centers). Service Secretaries and Chiefs will decide the allocation of cuts among various organizations within their headquarters staffs. The Chainnan of the Joint Chiefs will make the same allocation for the Joint Staff. Each PSA and Defense Agency should achieve a 20% reduction. If necessary, I will consider reallocations during prograin review. to OSDO08519-13
- 2. The 20% cut applies to the total headquarters budgets. Total headquarters budgets include govemment civilian personnel who work at headquarters and associated costs including contract services, facilities, information technology, and others that support headquarters functions. Budgets are those specified in the Future Years Defense Program supporting the President's budget for Fiscal Year (FY) 2014, extended to FY 2019 assuming growth for inflation. The 20% cut applies to budget dollars. However, organizations will strive for a goal of 20 percent reductions in authorized govemment civilian staff at their headquarters. Similarly, while military personnel are not part of headquarters budgets, organizations will strive for a goal of 20 percent reductions in military personnel billets on headquarters staffs. Finally, subordinate headquarters should not grow as a result of reductions in higher headquarters. I will be reviewing proposals to ensure that these various goals are met. I recognize that the FY 2014 budget reflects past efficiency decisions, some of which affected headquarters. This 20% reduction represents an additional cut, which I know will be challenging. However, in this period of additional downward pressure on defense spending, we must continue to reduce our headquarters budgets and staffing. Components are encouraged to suggest changes in policies and workload that would help them accommodate these dollar and staff reductions. Senior managers should ensure that cuts are made aggressively and as soon as possible, both to eliminate uncertainty for our employees and contractors and to maximize savings. Generally, cuts should be roughly proportional by year — with about one fifth of the cut in FY 2015, another fifth in FY 2016, and so on. Components are free to implement reductions more rapidly. To the extent feasible, some cuts should begin in FY 2014 in order to increase savings and reduce the cuts required in later years. Reduction plans should be submitted along with the Program Objective Memorandum submissions, which are due on September 23.