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o Category III

Potentially justifiable and supportable. Recommendations in this category, while meritorious, are not regarded as fully supported in the report, due to time, personnel resources, and other constraints, but are deemed worthy of further analysis to determine the full extent of their merit.

These category descriptions do not take into account political, social or economic conditions which may alter the supportability of these recommendations for implementation. Accordingly, it is possible, by grouping the recommendations along the above categories, to assess more effectively the cost savings that can be expected. This analysis permits summary estimates of firm, probable and potential savings.

The Report Recommendations

An Assessment

Based on the above perspective and categorization, an assessment of the reported recommendations is contained in the matrix on the following page.

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OSD 4:

Consolidate depot-level maintenance facilities and management functions.

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OSD 5:

Consolidate wholesale depot operations.

$ 115.5 (S)

OSD 6:

Contract out to private sector for demilitarization of conventional ammunition.

207.7 (S)

OSD 7:

Contract out under provisions of OMB Circular A-76.

459.9 (S)

OSD 8:

Consolidate base support operations across service lines.

993.0 (S)

OSD 9:

Realign or close military bases where there are significant saving opportunities.

2,732.0 (S)

OSD 10:

Centralize traffic management functions in a single agency.

84.2 (S)

OSD 11:

Procure ocean container transportation separately from inland container transportation services.

24.8 (S)

OSD 12:

Establish a cargo dispatch function to minimize DOD container detention charges.

4.9 (S)

OSD 13:

Integrate Cargo Data Interchange System into DOD program to update its cargo tracking and documentation capabilities.

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Introduce competitive rate program for movement of
household goods to Alaska and Hawaii, and require proper
packaging for household goods moved to Alaska by sea.

Consolidate the management of the weapons acquisition
function at the OSD level.

69.5 (S)

2/

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Modify the Defense Acquisition Regulations to simplify streamline.complex and streamline complex regulatory procedures.

Eliminate complex regulatory requirements associated with contractors' recovery of IR&D expenditures.

Category I

$ 297.9 (S)

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OSD 19:

Improve communications between the DOD laboratories and the services, and require more effective coordination of research programs among the labs.

1,593.7 (S)

OSD 20:

Where feasible, require the use of common parts in weapons systems and allow tailoring of military standards for specific systems.

7,329.7 (S)

OSD 21:

Limit the number of new weapons programs initiated each year relative to projections of available dollars to fund the systems through the production phase.

1,522.5 (S)

OSD 22:

Modify existing procedures to ensure more accurate estimates of weapons system costs, and assign responsibility for monitoring affordability of proposed weapons systems to the DOD Comptroller.

2/

OSD 23:

Commit to stable five-year spending plans for weapons systems. Where feasible, introduce multiyear procurement contracts.

7,181.7 (S)

OSD 24:

Delay full entitlement to retirement income until 30 years after service entry date.

6,371.7 (S)3/

OSD 25:

Integrate military retirement pay with Social Security benefits.

273.9 (S)

OSD 26:

Base military retirement pay on the average of the retiring member's highest 36 months of base pay.

121.4 (S)

OSD 27:

Defer the commencement of retirement payments until a member has utilized all accumulated leave.

125.6 (S)

Category II

Category III

OSD 28:

Issue/Recommendations

Restrict the use of CHAMPUS by beneficiaries who reside in catchment areas.

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OSD 29:

Consolidate management of DOD health care resources under a Defense Health Agency.

943.3 (S)

OSD 30:

Require more effective cost containment provisions in the military health care system.

933.7 (S)

OSD 31:

Discontinue operation of the Uniformed Services University of the Health Sciences.

114.6 (S)

OSD 32:

Discontinue operation of commissaries in the continental U.S.

972.7 (S)

OSD 33:

Strictly limit the number of exceptions to existing policy on permanent change of station moves.

$ 331.0 (S)

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Restrict payments under the Selective Reenlistment Bonus program to skill areas manned at less than 100% of desired levels, and eliminate payments for members with ten or more years of service.

Eliminate aviation career incentive pay for members who do not serve on regular and frequent flight duty. Also, reduce payments for members with more than 12 years of service.

Establish a DOD Public Audit Committee, composed of members from the private sector, to review and advise the Secretary of Defense on DOD's internal audit practices and controls.

Establish a central audit group with responsibility for internal audit of all DOD procurement practices.

Contract out the freight bill audit function and credit dollars recovered to the budgets of the transportation procurers.

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OSD 39:

Improve controls over Government-furnished materials which are provided to maintenance and production contractors.

$ 132.4 (S)

OSD 40:

Consolidate the responsibility for implementing, administering, and monitoring the pricing policies for foreign military sales under the DOD Comptroller.

$

248.2 (R)

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Amounts in this summary cover three years, include inflation, and are net of implementation costs.

Recommendation not quantified, although cost savings or revenue may result under an associated recommendation.

This figure represents OSD 24-A, the retirement plan preferred by the Task Force. An alternative plan, OSD 24-B, would result in three-year savings of $6,910.5 million if it were implemented.

Category III

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