DOD and Insourcing

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    Henry Brown

    The “bolding” is of my doing

    From Defense System news

    The military services and some nonmilitary Defense Department organizations will continue with plans to bring thousands of private-sector jobs in-house despite an Aug. 9 statement by Defense Secretary Robert Gates that the Pentagon isn’t “seeing the savings we had hoped from insourcing.”

    Last month Gates reversed course from plans he had last year to eliminate as many as 33,000 service contractors during the next five years, in keeping with a directive from President Barack Obama to insource jobs deemed to be inherently governmental or close to inherently governmental.

    Gates announced new plans for efficiency that outlined a number of cuts to the DOD budget and personnel, including a 10 percent reduction in funding yearly for contractor support during the next three years.

    According to that report, the Army, Air Force, Navy and Marine Corps are exempt from a fiscal 2011 billet freeze that would halt insourcing plans. Insourcing measures already being implemented at other DOD organizations for fiscal 2010 are allowed to continue, as are conversions of acquisition support jobs.

    “Insourcing is well under way,” said Warren Suss of federal IT consulting firm Suss Consulting. “DOD is making contractors an offer they can’t refuse: Join government or get fired.”

    Hessel said that as of June 30, more than 16,500 civilian jobs have been established across DOD as a result of insourced contracted services, with another 12,000 expected in fiscal 2011.

    “On a case-by-case basis at the organizational level, DOD components are finding that they can generate savings or efficiencies through insourcing certain types of services or functions,” he said.

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