Appendix F
DEFENSE ACQUISITION WORKFORCE IMPLEMENTATION REPORT

INTRODUCTION

FY 1996 was the Department of Defense's sixth year of fully implementing the Defense Acquisition Workforce Improvement Act (DAWIA), with continued aggressive management of the acquisition workforce. As reported previously, numerous changes and improvements are providing significant benefits in statutory and policy initiative implementation, as well as overall management improvements. The professionalism and development of the acquisition workforce are steadily improving. The combined benefits of new and ongoing acquisition reform initiatives with active acquisition workforce management enable the Services and components to achieve rightsized organizations, efficiency, and process improvements. The bottom-line benefit is better worldwide support to U.S. warfighters -- now and for the future. FY 1996 proved to be as highly dynamic and ever-changing an environment for the professional acquisition workforce as was FY 1995.

MANAGEMENT OF THE ACQUISITION WORKFORCE

During FY 1996, the Department continued building on the extremely positive results of previous years' efforts. The well-planned and executed managerial actions by the military departments and components develop a highly diverse acquisition workforce which has a wide spectrum of acquisition responsibilities. The Department's efforts entailed overcoming multiple challenges from directed and previously planned personnel reductions, reorganization studies, acquisition program and process changes, coupled with reduced budgets, while executing increased training demands, student loads and other DAWIA requirements.

The Services provided equally important initiatives and improvements in their respective workforces. For instance, the Army significantly enhanced its DAWIA implementation by adroit use of Process Action Teams (PAT) and its Acquisition Corps Reengineering Team. It initiated new programs, concepts, and policies with positive impact to all of its acquisition workforce. The Navy effectively utilized its Best Qualified Selection policy, by selecting personnel for ACAT I,II Program Manager (PM) and other Critical Acquisition Positions through its board process headed by the Senior Acquisition Executive. The Navy also successfully implemented an expanded and reengineered acquisition intern program. They reinforced their DAWIA implementation by providing civilian personnel specialists hands-on training worldwide throughout the Department of the Navy.

Acquisition Workforce

In FY 1996, DoD realized a 5.6 percent decrease in the overall reported size of the acquisition workforce. The 108,007 reported acquisition professionals is down 6,372 from FY 1995 (114,380 reported). These positive results are from active efforts to reduce the size of the force and to improve reporting accuracy of the DAWIA Management Information System. This year's results continue the downward path of the workforce from a high of 143,432 at the end of 1989. This is an overall reduction of 35,424, or 25 percent, in seven years.

Equally significant is the Department's accomplishment in reducing the number of personnel assigned to acquisition organizations (those specified in DoD Instruction (DoDI) 5000.58 with a primary mission of acquisition). In Section 906d of the National Defense Authorization Act for FY 1996, Congress mandated a reduction of 15,000 personnel in these organizations in FY 1996. The actual reduction in these organizations, less the congressionally exempted depot personnel in skilled trades, was 23,802 or 6.25 percent. The FY 1997 Authorization Bill contains an additional mandatory reduction of 15,000 (again, less exempted skilled trades in depots). Without the skilled trades exclusion, DoD actually realized a 30,377 person reduction, or 7.2 percent. In these same specific acquisition organizations, the total reduction is 218,224 (35 percent) since 1989.

Additionally, the Department completed the study of Acquisition Organization restructuring and reorganization required by Sections 906a, b, and c of the FY 1996 Authorization Bill. This study evaluates planned and ongoing actions by the Services and components, that could result in a five year (FY 1996 to FY 2000) personnel reduction of 25 percent.

Again this year, the number of encumbered Critical Acquisition Positions (CAPs) declined. At the end of FY 1996, there were only 13,837 encumbered CAPs -- down by 1,583 (10 percent) from last year. Through the Services' improved management, the Department accomplished an overall reduction of 22 percent in this area since FY 1992.

During FY 1996, the Department completed its study of the designation of acquisition positions Department-wide. The study revealed that 90 percent of all position designations across DoD are correct. Recommendations and issues from the study are undergoing review and corrective action is being taken to further improve acquisition position management.

To respond to a growing concern of possibly losing engineering and scientific expertise, with a possible loss of its technical edge, DoD chartered a PAT. The concerns of eroding specialized talent became more prevalent with increased downsizing, force reductions, and required restricted hiring practices. The Scientist and Engineering (S/E) Workforce Enhancement PAT provided a wide range of significant actions to forestall any possible future unfulfilled requirement for S/E talent and expertise, and imbalance in certain age groups. The PAT's 13 recommendations are undergoing further study and preparation for implementation. Collectively they will provide the needed management tools and flexibility to assure a viable, robust, and technically superior S/E workforce.

The Army implemented a truly integrated civilian -- military Acquisition Career management structure for proponency and execution of central management requirements. This effort to provide direction and oversight for consolidating central management functions and career development is improving both professional career management and associated data management.

Acquisition Workforce Personnel Demonstration Project

The FY 1996 Authorization Bill provided DoD authorization to conduct a personnel demonstration specifically for the DAWIA defined Acquisition Workforce. The law gives the Department five years to plan and implement the demonstrations. Secretary Perry established a Process Action Team in May 1996, to plan and initiate activities to accomplish this effort. This project will greatly enhance the Department's management flexibility for the professional acquisition workforce.

Acquisition Corps

Effective October 1, 1993, the DAWIA allows only Acquisition Corps members to encumber CAPs. Aggressive efforts by the components and Services in qualifying and managing their respective Corps membership is quite evident. In FY 1996 there were 21,896 Acquisition Corps members (Department-wide), up slightly from FY 1995's 21,626. However, since FY 1994, Corps membership Department-wide is up 5,290 (32 percent).

Major Program Managers

The Department maintained the significant improvement in major PM and Deputy PM (DPM) tenure it realized last year. This provides for both management and program stability. During FY 1996, 29 PMs changed position, up from 15 in FY 1995. Of the reassigned PMs, 66 percent served full-term, with an average PM length of assignment of 43.7 months. Last year, 67 percent of reassigned PMs served full-term, with a 39.1 month overall average length of assignment. These are significant results since FY 1994's full-term PM reassignment of 28 percent and a 31.1 month overall average tenure.

Equally impressive are the improvements in major program DPM assignments. In FY 1996, 46 percent of the DPMs reassigned served full-term. Overall average DPM length of assignment was 52 months. These results improved greatly since FY 1995, when only 30 percent of reassigned DPMs served full-term, and the overall length of DPM assignment was 38.1 months.

Best Qualified Policy

The Department's Best Qualified Program fully embraces the DAWIA objective to foster career-development opportunities for both military and civilian personnel. In FY 1996, DoD had its first year of full implementation. The policies and procedures the Services and components developed and issued during FY 1995 assure that selections for senior positions (Program Executive Officers, Acquisition Category (ACAT) I and II PMs and Deputy PMs) fully incorporate the DAWIA objective. The Army selected two ACAT I PMs using the Best Qualified head-to-head civilian-military competition. The Navy conducted Best Qualified Selections for 11 individuals for ACAT I,II PMs and certain other critical acquisition positions. The Army developed and tested a Potential Evaluation Tool for civilians that will enhance its Best Qualified Selections.

Trends/Improvements

FY 1996 showed tremendous positive improvement in management of the acquisition workforce. All trends indicate positive changes and a thorough, well managed and executed plan to rightsize the professional acquisition workforce and specific organizations. Overall workforce size is down; encumbered CAPs are down; and employees in specific acquisition organizations are also decreasing significantly. Studies and evaluations provide needed direction and recommendations to further improve the workforce. Program stability is improving as the number of PMs and DPMs serving full terms, and the average length of their assignments are all increasing. The improvements indicate that the Department is benefiting from acquisition reforms and is well-postured for efficiently and effectively executing its missions, now and in the 21st century.

The negative trend in reducing the Department's acquisition training funding continued. FY 1996 again saw a final authorization and appropriation significantly reduced from that required and submitted. The approved FY 1997 budget continues this trend with a significant reduction for the third straight year. These continuous reductions drastically impact the educational offerings provided, the number of students who can obtain mandatory training, and DoD's ability to continue implementing required programs such as a fully developed and mature Continuing Education Program. If allowed to continue, these trends could result in a significant reduction in students trained, course maintenance, professional development of the Defense Acquisition University (DAU) faculty, and continued institutionalizing of acquisition reform. DoD believes these trends are inconsistent with the intent of DAWIA and have a large overall negative impact on the professional development of the workforce. The Department continues actively pursuing all avenues for more cost efficient and cost effect means to satisfy our acquisition workforce training needs.

During FY 1996, the Army held its second centralized civilian selection board for Project Managers (GS-15) and Product Managers (GS-14). The Army selected 13 Project/Product Managers, more than double the number selected in FY 1995, during its first board.

Technology driven changes in course preparation, delivery and communication of training material, and ongoing acquisition reform changes continued in a positive trend. DAU utilized multiple technology capabilities for information dissemination, course offerings, alternative course-delivery methods, and distance learning. The Department and Services effectively integrated electronic media in their worldwide communications with the workforce and in management actions. Each of the Services and many of the components continued aggressively pursuing technology driven improvements in their management efforts. These include use of the Internet to directly communicate and interact with a global workforce. Other initiatives involved hardware and software improvements to increase monitoring of career progression, improved requirements determination, providing career guidance, and an overall quality improvement in data submission.

CAREER DEVELOPMENT

In FY 1996, DoD continued improving and updating appropriate acquisition career policies, procedures, and organizations. All actions strive to better represent and service the workforce's needs. Previous Functional Board consolidations were fully implemented with very positive effects. All boards were actively engaged in competency reviews, specific career field education requirements determination, significant course evaluations, and reviews. Numerous updates and major changes evolved in existing curriculum, with the addition of newly identified classes and elimination of outdated ones. The Department completed a major update of the overall Acquisition Career Management Policy manual. Major updates continue in companion publications and procedural documents. Collectively, these actions further strengthen the significant capabilities of the professional acquisition workforce. The Services provided equally beneficial changes to particular Service oriented policies, procedures, and programs. The Army developed a Civilian Acquisition Leader Development model supported by a newly prepared automated Individual Development Plan. All Services and components initiated reviews of Critical Acquisition Position incumbents who had been in the same position for five or more years.

FY 1996 saw further growth in the Intern Program of the Services and components. Overall participation increased to 1,069 personnel during FY 1996, up from 968 interns in FY 1995. The Navy approved funding that would triple its Acquisition Intern Program. It further expanded the program's scope to encompass interns in all acquisition career fields. In this one Service alone, these outstanding efforts will provide nearly 300 new interns annually to complete a three year career development program.

The Army took other actions that included baselining its existing policies, revitalizing the civilian component of its Acquisition Corps, initiating a Central Career Management Program, and establishing an Acquisition Corps leader development program. Additionally, a pilot program to retrain employees in critical areas was initiated to meet the challenge of work skill changes brought on by acquisition reform and new technology. This three-year program developed by the Navy, involving training, education, and job rotation, will provide qualified personnel eligible to transition into the acquisition workforce and fill acquisition positions.

EDUCATION

The Department again provided increased availability of higher education opportunities for the acquisition workforce. The Tuition Reimbursement Program and the Defense Acquisition Scholarship program continue their past successes. In FY 1996, 6,493 individuals utilized the Tuition Reimbursement Program and 31 students utilized the scholarship program. Thirteen of the scholarship program students selected in FY 1996 will pursue full-time graduate degrees in business, physical science, engineering, technology management, and public administration. Upon their graduation, these students will join the acquisition workforces of the Navy and Army. There were also 50 students in Cooperative Education during the year.

Continuing Education Program

The Department published an interim Continuing Education policy during FY 1996. The policy provides the Services and components guidance and direction to initiate detailed planning, resource, and requirements identification. During FY 1997, DoD will refine its policy and solidify specific courses, training opportunities, and budgetary requirements. One concern is the continued reduction of acquisition training funds. Indications are that continuing education funding in future (FY 1998 and FY 1999) budgets might be eliminated. This would be fatal to the sorely needed Continuing Education program. The Department's program provides many positive benefits for the acquisition workforce. It equips them to deal with ever-changing organizations, requirements, technology, workplace, and a changing workforce.

Other Service initiatives are providing equally good results and improvements. One Service is pursuing a continuous learning objective added to performance reviews. This objective involves self-study, professional growth activities, research projects, and mentoring, as well as more traditional approaches.

TRAINING

As in previous years, training remains an integral element in achieving objectives to professionalize the acquisition workforce and fully implement the benefits of acquisition reform. In FY 1996, DoD's efforts continued with full utilization of a very wide range of opportunities to update and train the workforce on changes in acquisition, new initiatives, and implementing policies. These methods include electronic and printed newsletters, outreach programs, DAU course changes, seminars, regional conferences, roadshows, and use of multiple delivery mediums and methods. The DoD Acquisition Reform Day provided intense and concentrated updates to all of the workforce in numerous specific areas. During FY 1996, the acquisition community initiated both the printed (Acquisition Today) and electronic (Acquisition Now) newsletters.

Training Courses

During FY 1996, DAU, through its 12 consortium schools, provided a diverse series of updated, improved, and new training opportunities that allowed the Services and components to satisfy their statutory requirements. During this year, the DAU consortium schools provided 1,209 class offerings to 32,433 students. Class offerings are up from 1,145 in FY 1995 and 1,100 in FY 1994. The number of students trained is slightly down from last year's 32,700, primarily because of the government shutdown which impacted all the schools. However, there is a 7 percent increase since FY 1994, when 30,300 students completed courses. Of the 1,209 offerings in FY 1996, 880 (or 72 percent) were resident, while 371 were on-site and the remaining 20 were by satellite. The Services and components continued to improve course utilization. DAU aggressively pursues regional and other on-site course presentations where there is a sufficient workforce concentration to reduce costs and increase training opportunities. During FY 1996, the DAU, its consortium schools, and representatives of the Functional Boards reviewed 70 percent (55) of the 79 acquisition courses. There were three new courses initiated in FY 1996 not requiring review, and the others will be reviewed in the next year. This massive training requirement greatly supports the acquisition professional's needs in achieving certification, obtaining functional expertise, and job specific training.

Equally important are the Service initiatives and training they provide to their respective acquisition workforce. During FY 1996, one service had over 10 percent of the acquisition personnel receive acquisition training from Service schools. The Services, components, and DAU are aggressively searching out opportunities for acquisition training efficiency improvements, cooperative efforts, and maximizing use of dwindling resources. For instance, the Navy and DAU obtained course equivalency approval for the Fundamentals in Acquisition (ACQ 101) to be taught at the Navy's Engineering Officer School. This provides the opportunity for all Navy Engineering officers to obtain Level I DAWIA training for Program Management and systems planning, research, development, engineering, and testing.

Acquisition Reform

The Services and components recognized for a long time that acquisition reform training for the workforce is fundamental to streamlining acquisition management. Again, the Department used a wide variety of methods to keep the workforce current and informed. The Acquisition Reform Communications Center (ARCC), established at the DAU, widely disseminates acquisition reform information, training, and support material using various communication media. The ARCC's three major initiatives remain providing satellite broadcasts, developing detailed acquisition-reform training modules, and developing and disseminating interactive CD training modules on simplified acquisition threshold and the Federal Acquisition Computer Network. The ARCC during FY 1996 provided approximately 11,000 printed products, 8,000 compact disks (CD-ROM) and 9,100 video tapes; hosted or supported nine satellite broadcasts; and provided specific facilitator training to over 200 Department, government agency, and civilian representatives. These products covered the 11 Federal Acquisition Streamlining Act (FASA) rules, potential FARA impacts, Legislative Impacts on Acquisition Reform, guiding principles of acquisition reform, Simplified Acquisition, Integrated Product Teams, and Single Process Initiatives. Every media form and delivery method used proved extremely successful in communicating the status of changes to a geographically dispersed audience.

The Navy continued fully utilizing its Acquisition Reform Office, Acquisition Reform Training Group, and its senior level advisory group, the Navy Acquisition Reform Senior Oversight Council, to maximize sharing of information and lessons learned across the infrastructure. The Navy's initiatives included over 41,000 members of its geographically dispersed workforce participating in the Department's Acquisition Reform Acceleration Day. Utilizing a proven survey process, the Navy contributed over 13,000 ideas and recommendations for change involving all aspects of the acquisition system and processes. The Air Force continued developing Service related acquisition reform initiatives stressing professional development. Focus was on near- and long-term training, workforce communications, and acquisition reform updates using its highly successful training roadshow. The Air Force initiated the Acquisition Renaissance Professional Development Program concentrating on a broad, multidisciplinary experience base for future acquisition leaders. The Army again utilized its highly successful series of Roadshows to promote cultural change and continuous process improvement. It trained more than 20,000 government and industry personnel through the Roadshow series in FY 1996.

Improved Opportunities

The Services continue to access reserve component officers into the workforce and respective Acquisition Corps as well as provide additional opportunities to them in achieving certification. The Army initiated an Acquisition Corps Reserve PAT to address improving opportunities in the Reserve components. The Department will also continue building upon FY 1995 accomplishments such as expanding the intern program beyond the fields of logistics and contracting; identifying contracting training requirements beyond directed competencies; and continuing its efforts to reduce training costs.

CONCLUSION

The Department continued in FY 1996, through the DAU, Services, and components, providing increased education, training, and experience opportunities. These significant efforts are achieving a highly qualified, experienced, and professional acquisition workforce that is second to none. These efforts postured the Department to support and implement acquisition-reform initiatives, while developing, managing, and delivering 21st century weapons and information systems vital to dominating and winning on the battlefield.

As DoD continues its reform program with further challenges from ever smaller budgets and rightsizing organizations, the Acquisition Workforce is becoming a better trained, educated, and professionally developed force. The Department steadfastly pursues, actively and aggressively, the four critical elements of the DoD reengineered acquisition system: meeting the warfighter's needs; being the world's smartest buyer; procuring the best-value goods and services; and having the most responsive (timely and flexible) acquisition system.

REPORTS

Tables F-1 through F-21 display the DAWIA-directed reporting requirements as of September 30, 1996. Reporting requirements not included are:

Section 1762(c)(9) -- Personnel in critical acquisition positions who were reassigned after three years or longer in a critical position. Three years since enactment of this requirement will not occur until October 1, 1996; therefore, the information should be available in the 1997 report.

Section 1762(c)(11) -- Personnel in critical acquisition positions reviewed for reassignment after five years in a critical position. The FY 1993 Authorization Act mandated the start date for five year reviews under Section 1734(e)(2) as October 1, 1995. Reviews were initiated during FY 1996. Specific results with a complete year of data will be included in the FY 1997 report.

Section 1762(c)(13) -- Number of personnel paid a bonus under Section 317, 37 U.S. Code: During FY 1996, the Service Secretaries did not request approval from the Secretary of Defense to exercise this authority.

Attachments:

Tables F-1 to F-6.(Critical Acquisistion Positions Held)
Tables F-7 to F-11. (Acquisistion Corps Members)
Table F-12. (Acquisistion Corps Exceptions From Educational Requirements)
Table F-13. (Personnel Participating in Acquisistion Intern, Cooperative Education, Scholarship, and Tuition Reimbursement Programs)
Table F-14. (Personnel Certified by Acquisistion Career Program Boards in Lieu of a Baccalaureate Degree)
Table F-15. (Major Defense Acquisistion Program Manager Reassignments)
Table F-16. (Major Defense Acquisistion Deputy Program Manager Reassignments)
Table F-17. (Acquisistion Work force Waivers/Exceptions Granted)
Tables F-18 to F-21. (Officer Promotion Rate Comparisons)