Efficiencies
The organizations and institutions that guard the nation’s security operate by the same principles and processes that power American business. BENS has harnessed that assertion to focus on seeking savings and efficiencies in national security infrastructure and overhead functions.
Below are details of on-going BENS Focus Activities on Finding Efficiencies in the Business of Defense.
Finding Efficiencies in the Business of Defense
BENS is currently exploring ways to help DoD solve its most challenging management problems, including restructuring and streamlining defense infrastructure and overhead. Past BENS work in this area has included: the 2001 Tail-to-Tooth Commission; the 2009 Task Force on Defense Acquisition Law & Oversight; and the 2010 Defense Efficiencies effort, with the DoD Comptroller and the Undersecretary for Acquisition, Technology and Logistics.
Enterprise Resource Planning
At the request of the Head Quarters United States Air Force Deputy Chief Management Officer, BENS will help the Air Force design an appropriate management structure for their planned Enterprise Resource Planning implementation. Based on an initial meeting, observations have been sent to Air Force officials for review. BENS members have also discussed how to achieve DoD-directed Financial Improvement and Audit Readiness (FIAR) requirements with officials from Headquarters US Air Forces – Europe (USAFE).
Compensation and Benefits
Military retirement costs are spiraling upward and, in restrained budget environments, it is incumbent on the Department of Defense to closely examine reforms that rein-in such expenses. Military pension costs have tripled since 2000 and are now larger than the entire active duty military payroll. Compounding the problem is that the current retirement system serves only a small fraction of those who serve and tempts the military’s most experienced personnel to leave the service at the 20-year point to pursue other careers. BENS is developing a series of recommendations that design holistic reforms to military retirement structure. The recommendations from the eight-member task force will provide a distinctly private sector perspective to the abundant proposals on reforming current practices in the retirement pay system. BENS ultimately seeks new laws that allow for effective DoD compensation programs to curb the unsustainable trajectory of retirement costs.
Managing Physical Assets
BENS is working with the Army Installations Management Command (IMCOM), to promote change in the system at the Headquarters Army level; changes that would be unattainable at the local, operational level. As this progresses each working group will complete working papers on the developments. Additionally, BENS hopes to create a follow-on plan for turning the recommendations into action.
Base Closure and Realignment (BRAC)
BRAC has long been a topic on BENS radar. Today, BEN works to re-energize a non-traditional coalition of advocates to support reauthorizing legislation for BRAC rounds in 2015 and 2017. This authority would give the Department of Defense the capacity to adjust basing structure to match its force structure.
Review of the Defense Businsess Practice Reorganization and Change
Over the course of several months, a BENS CEO panel will provide business reorganization insights to the Deputy Secretary of Defense, Chairman of the Joint Chiefs of Staff, and the Under Secretary for Acquisitions, Technology and Logistics. Steering groups formed around each of the proposed efforts for reorganization focus on the details of planning and implementation.
Reducing Military Fuel Costs
With a goal of reducing $5 billion from their overall fuel budget in five years, the Defense Logistics Agency (DLA), the primary supplier of fuel to the United States military, has turned to BENS to help reduce military fuel costs and streamline their fuel supply network. DLA oversees a $20 billion annual fuel budget and supply chain that, while serving admirably over the last several decades, will need to reform to meet Congressional and Department of Defense requirements and changing warfighting capabilities. The Director of DLA, Vice Admiral Mark Harnitchek, USN, has specifically asked a six-member BENS Task Force to analyze reforms to DLA’s fuel procurement business model and highlight strategies that provide the highest value for the Agency. BENS has also been asked to generate a private-sector business plan for fuel procurement using DLA’s structural and demand characteristics. At a period when all government budgets are strained and fuel costs remain high, this analysis is not only timely, it is necessary.