Secretary White draft letter on Army outsourcing initiative

Memorandum for See Distribution
"The Third Wave": Draft letter from Army Secretary Thomas White

Subject: Non-Core Competencies Working Group and The Third Wave

The Army must focus its energies and talents on functions we perform better than anyone else as core competencies, and seek to obtain other needed products or services from the private sector where it makes sense. We must also aggressively support the Competitive Sourcing Initiative of the President's Management Agenda.

This Army initiative, entitled The Third Wave, will differ from the previous two waves of public-private competitions in several key respects. It will be bigger and faster. It may involve privatization, divestiture, and other "alternatives to A-76," as well as traditional A-76 competitions. And it will involve, for the first time, functions other than base operations.

You will develop and present to me, by 20 December 2002, an implementation Plan for privatizing, divesting, outsourcing using "alternatives to A-76," competing using A-76, converting military spaces to civilian or contract, or transferring to other government agencies, all non-core functions that fall under your purview. The source of funding for military conversions will be those functions identified for divestiture. Your plan should focus on the total workforce (military, civilian employee, contract) in the operating forces and infrastructure. Your plan will include 100% of spaces eligible for private sector performance (i.e. non-core) unless an exemption is approved by the ASA(M&RA). (See 16 Nov 01 memorandum at Enclosure 1 for exemption procedure.) Enclosure 2 provides guidance for developing your plan.

You will develop your plan in conjunction with the Non-Core Competencies Working Group (NCCWG) (Enclosure 3). The Non-Core Competencies Executive Steering Committee and the DUSA will oversee the NCCWG and will resolve all issues.

Request you identify your NCCWG member to Mr. Jim Wakefield (james.wakefield@hqda.army.mil) by 25 September 2002. The schedule for Implementation Plan presentations will be developed by the NCCWG. Enclosure 4 provides the timeline.

(unsigned)

Thomas E. White

Enclosures

Distribution:

Principal Officials:

Headquarters, Department of the Army

Commanders:

US Army Europe & 7th Army

Eighth US Army

US Army South

US Army Forces Command

US Army Training & Doctrine Command

US Army Materiel Command

US Army Corps of Engineers

US Army Special Operations Command

US Army Pacific

Military Traffic Management Command

US Army Criminal Investigation Command

US Army Medical Command/The Surgeon General

US Army Intelligence and Security Command

US Army Military District of Washington

US Army Space and Missile Defense Command

US Army Reserve Command

US Army Military Entrance Processing Command

US Total Army Personnel Command

US Army Test and Evaluation Command

Superintendent, US Military Academy