Secretary White memorandum on Army outsourcing initiative

October 4, 2002

Memorandum for See Distribution

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

The Army must focus its energies and talents on our core competencies -- 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. Moreover, the Army must quickly free up resources for the global war on terrorism, and do so in a way that avoids disruptions to our core operations.

This Army initiative will differ from the previous two "waves" of public-private competitions in several key respects. The third wave will be bigger and faster. It may involve "alternatives to A-76" as well as traditional OMB Circular No. A-76 competitions. And it will involve, for the first time, functions other than base operations.

You will develop and present to me your Implementation Plans for privatizing, divesting, competing using A-76, outsourcing using "alternatives to A-76," converting military spaces to civilian or contract, or transferring to other government agencies, non-core functions that fall under your purview. Your plans must include all non-core spaces (i.e., spaces potentially eligible for private sector performance) unless an exemption, based on disruption to core missions, is approved in writing by the ASA(M&RA). Non-core functions, although important to the Army mission, must be reviewed for the best mix and provider, focusing on the total workforce (military, civilian, contract) in the operating forces and infrastructure. Enclosure 1 provides guidance on requesting an exemption. Enclosure 2 provides guidance for developing your plans.

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 October 9 2002. The NCCWG will develop the schedule for Implementation Plan presentations. Enclosure 4 provides the timeline.

(signed)

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