The primary tool the Defense Department uses to gauge whether its sweeping reform program is working is a calendar, not results-oriented measures that assess the impact of its efforts, according to a new General Accounting Office report.
Most changes implemented under the Defense Reform Initiative, a DoD-wide effort to streamline the department's business operations, are measured by how far along they are on their timeline for completion.
But simply reporting progress in a specified time frame is not enough, GAO said. DoD needs to measure the outcomes of its actions to find out if the reform effort's goals are really being met, said GAO in the report, "Defense Infrastructure: Improved Performance Measures Would Enhance Defense Reform Initiative" (NSIAD-99-169).
Specifically, GAO auditors noted, DoD reports on 14 of 17 initiatives under the umbrella of the Defense Reform Initiative either by their implementation status or a measure of output, not by measures of outcome, which show how well reforms work. In each of the three main categories of the reform effort-adopting best business practices, streamlining through competition, and eliminating unneeded infrastructure-there are outcome results that could be tracked, GAO said.
For example, DoD's progress reports on the process of conducting public-private competitions under Office of Management and Budget Circular A-76 consist of announcing such competitions and encouraging DoD organizations to conduct more of them. But information on costs, personnel reductions and long-term savings is left out.
Even though DoD has projected $11 billion in savings from A-76 competitions, it has no reliable method to determine whether it is reaching that goal, GAO reported. "Such a measure would seem essential; otherwise, DoD will not be able to determine whether the program is meeting expectations and, if it is not, whether mid-course corrections and budget adjustments are needed," the report said.
The military base realignment and closure process, too, is measured primarily by progress toward specific goals, GAO said. Progress reports usually contain measures such as reductions in excess acreage owned by the department. If Congress authorizes additional base closures, DoD will need to come up with measurements that look at costs, GAO said.
In response to the report, DoD said it would continue to develop more outcome-oriented measurements. The department has formed a Government Performance and Results Act working group to review performance goals, verify methodologies and collect data on results. In addition, the Defense Reform Office is working on developing other measures not included in the GPRA plan, said David R. Warren, director of defense management issues.