CEOs Call for Defense Privatization

CEOs Call for Defense Privatization

letters@govexec.com

A coalition of private CEOs and former government officials has formed a commission to promote outsourcing and privatization of Defense Department support functions.

Former New Hampshire Sen. Warren Rudman and Automatic Data Processing Inc. Chairman Josh Weston are co-chairing the group, called the Tail-to-Tooth Commission. The commission is sponsored by Business Executives for National Security, a coalition of business leaders with an interest in national security policy. The "tooth" refers to combat troops and weapons systems, the core war-fighting capabilities of the military, while the "tail" refers to infrastructure and functions that support the military mission. The commission argues that the tooth is becoming lean and mean, but the tail remains too big and bureaucratic.

Commission members have pledged not to just issue a report and then disband. They will lobby for Defense privatization and downsizing in Congress, in the Pentagon, and in the White House, the group says.

The commission has released one report so far--"Outsourcing and Privatization of Defense Infrastructure"--in which it argues that the Pentagon should follow private companies' example by focusing on its core competencies and outsourcing all other activities. The report also acknowledges that it's easy to identify programs that can be outsourced, but it's difficult to actually do it, in part because Pentagon leaders lack a sense of urgency.

"Defense officials lack an appreciation of the relationship of time to money that drives the private sector's bottom line," the report says. "Too many bureaucratic layers prevent the department from taking advantage of the pace of business. Time is lost; money wasted."

At least one Pentagon official is on the same wavelength as the Tail-to-Tooth Commission: Secretary of Defense Wiliam Cohen. In a speech to Business Executives for National Security in October, Cohen sounded his support for the group's efforts.

"What we need from the commission is . . . ways in which we can influence editorial support, basically solid citizenry support and congressional support for the kind of changes that are necessary," Cohen said. "What we have to do is break down the mindset that says, 'not yet, not here, not mine, under no circumstances.'"

The Tail-to-Tooth Commission is the latest in a series of groups focused on Defense Department infrastructure downsizing. The Defense Science Board last year called for privatization of numerous functions, including accounting, information systems management and commissaries. The Quadrennial Defense Review called for infrastructure streamlining as well, and the Defense Reform Task Force is looking at ways to reengineer the Office of the Secretary of Defense. In addition, the 1998 Defense authorization bill, passed by the House, calls for the continued elimination of thousands of positions in the Secretary's office and in the Defense acquisition workforce.

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