Deputy Defense Secretary Robert Work says that the Defense Department is planning to adopt a vertical integration approach to reduce administrative costs across “fourth estate” defense agencies, Federal News Radio reported Friday.
“In the past, we’ve just told everybody that they need to drop 10 percent from their top line, and you can do it any way you want,” Work told the station.
Jared Serbu writes that DoD’s Office of the Deputy Chief Management Officer and Defense Business Board will perform spending reviews on overall fourth estate operations over the next six months to identify opportunities for savings.
The report said DoD has completed pilot projects within DCMO and the Office of the Chief Information Officer, where the agency pinpointed duplicate contracts, databases and other redundancies through a “deep dive” review.
Work noted that DoD is also working on adapting its program and budget processes to the current fiscal environment.