Outsourcing In-Skill Shore Billets: Potential Manpower Costs

This study examines potential manpower costs of outsourcing Navy jobs that result from more Sailors having to work out-of-skill. To examine these costs, we estimated the effects on retention and advancement of working in billets related to one's skill and in instructor billets. Focusing on E5 and E6 billets, we then compare the quantifiable costs of outsourcing military billets to the expected savings. Currently, 49.6 percent of E5 and E6 Sailors are assigned to rating-specific NECs on their shore tours. The analysis finds that if more than 49.6 percent of the outsourced billets are rating-specific, there would be fewer opportunities to work in-skill and lower retention, which would lead to costs to offset. We recommend that, when determining what billets to compete, the Navy start with general skill billets and other out-of-skill billets. Furthermore, if the Navy were to compete in-skill billets, we recommend that it compete low-training billets before high-training and instructor billets.