Research for Outsourcing

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November 1, 2003
Food service is a commercial activity. The provision of food service on the premises of other organizations is big business. It is highly developed, worldwide, and fiercely competitive. Corporations, universities, hospitals, resorts, entertainment complexes, and other such enterprises generally find it advantageous to use the services of outside providers. It is the long-standing policy of the federal government to rely on the private sector for needed commercial services. Nonetheless, the Navy is its own food service provider. It has almost 10,000 billets for mess management specialists and fills 95 percent of them. About four times that number of people-some military, some government civilians, and some contract personnel-fill other jobs in galleys afloat and ashore.
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September 1, 2001
The purpose of this study is to review the realism, and sustainability of estimated savings under the competitive sourcing program and examine whether the expected level of savings can be achieved and maintained over the long run without affecting the quality of services provided. To look at these cost and performance issues, CNA examined 16 competitions completed between 1988 and 1996. For the 16 competitions included in our analysis, we collected actual costs and all available performance information from the time of competition through FY 1999. We calculated the expected level of savings for each competition (based on the difference between the pre-competition costs and the winning bid) and compared these savings estimates with the post-competition costs.
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May 1, 2001
At the beginning of the new century, the Navy is undergoing a series of major changes in the way it fights. Changes in the force structure have altered the demand on personnel. New technologies are revolutionizing Navy platforms and concepts of operations. Business practices have shifted some work previously done by military personnel to civilians in both the civil service and the private sector. Organizational changes for all the armed forces, first initiated with the passage of Goldwater-Nichols in 1986, have placed increasing control in the hands of the joint arena. This paper explores how and why an efficient military might include an increasing proportion of senior officers over time. The argument rests on four main pillars: force structure; technology; outsourcing; and joint, interagency, and international coordination.
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August 1, 2000
In June 1999, the Navy's Five Year Development Plan included roughly 80,000 civilian positions as part of its "competitive sourcing initiative." As a result of competitive sourcing, half or more of the positions involved with commercial activities (Navy activities that are similar to activities in industry) could be removed from the civil service roles either because of outsourcing or internal efficiencies. Because the competitions were planned for the most part, as isolated actions, the broader consequences of these competitions for the overall civil service workforce were not fully understood. For this reason, the Assistant Deputy Chief of Naval Operations (N1B) asked CNA to develop some guidelines that would help decision-makers plan for the consequences of the Navy's competitive sourcing initiative. Specifically, the request was to (a) establish a baseline of the current and past civil service workforce, and project changes that could result from the competitive sourcing initiative; (b) benchmark the Navy system and its
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May 1, 2000
The Navy is considering outsourcing some ship functions to civilians. This report focus directly on the issues related to the outsourcing of service functions aboard deploying ships and examines practical issues that arise in integrating civilians into a military working environment on board the ship. Our main interest in this effort is to get an accurate sense of the fleet's issues and concerns, particularly the sailors who will have to work with civilians, should the Navy decide to outsource. This research memorandum identifies the main issues and discusses their effect on the compatibility of a mixed crew of active duty personnel and civilians.
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June 1, 1998
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.
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June 1, 1998
The purpose of this study is to help the Navy identify the costs imposed on the Navy manpower system when military billets are outsourced. In particular, this paper examines how competition will affect the Navy's ability to achieve its objectives with respect to sea-shore rotation and homebasing. It provides, by community, estimates of how different outsourcing options would affect these military manpower decisions. The paper concludes that personnel policy constraints, especially the goal of providing an adequate base of shore billets for rotation, place significant limits on the number of military billets entered into A-76 competitions. Given the magnitude of manpower constraints, the Navy has two policy options: reduce the number of military billets to be competed or loosen the number of constraints. Loosening the constraints would involve: more carefully defining sea/shore ratios, allowing some A-76 competitions with high expected savings to be completed even if exceptions must be made to personnel policy goals, examining overseas shore billets that count as sea duty as good outsourcing candidates, and reexamining some of the IBR exclusions, especially for shore-intensive ratings. DTIC AD-B239314
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March 1, 1998
This study looks at the potential of outsourcing courses for active duty sailors to community colleges using their facilities and significant parts of their curricula. This project investigated the potential for outsourcing three courses, focusing the analysis on two community colleges and two other types of training institutions. The analysis addressed if it is possible or even necessary, to move Navy training equipment to a community college site and how transferable the subject matter is. The analysis also examines the cost-effectiveness of outsourcing the training. The analysis shows that community colleges have distinct advantages that enable them to provide training that is similar to the Navy but at a lower cost. The findings indicate significant overlap with current community college curricula and that the colleges were willing and eager to modify current programs to accommodate the Navy's training requirements.
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March 1, 1998
This paper describes two federal programs that could facilitate the Navy's efforts to recruit pretrained people as well as benefit general recruiting efforts from community colleges: the School-to-Work Opportunities Act and the Tech Prep Act. It offers recommendations on how to apply these programs specifically to the Navy, in terms of the types of targeted fields of study and activities for active participation that are vital components of these federal programs. It also recommends forming partnerships to create tailor-made courses of study around training curricula that have significant civilian overlap, which could save significant training costs and enhance Navy's recruiting efforts at community colleges.
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January 1, 1998
In a previous study, CNA analysts used data from past DoD A-76 competitions to construct a model of savings and projected the potential savings from additional DoD Commercial Activities (CA) competitions. In this paper, we use an alternative approach for estimating savings from future Dod CA competitions. We estimate two separate bidding equations - one for the in-house team bid and another for the minimum contractor bids - along with an equation for baseline cost. Based on these estimated equations, one could then indirectly project future savings in the A-76 inventory as the difference between predicted baseline cost and the predicted winning bid. Using the new approach, we project an annual savings of $6 billion if the entire 1995 DoD CA inventory were competed under A-76 rules.
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