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Mr. Clairman, distinguished members of the subcommittee, I


want to thank you for the opportunity to appear before you. discussing with you today several crucial manpower and personnel

issues, I hope that we might find agreement and a common ground from which we can move forward in managing our scarce resources


first of all, enhance our national defense through the best

use of our total force manpower, and second, meet the career and

personal needs of our military and civilian personnel.

People are our most important asset.

As Secretary Carlucci

has stated, repeatedly, they are the number one priority, for the

Department of Defense, and our budget proposes the compensation

and quality of life initiatives required to attract and retain

the best people.

Through the partnership of the Department of Defense and the

Congress, we have built a highly motivated military force made up of individuals of unprecedented ability, skill and motivation. with your support of our manpower and personnel programs in this

budget, we can continue this success.

As I look at the most important and difficult tasks that lie

ahead, I see two jobs that we, working as partners, must


First, we must maintain a quality volunteer force in the

face of declining budgets.

To do this, we must provide adequate

compensation and quality of life measures for our Defense family.

Second, we must ensure that manpower matches force structure

requirements and fits within fiscal constraints.

In the remainder of my statement, I would like to discuss


how we can accomplish these tasks

albeit in the face of

significant challenges. I want to begin by reviewing the Department's manpower requirements determination process and how that process contributes to Secretary Carlucci's goal of forging

a smaller, yet fully trained and ready military force.

I will

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of DoD families, women in the military and some retention



In order to avoid a "hollow army n and maintain readiness

while fully supporting our forces, the Department cut force

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budgets had to be adjusted, not all the manpower reductions are

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policy, doctrine, mission, equipment, standards, as well


fiscal constraints.

The President, in conjunction with the

Secretary of Defense and the Joint Chiefs of Staff,


the overall security policy that will guide the Defense


This policy, when considered along with available

resources, determines how many divisions, carrier battle groups,

and air wings are required. Military doctrine and mission

determine how many people should be in a particular type of

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performance standards which are applied to funded workloads and mission requirements - tell us how many people are needed in a supply depot, an equipment maintenance operation, or an

administrative support facility.

Military/Civilian Mix.

The Defense Department uses a

discrete series of reviews to determine its military and civilian

manpower requirements.

We start with the individual soldier,

sailor, airman, marine, or civilian and build on that foundation.

Basic DoD policy requires that a position will be filled with a

civilian unless there is a distinct need for a military person in

that position.

The principle consideration in manning a function

with military personnel is the potential for direct engagement

with an adversary in the event of hostilities.

There are some

DOD positions which could be filled with civilians, but we use

them for training and rotation slots for our military manpower.

As an example, we fill some stateside billets with military

personnel in order to rotate people back from overseas duty and

from assignments aboard ships.

Our recently-completed officer requirements study did

identify some military positions that could be filled by


The Services are in the process of converting these

billets to civilian status and we may require some transfer

authority to fund these conversions.

In addition to using DoD

civilian manpower wherever possible, the Defense Department

attempts to use contractor manpower to perform work which can be

done more economically by the private sector.

This policy makes

good economic sense, and it supports the President's policy to

move as much work as possible to the private sector.

Overseas, we rely greatly on our allies for host nation support of u.s. forces. This allows for efficient and effective support of military units and reduces our overseas manpower


Active/Reserve Mix.

Readiness requirements and deployment

needs, as well as cost, influence whether a military organization

should be in the Active force or the Reserve components.


higher the required level of readiness and the greater the need

for forward deployment, the greater the likelihood thai the unit

will be in the active force.

Assigning a mission to a Reserve

unit will not necessarily be cost effective, if that mission requires continuous peacetime operation or overseas deployment.

In addition, the Department must plan for a peacetime rotation

base for personnel assigned outside the United States and to sea


The Department has made an aggressive effort to ensure the

most effective use of Reserves.

This is evident in the

significant growth of Selected Reserve military manpower, which

has increased by about 5 percent per year since FY 1980, compared

with about 1 percent per year growth in the active force.


change in active and reserve mix over this period reflects the

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term, DoD will more carefully delineate the data requirements

submitted during the budget development process.

Further, we

will examine and compare numerical changes and rationale to ensure consistency with force structure and with OSD and Service policy, and the adequacy of the justifications for growth.

AS a

start, the FY 1989 Defense Manpower Requirements Report (DMRR )

will incorporate similar officer-type analyses conducted during the FY 1988 study. For the long term, we will institute a

comprehensive approach that revises OSD manpower policy guidance

and sets up Service baseline files to clearly depict manpower in

relation to force structure.

Producing a better oversight

process has the Department's highest priority and the understanding cooperation of the Joint Staff and the Services.

In addition, to ensure continued combat effectiveness, we

have procedures to update all of our manpower requirements.


example, all spaces not required for combat and combat support

must undergo an efficiency review at least once every five years in order to determine that each billet is still required and that

the work is being performed in the most efficient and effective


The Department's Planning, Programming, and Budgeting

System (PPBS) also ensures a complete review of all our resource

requirements, both dollar and manpower.

During each budget

review, the Office of the Secretary of Defense reviews Service

and Agency program and budget requirements to ensure a balance

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that required work is being performed in the most productive way. Emphasis is placed on quality, quantity, and timeliness


We use work force motivation efforts such as quality

circles and productivity gains sharing to encourage participation

and innovation from all of our personnel.

The Defense Department has emphasized the use of productivity enhancing capital equipment as an effective

substitute for military and civilian manpower.

The Asset

Capitalization program in the Department's Industrially Funded Activities provides DOD managers the opportunity to substitute

equipment for manpower.

The Department's Productivity Enhancing

Capital Equipment program provides funding for labor saving

equipment which results in significant dollar savings each year.

Our FY 1989 Productivity Investment Fund (PIF) budget request

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