They are assigned specific tasks that could be performed by military or civilian personnel, including administrative support, equipment maintenance, lawn maintenance, food services, installation security, and analytic support. 2 (The service contractors discussed here are thus separate and distinct from the individuals employed by companies to produce weapons and provide other goods to DoD.) Service contractors provide a wide range of services that are not inherently military or governmental. In this case, contractor describes service contract labor-that is, personnel hired by private companies under service contracts awarded expressly to augment DoD’s military and civilian workforce. The term “contractor” can mean many things. Compensation for the three types of labor is spread across several categories of DoD’s budget, but most of the compensation is recorded in the military personnel account and the operation and maintenance (O&M) account. Components of DoD’s Compensation CostsĭoD’s total labor force (which it calls its total force) consists of three types of labor: military personnel (divided into full-time and part-time personnel), federal civilians, and service contractors. Such data could also help DoD manage its total workforce. Comprehensive data from DoD would allow CBO to supply the Congress with information about the scope and cost of the department’s large workforce of service contractors-which could prove to nearly rival the size of DoD’s federal civilian workforce. Although CBO has done preliminary analysis of the costs associated with service contractors, a full analysis is not possible using the incomplete data that DoD provides to the Congress. None of those options address the size or cost of DoD’s service contractor workforce. 1 CBO has also reported on ways to lower such costs without changing the size of military forces. CBO has examined several ways that DoD could reduce those costs by changing the size of military forces while still meeting the goals of national security strategy. Among those options are some that address DoD’s compensation costs. In biennial reports and other studies requested by the Congress, the Congressional Budget Office regularly analyzes and presents a range of policy options that would reduce spending across the federal government. But other components are less clear, including some smaller noncash elements of military compensation and, in particular, the size and cost of DoD’s workforce of service contractors. Some components of DoD’s compensation budget are clear, including the military personnel accounts, health care costs for active-duty and retired military personnel, and compensation for DoD’s civilian workforce. Chairwoman Warren, Ranking Member Scott, and Members of the Subcommittee, I appreciate the opportunity to appear before you today to discuss approaches to reducing the Department of Defense’s (DoD’s) compensation costs.
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