June 4, 2010
The secretary of defense has directed the military departments, principal staff assistants, combatant commanders and DoD agencies to take deliberate and aggressive measures to protect critical current and future capabilities, ultimately securing real growth in the resources allocated to our warfighters. This direction will be incorporated into service Program Objectives Memorandum 12 submissions by July 30, 2010.
Secretary Gates established efficiency reduction targets for each of these components and directed that the resources be used to increase funding for personnel in units, force structure and readiness to fight. The reductions also should focus on headquarters and administrative functions, support activities and overhead. The services will be able to keep savings within their budgets and at least two-thirds of the reductions should be transferred to produce increases in funding for personnel in units, other force structure costs, readiness, procurement and research development test and evaluation (RDT&E) accounts.
"To sustain necessary investment levels for Department of Defense mission essential activities," said Gates, "we must significantly improve the effectiveness and efficiency of our business operations. Doing so will increase funding available for our mission functions from efficiency savings in overhead, support and non-mission areas."
Additionally, the secretary has directed a corporate review of critical support policies that affect the entire department. This effort is not limiting and will include staffs within Office of the Secretary of Defense, the Joint Staff and the Defense Health Program. This program review will conclude in the fall of 2010.
Key highlights of this guidance are outlined in the attached fact sheet
Department of Defense (DoD)