1

Organization and Managementof the

Department of Defense

Presented byOffice of the Director of Administration and Management

Office of the Secretary of DefenseSeptember 13, 2011

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Outline

• The Constitution and National Defense• Key Statutory Authorities of the Secretary of Defense• DoD Organizational Structure• OSD Organizational Structure• DoD Corporate Governance• Significant Organizational Activities - Illustrative• Back-up Information

The mission of the Department of Defense is to protect the Americanpeople and advance our nation’s interests.

Mission Statement of the Department of Defense, QDR, February 2010

The Department of Defense shall maintain and use armed forces to support and defend the Constitution of the United States against all enemies, foreign and domestic. Ensure, by timely and effective military action, the security of the United States, its possessions, and areas vital to its interest. Uphold and advance the national policies and interests of the United States.

Functions of the Department of Defense, DoD Directive 5100.01, December 2010

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Article I – The Congress• Authorizes and appropriates• Makes rules for governance; e.g.:

– Title 10, United States Code – Armed Forces

– National Security Act of 1947, as amended

– Goldwater-Nichols Reorganization Act of 1986

• Declares war• Provides advice and consent:

– Principal appointees

– Military officer promotions

The Constitution and National Defense

Article II – The President• Shall be the Commander in Chief of the Armed Forces of the

United States• Exercises authority over the military by:

– Selecting Presidential appointees and senior officers, and approving military promotions

– Managing the federal budget process

– Formulating/implementing national security policy

– Personally engaging in matters of high importance

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Key Statutory Authorities Secretary of Defense

• Principal Advisor to the President on Defense matters

“The Secretary of Defense is the principal assistant to the President in all matters relating to the Department of Defense.”*

• Cabinet member as the head of an executive department

“The Department of Defense is an executive department of the United States.”*

• Leader and CEO of the Department

“There is a Secretary of Defense, who is the head of the Department of Defense … [who] has authority, direction, and control over the Department of Defense.”*

• Deputy to the Commander in Chief

“… the chain of command to a combatant command runs (1) from the President to the Secretary of Defense and (2) from the Secretary of Defense to the commander of the combatant command.”*

* Title 10, United States Code

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Unified Policy and Direction

OSDCJCSJCS

Joint Staff

Secretary of DefenseDeputy Secretary of Defense

Supporters & Suppliers

Defense Agencies &DoD Field Activities (28)

Departmentof theArmy

Departmentof theNavy

Departmentof the

Air Force

Operators: US Combatant CommandsFunctional Regional

Navy USMC

DoD Organizational Structure The DoD Components

IG,DoD

DirectReports

STRATCOM TRANSCOM SOCOM NORTHCOM EUCOM CENTCOM AFRICOM SOUTHCOM PACOM

OSD 1 15 JCS / Joint Staff 2 1 Defense Agencies 18DoD Field Activities 10Military Departments 3 3 COCOMs 10 10 DoD IG 1 1 Total 45 30

Component NrDoD Workforce: Military: 1,432KCivilians: 791KGuard and Reserve: 846K Total DoD ~3,069K*

*As of August 2011

#

BTA will be disestablished per the Secretary’s Efficiency Initiatives, effective FY12, resulting in 17 Defense Agencies.#

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OSD Organizational Structure

Direct Reports

OSD 15

IG 1

Total 16

USD(Comptroller) /Chief Financial

Officer

USD(Policy)

Director,Operational

Test &Evaluation

USD(Acquisition,

Technology &Logistics)

USD(Personnel &Readiness)

ASD(Legislative

Affairs)

ASD(Public Affairs)

DoDGeneralCounsel

Director,Net

Assessment

Director,Cost

Assessment& Program Evaluation

USD(Intelligence)

ASD(NII) currently being disestablished per the Secretary’s Efficiency Initiatives; DoD CIO will remain.

Deputy ChiefManagement

Officer

InspectorGeneral

Immediate Officeof the Secretary

Secretary of Defense

Assistant tothe Secretary

of Defense(IntelligenceOversight)

Deputy Secretary of DefenseChief Management Officer

Director,Administration

andManagement

#

Although the IG is statutorily part of OSD and is under the general supervision of the Secretary of Defense, the OIG functions as an independent and objective unit of the Department of Defense.

#

+

Authorized Manpower

Civilian 2289

Military 381

Total 2791

#

*

As of August 2011+

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Secretary of Defense

Deputy Secretary of Defense

USD(Policy)

USD(Comptroller)

USD(Personnel &Readiness)

DoDCIO

USD(Intelligence)

DefenseSecurity

CooperationAgency

DefenseContract

AuditAgency

DefenseFinance &

AccountingService

DefenseCommissary

Agency

DefenseIntelligence

Agency*

DefenseInformation

SystemsAgency*

Director,Administration

andManagement

PentagonForce

ProtectionAgency

DefenseLegal

ServicesAgency

NationalGeospatial-Intelligence

Agency*

National SecurityAgency / Central Security Service*

OSD Organizational Structure OSD PSA Oversight of Defense Agencies

DefenseBusiness

TransformationAgency

DoDGeneralCounsel

Defense Agencies: 18

Deputy ChiefManagement

Officer

DefenseAdvancedResearch

Projects Agency

USD(Acquisition,Technology &

Logistics)

DefenseThreat

ReductionAgency*

DefenseContract

ManagementAgency*

DefenseLogisticsAgency*

MissileDefenseAgency* Seven Agencies are designated as Combat

Support Agencies with joint oversight bythe Chairman of the Joint Chiefs of Staff

DefenseSecurityService

NationalReconnaissance

OfficeBTA to be disestablished no later than 30 September 2011 per the Secretary’s

Efficiency Initiatives

ASD(NII) currently being disestablished per the Secretary’s Efficiency Initiatives; DoD CIO will

remain

#

+

#

+

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Secretary of Defense

Deputy Secretary of Defense

OSD Organizational Structure OSD PSA Oversight of DoD Field Activities

DefenseTechnical

InformationCenter

USD(Acquisition, Technology &

Logistics)

Office ofEconomic

Adjustment

DoD TestResource

ManagementCenter

•DirDirector,

Administration &

Management

WashingtonHeadquarters

Services

DoD Field Activities: 10

ASD(Public Affairs)

DefenseMedia

Activity

USD(Policy)

DefenseTechnology

SecurityAdministration

DoDEducation

Activity

TRICAREManagement

Activity

DoD HumanResources

Activity

USD(Personnel & Readiness)

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DoD Corporate Governance Framework

• The Secretary and Deputy Secretary of Defense establish, direct, and oversee Departmental governance councils and decision-making processes

• Decision authority rests with the Secretary and Deputy Secretary of Defense– Secretary as CEO—strategic direction, policy, program, and resource priorities– Deputy Secretary as CMO directs and integrates DoD planning and resource allocation consistent

with Secretary's direction, and oversees management, business systems, and key processes

• Defense Senior Leaders Conference (DSLC) or the “Large Group Plus”– Senior level advisory body to the Secretary; DoD Principals participate– Generally advises Secretary on strategic issues and includes the COCOMs

• The “Large Group”– Senior level advisory body to the Secretary– Senior civilian leadership team, as well as CJCS, VCJCS, and Service Chiefs– A subset of these officials is generally referred to as the “Small Group” with membership varying

with issue topics

• Deputy’s Advisory Working Group (DAWG)– Most senior level advisory body to the Deputy Secretary; Principals or their Deputies participate– Oversees and directs program, enterprise management, and business decisions

• Supporting Tier of Governance– Aligned with functional activities across the Department– Provides support for strategic decision-making and joint analyses of capability gaps and excesses

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• Key Processes– Planning, Programming, Budgeting, and Execution (PPBE) process– Defense Acquisition System– Joint Strategic Planning System

• DoD Directives Program codifies policy– Establishes and maintains DoD policy framework– Includes ~1340 DoD Issuances (Directives, Instructions, and Publications)*– Communicates the Secretary’s guidance

• Senior Leaders and Managers– Political Appointees

• Presidentially Appointed, Senate-confirmed (PAS) Officials: 55• Non-career Senior Executive Service (SES): ~90

– Civilian Senior Executive (CSE)• General positions (most OSD positions are General SES)• DoD-wide allocation is 1,422 with ~350 SES in OSD – title 5 USC• 594 DISES and 754 DoD-wide DISL allocations – title 10 USC• Secretary's Efficiencies Initiative reduced CSE billets by 176

– General Officer/Flag Officers (GO/FOs)• ~950 GO/FOs with 83% assigned to Military Departments• Remainder assigned to the COCOMs, the Joint Staff, and others• Secretary's Efficiencies Initiative eliminated, reduced, or reallocated 140 GO/FO positions

DoD Corporate Governance Processes, Leaders, and Advisory Committees

*As of August 2011

+

+The disestablishment of the ASD(NII) is pending. Once disestablished, the total number of PAS Officials will be 54.

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DoD Corporate Governance Processes, Leaders, and Advisory Committees (cont)

• DoD Federal Advisory Committees (56*):– 28 non-discretionary and 28 discretionary are active– Three senior advisory boards directly support the Secretary of Defense:

• Defense Policy Board / Defense Science Board / Defense Business Board– Source of technical, scientific, expert, and/or independent advice important in support of DoD

decision making– Secretary Gates approved institutional framework changes and established a DoD goal of 17

discretionary advisory committees• Approved institutional changes pending implementation• Secretary Panetta to review proposed changes to discretionary committees NLT 30

September 2011

• Reports, Studies, Boards and Commissions Study Group (RSBC):– The RSBC was established on 1 September 2010 as one of several Working Groups as part of

the Efficiency Initiatives• The RSBC recommended the elimination of more than 400 non-essential, internally generated reports

– DoD is engaging Congress in reducing the number of statutory reports and studies• ~$1 Billion saved over the FYDP in funding for reports and studies

– The Department is also engaging Congress to reduce and streamline the number of federal advisory committees

*As of August 2011

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Significant Organizational and Management Activities – Illustrative (as of Sep 2011)

• DoD Efficiency Initiatives (EI)– Continuing implementation – Process is revealing some issues that require further attention by senior leaders– Upcoming DAWG on funding and total workforce, including military personnel, civilians, and contractors of the Defense Agencies, DoD Field Activities, Joint Staff, and COCOMs

“I believe we can implement these reductions while maintaining the excellence of our military.”

~ Secretary of Defense Leon Panetta, 3 August 2011

•Quadrennial Roles and Missions (QRM) 2011 – Congressionally mandated in NDAA with specific focus directed for the 2011 QRM – Due to Congress with the President's FY 2013 budget (~Feb 2012) – 2008 QRM conducted by USD(P) and CJCS– Expected to eliminate unnecessary or duplicative missions or capabilities – Goal is to obtain maximum efficiency and effectiveness of the Armed Forces

“We must be accountable to the American people for what we spend, where we spend it, and with what result.”

~ Secretary of Defense Leon Panetta, 3 August 2011

•Comprehensive Review– Directed by the President in April 2011 to review "America's missions, capabilities, and our role in a changing world”– Links to, and updates, existing strategy instruments/efforts, e.g., NSS and QDR, to address forces, structure, missions, and capabilities

• SecDef and DepSecDef Transitions– Uncommon transition in close proximity– Division of Labor

• Revised FY13-17 POM Guidance– USD(C) and DCAPE signed out on 23 Aug 2011 – Components have one month to identify 10% POM cuts– ~$30B a year reduction for DoD – Revised submissions/detailed budget justification materials due 16 Sep 2011

• Space Governance– Broad agreement that national security space structures need revision– DoD Space Governance briefed/discussed at DAWG on 17 Sep 2010– DepSecDef provided guidance in November 2010– National Space Policy issued Jun 2010; National Security Space Strategy issued Feb 2011– Defense Space Council (DSC) established in Nov 2010; meets monthly – SECAF, as DoD EA for Space, chairs the DSC– Current state of play

Follow-on DepSecDef memo soon NRO Directive signed on 28 Jun 2011

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Significant Organizational and Management Activities – Illustrative (as of Sep 2011)

• Plain Writing Act of 2010– Signed by the President on 13 Oct 2010– Aims to improve effectiveness/accountability of Federal agencies to the public – Promotes clear government communications – Senior DoD policy official responsible for Departmental implementation to be designated

soon

• Section 901 NDAA FY 2011 and Section 906 NDAA FY 2010 – Directed numerous changes to senior positions in OSD and added one ASD– DoD Report to Congress required (NLT 15 Sep 2013) which includes a plan for the

realignment of OSD organizational structure, including final elimination of the DUSD title

• Potential Special IG (SIG) draft bill in Congress – Rep. Tierney (D-MA) sponsor – Purpose: To create SIG for oversight of contingency contracting– Position called for in recently released Commission on Wartime Contracting final report

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Significant Organizational and Management Activities – Illustrative (as of Sep 2011)

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Outline

• Key DoD Corporate Processes – Framework

• Recent Senior Official/Officer Appointment Activity - An Update

• Current Senior Appointees / Advisors – Confirmed as of 12 August 2011

• Current Senior Appointees / Advisors – Confirmation status as of 12 August 2011

• Corporate Governance – Linking Corporate and Supporting Tiers

Additional / Back Up Information

Key DoD Corporate Processes Framework

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• Senior Level Presidential Appointments – An Update– Hon Ashton Carter, USD(AT&L), nominated as DepSecDef

Confirmation hearing before the SASC today (13 Sep 2011)

– Ms. Madelyn Creedon confirmed as Assistant Secretary of Defense for Global Strategic Affairs (GSA)(4 Aug 2011)

– Mr. Alan Estevez confirmed as Assistant Secretary of Defense for Logistics and Material Readiness (L&MR) (3 Aug 2011)

– GEN Martin Dempsey (Army CoS) to assume post as Chairman, JCS (30 Sep 2011)

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Recent Senior Official/Officer Appointment Activity - An Update

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Current Senior Appointees/Advisors Confirmed as of 12 August 2011

• Military Department PASs (confirmed):– Sec Army: John McHugh– Sec Navy: Ray Mabus– Sec Air Force: Michael Donley– USec Army: Joseph Westphal– USec Navy: Robert Work– USec Air Force: Terry Erin Conaton– ASA(FM&C): Mary Sally Matiella– ASA(CW): Jo-Ellen Darcy– ASA(M&RA): Thomas Lamont– ASA(IE&E): Katherine Hammack– ASN(EI&E): Jackalyne Pfannenstiel– ASN(M&RA): Juan Garcia– ASN(RD&A): Sean Stackley– ASN(FM&C): Gladys Commons– GC Navy: Paul Luis Oostburg Sanz– ASAF(IE&L): Terry Yonkers– ASAF(M&RA): Daniel Ginsberg– ASAF(FM&C): Jamie Morin– GC USAF: Charles Blanchard

• OSD PASs (confirmed):– USD(AT&L): Ashton Carter– USD(P): Michèle Flournoy– USD(C): Robert Hale– USD(P&R): Clifford Stanley– USD(I): Michael Vickers– DCMO: Elizabeth McGrath– PDUSD(P): James Miller– PDUSD(AT&L): Frank Kendall– PDUSD(C): Michael McCord– PDUSD(P&R): Jo Ann Rooney– PDUSD(I): Thomas Ferguson– DCAPE: Christine Fox– ASD(ISA): Alexander Vershbow– ASD(GSA): Madelyn Creedon– ASD(L&MR): Alan Estevez– ASD(R&E): Zachary Lemnios– ASD(HD&ASA): Paul Stockton– ASD(LA): Elizabeth King– ASD(PA): Douglas Wilson– ASD(HA): Jonathan Woodson – ASD(NCBDP): Andrew Weber– ASD(OEP&P): Sharon Burke– ASD(NII)/DoD CIO: Teri Takai (Acting)– DOT&E: J. Michael Gilmore– GC DoD: Jeh Johnson– IG DoD: Gordon Heddell

     

Secretary of Defense Leon E. PanettaDeputy Secretary of Defense William J. Lynn, III

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Current Senior Appointees/Advisors Confirmation Status as of 12 August 2011

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Corporate Governance Linking Corporate and Supporting Tiers

Principal Large Group Members*

Secretary of Defense, Chairman JCS

Deputy Secretary of Defense, Vice Chairman JCS

Military Department Secretaries

Under Secretaries of Defense

Deputy Chief Management Officer

Service Chiefs

Principal DSLC Members

Large Group Members + COCOMs (meets 2-3 x per year)

JCS: Joint Chiefs of StaffJLB: Joint Logistics BoardJROC: Joint Requirements Oversight CouncilMDEB: Missile Defense Executive BoardMHSER: Military Health System Executive ReviewNLCEMB: National Leadership Command Capability Executive Management BoardNWC: Nuclear Weapons CouncilOPSDEPS: Operations DeputiesPGC: Pentagon Governance CouncilPSC: Policy and Strategy CommitteeSAPOC: Special Access Program Oversight CommitteeSOC: Senior Oversight Committee for Wounded, Ill, or InjuredSROC: Senior Readiness Oversight Council

Deputy’s Advisory Working Group (DAWG)– Deputies plus

The Deputy Secretary as COO/CMO:– Oversees and directs enterprise management and business issues– Ensures integration of effort among DoD boards / councils– Ties together PPBE elements

Defense Senior Leaders Conference (DSLC)

3-Star: 3 Star ProgrammersC2CIB: Command & Control Capability Integration BoardDAB: Defense Acquisition BoardDBSMC: Defense Business Systems Management CommitteeDLB: Defense Logistics BoardDHRB: Defense Human Resources BoardDoD CIOEB: DoD Chief Information Officer’s Executive BoardDSC: Defense Space Council*FMLC: Financial Management Leadership CouncilGFMB: Global Force Management BoardIAB: Intelligence Acquisition BoardISRIC: Intelligence, Surveillance, and Reconnaissance Integration CouncilITAB: Information Technology Acquisition Board

Large Group Plus

Large Group– Principals plus

Small GroupMembership

varies with issues

CJCS“The Tank”

Military Advice

Supporting Tiers of GovernanceFebruary 2011

DSCSecAf*

*Large Group and DAWG normally include a number of additional principal staff advisors

Principal DAWG Members *

Deputy Secretary of Defense, Vice Chairman JCS

Under Secretaries of Defense or Deputy

Deputy Chief Management Officer

Military Department Under Secretaries

Service Vice Chiefs

Vice CDR USSOCOM

*DSC chaired by SecAF as DoD EA for Space