The Department of Defense will meet the aggressive efficiency savings goals set by Secretary Panetta, according to the Pentagon. At a press conference held at the Pentagon, DoD Press Secretary George Little and Captain John Kirby, USN, told reporters the department will achieve savings of almost $20 billion in FY2012.
The FY2012 budget includes $150 billion in savings from improved business practices and lower overhead over the period FY2012-2016. Little told reporters that the military departments and defense components have told Panetta that these savings can be achieved.
Little said Panetta has also called for another $60 billion in savings in the FY2013 budget to be achieved in FY2013-2017. “The department is currently developing implementation plans to reach those goals, and we are confident they can be realized.”
He underscored a point that has been made by DoD leaders since the FY2013 budget was released in February: DoD will focus on achieving more discipline in business operations, including audit readiness and internal controls. According to Little, “there are more than 300 separate efficiency initiatives.” He cited examples showing that these initiatives are achieving results throughout DOD in FY2012.
The Office of the Secretary of Defense (OSD) is realizing $17 million savings from eliminating redundant financial reporting and cutting service support contracts. The Air Force’s use of commercial flight-planning software to make flight adjustment in real time will save $45 million, he said. Navy’s consolidation of wireless contracts will save $10 million and the Army will realize $9 million from streamlining installation management and cutting regional headquarters from six to four. Eliminating the Joint Forces Command will save $292 million in FY2012, he said.