Comprehensive Pentagon Bureaucracy Reform and Reduction Act

Last week we wrote about a proposal by Congressman Thornberry, the Chairman of the House Armed services Committee, to cut $25 billion from DoD support agencies (agencies he refers to as the "fourth estate" (see Proposal to Cut $25 Billion from DoD Support Agencies). This proposal will in all likelihood become part of the 2019 NDAA (National Defense Authorization Act).

Another aspect of the proposed legislation that we didn't include in our prior discussion is the impact on the Defense Contract Audit Agency (DCAA) and the Defense Contract Management Agency (DCMA). These "fourth estate" Agencies are not on Thornberry's target for elimination but are specifically called out for consolidation.

Specifically, the proposal calls for DoD to conduct a review of the functions of the Defense Contract Audit Agency and the Defense Contract Management Agency (DCMA) to determine whether there are functions being performed by either Agency that could more appropriately be performed by the other Agency.

The review shall include

1. a determination of whether there are functions performed by either Agency that could more appropriately be performed by any other organization or element of the Department of Defense including the military departments or commercial providers.
2. an assessment of the potential benefits and challenges associated with combining the Agencies into one agency with oversight for defense contracting.

That doesn't sound too drastic, does it? A little tweaking here and there to satisfy the intent of the legislation should it become law. But consider Part 2 of the proposal.

By March 1, 2020, the Secretary of Defense shall submit to the congressional defense committees a report that includes

• the results of the review

• a plan to combine the functions of DCAA and DCMA into one agency by not later than January 1, 2021.

There's no qualification on that second bullet. It requires a plan to combine DCAA and DCMA. It does not say depending on the results of the review, consider whether it is beneficial to combine DCAA and DCMA. It requires a plan to combine the two Agencies as if the efficacy of such combination has already been established.