HOUSE ARMED SERVICES SEEKS TO TRIM DOD “FOURTH ESTATE”

A total of seven central DOD offices would be entirely eliminated and 28 would be streamlined under plans being considered by the House Armed Services CommitteeThe effort comes as Congressional leaders seek to channel defense dollars more directly to service branches and war fighter support and away from a bureaucracy that has, according to the Wall Street Journal grown by 242% since 1988.  The changes have the strong support of House Armed Services Chairman Mac Thornberry (R-GA) and have definite implications for DOD contractors.  First, trimming DOD central office operations would change both who and how many contractors sell to, with a stronger emphasis evolving to service branchesSecond, companies that support many of the targeted offices with contractor personnel, IT, or other solutions may see their business diminish.  Targeted offices include the Defense Information Systems Agency (DISA) and the Defense Human Resources Activity (DHRA).  The Journal also believes that the Office of Economic Adjustment and even commissaries would be good targets.  The recommendations are expected to be included in the FY’19 Defense Authorization bill.  Contractors that sell to DOD should monitor these developments and ensure that their input is heard during the decision-making process.