Information Papers

Army In-Sourcing

What is it?
The reality of today’s defense environment is one of limited resources and growing requirements, forcing the Department of Defense (DoD) to re-evaluate how to efficiently meet this growing demand. In an effort to better allocate manpower resources and dollars, Congress addressed these topics in the National Defense Authorization Act (NDAA) for FY 08. The NDAA08 requires that “consideration” be given to using DoD Civilian employees to perform new functions, and also those functions currently performed by contractors that could be performed by DoD Civilians. In addition, “special consideration” to in-source shall be given to:

On the whole, in-sourcing has the potential to bring significant savings to the Army by encouraging it to hire more Civilians, rather than relying on the often times more costly alternative of soliciting contracts to perform work.

What is the Army doing now?
Over the past few years the Army has recognized the need to promote in-sourcing and gain tighter control over the contractor workforce. To date, new Army policies have resulted in the in-sourcing of 585 positions at an average savings of $48K per year per position. In an effort to gain visibility and accountability over service contracts, the Army also developed a web-based system called the Contractor Manpower Reporting Application (CMRA). CMRA allows the Army to track service contracts to a level of detail never before achieved. In addition to CMRA, the Army has put out its own guidance in support of NDAA FY 08. This has led to the creation of an in-sourcing checklist, requiring Army organizations to verify that they met all the terms of NDAA FY 08 when making pertinent manpower decisions.

What continued efforts does the Army have planned for the future?
More resources have been dedicated towards making CMRA more user-friendly and to ensuring that it produces high-quality, usable data. Efforts to promote the benefits of in-sourcing throughout the entire Army community will continue.

Why is this important to the Army?
In-sourcing will result in significant savings to the Army. Additionally, in-sourcing will allow the Army to gain more oversight and control of critical functions, resulting in better management practices and a higher degree of accountability.