NSPS—GAO Analysis
The Comptroller General of the United States, David Walker, and the staff at the Government Accounting Office (GAO) has analyzed the development of NSPS. In published reports and testimony before Congress, Mr. Walker has criticized the manner in which DoD has failed to effectively manage the design and implementation of NSPS.
The following are observations noted by the GAO:
- The process used to advance major initiatives is critical to a successful transformation. DoD faces a significant challenge in implementing NSPS. The inclusion of employees and their representatives must be meaningful, not just pro forma.
- By including employee representatives in the process, DoD can improve policies and procedures, increase acceptance within the workforce, and minimize potential adverse effect on morale. Unfortunately, the final regulations do not identify a process for the continuing involvement of employees and other key stakeholders.
On July 16, 2007 GAO released a report supporting Defense unions’ contention that DoD has been underestimating the cost of implementing NSPS. According to the report, GAO found that DoD’s November 2005 estimate that it will cost $158 million to implement NSPS “does not include the full cost that the department expects to incur as a result of implementing the new system.”
Not included in the estimate for implementing NSPS from 2005 to 2008 are many of the direct costs associated with implementing the personnel system, such as the full salary costs of all the civilian and military that directly support NSPS activities department wide. The estimate also excluded indirect costs of implementing NSPS, such as general administrative services, general research and technical support, rent, and other operating expenses.
The report also concluded that the total amount of funds the department spent on NSPS during fiscal years 2005 and 2006 cannot be determined because DoD has not established an effective oversight mechanism to ensure that all these costs are fully captured. Because of this extreme mismanagement, we will never know how much DoD spent trying to implement NSPS, although the total amount likely runs into the billions of dollars.
DoD’s missteps in implementing NSPS have also caused another significant problem. Delays caused by the agency overstepping their authority have brought us close to the labor-management relations sunset date, as prescribed by Congress. The agency was given until November of 2009 to implement the labor-management relations sections of NSPS, after which, the agency would revert back to current labor law unless the program is reauthorized. It seems a gross waste of DoD resources to spend billions developing a personnel system that is likely to be scrapped in a matter of months. Doing so would also be a huge disruption and source of confusion to department employees.