Pentagon advisory board: close JFCOM, axe 5100+ employees in Hampton Roads
Posted By HR Partnership on July 23, 2010
From InsideDefense.com: Defense Business Board: Reducing Overhead and Improving DoD’s Business Operations, July 22, 1010
Presentation (PDF 43 pages, 1.2MB) and Statement of Arnold Punaro, Task Group Chair (PDF 25 pages, <1MB)
Pentagon advisory board recommends axing Joint Forces Command
Command employs more than 5,100 in Hampton Roads
From Peter Frost, Daily Press, July 23, 2010
A Pentagon advisory board is recommending that the Defense Department eliminate the Norfolk-based Joint Forces Command as part of a plan to significantly cut defense spending.
The Defense Business Board, the Pentagon’s independent board of economic and business advisers, made the preliminary recommendation Thursday in a presentation at the Pentagon.
Joint Forces Command is the linchpin of Hampton Roads’ blossoming high-tech industry, a segment that provided almost 4,500 high-paying jobs and pumped about $365 million into the local economy in 2007, according to 2007 Old Dominion University report.
“It would be absolutely devastating” for Hampton Roads if Joint Forces Command would be shut down, said Andrew Sinclair, a program manager for the Hampton Roads Partnership, a nonprofit made up of business leaders and elected officials whose goal is to promote regional development.
“We’ve put a lot of effort and resources into building Hampton Roads into a modeling and simulation cluster, and it has all been built around Joint Forces Command,” he said Friday. “There are a number of businesses that are here only because of Joint Forces Command. If it were to go away, all of our effort to grow the modeling and simulation industry would really be for naught.”
In addition to its headquarters in Norfolk, Joint Forces operates a large facility in northern Suffolk known as the Joint Warfighting Center, and has outposts in Newport News, Nevada and Florida.
It employed more than 3,000 contractors, 1,491 military personnel and 1,533 civilians as of May, said Lt. Cmdr. Robert Lyon, a spokesman. Those figures include personnel deployed throughout the world, he said.
The command is one of the Defense Department’s 10 combatant commands. Its missions include experimentation, training and developing advanced warfighting concepts for all branches of the armed forces. Its 2010 operating budget is $704 million, Lyon said.
Defense Secretary Robert Gates has tasked the Defense Business Board to recommend options for reducing the Pentagon’s spending with a primary focus on limiting overhead costs and making its operations more efficient.
Gates wants to cut about $100 billion of Pentagon spending over the next five years and reallocate that spending into combat personnel and the modernization of weapons systems.
In its report, the board found that Joint Forces Command has more contractors on its payroll than military and civilian personnel.
“Joint Forces Command appears to have its own multiple joint commands,” said Arnold Punaro, a retired Marine Corps general and former executive at defense giant SAIC who chairs the task force working on the recommendations.
Some of the organizations under JFCOM “appear to have almost the same name and mission,” Punaro said, according to a transcript provided by the board.
The board is expected to submit its final recommendations to the secretary in October.
The board’s recommendation drew a strong rebuke from members of Virginia’s congressional delegation, who said in a joint statement that closing Joint Forces Command “would be a step backward and could be harmful to the capabilities of the finest military in the world.”
The statement was signed by Sens. Jim Webb and Mark Warner and Reps. J. Randy Forbes, Glenn Nye, Rob Wittman and Robert C. “Bobby” Scott.
“There may be merit in tightening the structure of various commands … but it is illogical for (the board) to recommend that we undo what our nation has worked so hard to achieve in military jointness over the past two decades,” the statement said.
“I can see no rational basis for this to happen,” Warner told the Daily Press on Friday. “It seems wacky.”
Warner, who as governor championed the development of the modeling and simulation industry in Virginia, said Gates is correct in seeking ways to reduce duplicative programs and unnecessary spending.
But shuttering Joint Forces would appear to be in conflict with that goal, Warner said, because the methods the command employs help the government save money.
Instead of developing and testing emerging technologies and warfighting tactics in the field, the center uses modeling, simulation and experimentation to test those initiatives in virtual labs. The thought is, those methods reduce costs, save time and increase efficiency.
“That’s this command’s responsibilities,” Warner said. “It’s a no-brainer that this is one of the commands that could use more resources.”
Gov. Robert F. McDonnell, who is traveling in Germany, said in a statement: “I am very concerned … Joint Forces Command is essential in ensuring the various branches of our military work together seamlessly to beast safeguard our country and citizens.”
“Our Administration is working with Virginia’s congressional delegation to ensure that this important military asset remains open and headquartered in Norfolk,” he said.
If the command is shuttered, which Warner, Sinclair and others said remains highly unlikely, it could be a tremendous blow to the local economy.
When the operation was stood up about 15 years ago, it spawned the region’s burgeoning modeling and simulation industry, an expected growth area for the Hampton Roads economy.
When Joint Forces Command began planning its Suffolk center in the mid-1990s, it engaged Old Dominion University to help provide a workforce development program to support modeling and simulation activities and support research and development initiatives.
With that partnership, ODU’s Virginia Modeling, Analysis and Simulation Center was born, said John Sokolowski, VMASC’s executive director. ODU also became one of the first schools in the country to launch a graduate program in modeling and simulation.
“It has certainly continued to be a strong relationship,” Sokolowski said, noting that VMASC has a contract to provide technical support and research and development services to the command.
Over the past decade, dozens of businesses sprung up around the complex. Workers in the industry now earn an average salary of nearly $83,000, up 37 percent over 2004 and more than double the average Hampton Roads salary of $38,428, according to the ODU study. Jobs in the industry grew about 25 percent during the same period and are expected to rise an average of 14.5 percent a year through 2012.
About 43 percent of organizations responding to surveys for the ODU study indicated they began their Hampton Roads operations after the modeling center opened. As many as 80 companies have established local roots to gain a foothold in the sector, from small startups with two employees to giant defense contractors like SAIC, Northrop Grumman, Boeing, Raytheon and Lockheed Martin.
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Cuts may target USJFCOM
By Tim Reeves | Suffolk News-Herald
Published Saturday, July 24, 2010
U.S. Defense Secretary Robert Gates’ goal of cutting billions in defense spending during the next five years could come at the expense of Hampton Roads — and Suffolk might not be spared the pain.
On Friday, area leaders learned the Defense Business Board (DBB), an independent board of economic and business advisers to the Pentagon, is expected to outline suggested savings that would include the elimination of Joint Forces Command.
Eliminating the command, the DBB is expected to report, would not only save hundreds of millions of dollars each year in spending, but also would create a more efficient military.
Not surprising, the board’s expected conclusions, first reported on Thursday in “The Hill,” a newspaper serving Capitol Hill and government in Washington, D.C., drew quick reaction from members of Virginia’s congressional delegation.
“There may be merit in tightening the structure of various commands within the individual services that interact with the Joint Forces Command, but it is illogical for an independent Pentagon advisory board to recommend that we undo what our nation has worked so hard to achieve in military jointness over the past two decades,” the delegation, which includes U.S. Rep. J. Randy Forbes (R-04th) wrote in a Friday afternoon press release.
“It goes without saying that we should achieve efficiency in our nation’s defense budget, however doing it at the expense of the command that is leading the charge for the future of our military training efforts would be a step backward and could be harmful to the capabilities of the finest military in the world.”
In addition to the 2,200 jobs and trickle-down economic impact the Suffolk-based units with Joint Forces Command bring to Suffolk, the military agency also stands as the single largest corporate tenant in the city, holding down more than 642,000 square feet of office space in North Suffolk at an annual cost of $16 million.
“We echo the sentiments expressed today by our Congressional leaders that USJFCOM plays a critical role in our nation’s defense and homeland security efforts,” the city stated in a press release Friday afternoon.
“The City of Suffolk is proud and honored to have a significant component of this command within our community. The contributions that USJFCOM and the Modeling, Simulation and Analysis industry have made in Suffolk and the region are important to our economy and have numerous positive impacts throughout the Commonwealth and our nation.”
In addition to city and federal leaders, Gov. Bob McDonnell weighed in on the proposed closings during a trip to Frankfurt, Germany.
“I am very concerned over recent reports that the Defense Business Board, which advises the Secretary of Defense, may soon recommend the closing of the Joint Forces Command in Norfolk. The Joint Forces Command plays a pivotal role in our national defense and its closure would not be in the best interests of our nation,” he said.
“Our administration is working with Virginia’s congressional delegation to ensure that this important military asset remains open and headquartered in Norfolk.”
Media representatives with USFCOM declined to share any reactions.
“It would be inappropriate for us to comment on recommendations to the Secretary of Defense,” said Kathleen Jabs, USJFCOM chief of media operations. “U.S. Joint Forces Command is focused on providing support to the warfighter in both current and future operations.”
Combining all of USJFCOM’s facilities — including both those in Suffolk and Norfolk — the command has an operating budget of $703.9 million and a combined staff of more than 6,300 personnel. The command’s personnel figure includes military, civilian and contractor staffs.
http://www.suffolknewsherald.com/news/2010/jul/24/cuts-may-target-usjfcom/
Joint Forces Command has big local impact
By Leila Roche | Suffolk News-Herald
Published Monday, July 26, 2010
As the single largest corporate tenant and employer in Suffolk, Joint Forces Command makes an unmistakable impact on the city’s economy. But its influence on Suffolk can be measured in ways that are far more personal than any statistics could show.
With the Pentagon set to hear a recommendation that the command be closed down, those statistics are important: 2,200 jobs; more than 642,000 square feet of office space leased in North Suffolk at an annual cost of $16 million.
But for many in the area, the numbers that would become important in the event of the command’s closure are much smaller.
“People from [Joint Forces Command] make up about 85 percent of our lunch crowd,” Applebee’s manager Mike Morgan said. “Our lunch shift makes roughly $2,000 a day, so if you do the math that’s probably about $1,600 a day that comes from the center. But they have diverse taste. We get different groups on different days. They rotate to different restaurants in the area.”
On Friday, area leaders learned the Defense Business Board, an independent board of economic and business advisers to the Pentagon, is expected to outline suggested savings that would include the elimination of Joint Forces Command.
Robert Williams, CEO and president of Tri-City Developers, the developer of Harbour View, said that he believes the command center has served as a draw to many other government contractors because of its close proximity to the command center and other agencies in Hampton Roads.
Northrop Grumman, Cobham Defense Systems, Lockheed Martin’s Center for Innovation, Boeing and General Dynamics are a handful of government contractors that have built branches in Suffolk.
In turn, their presence has helped establish the area as one of the three hubs in the nation for modeling and simulation, a technology with its roots in military use.
Combined, the center, government contractors and associated industry fuel much North Suffolk business.
“They’re our bread and butter around here,” said Melissa Robles, Director of Sales at Courtyard Marriott and TownePlace Suites hotels. “Many hotels and restaurants rely on them. A large percentage of our business is reliant on the government. It’s because of our ideal location near [Joint Forces Command] and [other government contractors] that we have done so well and maintained our market shares during these times.”
While many of the regular employees don’t make use of the hotels in the area, the command center and government contractors do a large part to keep the hotels in business.
“They bring people in from all over the world,” said David Stiteler, director of sales and marketing at Comfort Suites. “They’re holding a three-hour seminar here tomorrow, and in the beginning of August they’re having a conference. They have 50 rooms for seven days. We have people stay with us for a few days up to three weeks.”
Since ground was broken in Harbour View, there more than 3,000 housing units, 8,000 jobs, a school and 35,000 residents have come to the area.
It boasts its own golf course; Rose and Womble headquarters; Towne Bank operations center; Harbour View Grand Theatre and shops; SunTrust Bank; medical facilities; a Super Walmart and additional retail space.
“There is no question that if something were to happen to Joint Forces Command it would be a blow,” CEO and President of the Hampton Roads Chamber of Commerce Jack Hornbeck said. “We have to take it with a grain of salt, though. There are many, many, many, many, many more steps that would have to be completed first. It would take years.”
http://www.suffolknewsherald.com/news/2010/jul/26/joint-forces-command-has-big-local-impact/
Defense cuts ignore mission
The Virginian-Pilot Editorial
© August 3, 2010
The issue Defense Business Board recommends eliminating Joint Forces Command.
Where we stand The advice ignores JFCOM’s critical missions, including coordinating war efforts of various military branches.
Joint Forces Command develops ways to fight future wars. But if the Pentagon takes up an advisory board’s recommendation, the command itself could be a thing of the past.
Last month, the Defense Business Board recommended eliminating JFCOM as part of a series of cost-reduction moves. Defense Secretary Robert Gates had asked board members to suggest how to cut $100 billion in overhead and inefficiencies over the next five years. The board replied that the Pentagon could slash that figure, if not more, through a series of moves starting with shutting down the Joint Forces Command.
The impact of such a decision would obviously pose problems in Hampton Roads, where
JFCOM has developed deep ties and become intertwined with the local economy. It is a catalyst for the military, for industry and academia, and it employs more than 3,000 contractors, about 1,500 active-duty military personnel and about 1,500 civilians, with some of those employees are scattered in locations outside Hampton Roads.
The relationships are equally important. People in JFCOM’s orbit are our friends and neighbors, coaches and deacons.
An assignment to JFCOM is widely considered a prerequisite for advancement in a Pentagon where military branches must work together more effectively and efficiently than ever before.
The command and its advanced modeling and simulation technologies have long been hailed as integral to the region’s effort to become a high-tech business and education hub. Beyond that,
JFCOM’s mission is also to find new ways to prosecute wars and to get the various military branches to do so in a coordinated way without being hostage to ancient rivalries.
That emphasis has grown substantially throughout the past two presidential administrations, a continuity that transcends politics.
In today’s economy, defense officials are right to search for ways to rein in spending that has grown out of control. But any move to eliminate an entire combatant command should be subjected to the heaviest scrutiny.
It’s possible JFCOM has expanded to the point that it no longer is as efficient as it once was. But that would hardly justify closing it. Unfortunately, the advisory board’s presentation doesn’t address the potential for making strategic cuts or other less draconian solutions.
It also doesn’t indicate who would assume the necessary duties and tasks now performed at and around JFCOM, nor does it appear to give consideration to the command’s location in a region that boasts an unrivaled concentration of representatives of the military’s five branches.
Any serious effort to alter or close JFCOM could be more than a year away, but ignoring early warnings would be as ill-advised as the region’s failure to react in 2003 to early rumbles about closing Oceana Naval Air Station.
Local and state officials must rally to gather the information and support they will likely need. Political leaders are already lining up to protect JFCOM’s mission. That’s a promising early response to ensure that a sound decision is made and that our regional – and national – interests are protected.
http://hamptonroads.com/2010/08/defense-cuts-ignore-mission
Best thing Bob could do is: (A TQM or bench marking survey on all DOD contractor positions: the importance / need for those positions and the contractors’ performance should be on a rating scale. Just like the “Two Bob’s” from the movie Office Space, all contractor’s positions should be evaluated: No matter what the Contractor’s position or job, their security clearance or what service they provide. No Contractor should be protected!
Gates should keep most or all of the super-smart Contractors working at DARPA.
A small percentage of the other’s, could be brought on as full time employees: GS modest salary, (a reduced salary!) with normal health and retirement benefits. If they have already retired once from the DoD, no additional health or retirement benefits will be paid. If you’ve already put money into the kitty for your Thrift Saving Plan once, you can no longer be a participant in TSP, if you’re already retired once from Government Service.
TSP is the BIG KILLER! Rehiring: double- dipping employees should be avoided if at all possible. Also, individuals who are on Personal Services Contractors or Without Actual Employment drain so much money out of our current U.S. Government Budget its unbelievable. It’s literally in the hundreds of trillions of dollars.
Most LM, GD, SAIC and NG Contractors are being paid too much (over double), the amount of money they should actually receive. In fact, most of these contractor’s are retired DoD employees or they are the son, daughter or spouse of an U.S. Government Employee. There’s a lot of nepotism going in many of these contractor positions and it’s flat out disgusting. I think a lot of the American public would be shocked if they knew how much nepotism was going on.
What I find most interesting about this survey is in the numbers.
http://hamptonroads.com/2010/08/what-work-carried-out-joint-forces-comma...
The most glaring being SAIC, which was included in the Engineering and Technical Services portion of this survey, but no where else below in the figures. Why is that?
If you look at the Rank / Company and Number of Contractor Positions in lines 2 through 10 you don’t see SAIC – do you?
Now compare the salary and number of contractors: in positions listed in lines 2 through 10 with row number One (1).
Why are we spending over one trillion dollars on Row Number One?
Obviously SAIC employees / contractors are receiving the highest paying salaries in the U.S. Federal Government. It would probably be prudent to evaluate and re-engineer these positions immediately, world wide! If they can’t reduce SAIC contractor’s salaries, the DoD should bring them on as GS, at a reduced salary or simply terminate their positions. In the end, this will save taxpayers hundreds of billions, I would guess tens of trillions of dollars.
With 186 JIFFY-COM Contractors in row #1 and SAIC being listed as the highest paid of all those contractors, it only makes sense to trim the fat now! Our government can’t afford to continue paying contractors like SAIC outrageous salaries for work that could be done for ½ the price!
Take action now Secretary Gates! More fat trimming is required!