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This electronic representation of RAND intellectual property is provided for non-commercial use only. Unauthorized posting of RAND electronic documents to a non-RAND website is prohibited. RAND electronic documents are protected under copyright law. Permission is required from RAND to reproduce, or reuse in another form, any of our research documents for commercial use. For information on reprint and linking permissions, please see RAND Permissions. This product is part of the RAND Corporation monograph series. RAND monographs present major research findings that address the challenges facing the public and private sectors. All RAND mono- graphs undergo rigorous peer review to ensure high standards for research quality and objectivity. Air Force Materiel Command Reorganization Analysis Final Report Robert S. Tripp, Kristin F. Lynch, Daniel M. Romano, William Shelton, John A. Ausink, Chelsea Kaihoi Duran, Robert G. DeFeo, David W. George, Raymond E. Conley, Bernard Fox, Jerry M. Sollinger Prepared for the United States Air Force Approved for public release; distribution unlimited PROJECT AIR FORCE The research described in this report was sponsored by the United States Air Force under Contract F49642-01-C-0003. Further information may be obtained from the Strategic Planning Division, Directorate of Plans, Hq USAF. Library of Congress Cataloging-in-Publication Data is available for this publication. ISBN: 978-0-8330-7624-3 The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND’s publications do not necessarily reflect the opinions of its research clients and sponsors. R® is a registered trademark. © Copyright 2012 RAND Corporation Permission is given to duplicate this document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND documents to a non-RAND website is prohibited. RAND documents are protected under copyright law. For information on reprint and linking permissions, please visit the RAND permissions page (http://www.rand.org/ publications/permissions.html). Published 2012 by the RAND Corporation 1776 Main Street, P.O. Box 2138, Santa Monica, CA 90407-2138 1200 South Hayes Street, Arlington, VA 22202-5050 4570 Fifth Avenue, Suite 600, Pittsburgh, PA 15213-2665 RAND URL: http://www.rand.org To order RAND documents or to obtain additional information, contact Distribution Services: Telephone: (310) 451-7002; Fax: (310) 451-6915; Email: [email protected] Preface The Budget Control Act of 2011 (Pub L. 112-25) directed cuts in defense spending. For the U.S. Air Force, these cuts equate to initial reductions of 16,500 civilian authoriza- tions, with nearly 4,500 coming from Air Force Materiel Command (AFMC). Given the requirement to reduce civilian manpower, the AFMC leadership team undertook a major reorganization to achieve the required reductions while implementing the Office of the Secretary of Defense product support business model, which provides cradle- to-grave weapon system program management. Congress directed the Secretary of the Air Force to have a federally funded research and development center review the proposed reorganization. The purpose of this analysis is to provide an independent review and assessment of the reorganization proposed by AFMC as required by the National Defense Authorization Act for 2012. The resulting assessment focuses on how the reorganization would affect product development (including support-system design) and operations support (depot maintenance and Air Force supply chain opera- tions). In addition, it suggests alternatives and other areas for further AFMC process improvement. The research reported here was sponsored by the Secretary of the Air Force and conducted within the Resource Management Program of RAND Project AIR FORCE as part of the project “Evaluation of AFMC Reorganization.” This monograph will be of interest to all weapon system life-cycle management stakeholders, including members of Congress, congressional staffs, and senior leaders in the U.S. Department of Defense, Air Force, and other services and their staffs. RAND Project AIR FORCE RAND Project AIR FORCE (PAF), a division of the RAND Corporation, is the U.S. Air Force’s federally funded research and development center for studies and analyses. PAF provides the Air Force with independent analyses of policy alternatives affecting the development, employment, combat readiness, and support of current and future air, space, and cyber forces. Research is conducted in four programs: Force Moderniza- iii iv Air Force Materiel Command Reorganization Analysis: Final Report tion and Employment; Manpower, Personnel, and Training; Resource Management; and Strategy and Doctrine. Additional information about PAF is available on our website: http://www.rand.org/paf Contents Preface ................................................................................................. iii Figures .................................................................................................vii Tables .................................................................................................. ix Summary .............................................................................................. xi Acknowledgments ................................................................................. xvii Abbreviations ........................................................................................ xix CHaptER ONE Background, Purpose, and Analytic Approach ................................................. 1 Background ............................................................................................. 1 Purpose .................................................................................................. 3 Analytic Approach ..................................................................................... 4 Organization of This Monograph .................................................................... 6 CHaptER TWO Air Force Materiel Command’s Organizational Structure.................................... 7 Current Organizational Structure ................................................................... 7 Proposed Reorganization .............................................................................. 7 The Air Force Life Cycle Management Center ................................................... 9 The Air Force Sustainment Center ...............................................................10 Summary of Air Force Life-Cycle Management Under the Proposed Reorganization .......13 CHaptER THREE Manpower Comparison: Current Baseline to Proposed Restructure ......................15 Data and Background Information .................................................................15 Changes in the Disposition of Major Functions ..................................................16 Disposition of Manpower Authorizations, by Functional Grouping .........................16 Disposition of Manpower Authorizations, by Organization ..................................17 Authorization Cuts at the Organizational Level of Detail ...................................... 20 Manpower Savings Resulting from Authorization Cuts ..........................................21 Summary of Manpower Disposition Under the Proposed Reorganization ................... 22 v vi Air Force Materiel Command Reorganization Analysis: Final Report CHaptER FOUR Life-Cycle Management Alternatives: An Assessment of Two Options ................... 23 The Current Organizational Construct ........................................................... 24 The Proposed Organizational Construct .......................................................... 27 Implications of the Proposed Reorganization for Support to the Warfighter and Life-Cycle Management .........................................................................29 Operational-Level Goals ...........................................................................29 Opportunities and Challenges Created by the Proposed Reorganization ....................31 Air Force Materiel Command Mitigation Strategies ...........................................33 Assessment of the Reorganization’s Effect on Warfighter Support and Life-Cycle Management Effectiveness and Efficiency ................................................ 34 CHaptER FIVE Options for Improving Air Force Life-Cycle Management ..................................37 Option 1: Improve Enterprise Support-System Design Planning .............................. 38 Option 2: Enforce Enterprise Support-System