Department of Homeland Security

Eliminate Redundant Resource Requirements - Save 20% on Administrative Overhead

Currently, there are multiple functional roles that duplicate unnecessarily within DHS. Congress should provide the Secretary with the authority to reorganize support organizations to align in a more function efficient structure. Centralizing support organizations such as construction management, facilities management, fleet management, human resources, acquisition management, IT services and other roles that require non mission specific skill sets would decrease the operational overhead cost for DHS. Rather than employing 21 organizations to conduct the same/similar functions 21 different ways, DHS should centralize the back office functions into headquarters managed service centers. All components would utilize the DHS service centers to meet needs in these areas. This change to a more corporate model would provide the department with ability to leverage resources, eliminate inefficient activities, promote standardization of processes, streamline reporting to consistent formats that decrease the need for manual intervention and reduce the bloated support requirements to perform the mission of DHS. The consolidation would also further improve the department's position to shed high cost contractor support. The reduced requirement for contractor support would have a direct positive impact on operating budget requirements for future fiscal years. The savings achieved from the change in model would assist in meeting aggressive budget reduction goals while mitigating the impacts on field operations and strategic capabilities. Successful examples of such initiatives are readily available. Examples of other government and private sector organizations employing this strategy are equally available. MTA saved $10M per year through a consolidation of back office functions and private companies have realized substantial savings ( up to 20%) and performance improvements as well. Given the appropriate authority and will to execute, DHS could likely realize significant long-term savings through pursuit of this endeavor. Decision-makers should consider application of this strategy if efficiency is a key goal of government in this challenging economic environment. Research Sources: http://www.govtech.com/gt/571501 http://secondavenuesagas.com/2010/07/02/a-10-million-communications-consolidation-plan/ http://economictimes.indiatimes.com/WPP-eyes-huge-savings-in-consolidation/articleshow/5004570.cms http://www.turkishuschamber.org/index.php?option=com_content&view=article&id=2651%3Aa-new-plan-to-consolidate-back-office-operations-in-ny&catid=15%3Agreen-sustainable-economy&Itemid=49&lang=en http://www.computerworlduk.com/management/it-business/it-department/news/index.cfm?newsid=4138 https://www.chestercap.com/file/SPCFG%20Report_090701%20intro.pdf

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Idea No. 16229