AD AOSO Sfl RANO CORP SANTA *ON!C CA Sfl
AD AOSO SflRANO CORP SANTA *ON!C CACONTR ACT—HiNt PCR SON L Pd T 4E D( P AR T W qT OF DEIENSE. u1 SflJNCLAUZPZcDENDOATEFl L t3—80IIH
I0 22LIH H I.25 HID II l8MICROCOPY RESOLUTION TESTNA T I O NAtBUR EAUOFS tA ND ARDSCHART963 A
CONTRACT-HIRE .PERSONNEL IN THE DEPARTME NT OF DE FENSE0 )1/ooPerLR1 rd V.L AprO 77nr) CGU —- , 1 3 J Ljl AL/ rApproved f3r rDistr ibution U r ; & .: : ‘ .- “a” 82?—- -- .II--- .,- . u.uir jL i ——- -
The Rand Paper SeriesPapers are issued by The Rand Corporation as a service to its professional staff.Their purpose is to facilitate the exchange of ideas among those who share theauthor’s research interests ; Papers are not reports prepared in fulfillment ofRand’s contracts or grants. Views expressed in a Paper are the author’s own,andare not necessarily shared by Rand or its research sponsors.The Rand CorporationSanta Monica,Ca li fornia 90406- . ri — :7
CONTRACT—H IRE PEBSONN !L IN THE LEPAR THENT OP DEFENSEbyRichard V .1. CooperThe Ran d C or p ora t ion1700 Main StreetSanta Monica , California 901406I. INTRCEUC’rIoNContract-hire personnel are an ivrportant element of overall DoDman power resources. (1]Alt hough there are numerous anecdotesregarding the usefulness of contract—hires in both peacetime andwartime situations , ther e are p resen t ly no a v ai l a b le es tima tesregarding the numbers of contract-hire personnel or their costs.‘ The purpose of this paper is th4e.eto establish a generalmethodology, using presently available data from the for estimating the numbers of contract—hirepersonnel and their costs.As viii become clear in the discussionbelow , the m eth o d olo g y is rela t ivel y cru d e , b u t d oes p rovide someinsight into the historical trends in the use and costs ofcontract—hires.” refer s to those personnel who work forflT’i r mnstr act-hiresc i v i l ian f th a t are un d er con trac t to the DoD t o p rovide specificservices su ch as m ain tenance , kitchen d u t ies , management expertise,etc. Thus , al t hou gh they Ia no t work direc tly for the DoD , they d op rovide im p or tan t serv ices t ha t , in the absence of contract—hires,woul d have to b e ren dere d by d irectl y hire d eirployees (military orcivilian).-I ;, j --j.-. —.- “* .i .—- .- -‘1%- —-r. - w —4
—2—II.SOURCES OP THE !STIMAT!SThe methodology developed here is based on the assumption thatcontract—hire personnel costs are incorpo rated into the “OtherServices ” ob lect classification of the military services (includingthe reserve components) Operations and Maintenance budgetaccounts. [1J,(2) A s shown in Table 1 , complete data on this oblectclassifica tion according to Service and reserve component are notavailable prior to 7S4 However , the amount of exclusions arerela tively small , so that column (lie ) of Table 1 provides estimates ofthe “Other Services ” ob ject classification of the Operations andMaintenance account for DOD as a whole.The basic problem in using the “Other Services” objectclassifica tion in the Operations and Maintenance budget account isthat this object classification includes a variety of differentspecific obligations such as obligations for indirect—hire personnel ,t h e In d u s t r i a l Fund s , contract services, and “other ” . For example,Table 2 shows that about 700 million was obligated tot indirect—hirepersonnel in FY76 out of the “Other Services” objectclassification. (3),(’ jflTSimilarly , Ta b le 2 also shows tha t obligationssuc h , this approach excludes contractors engaged in development , etc.research ,[ 2) Base d on “direct obligations ” only——i.e., excluding“reimbursa ble obligations. ”[3]”Indirec t-hire ” personnel are those foreign nationals workingin overseas U.S. installations , who are actually employed by the hostcoun try, but whose costs are reimbursed by the DOD.(II) At the same time , i it all indirect-hire costs are included int h e “Other Services ” ob ject classification of the O M budget, asdiscussed later . w- . - - ---- -
—3—.—‘0CUi-i .-iC- iJ,-4 04J E 4 c’i.i. .0I-ICinN -.C’)4-4O (1) 1-4I ijUr4 41U,—l.0CI-I0’. 4 NinIinCO‘.0Nin IIIIIinNi-iCO“00%N—‘r-01-41J ,-4N ‘.0C’) NN‘-4Nr-4in00’.C’),-4-.tNN 4‘-I.I 00i-I0r‘-4N-4 COC’)NN,-4-4‘.0CO0’.inc-ii- I NC’.in,-4UC U C,-4 i J ri.- .-. .-s0 . —.0%N-e-4Cl)—‘ .0”.II‘ Z - . )IIIIIIUIii I.,.CCOo 4 1-4 4-)(0)I.C.IIIIin-4I ‘ .—‘om .s,-Ir-I4IC’).-I4.CZ- -. .— , ��Ii-INu-l0—‘i-IC’)C—.N. .u-I,—l‘4u-IC—N0’.u-Ii-I4’)in ‘N‘.oC’)inm0N‘.4‘-4Nin.-tNN’.o(‘1 00C’)i-IC ��.4u-I QQC’)in00,.li-Iu- Cr.I—.‘0C,-l0U14-I —. ,.IC’) ’.-.,—lN014 —‘ 0U0E) 4 4 Nu-I1.4C144 -441C N‘.04 N0u-i CCN0- tN 0’.‘0 inC’)C,.1N(440,—‘0i—IO NU.‘0inN-d5I—Ii 4 U) 0 00-* 0%o ’ . O C ’ ) c-i c’.i-I N N N NincOu-I0U‘*C’)0Uu-I u-I0 0) 4UUCi-Ii-I‘-40U000%N1-IC ’ , C.)C’)0inin0’. s-II’)COu-I‘ . O O‘0 ‘.4N i-Iu-I(. 1U)———i-I-U). ,4 -* —‘—‘ ‘‘1’). —.— ‘ . .-,U)U)01-4O ’in4-4.inI’)—r-4 --.0’.0%Q C f l—(4.4.—‘ ‘i-I0U)N—‘U CC C0 -4U UU) .I‘.0. 1-4C C1-I‘0 UCO Cl)ij C ,-4U X -.ICr4r- ’ 0 H O C C f lI0‘ 1Ii‘ ‘—OCO(4-lC’)0’ “OQ)0’.IininZNorinNI-’C.0iJCO‘-4o-. -er—Iin0’.N—-.t0‘-4rin.‘0‘‘Cr-- inr-.0’,-4 —‘ti-l ‘ u-I ,-I0Us-I0UNU)‘0P.C-.I0 NI0C .0U0U)CN C - NI- -- . . [1-— ——--,- — — — — - - —.- - ,.-.—- - .——--—-- .— --—-,.— - - -—i—---L
—4—Table 2Components of the “Other Services” Object Classification( million)FY76Indirect HiresFY78738 827 Industrial Funds52545874Other (Contracts , etc.)496875121096 0142 13To talSOURCE : Budget of the U.S. Goverrunent 1978.d.—- - — --.-
amounting to some 5.25 billion out of th is object classification werefor the so—called Industrial Funds in P776.[l]Thus, out of a nearly 11 billion obligation for “Other Services”in the OSM budget in FY76, nearly 6 billion was for indirect—hiresand purchases from the Industrial Funds.The problem of determining how muc h of the “Other Services” accountis attributable to the cost of contractor supplied services to the DoDis further complicated by the fact that some Industrial Funds purchasesare purchases of contract services.The next section thereforedescribes a very approximate methodology for estimating the numbers ofcontract—hire personne l and their coat , based on the “Other Services ”object classification in the OSM budget.E 1 “1 dustrial Funds ” are defined in the FY78 Jgd et gf theQ,j Gpietnmen as follows : “Department of Defense Industrial Fundsfinance activit ies performing industrial or commercial type functionson a reimbursable basis. These programs are supported by ordersreceived at the activities from a variety of service accounts whosefunds provide the working capital for their completion. Industrialfund activities are then reimbursed by customers through progresspayments for the full production costs.”‘I- ‘ # - — - - — ,-- ‘- r-- - ‘ -- —.,—-— .— — — ——---- ——————————— — —— — — — — —— - — —- s -
—6—III.METHOD CF ES’IINAT IOMFrom the above discussion , the “Other Services ” ob jectclassification in the Operations S Maintenance bud get accountsprovides the ba sic source material for estimating the amount of costsfor services provided by civilian contractors to the DoD.There are ,however , two problems associated with the use of this ob jectcla sification for estiwatinq the amount of costs for contractorsupplied services . The first is that the “Other Services”object classification of the OSM budget includes some of the costs forindirect—hire civilian personnel (as shown earlier in Table 2).second , this object classification also includes some expendituresrelated to the Services ’ purchases f row the Industrial Funds.Therefore, to obtain an estimate of the amount of contract servicespurchased by the DoD from the “Other Services” object classificationin the 055 budget , we need to provide for a way of purging thisaccount of the noncontract por tion related to these two elements.Because the FY78 budget (which includes data for FY76, FY77,and FY78) was the first to provide a breakdown of the “OtherServices” object classification in the 055 budget, it is not possibleto measure bow much of indirect-hire Costs are included in this objectF r fiscal 1976 and 1978, though ,Table 3 shows that about 70 percent of the total costs expended onclassiftcation for earlier years.indirect—hire personnel are included in the “Other Services” objectclassification of the 055 budget.For example , of the total 1.1billion spent for indirect—hire s in FY76, about 700 million wasIrecorded in the “Other Services” object classification of the OSMrI5---- w - .-.‘ i ,—j -
—7—Table 3Indirect—Hire Civilians in the“Other Services” Object Classification( millions)Indirect—Hires ( IH)TotalaFYIn “OtherServices IbTota i C(2)(3)(4)259 2239 OU E2754Non—Ill252 323457172457004373741870459357886 710960102224907381300a“Other Services”82714213548 3675913386OASD(Comptroller)N uthers in roman type , from Table 2. Numbers initalics estimated as 75 percent of column (1).From column (14) , Table 1.d ,4) equals column (3) less column (2). iumn (CHr- E’— --.-.-. . --— , -. “. .- ., - -—-- ‘
-‘8—b u d g e t - — t h a t is , t h e remaining 400 million expe nded on indirect—hirec i v i l i a n personnel was recorded elseubere in the Dot budget.Because s i m i l a r breakdowns are not ava i l a b l e prior to FY76, theamou n t of e x p e nd i t u r e s for i n d i r e c t — h i r e civilian personnel included inthe “Other Services ” ob ject classification in theestimated.085budget mus t beAccordingly, these expendi t ures were assumed to be equal to70 percent of t h e t o t a l indirect-hire personnel costs—-about the samep r o p o r t i o n as actually evidenced during FY76 and FY78 (as shown incolumn (2) of T a b l e 3 ) .This procedure therefore enables us to purgethe “Other Services ” object classification of the 050 budget trouti n d i r e c t - h i r e personne l costs, the results of which are shown in column(4) of Table 3.The second problew centers on the inclusion of some purchasesfrom the Industrial Funds in the “Other Services” objectclassification of the 085 budget . The questions then become, first,bow much of the “Other Services” appropriation consists of purchasesfrom t he Industrial Fund and , second , bow much of these purchasesshould be purged in order to create an estimate of total contractcosts.[ 1]To begin w i t h , column (1) of Table 4 shows the total DoD-wideIndustrial Fund purchases since 1960.As can be seen, these purchasesrepresent a significant share of the CoD budget——about 12 billion(almost 12 percent of the DOD budget) will be appropriated forIndustrial Fund purchases in Fiscal 1978.By comparing column (1) forf l f liit is, not all purchases from the Industrial Funds shouldbe purged , since some of these ar. for th. purchase of contractor—supplied services to the DoD.- .— ---—
—9—Table 4Industrial Funds( millions)IndustrialFunds 5Materials &aS upp l iesNetbRecorded in “OtherSe rv ices ” Account CYear(1)(2)(3)1960 2566 429 2137 208584825254197812104237897265874abSOURCE :(4)316943684394Budget of the (1.5. Government, various year8 .coiumn (3) equals column (1) less column (2) .CNumbers in roman type : from Table 2. Numbers initalics: estimated as 60 percent of column (3) .I
—1 0—FY76and FY78 w i t h t h e a m o u n t ofpurchases fromthe Industrial Fundincluded in the “Other Services ” object classificat ion in the 085b u dg et sho w n ea r l ier in Ta b le 2 , (and shown here in column( 1 ) ) ,it isclear tha t no t all p urchas es from t he In d ustr ial Fund are inclu d ed inthis object classification.The problem therefore becomes one ofprojecting how much of purchases from the I n d u s t r i a l Fund are inclu dedin t h i s p a r t i c u l a r object classification (again since there are nobreak downs of t h e “O t h e r Services ” object classification prior to FY76).To obtain such estimates, we f i r s t assume that none of theI n d u s t r i a l Fund purchases for materials and sup p lies are inclu d e d int h e “O t h e r Services ” object classification of t h e 080 budget.Column (3)of Table 1 t h u s shows the Dot —wide purchases from the i n d u s t r i a lfunds less those purchases related to the cost of materials andsupplies.Noting that the Industrial Fund purchases included in the“Other Services ” object classitication of the 065 budget for FY76 andF Y 7 8 (the only y ears for w h ich da ta were available) amount to about 60percent of the total non-materials and supplies purchases from theIndustrial Fund for the DoD, we therefore constr uct an estimate of theamoun t of purchases from the Industrial Funds included in the “OtherServices ” ob j ect c l a s s i f i c a t i o n of t h e 065 budge t as being 60 p ercentof column (3) in Table 11 f o r years prior to fiscal 1976.of this are shown in columnThe results( ) .The above data thus provide us with a basis for estimating theamount of costs expended for contractor—supplied services to the DoD.Sp e c i f i c all y , an upper bound of the cost of contractor-supplied servicesto the DoD which are included in the “Other Services” classification ofthe 055 budget is given as the tota l appropriation for this object —1 T.’- r - .-
—11—Table 5Contract Costs: Total( millions)Year19601964MaximumEstimate5(1) 2 3902523MinimumEstimatebAve rage C(2)(3) 1108 17499191721196854832314389819706759239 1442519727045265148481974886 u (1) equals column (4) from Table 3.bCOlumn (2) equals column (1) here lesscolumn (4) from Table 4.Ccl(3) equals a simple average ofcolumns (1) and (2) .I,-w— — — — -—
—1 2 -classifica tion less the amount of indirect—hire costs which areinclu ded in this object classification (i.e., column (4) from Tab le3).This is shown in column (1) of Table 5. Implicit in this“maximum ” estimate is that all purchases from the Industrials Fundsthat are included in the “Other Services” object classification are infact for the purchase of contractor-supplied services[1)A reasonab le “minimum ” estimate of the cost of contract serviceswould seem to be this maximum estimate less the amount of purchases fromthe Industrial Funds included in this object classification (i.e.column (1) from Tab le 5 less column (4) from Table 4). This is shown ascolumn (2) in Table 5. In other words , implicit in this “minimum ”estuate is that none of the Ind ustrial Funds purchases recorded in the“Other Services ” object classification of the 055 budget are for thepu chases of contract serv ices.The basic problem t h e r e f o r e boils down to one of determining bowmuch of the purchases from the Ind ustrial Fun d represent the costs ofc o n t r a c t o r - s u p p l i e d services to the Dot , since as noted earlier, theInd u s t r i a l Funds represent a v a r i e t y of different activities——many(but not all) of which are costs of contract services.That is,neither the “maximum ” or “minimum ” estimates seem entirelyappropriate.Lacking any bettet information on what proportion of thepurchases from the Industria l Funds represent costs for[T) T t is, this assumption means that other types of purchasesfrom the Industrial Funds would be recorded elsewhere in the budget. ‘w w*. m —w. - , —---i
- 13contractor-supplied services, we t h er e f o r e “estimate” the total costof contractor-supplied services to the Dot (as recorded in the “otherservices” ob ject classification of the 055 budget) as simply theaverage of these “maximum ” (column (1) in Table 5) and “minimum ”(column (2) in Table 5) estimates. The results of this procedure aregiven in column (3) of Table 5. In otbsr words , the estimates shownin column (3) are based on the assumption that halt the Industrial Fundpurchases recorded in the “Other Services ” ob ject classification of the065 budget are purchases of contract services.Thu s, using data from the Bwdaet of th e D S . Governaeg, we areable to provide very rough estimates of t h e amount of contractorsupplied services to the DOD. - - - - ;— -—- , - J 4&
—IV.CON’IRA C T— H IRE14—PERSONNELA ND COSTSWe can use the estin’ates of the total cost for contractor—su pp lie d ser v ice s to the Dot shown in Ta b le 5 to cons t ruc testimates of the costs of the contract—hireparticular service activities. engaged in theseSpecifically, assuming that contractpersonnel make up about 80 percent of total contractor—supp lie dcosts (1 )—-that is, about 20 percent of these costs are assumed to befor nonlabor inputs to the contractor—supplied services——we cantherefore estimate the total costs Icr contract—hire personnel asequalling 90 percent of the total contract costs shown in Table 5.Usin g the same app roach an d n omencla ture as shown in Ta ble 5, we cantherefore obtain naximum , min imum , and “best guess” es t ima tes of thecost of contract-hire personnel as siuply 80 percen t of the totalcontract costs shown in Table 5.andThese are given in columns (1), (2),(3) , res pec t iv e ly, of Table 6.To estimat e the number of contract-hire personne l correspondingto these costs, we assume that contractors pay their personnel a totalcompensation (i.e., pay and fringe benefits) equal to the nationalaverage , as shown in column (4) of ‘ lat l e 6.Assuming t h a t contractorson average earn a 10 percent profit on the cost of labor used infulfillment of contractor-supplied services, we can therefore estimateflTP the amounts to aboutU.S. economy as a whole, the amoun t paid to labor70 percent of the total amount paid to all factors ofproduction . Service industries , however , tend to he more laborintensive.Secause contractor-supplied services are likely to be of a“service—industry ” type , it does not seem unreasonable to assume thatlabor costs make up about 80 percent of total contract costs [orservices provided to the DOD by contractors.--- .—- -—----- ----- —-— :. - . - -----—- -4 .— VA-
—15-.Table 6Estimates of Contract—Hire Persoimel and CoatsContract—Hire Costs ( mil.)aMax.Year19601964( 1) 7810709Mm .(2)Avg.( 3)Avg comp/yearb( thous.)(4) ntract—Hires (0005)cMax.Mm .Avg .(5)(6)(7) 886 1399 5408461455536aColumus (1) , (2) , and (3) equal columns (1), (2), and (3) fr om Table 5 ,respectively, times 0.8.blncludes pay and frin ge benefits. SOURCE : Bureau of Labor Statistics.c 01 8 (5), (6), and (7) equal columns (1) , (2) , and (3), respectively,divided by column (4) times 1.1.I - - — — - - -— — - — -‘-- iA .r----- - —-
— 16—the total numbe r of contract-hire personnel used by the DoD (relatedto contractor—supplied services funded out of the “Other Services”object classification of the 055 budget) as the total amount ofcontract-hire costs divided by the product of average compensationtimes 1 1. Maximum , minimu ., and “best guess” estimates of thenumbers of contract—hire personnel therefore follow directly from thecorresponding estimate of the costs of contract—hir e personnel,theresults of whic h are show n in columns (5) through (7) of Table 6.[ 1]5) equals column (1) divided( IJ T it is, for example, column ( by the product of column (4) times 1.1-r j — — --—— .- -- —-- -— .--------—--—
—1 7—IV.CON CLU SIONSFrom the preceding discussion , we know that estimates ofcontract-hire personnel numbers and Costs are obviously veryimprecise.Yet , data from the dggt oL t s g . S.GQ sEnmen t canbe used to c o n s t r u c t very rough estimates and t ime trends in thenumbers of such personnel and their costs.Boreover, the conclusionsthat can be drawn from these data do squa re reasonably well with thegeneral impressions held by a number of defense officials andpolicymakers , as gained through informal conversations with thesem di viduals.Perhaps the most dominant trend to emerge from the data shown inTable 6 is the thrust toward greater use of contract—hire personnel inthe DoD since the Vietnam War.That is, the Vietnam War appears tohave spurted a significant increase in the numbers of contract—hirepersonnel used by the DOD in fulfilling many DOD mission objectives.U pon finding that contractors could provide valuable services to theDoD, the military services apparently have continued to utilize contracthires at approximately the same levels as they did during the heightof the Vietnam War , and a c t u a l l y seem to have increased t h e numbe r ofsuch personnel since the War.Thus, we find that the numbers ofcontract-hire personnel used in the post—Vietnam environment appear tobe about 1 1/2 to 2 times larger than they were during the pre—Vietnamenvironment. In other words, there seems to have been a siqnificantshift towards greater utilization of contract—hire personnel by theDoD—-and it is in this particular observation that these results seem to JJ 11 1
— 18—reflect the impressions held by a number of defense officials andanalysts.To conclude, obtaining exact estimates of the numbers ofcontract—hire personnel or their costs is difficult,if noti.possible. but available data can be used to generate estimates thatseem to be generally sensible and should provide a basis for evaluatingfuture treads in the utilization of contractor-supplied services tothe DoD.:::-1
— 18—reflect the impressions held by a number of defense officials andanalysts .To conclude, obtaining exact estimates of the numbers ofcontract—hire personnel or their costs is difficult, if notimpossible.But available data can be used to generate estimates thatseem to be generally sensible and should provide a basis for evaluatingfuture treads in the utilization of contractor-supplied services tothe DoD.-%- -, I E .r s WI { --4 4
‘The purpose of this paper is th 4e.e to establish a general methodology, using presently available data from the for estimating the numbers of contract—hire personnel and their costs. As viii become clear in the discussion below, t
ohio casualty corp lam research corp unitrin inc w r grace & co new oge energy corp kerr mcgee corp lsi logic corp southwest airlines co jds uniphase corp tech data corp jabil circuit inc public service co of new mexico international multifoods corp liz claiborne inc radioshack corp kellwood co pentair inc hughes supply inc teco energy inc hub .
SFL - Thomas Fareng - T 33 (0)1 42 97 27 00 - t.fareng@fonciere-lyonnaise.com Evidence - Grégoire Silly - T 33 (0)6 99 10 78 99 -gregoire.silly@evidenceparis.fr www.fonciere-lyonnaise.com . PRESS RELEASE . Paris, 11 February 2021 . SFL – 2020 Annual Results . The financial statements for the
VP, Audit Services Tenet Healthcare Corporation CAE Spotlight December 6, 2012. 2 Tenet By the Numbers 500,000 inpatient visits annually . Corp ITGC Remediation Corp BCC (FY2012) Corp ITGC (FY2012) Corp BCC (FY2012) Corp ITGC (FY2012) Corp BCC Corp ITGC Acquisitions / Divestitures Group 1
university of manchester 24 april 2009 2 . louisiana pacific corp big lots inc northwestern corp caremark rx inc wackenhut corp ultramar diamond shamrock corp . union pacific corp astoria financial corp washington post co reebok international ltd public service enterprise group inc
METU-SFL English Proficiency Examination A Guide for Test-takers Sample Items and Practice Material (for the Online Version of the Exam) School of Foreign Languages METU This booklet has been prepared to familiarize the candidates with the types of tasks in the exam and provide practice material.
B116 Training Management / Conduct Individual Training Instruct a skill level 1 task, during a team level training session, using the Army’s 8-step training outline. B117 Soldier for Life – Transition Assistance Program (SFL–TAP) Discuss the Soldier for Life – Transition Assistance Program (SFL-TAP) and prepare a basic resume .
Jan 26, 2021 · CMER will have an informal meeting consistent with using the guided decision making process. AMPA and CMER co-chairs will work together to carve out path forward on DR. Harry Bell will send revised SFL DR proposal to E. Munes by 2/8/21. E. Munes will distribute to the SFL Template
Academic Writing Certain requirements pertain to work written by students for higher education programmes. If you are a new student or perhaps returning to study after a break you may feel that you need help with developing appropriate skills for academic writing. This section is designed to help you to meet the requirements of the School in relation to academic writing. Continuous assessment .
