Cost Savings in United States

Interagency Reform Cost Savings in relation to Building Civilian Interagency Capacity for Missions Abroad

This section discusses generally the subject of Can Interagency Reform Produce Cost Savings? in the above context, offering the key elements of the topic.There is a widespread expectation that interagency reform would save money in the long run. The 2010 Quadrennial Diplomacy and Development Review explained the basis for that belief. Discussing plans to develop interagency cooperation on counterterrorism, rule of law, strengthening justice, interior, and health ministries abroad, the Quadrennial Diplomacy and Development Review stated: “In the long-term, partnering with and building on the assets of other agencies will offer net policy gains to the U.S. government and reduce overall program implementation costs. This is a significant departure from current practice, one that we believe will save money, improve the U.S. government’s ability to advance American interests, and strengthen State’s engagement across the interagency [61].” Nevertheless, some analysts believe that the cost effects of interagency reform are difficult to assess. Many analysts with experience in interagency missions expect that cost savings would accrue by eliminating the duplication of effort. The savings from duplication of effort would depend, however, on the size of the mission. Since many interagency missions involve relatively small numbers of people, cost savings on personnel may not be high.

More Details about Can Interagency Reform Produce Cost Savings?

Various analysts point to other possible ways in which interagency reform may produce savings:

• By facilitating the sharing of information technology, which is often expensive;

• By increasing collaboration and coordination at the planning and budgeting stages, resulting in an improved allocation of resources, because without a coherent strategy even the most efficient operational interagency processes and collaboration are often ineffective [62];

• By hastening the date when U.S. military forces can be removed from postconflict areas and replaced with less-costly civilian personnel [63].

There may be additional costs associated with the process of interagency reform. As mentioned above, some analysts believe that savings will accrue from greater efficiency and effectiveness in missions if conducted by well-resourced civilian agencies with the resident expertise and appropriate core mandate. Nevertheless, there undoubtedly will be upfront personnel investment if the appropriate agency currently lacks the necessary capabilities to perform the mission. Some may question whether streamlining interagency processes and resources would indeed produce savings if personnel were not regularly called into action to exercise interagency skills.

Note: Based on the Building Civilian Interagency Capacity for Missions Abroad: Key Proposals and Issues for Congress Report.

Resources

Notes and References

1. 61 Quadrennial Diplomacy and Development Review, p. 34.
2. 62 For instance, the 2006 Quadrennial Defense Review stated that improved planning guidance to set priorities and clarify national security roles and responsibilities would “reduce capability gaps and eliminate redundancies.” 63 “We spend so much because we are so inefficient and incapable at home with planning and resourcing and commanding and on the ground with execution,” according to United States Institute of Peace expert Beth Cole. E-mail correspondence with Beth Cole, Director of Intergovernmental Relations, United States Institute of Peace, August 29, 2011.

Further Reading

• Heritage 2005—Heritage Foundation, Winning the Peace: Principles for Post-Conflict Operations, by James Carafano and Dana Dillon, June 13, 2005.
• Heritage 2008—Heritage Foundation, Managing Mayhem: The Future of Interagency, by James Carafano, March 1, 2008.
• Lamb/Marks 2009—Lamb, Christopher J. and Edward Marks,), Chief of Mission Authority as a Model for National Security Integration, Institute for National Strategic Studies (INSS), October 2009.
• SIGIR 2010—Special Inspector General for Iraq Reconstruction. Applying Iraq’s Hard Lessons to the Reform of Stabilization and Reconstruction Operations, Arlington, VA, February 2010.
• Smith 2010—Dane F. Smith, Jr., Organizing American Peace-Building Operations, Praeger (in cooperation with the Center for Strategic and International Studies), Santa Barbara, CA, 2010.
• ACTD 2007—U.S. State Department Advisory Committee on Transformational Diplomacy, Final Report of the State Department in 2025 Working Group, 2007.
• Brookings/Center for Strategic and International Studies 2010—Brookings Institution and Center for Strategic and International Studies. Capacity for Change: Reforming U.S. Assistance Efforts in Poor and Fragile Countries, by Norm Unger and Margaret L. Taylor, with Frederick Barton, April 2010.
• Buchanan/Davis/Wight 2009—Buchanan, Jeffrey, Maxie Y. Davis, and Lee T. Wight, “Death of the Combatant Command? Toward a Joint Interagency Approach,” Joint Force Quarterly, no. 52 (1st quarter 2009).
• PNSR 2010—Project on National Security Reform, The Power of People, 2010.
• QDR 2006—U.S. Department of Defense, Quadrennial Defense Review Report, February 6, 2006.
• CGD 2004—Center for Global Development Commission on Weak States and U.S. National Security. On the Brink: Weak States and U.S. National Security, May 2004.
• CGD 2007—Center for Global Development. The Pentagon and Global Development: Making Sense of the DoD’s Expanding Role, November 2007.
• Center for Strategic and International Studies/Association of the U.S. Army 2003—Center for Strategic and International Studies and Association of the U.S. Army, Play to Win: Final Report of the bi-partisan Commission on Post-Conflict Reconstruction, January 2003.
• QDRIP 2010—Quadrennial Defense Review Independent Panel, The Quadrennial Defense Review in Perspective: Meeting America’s National Security Needs in the 21st Century, The Final Report of the Quadrennial Defense Review Panel (Report mandated by Section 1031(f) P.L. 109-364, the John Warner National Defense Authorization Act for FY2007, as amended by Section 1061, P.L. 111-84, the National Defense Authorization Act for FY2010), 2010.
• RAND 2009—RAND, Improving Capacity for Stabilization and Reconstruction Operations, by Nora Bensahel, Olga Oliker, Heather Peterson, Sponsored by the Department of Defense, Santa Monica CA, 2009.
• CWC 2011—Commission on Wartime Contracting in Iraq and Afghanistan, Transforming Wartime Contracting: Controlling costs, reducing risks, Final Report to Congress, August 2011.
• DSB 2004—Defense Science Board, Summer Study on Transition to and from Hostilities, December 2004.
• Flournoy/Brimley 2006—Flournoy, Michele A. and Shawn W. Brimley, Strategic Planning for National Security: A New Project Solarium, Joint Forces Quarterly, Issue 41, 2nd quarter, 2006.
• Schnake/Berkowitz 2005—Schnake, Kori and Bruce Berkowitz, National Security: A Better Approach, Hoover Digest, No. 4, 2005.
• SFRC 2007—U.S. Congress, Senate Foreign Relations Committee, Embassies Grapple to Guide Foreign Aid, 2007.
• NDU 2004—National Defense University, Transforming for Stabilization and Reconstruction Operations, 2004.

  Pope 2010—Pope, Robert S., Lt. Col., USAF, “U.S. Interagency Regional Foreign Policy Implementation: A Survey of Current Practice and an Analysis of Options for Improvement”, (A Research Report Submitted to the Air Force Fellows Program, Air University, Maxwell Air Force Base, AL, April 2010), belfercenter.ksg.harvard.edu/Files/Pope_10_AFF_Reearch_Paper_FINAL-2022.pdf.

• PNSR 2008—Project on National Security R
  eform, Forging a New Shield (Report mandated by Section 1049, P.L. 110-181, National Defense Authorization Act for FY2009), November 2008.
• PNSR 2009—Project on National Security Reform, Turning Ideas Into Action, September 2009.
• Stimson/American Academy of Diplomacy 2011—The Henry L. Stimson Center and The American Academy of Diplomacy, Forging a 21st-Century Diplomatic Service for the United States though Professional Education and Training, February 2011.

  U.S. Commission on National Security/21st Century (known as the Hart/Rudman Commission), Phase III Report, Road Map for National Security: Imperative for Change, February 15, 2001.

• Williams/Adams 2008—Williams, Cindy and Gordon Adams, Strengthening Statecraft and Security: Reforming U.S. Planning and Resource Allocation, MIT Security Studies Program, Occasional Paper, June 2008.
• Cerami 2007—Cerami, Joseph R. “What is to be Done? Aligning and Integrating the Interagency Process in Support and Stability Operations, in The Interagency and Counterinsurgency Warfare: Stability, Security, Transition, and Reconstruction Roles, edited by Joseph R. Cerami and Jay W. Boggs, U.S. Army War College, Strategic Studies Institute, Carlisle Barracks, PA, December 2007.

  Council on Foreign Relations 2005—Council on Foreign Relations, In the Wake of War: Improving U.S. Post-Conflict Capabilities, Report of an Independent Task Force, Task Force Report No. 55, September 2005.

• Council on Foreign Relations 2009—Council on Foreign Relations, Enhancing U.S. Preventive Action, Council Special Report No. 48, October 2009.
• QDR 2010—U.S. Department of Defense, Quadrennial Defense Review Report, February 1, 2010.
• QDDR 2010—U.S. State Department and United States Agency for International Development, The Quadrennial Diplomacy and Development Review, Washington, DC, December 2010.
• Center for Strategic and International Studies 2004—Center for Strategic and International Studies, Beyond Goldwater-Nichols Phase I, 2004.
• Center for Strategic and International Studies 2005—Center for Strategic and International Studies, Beyond Goldwater-Nichols Phase II, 2005.
• Center for Strategic and International Studies 2007—Center for Strategic and International Studies, Integrating 21st Century Development and Security Assistance, 2007.
• RAND/American Academy of Diplomacy 2008—RAND and the American Academy of Diplomacy, Integrating Instruments of Power and Influence: Lessons Learned and Best Practices, Report of a Panel of Senior Practitioners, 2008.
• RAND/American Academy of Diplomacy 2006—RAND and the American Academy of Diplomacy, Integrating Instruments of Power and Influence in National Security: Starting the Dialogue, Conference Proceedings, 2006.