CBO: DoD Could Save $6B Through Military-to-Civilian Post Replacement

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army stock photoCongressional Budget Office report says the Defense Department could generate annual savings of up to $5.7 billion if DoD replaces a number of uniformed soldiers doing support functions with civilian staff.

CBO said Dec. 2 the value is based on a method that would have the department change 80,000 of about 340,000 military positions into civilian jobs.

Analysts estimate one civilian replacing one military service member will reduce DoD’s annualized personnel costs by $3.1 billion and a two-for-three replacement will decrease costs by $5.7 billion.

CBO noted it took into account DoD employee salaries, accrual payments and in-kind benefits such as education and healthcare in order to calculate the potential cost savings, which the agency says may take at least five years to achieve.

The method could also help the Office of Personnel Management as well as the departments of Veterans Affairs, Treasury and Education to save money, the report states.

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