Outsourced: Putting Civilians in US Troop Support Jobs Could Save Billions, Report Says

Converting 80,000 full-time jobs held by active-duty service members to civilian positions could yield between $3.1 billion and $5.7 billion per year in eventual savings, the nonpartisan CBO estimated. CBO analyzed compensation costs, including pay, health insurance, and other benefits that military personnel and civilian employees receive.

CBO estimates that if all the services adopted the approach of the service with the smallest percentage of military personnel in each commercial occupation, about 80,000 active-duty positions could be available for conversion,” the analysis said. CBO said the services could consider conversion as a way to help them comply with sequestration.

In 2012, approximately 340,000 active-duty service members were in commercial support jobs. Some of the jobs CBO looked at included positions in communications, finance and accounting, health services, and logistics. The amount of savings to the government from converting those jobs would depend on the department’s replacement ratio; the savings are greater if Defense replaces every three service members with only two civilians, for instance, rather than replacing everyone in equal numbers.

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