The Army Research Laboratory Alternative Organizational and Management Options (1994) / Chapter Skim
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7 COST, PERSONNEL, AND PROCUREMENT COMPARISONS OF OPTIONS
7 COST, PERSONNEL, AND PROCUREMENT COMPARISONS OF OPTIONS
Pages 121-136
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From page 121... ...
This baseline, labeled "ARL-97," represents a significant reduction in support staff, compared with the current ARL staffing, in accordance with the Army Science and Technology Master Plan (Department of the Army, 1992a) and the directives of the Defense Base Closure and Realignment Commission (1991~.
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From page 122... ...
Achieving the Army's vision of becoming a worId-cIass laboratory requires the ability to attract and retain exceptional scientists and engineers, whose increased productivity would make up for the lower number of personnel afforded under the options in which pay for these exceptional personnel was higher. PREVIOUS STUDIES A number of previous studies were reviewed to gain insight into what past analyses concluded about the costs of converting government research laboratories to either NIST-like or GOCO operations.
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From page 123... ...
The bulk of this conversion cost was for retirement pay buyouts, which, according to DOD instructions, is not a proper cost of conversion, since those costs will be paid at some time regardless of whether the conversion occurs. It is understood that, during the conversion process, disposition of retirement pay entitlements would have to be determined; for example, in conversion to a GOCO organization, such pay could fund the contractor's retirement fund for government employees hired by the contractor.
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From page 125... ...
The costs to obtain contractors in the ARL Multicenter vary according to the number of contractors being sought. The following calculation procedures and per capita costs were used for the conversion cost comparisons: The number of scientists and engineers affordable under each option was determined by dividing the operating budget by the fully loaded cost per S&E; the fully loaded cost is the average salary multiplied by a loading factor to account for all costs for the laboratory (including support staff and facilities)
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From page 126... ...
Costs to obtain a contractor to perform and/or manage research activities for the ARL Multicenter and GOCO ARL options were based on the $7.5 million average of a range ($5 to $10 million) for competing to obtain a single contractor.
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From page 127... ...
o ·~ o Rae _ J i · _1 o V]
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From page 130... ...
The recurring annual operating budgets for all options were assumed to be the same as the current budget; therefore, the one-time conversion costs are not recoverable over time except through potential improvements in operating efficiency or research productivity. Table 7-l is a summary of the estimated staffing levels and conversion costs for the four options.
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From page 134... ...
ant} the NIST options, there are to be no changes in the Federal Acquisition Regulation, and the only efficiency possible is to follow procurement practices that have proven successful at other places. The GOCO ARL option should provide the most flexible contracting procedures and the fastest completion time on all contracting actions, since when true relaxation of, or creative deviations from, the procurement process rules is permitted, the process will move more smoothly and the end result will be more rapic} completion of all contracting actions.
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From page 135... ...
1993. NIST evaluation of a Hay Management Consultants report on Total Compensation Comparability (January 10, 1992~.
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From page 136... ...
Briefing by Michael Heeb for the Advisory Commission on the Consolidation and Conversion of Defense Research and Development Laboratories, July 17-~S, 1991. Office of the Secretary of Defense.
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