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Statement of Brenda S. Farrell, Dir., Defense Capabilities and Mgt., GAO, before the Nat. Security Personnel System Task Group, Defense Business Board. DOD is in the process of implementing this human capital system, and according to DOD, about 212,000 civilian employees are currently under the system. On Feb. 11, 2009, however, the House Armed Services Comm. and its Subcomm. on Readiness asked DOD to halt conversions of any additional employees to NSPS until the admin. and Congress could properly address the future of DOD's personnel mgt. system. On March 16, 2009, DOD and the Office of Personnel Mgt. (OPM) announced an upcoming review of NSPS policies, regulations, and practices. According to DOD, the dept. has delayed any further transitions of employees into NSPS until at least Oct. 2009 -- pending the outcome of its review. Furthermore, on May 14, 2009, the Deputy Sec. of Defense asked the Defense Business Board to form what has become this task group to review NSPS to help the dept. determine, among others things, whether NSPS is operating in a fair, transparent, and effective manner. This statement focuses on the performance mgt. aspect of NSPS, specifically (1) the extent to which DOD has implemented internal safeguards to ensure the fairness, effectiveness, and credibility of NSPS, and (2) how DOD civilian personnel perceive NSPS and what actions DOD has taken to address these perceptions. It is based on the work GAO reported on in their Sept. 2008 report, which was conducted in response to a mandate in the Nat. Defense Authorization Act for FY 2008. This mandate also directed GAO to continue examining DOD efforts in these areas for the next 2 years.
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