Friday, March 14, 2008

Review Panel Recommends Military Pay Changes

By Jim Garamone
American Forces Press Service

March 13, 2008 - The 10th Quadrennial Review of
Military Compensation has suggested a new way of measuring military pay, proposed that more money be spent on special and incentive pays, and recommended restructuring the basic allowance for housing. Retired Air Force Brig. Gen. Jan D. "Denny" Eakle -- former deputy director of the Defense Finance and Accounting Service -- chaired the commission and briefed the media on the recommendations yesterday.

This was just the first release of the review, Eakle explained. A second volume, covering retirement and quality-of-life aspects of compensation, will be released in the summer.

Eakle said that whenever a QRMC convenes, the first question it examines always is whether
military pay is comparable to pay in the private sector. The second is whether military pay is adequate to maintain the force, she said.

The 9th QRMC, released in 2002, concluded that for pay to be comparable, it had to be at or above the 70th percentile of the age- and
education-matched civilian population, Eakle said. Military pay followed this guidance through 2006, and targeted pay raises in 2007 and 2008 ensure DoD exceeds the 70th percentile for enlisted personnel. Officer pay exceeded this goal in 2006 and has kept pace since then, she said.

Eakle said the current review studied whether the comparability formula is adequate. "Basically, what we wanted to do is create something which would give
military members a better means of assessing how their pay stacked up in comparison to civilians," she said.

Regular military compensation was the measure used in previous QRMCs. This included basic pay, subsistence, housing and a measure of savings on federal income tax. "But there's a lot more to military compensation," she said.

The new system begins with regular
military compensation and adds state and FICA tax advantages. Military personnel also do not pay out-of-pocket health care costs, such as co-pays, she explained, and all these folded into the panel's calculations. The new measurement is called military annual compensation, and it sets the 80th percentile as the standard for military compensation comparability with the private sector. Pay for enlisted personnel and officers meets this standard, Eakle said.

Congress revamped the special incentive pay categories from more than 60 to eight, Eakle said. "That, in fact, was a recommendation of this QRMC, and it was enacted before the publication of this document, Eakle said. "And so now it's up to the department to begin the process of drafting out the instructions to adopt this."

The review recommended increasing the size of the special and incentive pay budget. "Today we have an S&I
budget that, quite frankly, is rather small in comparison to the size of the other pay accounts," she said. "And because of that, it doesn't give the service as much flexibility for arranging pay."

The review examined the basic allowance for housing and a previous recommendation to do away with the without-dependent housing rate. The review also proposed changes to the partial-BAH program.

Because some single servicemembers are making as little as 52 percent of the pay their peers who have families receive, the QRMC recommends raising that floor to no less than 75 percent at first, and to 95 percent over time. But the gap between married and single BAH should not disappear, Eakle said.

"What we have determined is that if it were completely closed, we would in fact then be over-compensating the singles, because of the difference in things like utilities and insurances," she explained.

The review did recommend changes for singles living on post or aboard ships. "Today, a young man or woman who is living in the barracks (or) living on a ship forfeits their entire housing allowance for doing that, and we don't think that that's necessarily the most equitable way to operate," Eakle said.

The proposal is a new variable, partial BAH based on the value of the quarters the servicemembers occupy. The DoD standard is a one-plus-one dormitory -- meaning each individual having a bedroom and a shared cooking facility and bathroom. "That's very much like sharing a two-bedroom apartment," Eakle said. "And so for those people, we think that the BAH that they are giving up is actually pretty close to what they should be paying for it."

For those living with three roommates, the review believes they are overpaying for their accommodations by forfeiting their entire housing allowance, and "we would recommend that they get a rebate on their BAH."

"The range we are talking about is going from zero for people in the one-plus-one dormitories, up to a 25 percent rebate for those who are living in ships with hot-bunk arrangements," she said. "So you'd be able to give people something in recognition of the fact that housing is not at the DoD standard."

The review also recommended staying with time-in-service pay tables. A previous commission, the Defense Advisory Committee on
Military Compensation, recommended replacing the time-in-service pay table with a time-in-grade pay table. This would reward pay for performance, the commission members believed.

"We looked very seriously at this recommendation, but we've chosen not to accept it and are not going to endorse the change," Eakle said.

She said it would exacerbate pay differentials, adding: "We don't think that's in keeping with our spirit of being fair and equitable to all members."

Military Medical Care on Right Track, Wounded Warriors Say

American Forces Press Service

March 13, 2008 - The majority of severely wounded warriors say the
military health system is on the right track, and is doing all it can and should to provide their care, a new Zogby International survey shows. The poll of 435 servicemembers wounded in Iraq or Afghanistan shows 77 percent are satisfied the military health system is doing all it can to meet their health care needs, and nearly 60 percent said their trust and confidence in the system has increased since they began receiving medical treatment for their wounds.

The poll was conducted Feb. 27 and commissioned by the Tricare Management Authority, the Defense Department office that manages the Tricare
military health plan. Six questions were asked. Those questioned were randomly chosen. The polling firm Zogby International has been tracking public opinion since 1984 in North America, Latin America, the Middle East, Asia and Europe.

A wide majority across all age groups agreed the system is doing all it should to meet their needs. Among men, 78 percent agreed, while 69 percent of women said the system is doing all it should.

Servicemembers home longer from their deployment were more likely to feel the
military health system was doing all it should be doing to meet their needs. Among those who had been home six months or less, 64 percent felt the system was doing all it could. But 84 percent of those who had been home between 19 and 24 months, and 93 percent of those who had been home 25 to 36 months were more pleased with the health care they were receiving, saying they thought the system was doing all it should be doing.

The survey shows that, while a majority of all age groups were satisfied with and confident in the
military health system, the older the servicemember, the more satisfied they were. Among those 18 to 35 years old, more than half said their trust and confidence in the system was improving. Fifty-nine percent of those 35 to 44 years old and 79 percent of those ages 45 to 54 said the same.

Servicemembers who had returned home from deployment within the last six months were least likely to feel their trust and confidence in the health system had increased, but trust and confidence grows over time, and then dissipates somewhat among those home longer than three and a half years.

Those surveyed were all members of "warrior transition units" who required at least six months of complex medical care. The units, established in June, were designed to more effectively deal with such health care needs. The warrior transition units were created after media reports of poor conditions for some injured soldiers at Walter Reed
Army Medical Center here.

When asked about whether they believed conditions had improved since those widely publicized reports, 71 percent said they think the
military health system is now on the right track, while 10 percent said it is not, and another 19 percent said they were unsure.

Among enlisted personnel, 69 percent said they think the
military health system in on the right track since the Walter Reed reports, compared to 76 percent of officers who said the same thing.

A majority of the injured servicemembers said their expectations for recovery have increased since they returned from their deployments.

Standardization Program Presents Annual Achievment Awards

Three individuals and five teams have won awards from the Defense Standardization Program Office (DSPO) for outstanding contributions to the Department of Defense last fiscal year. Since 1987, DSPO has recognized individuals and organization that have effected significant improvement in quality, reliability, readiness, cost reduction, and interoperability through standardization.

The DSP mission is to identify, influence, develop, manage, and provide access to standardization processes, products, and services for warfighters and the acquisition and logistics communities. In addition, the program promotes interoperability and assists in reducing total ownership costs and sustaining readiness.

Individual award recipients for 2007 are James Todd, engineer,
Army's program manager for training devices (PM TRADE), Program Executive Office, Simulation, Training, and Instrumentation, (PEO STRI), Orlando, Fla. Todd was instrumental in the development and implementation of standards for the Future Army Systems Integrated Target. Jack Mills, director, Naval Air Systems Command, Fleet Readiness Center, Executive Information Systems Division, implemented a standardized structure and process for software development and life-cycle management of the Naval Air Systems Command's Depot Maintenance System. Also recognized was Thomas Hess, electronics engineer, Defense Supply Center Columbus. Hess made outstanding contributions to revisions of the military performance specification for microcircuits. The revised document addresses the current engineering and technical needs of the space community, military agencies, and DoD equipment manufacturers for robust military and space grade microcircuits.

Team winners include Naval Air Systems Command, DoD Standard Terminal Automation Replacement System (STARS) Operation Support Facility (OSF). By implementing lessons learned and applying the standardized process procedures, the
Navy team has been able to provide OSF support to the entire STARS community more quickly and with fewer resources than would be possible if each service had its own OSF. Members of that team include Kathi Chesser, Adam Osborne Jr., Mark Minik, Kenneth Cole, and Michael Corrigan.
Also named as a team winner is the
Air Force Materiel Command, Aeronautical Systems Center, Engineering Directorate, Aerospace Fuels Certification Military Handbook team. This team documented the certification process in Military Handbook (MIL-HDBK-)510, aerospace fuels certification. The new process is expected to reduce conversion to no more than three years for all weapon systems, ground support equipment, and refueling infrastructure and significantly reduce conversion costs. Members include James Edwards, Virgil Regoli, Martin Lentz, William Likos, and Edwin Wells.

Other winning teams are all from the Defense Logistics Agency, including the Defense Supply Center Columbus, improved power ratings for standard chip resistors covered by
Military Performance Specification MIL-PRF-55342 Team. This joint DLA/Army team overhauled the military performance specification for standard chip resistors to incorporate improved power ratings. As a result of this effort, DoD can upgrade the existing part designs to improve power ratings rather than introduce new parts into the logistics systems. Members include Andrew Ernst, Jeffrey Zern, and Jeffrey Carver.

Also from the Defense Logistics Agency, Defense Supply Center Richmond, was the team for implementation of polyurethane antenna gaskets and tape to mitigate corrosion of DoD aircraft. This joint DLA/Coastguard team implemented the use of new anticorrosion polyurethane gasket material and tape for antenna and floorboard applications on
military aircraft. The use of this new material reduces or eliminates corrosion of antennas and airframes; simplifies removal of components; and allows for extension of maintenance cycle, which gives personnel more time to perform other maintenance tasks. Members are Ned Pruitt, Craig Matzdorf, Dick Kinzie, Steve Carr, and Larry Cornwell.

Another winning group is the Defense Logistics Agency's Defense Energy Support Center team for standardization of fuels, equipment,
training, and laboratory operations. This team standardized critical fuels equipment and consolidated fuels training for military services and theater combatant commands. The team published a joint performance specification for collapsible fuel tanks, assisted with revising Society of Automotive Engineers Aerospace Standard 5877, developed policy to reduce the number of different fuel filter elements, and merged lesson plans and consolidated fuels quality training. Members are Larry Woolverton, Shawn Simon, Richard Iwanski, James Eberhardt, and William MacLaren.

For further information on the Defense Standardization Program please visit the DSP web site at
http://www.dsp.dla.mil.

MILITARY CONTRACTS March 13, 2008

DEFENSE LOGISTICS AGENCY

The Produce Connection,
Miami, Fla., is being awarded a maximum $9,979,371.60 fixed price with economic price adjustment, total set aside contract for fresh fruit and vegetables support. There are no other locations of performance. Using services are Navy, Air Force, and USDA school customers. This proposal was originally solicited on DIBBS with two responses. Contract funds will not expire at the end of the current fiscal year. Date of performance completion is Sep. 13, 2009. The contracting activity is Defense Supply Center Philadelphia, Philadelphia, Pa., (SPM300-08-D-P034).

Burlington Apparel Fabrics,
Greensboro, N.C. is being awarded a maximum $8,838,492.00 fixed price with economic price adjustment, indefinite delivery and indefinite quantity contract for polyester/wool, tropical, khaki cloth. Other locations of performance are Va. Using service is Navy. This proposal was originally Gateway solicited with 1 response. Contract funds will not expire at the end of the current fiscal year. Date of performance completion is Mar. 19, 2009. The contracting activity is Defense Supply Center Philadelphia, Philadelphia, Pa., (SPM1C1-07-D-1515).

NAVY

ITT Industries Avionics Div., Clifton, N. J., is being awarded a $111,540,000 modification to a previously awarded firm-fixed-price contract (N00019-05-C-0054) to exercise an option for the Fiscal Year 2008 full rate production Lot V of 66 AN/ALQ-214(V)2 On-Board Jammer Systems for the F/A-18 E/F Aircraft. This option combines purchases for the U.S.
Navy ($103,090,000; 92 percent), and the Government of Australia ($8,450,000; 8 percent) under the Foreign Military Sales Program. Work will be performed at various locations for all other vendors throughout the U.S. (43.5 percent); Clifton, N.J., (34.4 percent); East Syracuse, N.Y., (8.8 percent); San Diego, Calif., (8.3 percent); and Rancho Cordova, Calif., (5 percent), and work is expected to be completed in Dec. 2010. Contract funds will not expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Raytheon Systems Co., McKinney, Texas, is being awarded a $44,253,923 firm-fixed- price order under a Basic Ordering Agreement (N00164-06-G-8555) for Multi-spectral Targeting Systems (MTS)
Navy configuration, including 41 Turret Units and associated line items for the Government in support of Army and Navy aircraft and H-60 helicopters. The MTS is a forward looking infrared system for the aircraft. The MTS provides real-time imagery selectable between infrared and day TV, as well as a laser designation capability. Work will be performed in McKinney, Texas, and work is expected to be completed by Oct. 2010. Contract funds in the amount of $12,206,250 will expire at the end of the current fiscal year. This contract was not competitively procured. The Naval Surface Warfare Center Crane, Crane, Ind., is the contracting activity.

Northrop Grumman Electronic Systems, Inc., Melville, N.Y., is being awarded a $37,277,361 modification to previously awarded contract (N00024-04-C-4304) to exercise an option for the procurement of seven AN/SPQ-9B Radar Sets with Traveling Wave Tube Amplifier (TWTA) transmitter upgrades, three combat interface kits for CEC, and four combat interface kits for AEGIS. The AN/SPQ-9B Radar is an over the horizon Anti-Ship Missile Defense Radar whose function it is to provide enhanced capability to detect, track and respond to very low flying altitude threats, small radar cross section, high-speed targets. This option will provide SPQ-9B Radars for installation on several ship classes, including CVN, CG-47,
Coast Guard, and LPD-17. Work will be performed in Melville, N.Y., (85 percent); Norwalk, Conn., (14 percent); and Baltimore, Md., (1 percent), and work is expected to be completed by Oct. 2010. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington Navy Yard, D.C., is the contracting activity.

Raytheon Co.,
Tucson, Ariz.., is being awarded a $30,985,622 modification to a previously awarded firm-fixed-price contract (N00019-04-C-0569) for the Fiscal Year 2008 procurement of 68 Tomahawk Composite Capsule Launching System (CCLS) Capsules and 20 SSGN/SSN CCLS Retrofit Kits. Work will be performed in Tucson, Ariz.., and work is expected to be completed in Jan. 2010. Contract funds will not expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Solpac, Inc., DBA Soltek Pacific, San Diego, Calif., was awarded $18,998,000 for firm-fixed-price task order #0007 under a previously awarded contract (N68711-03-D-7509) on Mar. 12, 2008, to design and construct a combined arms and military operations urban terrain training facility at the MAGTGTC
Marine Corps Air Ground Combat Center, Twentynine Palms. Work will be performed in San Bernardino, Calif., and work is expected to be completed by Sep. 2009. Contract funds will expire at the end of the current fiscal year. Three proposals were received for this task order. The Naval Facilities Engineering Command, Southwest, San Diego, Calif., is the contracting activity.

Lockheed Martin Integrated Defense Systems, Owego, N.Y., is being awarded $16,494,928 for firm-fixed-priced delivery order # P10010 under previously awarded contract (N00019-04-C-0028) for procurement of initial and wholesale spares requirements for various weapons replaceable assemblies used on the MH-60 common cockpit. Work will be performed in Oswego, N.Y., and work is expected to be completed by Dec. 2009. Contract funds will not expire at the end of the fiscal year. This contract was not competitively procured. The Naval Inventory Control Point is the contracting activity.

Jacobs Engineering, Dumfries, Va., is being awarded $9,436,475 for task order #0016 under previously awarded contract (M67854-02-A-9017) to provide technical support to the
Marine Corps Systems Command, Information Systems and Infrastructure Product Group (PG/ISI), Marine Corps Network and Infrastructure services program office for sustainment support and additional transition support to include assisting in monitoring the cutover progress and attending daily meetings. Throughout the contract period the Contractor will be required to coordinate schedules, assist with data collection for assets, user requirements management; application inventory; and related actions necessary to effect transition activities and seat cutover, technical refresh schedules and activities and life-cycle sustainment in the NMCI environment (e. g. SRM data collection, asset reconciliation and tracking). The scope of this task will be structured to reflect support for Major Commands across the Marine Corps sites. Work will be performed in Camp Lejeune, N.C.,(22 percent); New Orleans, La., (15 percent); Okinawa, Japan, (12 percent); Camp Pendleton, Calif., (11 percent); Quantico, Va., (11 percent); Miramar, Calif., (8 percent); Beaufort, S.C., (3 percent); Kaneohe Bay, Hawaii, (3 percent); Albany, Ga., (3 percent); Arlington, Va., (2 percent); Bastow, Calif., (2 percent); Twenty-Nine Palms, Calif., (2 percent); Yuma, Ariz., (2 percent); San Diego, Calif., (2 percent); and Paris Island, S.C., (2 percent), and work is expected to be completed in Mar. 2009. Contract funds will expire at the end of the current fiscal year. The Marine Corps System Command, Quantico, Va., is the contracting activity.

Harris Corp., Government Communications Systems Div., Melbourne, Fla., is being awarded a $7,987,843 cost-plus-incentive-fee modification to a previously awarded firm-fixed-price contract (N00019-04-C-0130) for the design and manufacture of production test equipment in support of the MH-60 Common Data Link Hawklink system. Work will be performed in Melbourne, Fla., and is expected to be completed in Jun. 2009. Contract funds will not expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Moog Aircraft Group
Salt Lake Operations, Salt Lake City, Utah, is being awarded a $7,273,831 firm-fixed-price contract for the procurement of 21 man-portable tactical air navigation units, including training for the distance/azimuth measuring equipment program. Work will be performed in Salt Lake City, Utah, and work is expected to be completed in Feb. 2010. Contract funds will not expire at the end of the current fiscal year. This contract was competitively procured under an electronic request for proposals, with one offer received. The Naval Air Systems Command is the contracting activity (N00019-08-C-0037).

Advanced Concepts Enterprises, Inc., Mary Esther, Fla., is being awarded a $7,210,761 firm-fixed-priced, indefinite-delivery/indefinite-quantity contract for instructional training services related to Naval School Explosive Ordnance Disposal courses of instruction at Eglin
Air Force Base, Fla. This contract contains one base year plus four, one-year options, which if exercised, bring the total estimated value of the contract to $67,631,441. Work will be performed in Eglin Air Force Base, Fla., and work is expected to be completed by Mar. 2009. Contract funds will expire at the end of the current fiscal year. This contract was competitively procured through Navy Electronic Commerce Online, with four offers received. Fleet and Industrial Supply Center Norfolk, Contracting Department Philadelphia Office is the contracting activity (N00189-08-D-Z027).

BBN Technologies, Corp., Cambridge, Mass., is being awarded a $6,365,373 cost-plus-fixed-fee contract for RDT&E in Petabit Highly Agile Robust Optical System. The objective is to develop the architecture, protocols, and control and management software for highly dynamic, multi-terabit global core optical networks with greatly enhanced performance, survivability and security. The ultimate goal of this program is to transition the Defense Advanced Research Projects Agency Strategic
Technology Office's Dynamic Multi-Terabit Core Optical Networks: Architecture, Protocols, Control and Management program. Funds being awarded at this time are $5,659,505. Work will be performed in Cambridge, Mass., and work is expected to be completed Sep. 2009. Contract funds in the amount of $1,405,237 will expire at the end of the current fiscal year. This contract was competitively procured under a Broad Agency Announcement #06-29. Naval Research Laboratory, Washington, D.C., is the contracting activity (N00173-08-C-2010).

I.E. Pacific, Inc.*, San Diego, Calif., is being awarded $5,812,000 for firm-fixed-price task order #0006 under a previously awarded indefinite-delivery/indefinite-quantity multiple award construction contract (N62473-07-D-2015) for design and construction of additional parking level on the existing parking structures, Building 608 and Building 636, at the Naval Subase, San Diego. Additional parking expansion will provide approximately 172 additional parking spaces and will include additional electrical and mechanical (stand pipe system) utilities, paving and site improvement. Work will be performed in San Diego, Calif., and work is expected to be completed by Mar. 2009. Contract funds will not expire at the end of the current fiscal year. The Naval Facilities Engineering Command, Southwest, San Diego, Calif., is the contracting activity.

Correction: The contract announcement awarded on Mar. 7, 2008, to General Dynamics C4 Systems, Scottsdale, Ariz., contract number M67854-02-C-2052, should have read: This modification definitizes P00092 Change Order of Full Rate Production (FRP) II Add/Delete Components and 17 Combat Operations Center Systems including 17 Common Modules, 7 Capability Set IIIs, and 10 Capability Sets IV.

AIR FORCE

Jones Lang LaSalle Americas, Incorporated of Washington D. C., is being awarded an indefinite delivery/indefinite quantity contract for $73,000,000. This contract is for advisory and assistance services for post-closing management of
Air Force Privatized Endeavors. It provides for long-term PCM services in support of the Air Force's privatization programs, including oversight, monitoring, management of privatized endeavors real estate such as housing, enhanced use leasing and other privatization endeavors throughout the U. S. This indefinite delivery/indefinite quantity (ID/IQ) type contract has a five year ordering period, with one additional year performance. The Air Force can issue delivery orders totaling up to the maximum amount indicated above, though requirements may necessitate less than the amount indicated above. At this time $3,000 has been obligated. Brooks City-Base, Texas, is the contracting activity (FA8903-08-D-8795).

Booz Allen Hamilton, Inc. of McLean, Va., is being awarded a cost plus fixed fee
contract for $44,999,914. The Survivability/Vulnerability Information Analysis Center
(SURVIAC) will research survivability implications for U.S.
Army Intelligence and Security Command that integrates force protection analysis, transformation analysis, and counter terrorism analysis. At this time $5,376,474 has been obligated. Offutt AFB, Neb., is the contracting activity (SP0700-03-D-1380).

Boeing Co., of Anaheim, Calif., is being awarded a contract modification for $32,794,814. The Combat Survivor Evader Locator full rate production FY08 effort includes procurement of the following: radio sets, quantity 2,926, radio spares, quantity 293, radio sets adapters, quantity 244, radio set adapter spares, quantity 24, prime radio set batteries, quantity 2926, rechargeable radio set batteries, quantity 5852, rechargeable radio set battery adapters, quantity 1463. At this time $319,700 has been obligated. Hanscom AFB, Mass., is the contracting activity (FA8807-05-C-0004/P00024).

Northrop Grumman Systems Corp., Integrated Systems Air Combat Systems of San Diego, Calif., is being awarded a contract for $20,000,000. This effort is for operation for the Global Hawk System in forward theaters of operation, for a classified length of time. The contractor shall also provide mission support plans and identify equipment necessary to support operations at contingency locations and procure deployment spares critical for sustained flight operations for the period of time specified on any deployment order. At this time $20,000,000 has been obligated. Wright-Patterson AFB, Ohio, is the contracting activity (FA8620-08-G-3005 0001-02).

ARMY

FLIR Systems, Inc., Wilsonville, Ore., was awarded on Mar. 11, 2008, a $49,476,870 firm-fixed price contract for FLIR STAR SAFIRE III sensors. Work will be performed in Wilsonville, Ore., and is expected to be completed by Oct. 31, 2008. Contract funds will not expire at the end of the current fiscal year. There was one bid solicited on Mar. 6, 2008, and one bid was received. The U.S.
Army Space and Missile Defense Command, Huntsville, Ala., is the contracting activity (W9113M-07-D-0004).

Boyd Jones Construction, Omaha, Neb., was awarded on Mar. 12, 2008, a $15,588,000 firm-fixed price contract for construction of additions/alterations intelligence squadron facility, Offutt,
Air Force Base. Work will be performed at Offutt Air Force Base, Neb., and is expected to be completed by Sep. 25, 2009. Contract funds will not expire at the end of the current fiscal year. There were an unknown number of bids solicited via the World Wide Web on Nov. 16, 2007, and four bids were received. The U.S. Army Corps of Engineers, Omaha District, Omaha, Neb., is the contracting activity (W9128F-08-C-0003).

Tenth Quadrennial Review Of Military Compensation Released

The Department of Defense released today the first volume of the report of the Tenth Quadrennial Review of Military Compensation (QRMC), which assesses the effectiveness of military pay and benefits in recruiting and retaining a high-quality force.

Every four years, DoD conducts a complete review of compensation principles and concepts for members of the armed forces. The 10th QRMC began in 2006.

DoD will study the recommendations for potential implementation and send selected proposals to Congress as proposed legislation.

The QRMC looked at the following cash compensation areas: pay comparability, special and incentive pays, pay for performance and housing.

The commission recommended adopting a new metric to determine a more realistic value of
military compensation compared to the civilian sector. The previous metric, regular military compensation (RMC), included base pay, basic allowance for housing (BAH), basic allowance for subsistence and federal income tax advantages resulting from non-taxed allowances. The more comprehensive metric, military annual compensation (MAC), would include RMC plus state and FICA tax advantages, the value of avoided out-of-pocket health costs and a measure of the differences in the value of military and civilian retirement.

A basic task of any QRMC is to evaluate the adequacy of compensation. The commission's findings confirm that member compensation is competitive – members' MAC meets or exceeds the 80th percentile when compared to their civilian peers of like age and
education. The commission recommended setting the 80 percentile as the new standard for pay.

The commission's findings recommend more service flexibility for managing forces through recruiting and retention authorities. With the services growing in size, more special pays and incentive dollars will be needed to achieve objectives; appropriations are not expected to provide the depth of funding needed. Because special and incentive pays currently account for less than 5 percent of total pay, the services have little flexibility to shape their forces, meet emerging needs, or encourage variable career lengths. The commission findings recommended authorities that allow the services to reap efficiencies by targeting specific special pay and incentives for critical skills and assignments.

The committee examined how to better recognize and reward high performance. The QRMC recommended legistion that would allow the services to adopt constructive credit to reward fast promotees and better facilitate lateral entry into the force – thereby offering a means to provide service members with permanent pay credit for early promotion or experience acquired as a civilian. This proposal gives the services the flexibility with the existing pay table to reward performance and offer competitive compensation to high-quality service members.

Lastly, the QRMC was tasked to assess the rate setting process for BAH, which is set by estimating housing expenditures of civilians with similar incomes to
military personnel.

The study recommended reducing the gap between "with" and "without dependent" BAH rates to achieve parity in out-of-pocket expenses. DoD accepted this recommendation and through the National Defense Authorization Act of 2008, set BAH of "without dependents" to a minimum of 75 percent of the "with dependent" BAH rate.

This is the first volume of the study dealing with cash compensation. The second volume dealing with non-cash and deferred compensation will be published later in 2008. The Tenth QRMC is on the Web at

http://www.defenselink.mil/prhome/docs/Tenth_QRMC_Feb2008_Vol%20I.pdf.