1

Mr. Frank J. Anderson, Jr.

Director, AT&L Human Capital Initiatives

President, Defense Acquisition University

July 27, 2007

NDIA STEMNDIA STEMInitiativeInitiative

Strategy SessionStrategy Session

2

National(2005)

DoD(2006)

Civilian AT&L Workforce

(2006)

GenerationWorkforce (millions) % Workforce Workforce % Workforce Workforce % Workforce

Silent Generation(born before 1946)

11.5 7.5% 45,625 6.7% 8,322 7.4%

Baby Boomers (1946-64)

61.5 42.0% 438,971 64.5% 77,779 68.7%

Generation X (1965-76)

43.5 29.5% 132,948 19.5% 17,581 15.5%

Generation Y (1977-89)

31.5 21.0% 62,676 9.2% 9,394 8.3%

Millennium (1990- present)

51.0 0% 153 0% 0 0%

100.0% 100.0% 100.0%

The Baby Boomer and older generations comprise 71 and 76 percent of The Baby Boomer and older generations comprise 71 and 76 percent of the DoD and the AT&L civilian workforce, respectively. DoD faces the DoD and the AT&L civilian workforce, respectively. DoD faces

significant challenges related to mitigating the pending departure of significant challenges related to mitigating the pending departure of its highly experienced and seasoned talent – the critical challenge.its highly experienced and seasoned talent – the critical challenge.

3

U.S. Civilian Workforce ChangeNumeric Change in Labor Force, 2004 - 2014

65+

55 - 64

45 - 54

35 - 44

25 - 34

5,00010,000- 5,000- 10,000

+7,616

+3,689

+1,769

-2,813

4,548

Source: Department of Labor

-110 16-24

College Graduates - 2005

0

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

China India United States

GraduatesCollegeEngineering

It will take about a generation to reverse the ratio of highly skilled workers between the U.S. and India and China. … When the generation of engineers and scientists that sent the man to the moon retires, who is going to replace them?”Academic Disciplines & Employment Trends’Applied Information Management Institute, Jan 2006

3.2M3.1M

2.0M

600k

300k

<100k

5Source: National Center for Higher Education Management Systems, 2002 estimates.

Graduate from High school

on time

Immediately enroll in college

Students still enrolled

sophomore year

Graduate from college in six years

68

40

27

18

For every 100 Ninth graders:

Dropping out of the educational pipeline

• Studies report that of every 100 9th graders, only 18 will graduate from college within 6 years immediately after high school. Those rates have barely budged since the 1990s. Of the 18, even less will have technical degrees…

• 39% of students attending degree granting institutions are over the age 25. Nearly 60% enroll in more than one college or university, and 40% go part time.

The USA ranks 16th of 27 countries in college-completion rates, says the Organization of Economic Cooperation and Development.

Technical Degrees

9?

6

Today, DoD is having success in hiring Today, DoD is having success in hiring to meet its needs.to meet its needs.

DAWIA Career Field

# of Hires

% of All Hires

% of Career Field

SPRDE 7140 35% 22%

Contracting 4045 20% 17%

Logistics 2083 10% 18%

PM 1338 6% 16%

BCEFM 1007 5% 14%

QA 922 4% 13%

T&E 1455 7% 26%

IT 701 3% 16%

FE 542 3% 14%

Auditing 980 5% 28%

Purchasing 131 1% 8%

Other 157 1% 11%

Mfg Prod 116 1% 9%

Total 20,680 100% 18%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

# of Hires

7

Awareness & Interest in Key Federal Agencies

0%

20%

40%

60%

80%

100%

1.5 2.5 3.5 4.5

Rating of agency as an interesting place to work

Leve

l of k

now

ledg

e of

age

ncy

mis

sion

CIACIANASANASA

DODDOD

DHSDHSDOJDOJ

EPAEPA

EdEd

NSFNSF

StateState

DOEDOE

HHSHHS

TreasTreas

FCCFCC

AgAg

DOTDOTVAVA

DOLDOLHUDHUD

USPSUSPSIRSIRS

SSASSA

FDICFDIC

OPMOPM

CommCommDOIDOI

High awareness/very interestingHigh awareness/not very interesting

Low awareness/very interestingLow awareness/not very interesting

Council for Excellence in Government & the Gallup Organization, December 5, 2006

National Security

DoD has high name recognition and is viewed as an DoD has high name recognition and is viewed as an interesting place to work by potential employees.interesting place to work by potential employees.

8

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

AT&L Workforce Size

Growth in Recruiting and Retention Required

Projected Baby Boomer Gap

Based on attrition projections and hiring rates, annual hiring would Based on attrition projections and hiring rates, annual hiring would have to increase by 1,000 to maintain current workforce levels.have to increase by 1,000 to maintain current workforce levels.

Total AT&L Workforce SPRDE - Systems Engineering by Years of Service

2835 2775

1 11 30 7345 12 24 55 44 10 20

951

4070 0 00 0 0 0 9

7162

3122

465

6950

189

3207

21602472

31829340121

0

1000

2000

3000

4000

5000

6000

7000

8000

5 or Less 6 - 10 Years 11 - 15 years 16 - 20 Years 21 - 25 Years 26 - 30 years 31 or More

Civ - FERS Civ - CSRS Civ - Unknown Mil Mil - Ret Elig

10

Raytheon Company Employee Population Profile

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

<1 1-5 6-10 11-15 16-20 21-25 26-30 31-35 36-40 41-45 45+

Years of Service

Nu

mb

er

of

Ex

em

pt

Em

plo

yee

s

Under 25 26-35 36-45 46-55 56-65 66-75 76-85Age:

Targeted College Hires Targeted

Experienced Hires

The Emerging Competition For Talent

“One in every three of Lockheed’s employees is over 50. to sustain our talent base, we’re hiring 14,000 people a year. In two years, we’re going to need 29,000 new hires; in three years, 44,000. If this trend continues, over the next decade we will need 142,000.” Robert J. Stevens, Chairman, President and CEO of Lockheed Martin. Wall Street Journal, April 19, 2006.

Raytheon:

Lockheed :

11

AT&L Human Capital Strategic Plan v 3.0

AT&L HCSP v 3.0 GoalsGoal 1 Align and fully integrate with overarching DoD

human capital initiatives.

Goal 2 Maintain a decentralized execution strategy that recognizes the components’ lead role and responsibility for force planning and workforce management.

Goal 3 Establish a comprehensive, data driven workforce analysis and decision-making capability.

Goal 4 Provide learning assets at the point of need to support mission-responsive human capital development.

Goal 5 Execute DoD AT&L Workforce Communication Plan that is owned by all DoD AT&L senior leaders (One Team, One Vision, A Common Message and Integrated Strategies).

Goal 6 Recruit, develop and retain a mission ready DoD AT&L workforce through comprehensive talent management.

Supporting Alternate Funding Proposal for Section 844