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DOD operates three functional combatant commands, which provide special operations, strategic forces, and transportation. GAO was mandated to review personnel and resources of these commands in light of plans announced by DOD to reduce headquarters. This report (1) identifies the trends in resources devoted to the functional combatant commands and their service component commands and (2) evaluates the extent to which DOD s reductions to headquarters could result in cost savings. GAO analyzed data for fiscal years 2001 through 2013 on authorized positions and costs to support headquarters operations for the functional combatant commands and their service component commands. GAO also obtained documentation such as guidance and budget documents and interviewed officials regarding the commands approach for implementing reductions to headquarters. GAO recommends that DOD (1) reevaluate the decision to focus reductions on management headquarters to ensure meaningful savings, (2) set a clearly defined and consistently applied starting point as a baseline for the reductions, and (3) track reductions against the baselines in order to provide reliable accounting of savings and reporting to Congress. DOD partially concurred with the first recommendation, questioning, in part, the recommendation s scope, and concurred with the second and third recommendations. GAO continues to believe the first recommendation is valid, as discussed in the report.