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Barry McVay's FEDERAL CONTRACTS DISPATCH

DATE: January 11, 2000

FROM: Barry McVay, CPCM

SUBJECT: Deputy Secretary of Defense John Hamre To Resign

AGENCIES: Department of Defense (DOD)

ACTION: Announcement

SYNOPSIS: On January 10, Secretary of Defense William Cohen announced that Deputy Secretary of Defense John Hamre is resigning on March 31, 2000, to become president and chief executive officer of the Center for Strategic and International Studies. Secretary Cohen also announced his recommendation that Rudy de Leon be nominated to replace Hamre. De Leon currently serves as Under Secretary of Defense for Personnel and Readiness (USD(P&R)).

SUPPLEMENTAL INFORMATION: Secretary Cohen said in his announcement that "John Hamre has been my friend and partner in running the department. He is committed to fixing problems with solutions that are effective, practical and fair to all concerned. He has made contributions in many areas, but his biggest achievements have been in increasing computer security, bringing better business practices to the department, winning increases in defense spending to improve readiness and procurement and helping defense contractors and the department adapt to global business conditions. He has had a major impact on the department, and I will miss him when he leaves."

Dr. Hamre was sworn is as deputy secretary of defense, the second-ranking civilian official in the DOD, on July 29, 1997. Prior to that, he served as the DOD comptroller since 1993.

Mr. de Leon has served as USD(P&R) since August 1997. In that position, he has been Secretary Cohen's senior policy adviser on recruitment, career development, and pay and benefits for the military's 1.5 million active duty and 1.5 million Guard and Reserve members and 800,000 DOD civilians. He also has been responsible for overseeing DOD's $15 billion Defense Health Program, its commissaries and exchanges, the Defense Education Activity, and the Defense Equal Opportunity Management Institute. Prior to becoming USD(P&R), de Leon served for three years as under secretary of the Air Force. In this position, he focused on maintaining high quality personnel, force readiness, and an affordable modernization program that included the F-22 fighter and the C-17 airlifter.

Secretary Cohen said, "Rudy de Leon has dealt with many of the department's toughest and most important issues -- maintaining readiness, improving the quality of life for troops and families, and making sure that the department remains a leader in providing equal opportunity to all."

FOR FURTHER INFORMATION CONTACT: Barry McVay at 703-451-5953 or by e-mail to BarryMcVay@FedGovContracts.com.

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