Billye Drake Alexander, 58, a retired military personnel specialist with the Department of the Army, died of cancer Thursday at Holy Cross Hospital in Silver Spring. She lived in Lusby, Md.

Mrs. Alexander was born in Nashville and attended a business college there. She moved to Washington in 1939 and went to work for the War Department. She began in its finance office and then moved into personnel work there. This became her career.

She continued it when the Department of the Army was organized in 1947. After the formation of the Special Forces, or Green Berets, in the early 1960s, Mrs. Alexander, who worked in the Office of Personnel Operations, became the person responsible for writing transfer orders for Green Berets in accordance with directives from the Army.

She also was responsible for seeing that individual members of the Special Forces had any special skills required for their assignments. She became widely known in the Special Forces and received a number of commendations for her work. She retired in 1972.

Mrs. Alexander lived in College Park until 1976, when she moved to Lusby.

Her first husband, Mario Saracco, died in 1948.

Survivors include her husband, Ronald M. Alexander, whom she married 29 years ago, of Lusby; two sons by her first husband, Mario Alexander of Bladensburg and Michael Alexander of Ashton, Md.; her mother, Ann Drake of Mount Juliet, Tenn.; a sister, Marion Bourque of Durham, N.C., and five grandchildren.

The family suggests that expressions of sympathy be in the form of contributions to the American Cancer Society.