27 Years' Experience With Defense Industrial Funds
Abstract
The record of the past 27 years indicates that Department of Defense industrial funds--which are working capital funds--have achieved some of the objectives intended by the Congress but have not been the panacea many hoped for. The Congress authorized industrial funds for financing the operation of Defense industrial and commercial activities. They are intended to provide incentives and controls for better management similar to those existing in private enterprise. However, forces inherent in Government have made it virtually impossible to bring all of the incentives and disciplines of the business world to defense activities. Moreover, the Department and the military services have not adopted some management actions needed to derive the greatest potential benefits from use of the funds. Over 100 Defense activities operated under industrial funds in fiscal year 1975. Total sales to "customers" --usually military organizations--amounted to nearly $9.9 billion.
Document Details
- Document Type
- Technical Report
- Publication Date
- Oct 05, 1976
- Accession Number
- AD1106162
Entities
Organizations
- United States Government Accountability Office