Independent Evaluation of the Transportation Working Capital Fund: Assessment and Recommendations to Improve Effectiveness and Efficiency
Abstract
In Section 1716 of the National Defense Authorization Act for Fiscal Year 2020 (Pub L. 116-92, 2019), Congress created a requirement for an independent review of the Transportation Working Capital Fund (TWCF), which funds the operations of U.S. Transportation Command(USTRANSCOM). Congress required that the review provide the following: 1. An assessment of the viability of the TWCF as it is currently structured (as of December 2019) 2. An assessment of any instances in which excess TWCF funds were used for procurement or modernization efforts that would not otherwise have been funded using appropriations intended for operation and maintenance. 3. Recommendations for how the TWCF could be restructured to be more effective and efficient. 4. Potential alternative funding mechanisms for components of the TWCF, including the channel system. 5. Findings on any other matters that the Secretary of Defense and the secretaries of the military departments jointly determine to be appropriate. This report describes our findings from that review, which we conducted through interviews with fund customers and providers, an analysis of available USTRANSCOM budget data, and a review of relevant regulatory documents and related literature. In this analysis, we assess the current structure, identify potential cost-recovery options to address challenges in the current structure, and recommend preferred approaches that are tailored to each USTRANSCOM line of business. Assessment criteria focused on USTRANSCOM readiness needs; objectives for Defense Working Capital Funds (DWCFs), including cost-control incentives for both customers and providers; and administrative objectives.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 2021
- Accession Number
- AD1126007
Entities
People
- Ellen M. Pint
- Laura H. Baldwin
- Liam Mclane
- Liam Regan
- Maria Mccollester
- Max Steiner
- Michael Vasseur
Organizations
- RAND Corporation