DEFENSE BUSINESS OPERATIONS FUND: Management Issues Challenge Fund Implementation
Abstract
In October 1991, DOD implemented the Fund, which consolidated the nine existing industrial and stock funds operated by the military services and DOD, as well as the Defense Finance and Accounting Service (DFAS), the Defense Industrial Plant Equipment Service, the Defense Commissary Agency, the Defense Reutilization and Marketing Service, and the Defense Technical Information Service. The Fund's primary goal is to focus the attention of all levels of DOD management on the total costs of carrying out certain critical DOD business operations and to manage those costs effectively. This goal is in accordance with the objectives of the National Performance Review (NPR), which is aimed at achieving cost efficiencies in the federal government. The Fund is modeled after businesslike operations in that it maintains a contractual (buyer-seller) type of relationship with its customers, primarily the military services. In fiscal year 1995, the Fund will have estimated revenue of $77 billion, which would make it equivalent to one of the largest corporations in the world. The Fund provides such essential goods and services as the (1) overhaul of ships, tanks, and aircraft and (2) sale of over 5 million types of vital inventory items, such as landing gears for aircraft. Many of these services are essential to maintaining the military readiness of our countrys weapon systems. Unlike a private sector enterprise which has a profit motive, the Fund is to operate on a break-even basis by recovering the current costs incurred in conducting its operations.
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1995
- Accession Number
- AD1169424
Entities
People
- Darby W. Smith
- Gregory E. Pugnetti
- Ron L. Tobias
- William A. Hill
Organizations
- United States Government Accountability Office