Review of the Traditional Stock Fund Surcharge
Abstract
The Defense Logistics Agency (DLA) Operations Research and Economic Analysis Management Support Office (DORO) was tasked to conduct a review of the traditional (or pre-supply support cost) surcharge methodology. The review found that existing guidance (including interim policy and revisions in process) on the subject is current but very broad, and that DLA's method of developing the traditional surcharge is in conformance with this broad guidance. It was noted that while long term cost recovery results are good, year to year cost recovery results fluctuate widely. Frequent change occurs in the components used to develop the surcharge rate and minor irregularities have occurred, however, no major discrepancies were noted. The report recommends that the traditional surcharge be incorporated in the standard unit price. It is further recommended that DLA standardize the procedure for computing the traditional surcharge.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1991
- Accession Number
- ADA242352
Entities
People
- Thom A. Kostenbauder
Organizations
- Defense Logistics Agency