It's Time for DoD to Sack Its Price Stabilization Policy,

Abstract

This paper recommends the Department of Defense (DoD) sack or at the very least, modify its current Price Stabilization Policy (PSP). The PSP has served DoD well and is still useful in simplifying budget estimates at all levels, which appears to be the main reason DoD hangs on to this dinosaur. However, this reason alone is no longer acceptable since DoD can now explain its budget inputs to Congress via the Defense Business Operations Fund (DBOF). This paper recommends DoD start using standard business operating procedures employed by Fortune 500 Companies and allow the standard price to adjust up or down throughout the fiscal year. The Service Components no longer need DoD to exercise a smoothing effect through its PSP; instead, DoD should see the demise of the PSP as a continuation of empowering the Services to manage their own budgets.

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Jan 01, 1995
Accession Number
ADA296148

Entities

People

  • Thomas E. Graves

Organizations

  • Air University

Tags

Communities of Interest

  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • Accounting
  • Acquisition
  • Air Force
  • Budget Estimates
  • Budgets
  • Business Administration
  • Commerce
  • Contracts
  • Department Of Defense
  • Inventory
  • Inventory Control
  • Logistics
  • Personnel Management
  • Professional Development
  • Standards
  • Universities
  • War Colleges

Readers

  • Defense Acquisition Program Management
  • Fluid Dynamics.
  • Military and Counterinsurgency Studies.