Privatizing the Defense Finance and Accounting Service

Abstract

The end of the Cold War has brought with it a dramatic decline in overall United States defense spending and a sharp decrease in funding for force modernization. This trend cannot continue without serious negative impacts on readiness. The DoD has identified a need to increase investment on modernization from the current $45 billion a year to $6O billion by fiscal year 2001. Privatizing non-core missions offers one possible way for the Department to obtain funds for this purpose. This paper examines the possibility of accruing savings through the privatization of Defense Finance and Accounting Service (DFAS) functions. The paper concludes that, while privatization will eventually provide significant savings, the department must take action to first streamline DFAS operations and requirements before outsourcing will provide a viable means of reducing operational costs.

Open PDF

Document Details

Document Type
Technical Report
Publication Date
Apr 03, 1998
Accession Number
ADA344586

Entities

People

  • Dale Lynn

Organizations

  • United States Army War College

Tags

Communities of Interest

  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Business Administration
  • Commerce
  • Contracts
  • Corporations
  • Financial Management
  • Governments
  • Infrastructure
  • Management Personnel
  • Military Operations
  • Money
  • National Security
  • Organizational Structure
  • Personnel Management
  • Procurement
  • United States
  • War Colleges

Readers

  • Defense Acquisition Program Management
  • Defense Financial Management and Audit.
  • Economics