Statement of James L. Blum Deputy Director Congressional Budget Office 13 May 1993

Abstract

I appreciate the opportunity to discuss the public policy and budgetary implications of the Defense Business Operations Fund (DBOF). This is an appropriate time for such a review. The authorization for DBOF expires within a year, the Secretary of Defense has ordered a review of this management initiative, and the Vice President's Performance Review group has expressed interest in DBOF as a possible case study of government reform. My statement makes three points: (1) The idea behind DBOF is promising--that is, to use internal markets and business-type organizations within the Department of Defense (DoD) to increase operating efficiency and improve oversight of support services. (2) To realize this promise, however, a number of changes are required in the structure and operating practices of the fund. (3) Reform is urgently needed to assure DBOF's financial integrity and to establish that prices charged by support services are based on relevant and reliable measures of costs.

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Document Details

Document Type
Technical Report
Publication Date
May 13, 1993
Accession Number
ADA529281

Entities

People

  • James L. Blum

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  • Congressional Budget Office

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  • Defense Financial Management and Audit.
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