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NSIAD-94-151R 1 (1994-04-22)

handle is hein.gao/gaobackno0001 and id is 1 raw text is: 



             United States
GAO          General Accounting Office
             Washington, D.C. 20548                               /$

             National Security and
             International Affairs Division

             B-256795



             April 22, 1994


             The Honorable Earl Hutto
             Chairman, Subcommittee on Readiness
             Committee on Armed Services
             House of Representatives

             Dear Mr. Chairman:

             As part of our ongoing efforts to monitor and evaluate the
             Department of Defense's (DOD) progress in implementing the
             Defense Business Operations Fund (DBOF), we assessed the
             impact of DBOF at selected military installations. Our
             specific objectives were to (1) determine what impact the
             Fund has had at the customer and provider level and
             (2) identify problems managers at this level were having
             with DBOF implementation. Because of your interest in DBOF
             issues, you asked that we summarize and report the results
             of our work. This correspondence responds to your request.

             BACKGROUND

             On October 1, 1991, DOD consolidated nine industrial and
             stock funds into a single revolving fund called DBOF.' At
             that time, DOD said that DBOF would improve cost awareness
             within the Department and give managers more flexibility in
             making business decisions. Under this concept, the
             industrial and stock fund managers (providers) would
             identify and charge military customers the full cost of
             providing goods and services. While the providers always
             charged customers for the cost of doing business, some of
             these costs have traditionally been funded through direct
             appropriations and not passed on to customers.



             1DBOF also includes the following defense agencies
             businesses: Defense Finance and Accounting Service, Defense
             Commissary Agency, Defense Technical Information Center,
             Defense Reutilization and Marketing Service, and Defense
             Industrial Plant Equipment Center.


GAO/NSIAD-94-151R Defense Business Operations Fund

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