Before 1991, Department of Defense financed logistics operations through multiple revolving funds. But., the full operating costs weren’t apparent to the customers.

DoD attempted to create a more business-like environment by establishing the Defense Business Operating Fund, or D-BOF, in 1991, for the delivery of logistics and other DoD goods and services.

In addition, DoD transitioned to the Defense Working Capital Funds, or D-W-C-F in 1997. Personnel, accounting, and information services were added to the pricing structure, making total costs visible to the customer.

Because the economic activity within the DWCF is such big business, totaling nearly $74 billion in 1997, the Department remains committed to pursuing ways to enhance its operations.

In August 1998, the Defense Reform Initiative Office chartered a DWCF reform task force to address customer and management concerns. These include cost, price fluctuations, and unprogrammed bills.

The task force will make recommendations to the Secretary of Defense. These recommendations will focus on improving the buyer seller user relationships and on emphasizing incentives that will reduce logistics costs, improve customer satisfaction, and ultimately, enhance weapons system supportability.

Related Sites:
* Financial Management