Accession Number : ADA296148
Title : It's Time for DoD to Sack Its Price Stabilization Policy,
Corporate Author : AIR UNIV MAXWELL AFB AL
Personal Author(s) : Graves, Thomas E.
PDF Url : ADA296148
Report Date : 1995
Pagination or Media Count : 13
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.
Descriptors : *POLICIES, *COMMERCE, *FINANCIAL MANAGEMENT, STABILIZATION, CONGRESS, DEPARTMENT OF DEFENSE, DEFENSE SYSTEMS, COST ESTIMATES, COSTS, BUDGETS.
Subject Categories : Administration and Management
Government and Political Science
Distribution Statement : APPROVED FOR PUBLIC RELEASE