RAND Research Brief: Improving the DoD's Defense Finance and Accounting Service
RAND CORP SANTA MONICA CA
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As part of its ongoing improvement efforts, the Department of Defense DoD is exploring new ways to enhance the performance of its Defense Finance and Accounting Service DFAS. Created in 1991, DFAS provides a variety of finance and accounting services, including payroll, bill payment, and budget tabulation, for the military services and other DoD entities. The establishment of DFAS has streamlined DoD finance and accounting operations by consolidating a multitude of service-specific facilities. DFAS handles an enormous volume of transactions. Virtually all of the DoDs annual budget flows through this agency. Recently, DFAS asked RANDs National Defense Research Institute NDRI to identify opportunities for performance improvement. The results of this research are documented in two RAND reports, Defense Working Capital Fund Pricing Policies Insights from the Defense Finance and Accounting Service and Improving the Defense Finance and Accounting Services Interactions with Its Customers. These studies, led by RAND economist Edward Keating, found that DFASs performance could be improved through changes in DFASs pricing system and in the nature of many of its transactions with customers.
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