Implementation of Electronic Funds Transfer (EFT)/Financial Electronic Data Interchange (FEDI) in the Department of Defense: Lessons Learned From Private Industry.

Acquisition reform has taken center stage within the Department of Defense DoD contracting system. A major cornerstone of acquisition reform is the use of technology to streamline and facilitate the procurement process. One primary initiative is the application of information technologies such as Electronic Commerce ECElectronic Data Interchange EDI. One area where ECEDI technology is being applied is to the DoD electronic payment process through the implementation of EPTFEDI. This application of information technology to the payment process has provided for a secure, rapid, and cost effective means for issuing payments to DoD contractors. However, the processes involved before and after the electronic payment itself are still causing inaccuracies in contractor payments. The focus of this research was to provide lessons learned on how private industry has implemented EFTFEDI to improve the accuracy of contractor payments. The results of this research show that private industry 1 develops an ECEDI Strategic Plan 2 emphasizes senior management consensus and communication 3 re-engineers the payment process 4 carefully selects a financial service provider 5 applies information technology and 6 communicates with the vendor base.