Working Capital Fund Task Group

The Defense Working Capital Fund DWCF is a revolving fund financial mechanism that involves approximately 200,000 civilian and military personnel providing more than 85 billion in goods and services. About 20 of DoDs direct appropriation dollars flow through the DWCF on an annual basis. The activities financed in the DWCF form the Departments main organic logistics capability. The DWCF activities rely on sales revenue rather than direct appropriations to finance their operations. DWCF financing is intended to generate sufficient revenue to cover the full costs of its operations, and to provide the flexibility to finance the funds continuing operations, and therefore customer services, without fiscal year limitation. The basic tenet of the revolving fund system is to provide the mechanism to enable the effective and efficient provision of services to customers. In DoD those services range from supply management to information services. The financial mechanisms of the DWCF are intended to provide total cost visibility and full cost recovery, and to provide customers with reasonable and consistent charges for services provided. The DWCF achieves these goals and maintains mission readiness through stabilized billing rates charged to customers, i.e., rates will not fluctuate during a given year of execution. Additionally, the revolving fund principles of total cost visibility and full cost recovery mean there are no hidden costs, and customers are charged for the complete cost of goods and services.