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National Defense: Twenty-Seven Years' Experience with Defense Industrial Funds

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Report Type Reports and Testimonies
Report Date Oct. 5, 1976
Report No. FGMSD-76-51
Subject
Summary:

An overview of 27 years of Department of Defense use of industrial funds indicates that some hoped-for objectives were achieved, but there are shortcomings. The funds were authorized by Congress to provide working capital for the operation of Defense industrial and commercial activities.

The funds have simplified financing, promoted the use of cost accounting, fostered efficiency, and provided managerial incentives. However, flexibility in manpower is not always available; financing arrangements have not enhanced productivity; and systems for measurement of costs and productivity are inadequate.

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