B -- DFAS announces BCA results for Accounting Services, Moves forward to achieve High- Performing Organization

The Defense Finance and Accounting Service (DFAS)has announced the results of its recently completed Business Case Analysis for the Accounting Services Business Line.Based on analysis of its Army, Navy, Air Force and Defense Agencies accounting functions, the BCA recommends pursuing a High-Performing Organization (HPO) for the departmental and field accounting services as well as accounting systems functions. By transforming Accounting Services into an HPO, the analysis projects cost reductions associated with these functions could exceed $500 million over three years. "Accounting Services is the largest business line within DFAS. By taking a good look at how we do business and how we can better anticipate and meet the needs of our customers in the future, we can have a significant impact on improving the effectiveness and costs of DFAS operations, products and services," said Lee Krushinski, DFAS Director of Accounting Services. A cross-functional team of DFAS employees conducted the BCA according to the published six-step process established for all DFAS BCAs: 1. Identify team 2. Define scope 3. Define current organization 4. Conduct market research 5. Analyze options 6. Provide recommendation The team evaluated several options, ranging from the HPO to conducting an A-76 competition. They determined the strengths, weaknesses, opportunities and threats associated with each available option before making their recommendation to move toward an HPO. While this recommendation includes departmental accounting, field accounting and systems functions for the Army, Navy, Air Force and Defense Agencies; it excludes the following: Security Assistance Accounting -- Recently completed A-76 resulted in creation of a Most Efficient Organization (MEO) U.S. Marine Corps Accounting -- Previously recommended for an A-76 competition Disbursing -- Previously recommended for transition to an HPO. Planning will begin with formation of an HPO team that will develop and recommend concept of operations outlining the organization and functions of the HPO. The team's recommendations are expected in the spring of 2005 for consideration by DFAS leadership. When approved, implementation will occur over three years. The results of this BCA are part of DFAS's overall transformation process to ensure DFAS provides the best value to its customer as it pursues its vision of becoming a world class finance and accounting organization.