Independent Evaluation of the Transportation Working Capital Fund
Mar 25, 2021
Researchers have recommended that U.S. Transportation Command implement variable cost pricing for several business lines that are financed by the Transportation Working Capital Fund (TWCF). In this report, researchers identify next steps toward implementing variable cost pricing for selected TWCF business lines.
|PDF file||0.6 MB||
Use Adobe Acrobat Reader version 10 or higher for the best experience.
In Independent Evaluation of the Transportation Working Capital Fund, RAND researchers reviewed the Transportation Working Capital Fund (TWCF) to meet the requirements of Section 1716 of the National Defense Authorization Act for Fiscal Year 2020. They recommended that U.S. Transportation Command implement variable cost pricing for several business lines that are financed by the TWCF.
The business and economics literature emphasizes variable cost pricing as the best way to guide customer decisionmaking to support enterprise objectives. In the variable cost pricing model, customers pay for the costs to the defense transportation system associated with their requirements (variable costs); other costs should be recovered separately through appropriations or service-level bills.
In this companion report, researchers identify next steps toward implementing variable cost pricing for selected TWCF business lines. These business lines include Air Mobility Command's Channel Cargo, Channel Passenger, Special Assignment Airlift Mission/Contingency, and Joint Exercise Training Program business lines; U.S. Military Surface Deployment and Distribution Command's Liner Operations and Port Operations business lines; and Military Sealift Command's Army and Air Force Prepositioned Ships business lines.
This research was sponsored by the Office of the Under Secretary of Defense (Comptroller) and conducted within the Acquisition and Technology Policy Center of the RAND National Defense Research Institute (NSRD).
This report is part of the RAND Corporation Research report series. RAND reports present research findings and objective analysis that address the challenges facing the public and private sectors. All RAND reports undergo rigorous peer review to ensure high standards for research quality and objectivity.
This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.