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Key Findings

1. A U.S. Department of Defense task force explored options to consolidate administrative operations performed with congressionally nonappropriated funding (NAF). RAND focused on two areas: accounting and employee benefits.
2. Each of the military services independently conducts NAF accounting functions. Of three alternatives developed, the military services agreeing on a single set of requirements for all accounting functions would have the most impact.
3. Most of the recommendations for employee benefits processes focused on improving collaboration among the services. Few of the recommendations would yield large budgetary savings, but other benefits could be realized.

The U.S. Department of Defense (DoD) provides broad support services for military members and their families. While some of these services are paid for with congressionally appropriated funds, many others are covered by nonappropriated funding (NAF). However, with current defense planning calling for reductions in both the size of the force and its budget, DoD is seeking cost-saving synergies in the back-office operations of support services to facilitate maintaining those services at the current level.