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This article summarizes results from a child care survey of military families conducted by the RAND Corporation in 2004 and draws policy implications for the military child care system. The article describes the military child care system, discusses the policy objectives of the system, and summarizes survey results that clarify the degree to which the Department of Defense is meeting its child care goals. The authors find evidence that despite its high quality, the military child care system fails to optimize readiness and retention of military members because these goals do not drive system policies or operations. The article offers suggestions for improving system outcomes. [ABSTRACT FROM AUTHOR]

This article analyzes how service-providing government agencies should set the prices they charge to other governmental customers. Current Defense Working Capital Fund (DWCF) rules generally prescribe use of expected average cost transfer pricing. However, analysis of the Defense Finance and Accounting Service (DFAS), as an example, suggests DFAS has considerable fixed costs. These fixed costs are problematic under present DWCF pricing rules. If customer demand levels fall short of expectations, DFAS revenues fall commensurably, but costs almost certainly do not. It would be more consistent with DFAS's cost structure if DFAS could utilize nonlinear pricing. Such a pricing approach would give DFAS customers more appropriate incentives with respect to how much workload to give DFAS (versus trying to do it themselves or turning it over to contractors). The authors hypothesize that insights from DFAS may be applicable to other governmental working capital fund entities as well. [ABSTRACT FROM AUTHOR]