Financial analysis of private sector firms within the DoD

Abstract

The purpose of this thesis is to report the status of financial analysis of private sector firms as it is presently being conducted within the Department of Defense. In doing so, this thesis describes and compares five activities within the DOD which are involved in financial analysis. Two of these activities, the Defense Contract Audit Agency, and the Defense Contract Management Command, conduct their analysis in support of the contract award process. The remaining three activities, the Naval Center for Cost Analysis, Army Center for Resource Analysis and Business Practices, and the Air Force's Office of Economic and Business Management, conduct their analysis to support the milestone review process and to assess the financial health of their respective service's industrial base. This thesis reviews the financial analysis practices of these five organizations, documenting the purpose and focus of the financial analysis; the data, methods and models used in conducting the analysis; and the output and use of the analysis.