Days Till Nine 30

Service Cost Centers (SCC)

Streamlining Financial Processes to Enhance Operational Efficiency


This case study examines the successful implementation of a new financial model in response to evolving Financial Improvement and Audit Readiness (FIAR) requirements at Webster Outlying Field (WOLF). The initiative aimed to address challenges faced by a division within WOLF due to extended establishing tasking and funding for service contracts. The case study delves into the approach devised by the Nine 30 team, which utilized Cost Redistribution Accounts (CRAs) and Service Cost Centers (SCCs) to streamline processes, reduce transactional workload, and restore rapid response capabilities.


With changing FIAR guidelines, a division at WOLF encountered difficulties in adapting to the new service contract funding model. The revised requirements led to prolonged timelines for task establishment and incremental funding allocation, impacting operational efficiency and responsiveness.


The existing process of tasking and funding under the new FIAR initiatives added significant weeks to the timeline, causing delays in project initiation and hindering the division's ability to respond rapidly to emerging needs. The increased workload also burdened key stakeholders such as Budget Financial Managers (BFMs), Contracting Officer Representatives (CORs), and Project Leads.


The Nine 30 team developed a comprehensive approach that hinged on the utilization of Cost Redistribution Accounts (CRAs) and Service Cost Centers (SCCs). These mechanisms were strategically employed to streamline organizational and project-level efficiencies while alleviating the transactional workload on stakeholders. By adopting this approach, the division sought to reduce administrative overhead, simplify contract administration, and improve resource allocation.

SCC was designed with the following key features

The implementation of the CRA and SCC framework resulted in significant improvements. Notably, it led to a substantial reduction in the number of Contract Line Item Numbers (CLINs) on the contract. This reduction, in turn, drastically decreased the volume of Purchase Requests (PRs) that required processing. As a result, valuable time and financial resources were conserved.


The adoption of the CRA and SCC approach yielded several positive outcomes. Most notably, the organization regained its rapid response capability by compressing project initiation timelines from an average of 6-8 weeks down to less than 1 week. This expedited process enabled the division to swiftly address emerging requirements and capitalize on new opportunities.


This case study underscores the importance of adapting financial processes in alignment with evolving regulatory requirements. The successful implementation of the CRA and SCC framework at WOLF's division serves as a model for other entities seeking to enhance operational efficiency while minimizing administrative burden. The streamlined process not only saved valuable time and financial resources but also bolstered the division's agility and ability to effectively respond to changing circumstances.