What is meant by the term “Franchise Fund” and do CDCO customers benefit from receiving IT-related services from a Franchise Fund?
Franchise Funds were established in Government to promote competition and to reduce the cost of providing common administrative support services. Authorized under the Government Management Reform Act of 1994, the AITC Campus is one of six VA Enterprise Centers offering common administrative services on a fee-for-service basis. No appropriated funding is provided Franchise Fund organizations, so the success of AITC depends on its ability to fully recover costs from customer revenue, satisfy customer requirements, and to expand it’s customer base. AITC has been very successful in the VA Franchise Fund. Unit costs have been reduced each year due to increased workloads, new technology, expert contract negotiations, and improved processes. AITC has also expanded its business with VA and other Federal agencies. All AITC customers have benefited from this success.
