- PFI operates under an Under Secretary of Defense (Comptroller) charter to use reserve component personnel on a fee for service basis supporting DoD Working Capital Activities when regular active duty personnel are not available and PFI reservists are more cost effective than civilian employees or contractor support.
- All reservists on PFI active duty tours are volunteers who utilize either civilian and/or military skills in jobs supporting Defense Working Capital Activities.
- PFI recruits from a pool of almost 1.5 million reserve volunteers from all reserve components who voluntarily apply for positions to serve on fee for service tours.
- Customers decide on which applicant they want to select, but also have the option of declining all applicants or submitting by-name requests for certain individuals.
- Defense customers determine the major aspects of PFI assignments, such as job location, desired rank, duties of PFI reservists, duration of tour, duty hours, etc.
- PFI is strictly "fee for service" as customers fund all active duty costs at fixed rates with working capital funds, including pay and allowances and TDY costs.
- Customers fund the active duty costs of PFI tours by using working capital funds on a MIPR (DD Form 448) to reimburse the reservist's military service.
- Total PFI active duty tour cost is calculated based on the tour length and military rank of the reservist plus an eight percent surcharge on a separate MIPR to DFAS for the administrative expense associated with the PFI program.
- PCS costs are included in the published rate and are not charged to the customer when the PFI assignment is expected to last at least 12 months and there are at least 139 days remaining in the first fiscal year of the active duty tour. Customer agencies fund all TDY costs using travel orders or organizational fund cites.
- PFI tours last frequently 6 months or longer. But PFI reservists can be used for shorter tour or on longer assignments for up to three years in duration.
- Customers can sometimes curtail tours in as little as 90 days if anticipated workload does not materialize or when performance does not meet expectations.
- Reservists cannot curtail their assignments without the consent of the customer and PFI director. However, the reservist's military service can prematurely curtail tours because of military priorities, such as contingency operations.
- The PFI director mentors reservists in the program to maximize customer value, but PFI customers determine job assignments and write performance appraisals.
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