Internal Controls: Federal Supply Service Depot Transportation Costs Can Be Reduced
GGD-87-63
Published: May 08, 1987. Publicly Released: May 08, 1987.
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Highlights
GAO reviewed management controls over Federal Supply Service (FSS) supply distribution operations to assess how well FSS management control systems ensure that motor freight transportation costs are held to a minimum.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| General Services Administration | To realize the transportation cost savings available through consolidation of multiple shipments, the Administrator of General Services should direct the Commissioner, FSS, to modify the internal control system, which holds FSS depots accountable for meeting shipment timeliness goals, to include accountability for consolidating multiple, same-day shipments to the same customer agency. |
Closed – Implemented
Industrial funding legislation (H.R. 3484) was signed into law on December 22, 1987. Depots began operating under the industrial funding concept on February 2, 1988. Under industrial funding, FSS depots are accountable for all costs, including transportation.
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| General Services Administration | To realize the transportation cost savings available through consolidation of multiple shipments, the Administrator of General Services should direct the Commissioner, FSS, to include, as part of its depot automation project, the feasibility of modifying automated system processes to minimize the generation of documents that, without manual intervention by depot personnel, authorize multiple shipments. |
Closed – Implemented
The depot automation project, scheduled for implementation in 1990, includes a procedure whereby shipping documents will be prepared after selection of material, thus eliminating multiple shipping documents to the same consignee. In the meantime, however, under industrial funding, depots will be manually consolidating shipments to reduce shipping costs.
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Topics
Federal property managementFederal supply systemsFreight transportationInformation systemsInternal controlsMaterials handlingProperty and supply managementTransportation costsTransportation terminalsFederal agencies