Costs of Repairing Government Vehicles Damaged in Accidents

LCD-77-217: Published: Jun 21, 1977. Publicly Released: Jun 21, 1977.

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The repair and claim settlement procedures used by several civil and defense agencies when Government vehicles are damaged in accidents were studied, and audit work was carried out at three military installations.

Department of Defense (DOD) procedures for handling repair of damaged vehicles and processing related claims appeared adequate to protect the Government's interest, but several practices required administrative attention. Some in-house repair estimates were unrealistic and did not give management a basis for evaluating repair work and costs. Vehicle repair costs might have been increased by restricting repair work to major dealers. Improvements were needed in claims-processing procedures at the Great Lakes Naval Training Center. Loss of vehicle use had not been included as a recoverable cost when establishing claims against third parties.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: DOD should direct that each command examine its practices and procedures to determine whether similar situations exist at its installations, and take whatever action is appropriate to correct observed deficiencies. DOD should also issue a departmental instruction to alert claims-processing officials about the need to consider a charge for loss of vehicle use in claims against responsible parties. The Defense Audit Service should include in the scope of its periodic studies of military activities inquiries as to whether vehicle accident repairs and claims are handled according to established procedures.

    Agency Affected:

 

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