Military Transportation:

Cost Savings of Expanding the Guaranteed Traffic Program

NSIAD-88-53: Published: Nov 9, 1987. Publicly Released: Nov 9, 1987.

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GAO reviewed the Military Traffic Management Command's (MTMC) Guaranteed Traffic Program to determine whether expanding the program to include additional military shippers would result in savings.

GAO found that: (1) the five military installations it studied could save 22.2 to 49.3 percent of their current costs on less-than-truckload shipments if they used the program; (2) these installations' savings for 1 year would total about $2.5 million; (3) although shipping installations are responsible for requesting the program, MTMC has done little to promote it; (4) MTMC is working on a draft regulation covering the program, which should increase participation; (5) MTMC needs additional personnel to work on the backlog, an operations research analyst, and financial analysts; and (6) although the Defense Logistics Agency directed its defense depots to use the program, all services but the Navy leave the decision to request program negotiations up to the shipping installations.

Recommendations for Executive Action

  1. Status: Closed - Not Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Assistant Secretary of Defense (Production and Logistics) should direct the MTMC to evaluate its staffing requirements and the cost-effectiveness of applying additional resources to the Guaranteed Traffic (GT) Program.

    Agency Affected: Department of Defense

  2. Status: Closed - Not Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Assistant Secretary of Defense (Production and Logistics) should follow up to ensure that the services have taken or are planning appropriate action to expand their use of the Guaranteed Traffic Program.

    Agency Affected: Department of Defense

 

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