Defense Transportation: Streamlining of the U.S. Transportation Command Is Needed
NSIAD-96-60
Published: Feb 22, 1996. Publicly Released: Feb 22, 1996.
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Highlights
Pursuant to a congressional request, GAO reviewed whether the Department of Defense (DOD) is providing cost-effective and efficient transportation operations, focusing on: (1) the factors that increase DOD transportation costs; and (2) DOD efforts to reengineer its transportation operations.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | 1. The Secretary of Defense should direct that the defense transportation reengineering efforts simultaneously address process and organizational structure improvements. Specifically, the reengineering efforts should confront, at a minimum, the need for separate traffic management component command headquarters staff. |
DOD has taken steps to streamline the defense transportation system. The Military Traffic Management Command (MTMC) established a Joint Traffic Management Office which merged and consolidated MTMC and Military Sealift Command transportation specialists to provide customers a single point of contact for acquiring some transportation services. MTMC has fully or substantially completed closing of 4 port detachments, 1 outport and 1 medium port command and downsized 1 river detachment and 5 medium port commands. However, more streamlining needs to occur. GAO's analysis shows that these actions, and other actions taken to reduce costs, have not resulted in lower rates charged to defense customers.
|
| Department of Defense | 2. The Secretary of Defense should direct that the defense transportation reengineering efforts simultaneously address process and organizational structure improvements. Specifically, the reengineering efforts should confront, at a minimum, the consolidation of separate field subordinate command traffic management staff. |
DOD has taken steps to streamline the defense transportation system. MTMC established a Joint Traffic Management Office which merged and consolidated MTMC and Military Sealift Command transportation specialists to provide customers a single point of contact for acquiring some transportation services. MTMC has fully or substantially completed closing of 4 port detachments, 1 outport and 1 medium port command, and downsized 1 river detachment and 5 medium port commands. However, more streamlining needs to occur. GAO's analysis shows that these actions, and other actions taken to reduce costs, have not resulted in lower rates charged to defense customers.
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| Department of Defense | 3. The Secretary of Defense should direct that the defense transportation reengineering efforts simultaneously address process and organizational structure improvements. Specifically, the reengineering efforts should confront, at a minimum, the elimination of all remaining duplicative field-based subordinate command support staff. |
DOD has taken action to streamline the defense transportation system. MTMC established a Joint Traffic Management Office which merged and consolidated MTMC and Military Sealift Command transportation specialists to provide customers a single point of contact for acquiring some transportation services. MTMC has fully or substantially completed closing of 4 port detachments, 1 outport and 1 medium port command, and downsized 1 river detachment and 5 medium port commands. However, more streamlining needs to occur. GAO's analysis shows that these actions, and other actions taken to reduce costs, have not resulted in lower rates charged to defense customers.
|
| Department of Defense | 4. The Secretary of Defense should clarify which USTRANSCOM mobilization costs should be passed along to its customers. The amounts and purpose of any such costs should be contained in transportation component command annual financial statements and in the budget justification statements submitted annually to Congress. |
DOD clarified that $119.6 million in readiness/mobilization costs should not be passed along to its defense customers to pay for transportation. Therefore, DOD removed $119.6 million in readiness/mobilization costs from the transportation working capital fund budgets for fiscal years 1998 and 1999. Current work on airlift costs and customer charges shows that the airlift customers continues to be charged for mobilization and readiness costs.
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Topics
Billing proceduresCost effectiveness analysisDefense contingency planningDefense cost controlFederal agency reorganizationFreight transportationMobilizationProgram managementManagement reengineeringTransportation costs