[Request for Review of DOD Proposed Program for Soliciting Interstate Shipment Rates]
B-213676.7: Published: Apr 11, 1984. Publicly Released: May 18, 1984.
- Full Report:
In response to a congressional request, GAO reviewed the Department of Defense's (DOD) proposed program to solicit interstate household goods shipment rates from individual carriers, rather than from rate bureaus which collectively set rates. Under the Motor Carrier Act of 1980, the rate bureaus will lose their antitrust immunity to establish single-line rates for tender on Government traffic after July 1, 1984. The rate bureaus contend that the functions which they are authorized to perform after that date are sufficiently broad to permit the updating of existing tariffs and tenders filed with DOD. However, both the Interstate Commerce Commission and Congress have concluded that the collective setting of single-line rates should be prohibited. GAO believes that DOD will be legally required to solicit rates from individual carriers on the basis that rate bureaus will no longer be able to provide the services which they have in the past. However, the rate bureaus have challenged their exclusion under a DOD solicitation before a U.S. district court, and a judicial ruling is expected on the matter.