Competitive Rate Program of DOD

LCD-79-206: Published: Jan 19, 1979. Publicly Released: Jan 19, 1979.

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A Congressional constituent asked for the source of information used in a 1976 GAO report on the Department of Defense's (DOD) household goods program. The constituent was concerned that the period covered by the report was not indicative of the household goods industry moving cycle and that the figures used may have been misleading. The cost data used in the report was developed from tariffs on file with the Interstate Commerce Commission and the Federal Maritime Commission, agency agreements, discussion with general agents, port agents, local agents representing various forwarders, and representatives of the Household Goods Forwarders Association. The period involved was considered immaterial since the tariff rates and the other costs were averaged, giving full recognition to fluctuations throughout the year. The constituent also questioned how GAO could tell a House Committee in a letter on the DOD Competitive Rate Program that the DOD estimate of savings and the methodology used were sound, yet not be able to determine whether the forwarders' rates were compensatory. The answer to this was that the two issues were unrelated, and GAO was unable to obtain the records necessary to determine if the forwarders' rates were compensatory.

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