Opportunities To Improve the DOD Personal Property Shipping Program

NSIAD-85-10: Published: Nov 9, 1984. Publicly Released: Nov 9, 1984.

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GAO reviewed the Department of Defense's (DOD) Personal Property Shipping Program to identify opportunities to reduce costs and improve the efficiency of the program.

GAO found that DOD has been consolidating its personal property shipping offices and planning to automate them. However, due to a lack of coordination, the full potential for consolidation cannot be achieved and money may be spent to automate offices that should be merged with others. In addition, GAO found that, due to the delay in the development of a standardized automated system for use in managing its shipping program, many offices became frustrated and developed their own systems, which were not compatible and could not be merged with a standardized system. On November 8, 1983, DOD issued a memorandum restricting the development of additional new systems. GAO also found that the DOD cost of storing household goods awaiting delivery has increased substantially since 1978. These costs could be reduced significantly if DOD leased storage space and provided the service in-house or used government-owned space where available, rather than having moving companies arrange space.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: Although action has not been completed, the intent of the recommendation has been essentially met. Because the data contained in the report is almost 10 years old, further follow-up by GAO does not appear warranted.

    Recommendation: The Secretary of Defense should direct the Assistant Secretary of Defense, Manpower, Installations, and Logistics, to expedite development of a standard automated system for processing personal property shipments, while closely monitoring compliance with the November 8, 1983, memorandum restricting independent development of systems.

    Agency Affected: Department of Defense

  2. Status: Closed - Implemented

    Comments: Although action has not been completed, the intent of the recommendation has been essentially met. Because the data contained in the report is almost 10 years old, further follow-up by GAO does not appear warranted.

    Recommendation: The Secretary of Defense should direct the Assistant Secretary of Defense, Manpower, Installations, and Logistics, to integrate plans to automate the personal property shipping offices with plans to consolidate them.

    Agency Affected: Department of Defense

  3. Status: Closed - Implemented

    Comments: On February 3, 1986, the Commander, MTMC, reported to the Deputy Assistant Secretary on a study of ways to reduce SIT costs. The report included recommendations on ways to reduce the number of shipments going in SIT, the length of stay in SIT, and SIT rates. No time schedule for action has been proposed.

    Recommendation: The Secretary of Defense should direct the Assistant Secretary of Defense, Manpower, Installations, and Logistics, to explore ways of reducing the cost of storage-in-transit (SIT). If the moving industry cannot offer storage rates that are competitive with the cost of providing the service in-house, the military services should lease storage space directly or use government-owned space in accordance with Office of Management and Budget Circular A-76.

    Agency Affected: Department of Defense

 

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