DOD Commercial Transportation: Savings Possible Through Better Audit and Negotiation of Rates
NSIAD-92-61
Published: Dec 27, 1991. Publicly Released: Dec 27, 1991.
Skip to Highlights
Highlights
Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) efforts to control commercial transportation costs, focusing on: (1) whether DOD audited shipping bills prior to payment; and (2) how DOD could improve traffic and travel management programs.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct the Military Traffic Management Command (MTMC) and other units performing preaudits to test the effectiveness of their preaudits by comparing the results with bills audited after payment. |
Closed – Implemented
DOD requested that the General Services Administration (GSA) provide DOD with the results of GSA audits. The military departments and the Defense Finance and Accounting Service are trying to compare GSA postaudit results with the DOD preaudit results. Although the results have not been reviewed fully, the efforts clearly meet the intent of the recommendations.
|
| Department of Defense | The Secretary of Defense should direct MSC to develop and provide to all prospective offerors detailed information on what it has shipped in terms of specific commodities and number of containers between specific traffic patterns, as well as its best estimate of what it will be shipping in the future. |
Closed – Implemented
MSC is providing prospective bidders information that should allow them to more intelligently respond to DOD's requirements.
|
| Department of Defense | The Secretary of Defense should direct MSC to change its solicitations to request rates for the same pattern of service for which DOD actually procures the service. |
Closed – Implemented
MSC asked for and received rates based on single-factors, as recommended. Rates became effective October 1992. More rates were asked for and received in fiscal years 1993 and 1994.
|
| Department of Defense | The Secretary of Defense should direct MTMC to accelerate its efforts to implement the GAO recommendation to replace or modify the current two-step bidding process so that all carriers have an incentive to initially bid the lowest possible rates and the lowest bidder is appropriately rewarded. |
Closed – Not Implemented
DOD initially set out to implement the recommendation. However, the Defense Appropriations Act, 1993 (P.L. 102-396, Oct. 6, 1992), prohibited DOD from obligating funds to implement any test of changes in its domestic interstate household goods program as proposed in the June 29, 1992, "Federal Register". As that prohibition was not carried forward in subsequent appropriations acts, DOD can make another attempt to implement the recommendation. To date, it has not made public its plans.
|
| Department of Defense | The Secretary of Defense should direct MTMC and other units performing preaudits to develop a system for ensuring the timely notification of local installation transportation officials when preaudits detect overcharges. |
Closed – Implemented
DOD requested that GSA provide DOD with the results of GSA audits. The military departments and the Defense Finance and Accounting Service are trying to compare GSA postaudit rsults with the DOD preaudit results. DOD is working to see that timely information of the GSA audits is provided to local installation transportation officials to help prevent overcharges. Although the results have not been reviewed fully, the efforts clearly meet the intent of the recommendations.
|
Full Report
Office of Public Affairs
Topics
Defense auditsDefense cost controlDefense procurementFreight transportationFreight transportation ratesHousehold goodsOverpaymentsTwo step procurementBid proposalsMilitary forces