Household Goods: Competition Among Commercial Movers Serving DOD Can Be Improved
NSIAD-90-50
Published: Feb 12, 1990. Publicly Released: Mar 09, 1990.
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Highlights
Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) methods for procuring commercial household goods shipping and storage services for transferred personnel, focusing on how DOD: (1) solicited rates from moving companies and selected contractors; and (2) managed temporary storage required in conjunction with shipments of personal effects.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct the Commander, MTMC, to replace or modify the current two-phase bidding process so that all carriers have incentive to initially bid the lowest possible rates and the lowest bidder is rewarded for offering the lowest rate. |
DOD has developed alternative plans which should correct the problems identified.
|
| Department of Defense | The Secretary of Defense should direct the military services to use nontemporary storage and storage-in-transit at origin to the extent possible, rather than the more costly storage-in-transit at destination. |
The military services have been tasked to emphasize storage at origin to the maximum extent practical consistent with service member requirements. Instructions were printed in an October 1991 revision to the DOD Personal Property Regulations.
|
| Department of Defense | The Secretary of Defense should direct the military services to take steps to ensure better coordination and communication among DOD shipping and receiving offices, carriers, and military members in the delivery of household goods. |
The military services have been asked to place greater emphasis on improved communication and coordination among parties involved in the movement and storage of household goods. Instructions were printed in an October 1991 revision to the DOD Personal Property Regulations.
|
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Topics
Defense cost controlDefense procurementDemurrage chargesDepartment of Defense contractorsEmployee transfersFreight transportation ratesHousehold goodsMilitary personnelQuestionable procurement chargesTwo step procurement