Pursuant to a congressional request, GAO reviewed the operations of the Defense Logistics Agency's (DLA) regional freight consolidation centers (RFCC), focusing on whether the centers: (1) realized the savings DLA projected; (2) timely delivered freight when required; and (3) maintained accountability for freight in transit.
Recommendations for Executive Action
|Department of Defense||1. The Secretary of Defense should require the Director, DLA, to postpone the expansion of the regional freight consolidation program pending the results of the team's study.|
|Defense Logistics Agency||2. If the study shows that the benefits to be derived from using government freight rates outweighs the administrative burden, the Director, DLA, should: (1) stop consolidating vendor freight shipments at RFCC; and (2) use existing government freight rates to ship vendor freight directly to storage depots.|