DOD Household Goods: Increased Carrier Liability for Loss and Damage Warranted
NSIAD-95-48
Published: May 08, 1995. Publicly Released: May 08, 1995.
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Highlights
Pursuant to a congressional request, GAO reviewed changes proposed by the Military Traffic Management Command (MTMC) regarding carrier liability for loss and damage on Department of Defense (DOD) domestic shipments.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should consider shortening the statute of limitations for filing claims for loss and damage to household goods shipments to 1 year after the claim accrues. |
Closed – Not Implemented
|
Congress has so far chosen not to implement this recommendation. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct the Commander, MTMC, to eliminate the separate charge now paid to carriers to compensate them for increased liability on domestic shipments. |
Closed – Implemented
The charge was eliminated November 1, 1995, as recommended.
|
| Department of Defense | The Secretary of Defense should direct the Commander, MTMC, to increase carrier liability to the $1.25 rate on international household goods shipments after providing notice to carriers through the Federal Register. However, this rate should be accompanied by a compensatory payment for 3 years, or until sufficient claims data are available to permit carriers to file transportation claims that adequately compensate them for the increased risk they would assume. |
Closed – Implemented
Carriers' liability was increased October 1, 1995, as recommended.
|
| Department of Defense | The Secretary of Defense should direct the Commander, MTMC, to: (1) correct inaccuracies in the MTMC household goods program database regarding claims payments and recoveries; and (2) develop the procedures required to determine overall household goods program costs. |
Closed – Implemented
The Secretary of Defense directed the Commander, MTMC to correct the inaccuracies and develop procedures on March 31, 1995. The MTMC implementation plan was developed October 1, 1995.
|
| Department of Defense | The Secretary of Defense should direct the military services to periodically report complete household goods claims recovery data to MTMC. |
Closed – Implemented
The Secretary of Defense directed that these reporting actions be taken on March 31, 1995.
|
| Department of Defense | The Secretary of Defense should direct the Secretaries of the Army and Navy to increase the emphasis placed on household goods claims recovery so as to increase these military services' recovery effectiveness to approximately the level demonstrated by the Air Force. |
Closed – Implemented
The Secretary of Defense directed all of the services to emphasize claims collection activities on March 31, 1995, with implementation expected during the remainder of FY 1995 and during FY 1996.
|
| Department of Defense | The Secretary of Defense should direct the Commander, MTMC, to review household goods program carrier bonding and insurance requirements and collection procedures to ensure that these are adequate to protect government interests under increased carrier liability. |
Closed – Implemented
The Secretary of Defense directed MTMC to improve bond collection activities in a March 31, 1995 directive. MTMC initiated implementation of improved bond collection techniques during FY 1995.
|
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Topics
Claims settlementDamages (legal)Department of Defense contractorsFreight damage claimsFreight transportationFreight transportation ratesHousehold goodsLiability (legal)Liability insuranceProperty damages