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LCD-76-210 1 (1976-01-28)

handle is hein.gao/gaobaaaoz0001 and id is 1 raw text is: L947- I UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 LOGISTICS AND COMMUNICATIONS JAN H DIVISION The Honorable The Secretary of Defense Dear Mr. Secretary: We have reviewed the use of commercial versus Government facilities for storing household goods of military personnel. Our objective was to see if savings could be achieved by using storage space in Government-owned buildings rather than commercial storage. We reviewed nontemporary storage (NTS) and temporary storage, usually referred to as storage in transit (SIT), of international shipments of household goods. We excluded domestic shipments requiring SIT because Inter- state Commerce Commission regulations specified that such shipments be stored exclusively in contractor facilities. We estimate that the Department of Defense (DOD) could save about $1.3 million annually by using Government-owned, rather than commercial, warehouses in the San Francisco and San Antonio areas. These locations met the major criteria for carrying out a Government household goods storage pro- gram. In addition to being less costly, both areas have excess Government warehouse facilities and large concentra- tions of military personnel in the immediate areas. A third location we reviewed--Bayonne, New Jersey--had large concentrations of military personnel and excess ware- house facilities, but using such facilities was more costly. BACKGROUND The DOD household goods storage program basically in- cludes two types of storage. --NTS, which is usually provided by a commercial con- tractor under a basic agreement with the Government and which is used for shipments requiring storage for more than 180 days. NTS generally is used only for household goods to be stored until the owner re- turns to the area. LCD-76-210

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