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LCD-76-245-249 1 (1976-10-06)

handle is hein.gao/gaobaabzw0001 and id is 1 raw text is: uooOLI(~, 4~ '5 - *Y~-.-~ - (e LM101097 N 7 4 C-. -.4. A3 4 -~ Dear Senator Tower -. to r you- sof l 1 and 29, 1976, you asked us to consider the €omnts of the% San- Jtonio Movers' and Ware- houseuen'aAssociatLon and A&W ranasfer and Storage Co., on our report dealing with us-n- Government versus commercial facilities for storing vilitary personnel household goods. Before addressing the Association's-coments, perhaps it would be helpful to up6ate the situation. Our report cited potential savings of $576,956 annually by using Governamnt-owned instead of.commercial facilities at Kelly Aik Force Base to store household goods. However, DOD? in responding to our report, indicated that one-time savings of over $14 million and annual savings of over $700,F00 could be achieved by using the space for other purpoces• Our position is that if DOD can bet:-er use this space and if such use will result in savings more than that which would be realized by otoring household goods, of cours GAO has no objection.- At the time 'of our review, however, the space was vacant and we had identified a possible use--house- hold goods storage-that offered potential for savings. Although DOD's proposed action to use the apace at Kelly Air Force Base for other than storing household goods rendets the comer;iaI storage companies' coments moot, we still want to clai ,fy certain aspects of our report. The basic difference & ,tween the present commercial household goods operation and the proposed Government opera- tion would be at the- storage warehouse where civil service staffing would be used in Government facilities Zor ware- hcusing operation and for administrative aerviices. Approxi- mately the same number of employees would be zequired to perform the necessary service as commercial contractors now LCD-76-245 M4 T_ Iii ED 9=95U GIEMAIL ACcU~iir OFFICE winiteduw~ SaeSnt-... uwc) Ll C;7

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