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![handle is hein.gao/gaobaabzx0001 and id is 1 raw text is:
DOCOREMT RESUZZ
OmO0 - [10100147]
(Commercial versus Government Storage]. B-146779; LCD-76-241.
October 18, 1976. 6 pp.
Report to Frank A. Schrontz, Assistant Secretary Departaent of
Deiense; by Fred J. Shafer, Director. Logistics and
Communications Division.
Issae Area: Facilities and daterial Management: Fedeyoal
Transportation of Things (704).
Contact: Logistics and Comaunicationq f,
Budget Function: National Defense: DepaL it cr. Defense -
Kilitary (ecept procurement & contracts) (051).
organization Concerned: Department of the Air Foxce: Kelly APE,
TX; Department of the Army: OaLland Terminal, Ck; Department
of Defense.
Congressional Relevance: House Committee on Armed Services;
Senate Committee on Armed Services.
Protests by the Department of Defense (DOD) of the use
of GoGirnment warehouses rather than commercial storage for the
storage of household goods are discucsed. a potential saving of
$576,956 by using unused Govacivent-oVned facilities at Kelly
Air Force Base, Texas, was pzoposed. Findings/Conclusions: A
one-time saving of over $14 million and an annual saving of
$700,000 is now indicated by DOD; however, if the space could be
used in a way that would resul+ in greater savings, GAO would
support the alternative use. At Oakland (Chlifo:nia) Army
Terminal# DOD tock exception to four cost elements: storage3 in
transit, packing and draying opportunity costs, and
so.'f-insured Ii. ility. DOD alleged that stcrage in transit
costs gould be incurred under both Government and comerc'al
storage and should be included in coputations; these costs were
iucluded in computations under both alternatives. DOD believes
that packing and draying costs would be incurred by conversion
to a Gcvernont storage operation; it is felt that such costs
vould be the same regardless of the facilities used.
Recommendations: Because the Oakland facility was vacant for a
long period of time, the costs accounting princitle of
opportunity cost should be foregone. The subject of self-in&ured
liability has little impact on comparative cost allowances. (RS)](ViewImageLocal?handle=hein.gao/gaobaabzx0001&div=1&collection=&method=preview&ext=.png&size=3)