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![handle is hein.gao/gaobaachg0001 and id is 1 raw text is:
DOCUM3NT RESURE
02327 - [A1332326]
(Recommendations on Containerized Shipping Service to Puerto
Rico, Hawaii, and Guam]. LCD-77-226; B-145455. May 3, 1977. 8
Pp.
Report to Secretary, Department of Defense; by Fred J. Shafer,
Director, Logistics and Communications Div.
Issue Area: Facilities and Haterial Management: Federal
Transportation of Things (704); Military Preparedness PlAns:
Transportation in Emergency Situations (t.04).
Contact: Logistics and Communications Div.
Budget Function: National Defense: Department of Defense -
Procurement & Contracts (058); Commerce and Transportation:
Water Transportation (406).
Organization Concerned: Federal Maritime Commission.
Congressional Relevance: House Committee on Merchant marine and
Fisheries.
Authority: B-154967 (1964).
The Department of Defense (DOD) did not concur with the
following two GAO recomnendat. ons concernirg containerized
shipping service to Puerto Rico, Hawaii; and Guam: (1) the
Military Sealift Cosmand (MSC) should be directed to develop a
staff knowledgeable in commercial ocean tariffs; and (2) MSC
should review its negotiation efforts to date in the Puerto Rico
trade. DOD replied to GLO that they disagreed that NSC has a
void in the ability to use commercial ocern tariffs, and that
the problem was not one of a lack of staff competence but a lack
of basic commodity information necessary to properly rate the
shipments. Findings/Conclusions: GAO requested that DOD
reconsider GAO's recommendations in these two areas. GAO's
conclusion that NSC needed to develop a o,;aff knowleageable in
this area was based primarily on statemernts NSC made in its
cases before the Federal Maritime Commission. The record shows
that neither NSC, nor anyone in DOD, porisessed the tariff
expertise to use commodity information prudently. The study DOD
cited ac showing a 61 cost advantage in favor of the Government
negotiated rates over the commer ial tariffs lacked the basic
foundation for a comparative cost study. Also, there is a
continuing need to obtain better commodity description
information to enable MSC to evaluate the reasonableness of its
negotiated rates. The original recommendations are still
appropriate. (SC)](ViewImageLocal?handle=hein.gao/gaobaachg0001&div=1&collection=&method=preview&ext=.png&size=3)