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B-177422 1 (1973-06-27)

handle is hein.gao/gaobaagdh0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 IIIll Ill I II If II 11111 I!I 111 Ill LM096314 LOGISTICS AND COMMUNICATIONS DIVISION B-177422 JUN 2 7 1973 The Honorable The Secretary of Defense Dear Mr. Secretary: At the request of a congressional subcommittee, we made L! a limited examination into the Ai o-r-e-nd-Na-vy-pactices 3_$,/ 0 and 2cedui - eDx.jigg_3ffi flto omerc ial air carriers LOGAIR and QUICKTRANS-operations. The subcommittee had been informed that commercial air carriers in the Detroit, Mich- igan, area may be using the military fuel in their commer- cial operations. Our analysis of pertinent cp4ats showed that air ~ta~~a~totze d to _p -rh,- ueper- ormingjthe contraced servLces. However, we identified weaknesses in the procedures established to control these sales which would make it possible for the carriers to ob- tain fuel at substantial savings for use in their commer- cial operations. At the time we reported our findings, we advised the subcommittee that we would bring this matter to your atten- tion to ensure that appropriate action is taken. CONT__AjRCARRERS AUTHORIZED TO PURCHASE FUEL AT MILITARY RATES There are basically two types of military contract air cargo service within the United States--the Air Force's LOGAIR and the Navy's QUICKTRANS. Contracts negotiated for

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