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B-114807 1 (1972-01-26)

handle is hein.gao/gaobaagpr0001 and id is 1 raw text is: VD S UNITED STATES GENERAL AccoUNTN 6OF . - WASHINGTON, D.C. 20545 TRANSPORTATION DIVISION IN R PL Y P LE AS E Q U O U A 6 1 7 / 0-'/ B-114807 JAN 276972 Dear Mr. Kunzig : LM096688 We have reviewed the use of local freight companies by the General Services Admini-tration (GSA) , Region 5, Chicago, <- Illinois, to pick up shipments at the Federal Supply Service A (FSS) depot and transfer them to common carriers for even- tual delivery. We found that the pickup of shipments at or- igin generally was included in the rates of common carriers and that GSA in contracting for the local pickup service was paying additional charges for a service it was entitled to receive from the common carriers. The tariffs of the common carriers provided an allow- ance to the shipper when pickup service was not rendered; but we found that the allowance was insignificant in relation to the amount paid by GSA to the freight companies for local drayage service. We found also that the amount of these al- lowances, insignificant as it was in comparison with the amount of the overall cost, had not been collected from the common carriers. We were told that no other GSA depot used this type of service to deliver freight to common carriers. HOW THE DRAYAGE SERVICE STARTED During the latter part of 1967, FSS studied shipping data at the Chicago depot and found that on an average day about 23 shipments under 1,000 pounds each were being proc- essed. It found also that common carriers occasionally failed to pick up these small shipments. This reportedly caused congestion at the shipping platform. As a result of its study, FSS requested the Transportation and Communi- , cations Service (TCS) to negotiate a contract with a local , carrier to pick up these small shipments at the FSS depot and deliver them to the terminals of common carriers. BEST DOCUMENT AVAILABLE

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