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GAO-13-719R 1 (2013-07-31)

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GAO U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548


July 31, 2013



Congressional Committees



Subject: Army Logistics: Container Handling Equipment Requirements, Contracts, and Inventory


Container handling equipment provides Army commanders with the flexibility they need to
respond to rapidly shifting operations by supplying the capability to transport critical cargo. To
support a versatile and expandable distribution system, the Army has five types of container
handling equipment to carry both containerized and non-containerized (or break bulk) cargo:
flatracks, container roll-in/out platforms (CROPs), container handling units (CHUs), enhanced
container handling units (E-CHUs), and container transfer enhancements (CTEs). Flatracks,
which can carry both containerized and break bulk cargo, and CROPs, which can carry only
break bulk cargo, are structural steel frames. CHUs and E-CHUs attach to the lifting arm of a
truck and allow for upload and offload of containers. The CTE is a modification to a trailer which
allows the container to roll onto the trailer while being pushed by the CHU/E-CHU.

House Report 112-493 mandated GAO to provide a report to the congressional defense
committees on the acquisition plan, requirement, and inventory for container handling
equipment in the Army, including CROPs, flatracks, E-CHUs, CTEs, and similar equipment in
use by the Army.1 Our objectives for this report were to describe (1) how the requirements for
container handling equipment have changed since 1998 and when the corresponding contracts
were awarded or delivery orders issued and (2) the current and projected inventories of
container handling equipment. Enclosure 1 provides a copy of the slides detailing the results of
our review that we used in briefing your offices on July 11, 2013.

To address our objectives, we reviewed relevant documents related to the Army's container
handling equipment. These include the 1998 Operational Requirements Document for the
Palletized Load System; Operational Needs Statements2 and Equipment Sourcing Documents3
for flatracks; the 2010 Combined Arms Support Command (CASCOM) flatrack/CROP briefing;
the 2012 Distribution Enablers Study; the draft Capability Production Document; and contracts
and related documents for container handling equipment. Additionally, we interviewed Army
officials responsible for the requirements, acquisitions, program management, and inventory of

1The explanatory statement accompanying the Consolidated and Further Continuing Appropriations Act, 2013, Pub.
L. No. 113-6 (2013), retained a reporting requirement established in House Report 112-493. See 159 Cong. Rec.
S1404 (daily ed. Mar. 11, 2013); H.R. Rep. No. 112-493, at 138 (2012).
2Operational Needs Statements provide a way for unit commanders to identify urgent needs for new materiel or new
capabilities.
3Equipment Sourcing Documents are requests for filling an equipment shortage that has already been validated or
authorized by the Department of the Army.


GAO-1 3-719R Army Logistics

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