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LCD-79-218 1 (1979-06-14)

handle is hein.gao/gaobaazjc0001 and id is 1 raw text is: 







LOGISTICS AND COMMUNICATIONS
       DIVISION

     B-178205


UNITED STATES GENERAL ACCOUNTING OFFICE
        WASHINGTON, D.C.  20548IIIIII   I    lllll  11111 Ill
                                     LM109624


JUNE 14, 1979


109624


The Honorable Harold Brown
The Secretary of Defense


Dear Mr. Secretary:

     We have completed our study of the storage and distribution
of bulk petroleum products by the Defense Logistics Agency. 3  F I
While we found the functions to be generally well managed, we
observed several opportunities for improvement, such as:

     --The use of inaccurate or inappropriate transpor-
       tation cost data in the computer model used by
       the Defense Fuel Supply Center to evaluate bids
       from suppliers has in some instances distorted
       the results.

     --The overall cost of petroleum products could
       be reduced if maximum use were made of existing
       pipelines for distribution.

     --Inventories at some fuel storage points have
       been maintained at higher levels than can be
       justified by usage or war reserve requirements.

     --The loading of fleet oilers at supply points
       away from the source of supply has resulted in
       unnecessary double handling of fuels, thus
       increasing costs.

     The Defense Logistics Agency is the single manager for
wholesale bulk petroleum products. Its Defense Fuel Supply
Center has a worldwide mission of procuring and distributing
fuel used by the armed forces and certain other Federal
activities. These responsibilities are carried out by the
Center's headquarters office and eight regional offices in the
United States and overseas. Our study was done at the Center's
headquarters office and at the Los Angeles region.


'/ /     LCD-79-218
          (943043)


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