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LCD-81-6 1 (1980-10-06)

handle is hein.gao/gaobabbem0001 and id is 1 raw text is: 



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United States General Accounting Office          Logistics and
Washington, DC 20548                                 Communications
                                                     Division

B 2002l2                                        OCTOBER 6,1980



The Honorable Harrison Schmitt

                                                           113661
Dear Senator Schmitt:

     Subject: [DOD's Carrier Evaluation and Reporting
                Syste(LCD-81-6)

     Your October 17, 1979, letter asked us to investigate
t e impact of the Department of Defense's (DOD's) Carrier
Ealuation and Reporting System (CERS) on the moving and
storage industry in New Mexico. As discussed with your
o4fice, prior staff commitments at that time delayed the
s art of our work until February 1980.

     Soon after we began work on the assignment, it became
apparent that many of the problems we observed, rather than
being peculiar to agents in New Mexico, were inherent in
CORS. Consequently, we expanded our review to include
DQD installations in Colorado, Texas, and Arizona.

     Although the CERS objective of high quality service at
reasonable cost is good, current implementation practices pre-
clude DOD's attaining this objective. We found that while
administrative costs are increasing, additional benefits
attributable to CERS are questionable. We also found that:

     --DOD's emphasis on awarding shipments by cost over
       quality of service limits CERS' usefulness.

     --The current evaluation process is unreliable.

     --CERS' scores and rankings do not reflect
       quality of service.

     --CERS' complexity causes confusion and diverse
        implementation.



                                             (943350)




                                       52243'.

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