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PLRD-81-27 1 (1981-04-28)

handle is hein.gao/gaobabbwa0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFIIISOE \WASHINGTON, D.C. 20548 PROCUREMENT, LOGISTICS, AND READINESS DIVISION APRIL 28, 1981 Rear Admiral Bruce Keener Commander Military Sealift Command 115078 Dear Admiral Keener: Subject: Weaknesses in Negotiating Rates and ervices For Commercial Containerized SealitJ (PLRD-81-27) We have completed our review of the management of commercial containerized sealift service and the process of negotiating rates for such service. We found a number of areas that offer potential for improving the service, while at the same time insuring the availability of the lowest and most advantageous rates. These areas include: -revising your solicitation of offers to include information on expected volumes of shipments between specific pairs of points, --allowing carriers to base their bids on traffic patterns, --allowing rates to remain fixed until circumstances and cost factors dictate change, and -allowing shippers greater freedom to choose between cost and service. Details of our findings are set forth in the enclosure to this letter. The enclosure also contains recommendations designed to effect the potential improvements cited above. We would appre- ciate receiving your comments on our findings and recommendations. We are sending copies of this report to the Secretary of Defense and the Secretaries of the Army, Navy, and the Air Force. Sincerely yours, Henry W. Connor Associate Director Enclosure (943475)

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