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PLRD-81-44 1 (1981-06-22)

handle is hein.gao/gaobabcba0001 and id is 1 raw text is: 

                   UNITED STATES GENERAL ACCOUNTING OFFICE
                   UT     WASHINGTON. D.C. 20548


PROCUREMENT, LOGISTICS,
AND READINESS DIVISION

B-203234                                               JUNE 22,1981



The Honorable Caspar W. Weinberger

The Secretary of Defense

Dear Mr. Secretary:

      Subject: [Use of Air Carriers for Freight Shipmentsy
                (PLRD-81-44)

      During our review of the use of air carriers for freight
 shipments by the Department of Defense, we observed several
 matters which we believe require management attention. We bring
 these to your attention not only to inform you of the opportun-
 ities to improve the operations of the activities we visited, but
 also because our analysis of shipping records indicates that such
 opportunities exist at other installations.

      Among other things, we found that:

      --Small shipments were not being consolidated to the maximum
        extent possible to obtain the most favorable transporta-
        tion rates.

      --High-cost air transportation was being used for short
        distances.

      --Commercial bills of lading were not being used as exten-
        sively as possible, even though they are less costly to
        issue and process than Government bills of lading.

      --There was no effective system for monitoring carrier
        performance.

      --The system for designating priorities was misused
        thereby causing excessive use of air transportation.

 SCOPE

     We visited 15 different Defense activities selected because
of their geographical locations, size, and branch of service.
These included four Naval activities in the San Diego, California,
area, one in Alameda, California, and one in Norfolk, Virginia;
three Defense Contract Administration Services activities and a


                                               (943351)


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