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PLRD-82-70 1 (1982-05-27)

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         1J          UNITED STATES GENERAL ACCOUNTING OFFICE

                             WASHINGTON, D.C. 20548


PROCUREMENT. LOGISTICS,
AND READINESS DIVISION


    B-200212                                          MAY 27,1982



    The Honorable Caspar W. Weinberger
    The Secretary of Defense
         Attention: Director, GAO Affairs                        118507

    Dear Mr. Secretary:

         Subject: DOD's Revised Carrier Evaluation and Reporting
                   System May Not Be Needed (GAO/PLRD-82-70)

         In October 1980 we reported 1/ on our observations concerning
    the Department of Defense's (DOD's) Carrier Evaluation and Report-
    ing System (CERS). Then, we pointed out problems in CERS' design
    and operation and recommended several corrective actions. DOD
    responded promptly and positively and suggested ways to simplify
    CERS and to improve the system's effectiveness. However, because
    these proposed changes did not satisfy the concerns of certain
    officials of the moving industry, Senator Strom Thurmond asked us
    on June 8, 1981, to evaluate complaints he had received about the
    revised system. Although the revised system was scheduled to
    become effective on November 1, 1981, you deferred the implementa-
    tion date until we completed our evaluation. Our findings are
    summarized below and are discussed in more detail in enclosure I.

    CERS MAY NOT BE NEEDED

         The revised reporting system is based on definite performance
    standards, lessens the administrative burden, and returns much of
    the responsibility for quality assurance to installation transporta-
    tion officers. It also eliminates the incentive tonnage awards,
    which had created problems (particularly reported in the New Mexico
    area).

         Although the revised system is an improvement over the initial
    one, we question whether either system actually is needed. For
    example, the setting of performance standards is a positive develop-
    ment, but DOD assumes that CERS is the only system to monitor car-
    riers' adherence to those standards. A simpler method would be


    I/DOD's Carrier Evaluation and Reporting System (LCD-S1-6,

      dated Oct. 6, 1980).

                                                         (943144)


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