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B-177422 1 (1972-11-14)

handle is hein.gao/gaobabkjv0001 and id is 1 raw text is: f ~ .~J1 RESTRICTED - Not to e's a .-InAcco i g 0 f'ice C- 0 e t h row by the Office of Legislati LFaio a C i s by the Distribution S , atio ran OA COMPTROLLER GENERAL OF THE IT STAT WASHINGTON, D.C. 2048 B-177422 RELEASED Dear Mr. Chairman: Congressman John D. Dingell received information from one of his conslt-ue--s suggesting that commercial air carriers in the Detroit, Michigan, area may be using military fuel for their commercial operations. He directed the information to the attention of your subcommittee, and on September 14, 1972, you requested the General Accounting Office to review the matter. Our analysis of pertinent contracts showed that .air car- riers are authorized to purchase fuel at military bases when ~jr~o;rming contract flights, forthc-iil tary. sorvic6S. During our review we tide i'tfi'ed weaknesses in the procedures estab- lished to control the sale of such fuel. These weaknesses would make it possible for the ca ri e tphain. fuel for their commercial r fghts at ices substantially lower than t h 6y -6 aId~b~n~ from commerci 'a-'l :-s-o'ur-ces,. lwe ta CONTRACT AIR CARRIERS AUTHORIZED TO PURCHASE FUEL AT MILITARY RATES There are basically two types of military contract air cargo service within the United States--the Air Force's LOGAIR and the Navy's QUICKTRANS. Contracts negotiated for these services authorize air carriers to purchase fuel at military bases for use in performing the contracted services in accord- ance with applicable military regulations. Air Force Regulation 144-9 applies to Air Force bases, and paragraph 25320 of the Navy Supply System Command Manual applies to naval air stations. Quantity restrictions are only imposed by the Air Force directive. These restrictions apply upon com- pletion of contract flights, at which time the quantity of fuel to be provided the carriers will be restricted to an amount needed to reach one of the following desired destinations. 1. The aircraft's nearest home base. 2. The point from which, or any point short of the point from which, the terminated flight commenced. 3. The point from which another immediate contract flight is scheduled to originate.

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