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093299 1 (1972-08-22)

handle is hein.gao/gaobacxdm0001 and id is 1 raw text is: UNIT ED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D C 20548 GENERAL GOVERNMENT VSIONAUG 2 2 1972 Dear Mr. Blackwell We have completed a review of selected aspects of the Maritime Administra- tion's Operating Differential Subsidy (ODS) program. The review, which was conducted at Maritime headquarters in Washington, D.C., and Maritime's three regional offices located in New Orleans, Louisiana, San Francisco, California, and New York, New York, was concerned primaily with the determination of sub- sidy rates, the authorized manning levels of subsidized vessels, and Maritime's procedures for controlling the vessel operators subsidized costs. Our review did not include an evaluation of the effectiveness of the overall ODS program. We reviewed the extension of 1965 subsidy rates to 1966, 1967, and 1968 to determine whether the extension of these rates was in the best interest of the government. Although data necessary to make a conclusive determination was not available, we found no indication that the extension of these rates was not in the best interest of the government. During our review we noted that the Maritime-authorized manning levels of some vessels were not consistent with the manning levels of similar vessels operated by both subsidized and non-subsidized operators on the east, west, and gulf coasts. We also noted that since 1964 there has been a significant increase in subsidy payments for overtime paid to crew members. These areas are discussed further in the following paragraphs. NEED FOR REVIEW OF MANNING LEVELS OF CERTAIN VESSELS We believe that the Maritime Administration should review the authorized manning level of the mariner-type vessels being operated in subs3dized service by three west coast operators. We reviewed the manning levels of all vessels in subsidized service as of January 1, 1971, and found that the Maritime Subsidy Board (MSB) in several separate actions has, effective June 16, 1972, reduced the subsidizable man- ning level for 51 of the 215 vessels in subsidized service as of January 1, 1971. The June 16, 1972, date was chosen because the then current collective bargaining agreements between the vessel operators and the unions expired on June 15, 1972. r-ttz/ oaoc291/

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