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NSIAD-85-38 1 (1985-04-26)

handle is hein.gao/gaobabnqu0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 NATIONAL SECURITY AND INTERNATIONAL AFFAIRS DIVISION B-152283 APRIL 25, 1985 The Honorable Barry Goldwater Chairman, Committee on Armed Services United States Senate 126784 Dear Mr. Chairman: Subject: Expansion of the Military Traffic Management Command's Intrastate Rate Acquisition Program (GAO/NSIAD-85-38) This report responds to the request of the former Chairman, the Honorable John Tower, that we review the Military Traffic Management Command's (MTMC) proposed expansion of its intrastate rate acquisition program for moving household goods. MTMC has proposed expanding the program, presently in use in 7 states, t6 all the remaining states except Alaska and Hawaii. However, it has agreed to delay the expansion pending completion of our review. In fiscal year 1983, the Department of Defense (DOD) spent about $14 million on the intrastate movement of household goods. This was less than 1.5 percent of the $961 million paid to moving companies for the worldwide movement of DOD household goods. Prior to 1980, there was no centralized system for determining the rates at which DOD-funded intrastate household goods shipments would be moved. Rate-setting procedures varied from state to state. For example, in Texas, all shipments were moved at a single collectively set exact tariff approved by the state utility commission. In other states, carriers submitted their individual tariffs to the military installations where they desired to do business. Since 1980, several states that previously had collective tariffs have deregulated their trucking industries, thus discon- tinuing the collectively set tariffs in favor of individual tariffs. As of January 1985, Florida, Maine, Wisconsin, Arizona, Idaho, and Colorado had deregulated. When the first of these states (Florida) deregulated, in 1980, MTMC, the single manager of DOD's worldwide personal property program, introduced a centralized intrastate rate (943596)

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