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Defense Transportation: Ineffective Oversight Contributes to Freight Losses

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Report Type Reports and Testimonies
Report Date June 18, 1992
Report No. NSIAD-92-96
Subject
Summary:

The Defense Department (DOD) spends more than $500 million annually to ship government property around the country, mostly by truck. Although DOD filed claims against freight carriers for $15 million worth of lost or damaged property in fiscal year 1990, GAO believes that these losses could be many times greater. DOD's systems for identifying, reporting, and recovering lost freight and for monitoring carriers' performance are in disarray. DOD does not always know when freight is missing, and military bases do not consistently or correctly report problems like undelivered and missing freight. Even when DOD files claims for lost freight, carriers are generally liable for only a fraction of the freight's value. Further, DOD continues to use carriers that have lost excessive amounts of freight. DOD needs to strengthen management of freight shipments to cut down on property thefts and losses.

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