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Defense Transportation: Defense Logistics Agency's Regional Freight Consolidation Centers

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Report Type Reports and Testimonies
Report Date May 21, 1993
Report No. NSIAD-93-169
Subject
Summary:

The Pentagon is not realizing the estimated savings from sending vendor shipments through the Defense Logistics Agency's (DLA) regional freight consolidation centers because many vendors are not passing the savings on to DLA and because freight volume has been lower than expected. In addition, the Defense Department (DOD) did not consider a more economical alternative that GAO believes could have reduced DOD's transportation costs by more than 40 percent by using existing government freight rates and by sending the shipments from the vendors directly to the storage depots. Overall, the centers are close to delivering shipments to depots within the required time, but three percent of the vendors GAO surveyed cited many problems with lost, damaged, or mishandled freight.

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