Selected Dedicated Motor Carrier Service Agreements
INSPECTOR GENERAL DEPT OF DEFENSE ARLINGTON VA
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The Consolidated Truck Service and Northeast Dedicated Truck Service are dedicated guaranteed traffic agreements administered by the Navy. A dedicated guaranteed traffic agreement is a transportation agreement that guarantees one carrier all freight traffic between specified shipping points or geographic areas for a specified time, Dedicated agreements have preestablished departure and arrival schedules that DoD may change on an as needed basis as specified in the agreement. The Consolidated Truck Service agreement provides for the transportation of low priority and oversized freight, which could not be transported by Quicktrans air, between Norfolk, Virginia the Naval Air Station, North Island, California and Travis Air Force Base, California, at an annual cost of approximately 0.7 million. The Northeast Dedicated Truck Service provides commercial carrier scheduled pickup and delivery service for high and low priority freight between Norfolk, Virginia, and designated activities in the northeastern United States, at an annual cost of approximately 2.8 million. As of March 1, 1993, 19 dedicated motor carrier agreements were in force with estimated annual costs of 4.7 million. The audit objectives were to determine whether dedicated motor carriers are being effectively utilized and whether dedicated motor carrier service duplicates other transportation alternatives available to the Military Departments and the Defense Logistics Agency. We also evaluated internal controls applicable to the audit objectives and reviewed the impact of management actions taken in response to recommendations made in General Accounting Office Report No. NSIAD 88-53 OSD Case No. 7464, Cost Savings of Expanding the Guaranteed Traffic Program, November 9, 1987, as they related to the dedicated motor carrier service.
- Administration and Management
- Economics and Cost Analysis
- Surface Transportation and Equipment
- Marine Engineering