Household Goods: DoD's Foreign Currency Rate Adjustment Program
Abstract
In a July 25, 1984 letter (published in the Federal Register, August 2, 1984), the Military Traffic Management Command (MTMC), manager of DOD'S personal property shipping program, asked the household goods carrier industry to comment on a proposal to terminate its foreign currency rate adjustment program. The adjustment program had been in effect since 1971 and had allowed carriers, more commonly known as forwarders, to adjust their rates to compensate for changes in the value of the dollar against foreign currencies. The program was part of MTMC'S International Through Government Bill of Lading (ITGBL) household goods and unaccompanied baggage shipment program. MTMC said a review of the ITGBL program had raised questions about the benefits and the need for an adjustment program. It said the program did not foster competition, was administratively burdensome, placed small business at a disadvantage, was not reflective of actual costs, placed all risks associated with increasing foreign exchange rates directly on the government, and had the potential for fraud, waste, and abuse. On October 19, 1984, MTMC announced it was terminating the program, effective April 1, 1986, Thus, after 17 rate solicitation cycles under the ITGBL program, the adjustment program ended. A rate cycle is generally a 6-month period beginning April 1 and October 1 of each year, On October 1,1986, MTMC will be beginning the fourth rate cycle without the program.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 30, 1986
- Accession Number
- AD1122834
Entities
People
- Frank C. Conahan
Organizations
- United States Government Accountability Office