Household Goods: DoD Can Improve Claims Recovery on Direct Procurement Method Shipments
Abstract
When DOD ships household goods and baggage for its military and civilian personnel, it has two methods of shipment it can choose. Most often, it uses the Through Government Bill of Lading (TGBL) method in which a single forwarder or moving van company arranges for or provides all the services for the entire move. The forwarder or moving van company is responsible for packing, crating, local drayage, line-haul transportation, deliver, uncrating, unpacking, and any other service required and accepts responsibility for any loss or damage during the entire move. The other method is direct procurement. In thousands of cases each year, both internationally and domestically, DOD uses DPM as an alternative to TGBL. Under DPM, DOD contracts with a series of local packing and containerization contractors and line-haul freight carriers to handle each segment of a move. One contractor prepares the goods and packs them for shipment. Another delivers the goods and unpacks them. One or more freight carriers provide the line-haul transportation between contractors. DPM may be used for a variety of reasons. Sometimes TGBL service is not offered at certain installations, or the TGBL companies may have more business than they can handle. Sometimes DOD may not need the complete service TGBL companies offer. In still other cases, DOD may decide DPM is less costly. DOD manages the DPM shipments throughout. That is, DPM shipments move from government to contractor, government to carrier, and not from contractor to contractor, or carrier to carrier. There are no business or contractual relationships between the origin and destination contractors or between the contractors and freight carriers
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 01, 1993
- Accession Number
- ADA273711
Entities
Organizations
- United States Government Accountability Office