Defense Department mulls performance-based contracts for household goods transport
The Department
of Defense wants to tighten rules governing the transport
and storage of household goods after a General Accounting
Office study noted inefficiencies in the commercial moving
sector.
“DOD
spends more than $1.7 billion each year to move and store
over 600,000 household goods shipments when relocating
military personnel,” GAO said. “The recommendations in
DOD's report to Congress have the potential to resolve
several long-standing problems found in the current program.”
The recommendations,
if implemented, would:
- Use
performance-based service contracts to improve “the generally
low quality of service that DOD currently gets from the
moving industry,” the report said.
- Put
in place new information technology with interface capabilities
to enable program managers and users to monitor in-transit
shipments and track the number and cost of shipments
processed each year.
- Re-engineer
the claims process to reduce the length of time it currently
takes to resolve claims for lost, destroyed or damaged
household goods and increase the reimbursement rates
that military personnel currently receive for their losses.