The Army's Military Traffic Management Command's Proposal to Contract for All Cargo Handling at the Military Ocean Terminal, Bayonne, New Jersey

The Army Military Traffic Management Command's proposal to contract for all cargo handling at the Military Ocean Terminal, Bayonne, New Jersey, was reviewed. The review was limited to analyzing methodology of an Army Audit Agency study of a Traffic Command Study, which concluded that the use of private enterprise was more economical than work done by government employees. The Audit Agency disagreed, finding that contractor costs would be 8 percent higher than in-house costs. The Traffic Command subsequently revised its cost data for cargo rate and personnel, which still reflected long-term savings to government.

GAO found that the Audit Agency standards and performance were acceptable. The Army has since contracted with the private sector, noting that the advantages to it were improved economy, greater flexibility in adjusting to work load fluctuations, and the reallocation of the manpower authorizations to support combat forces.