Expansion of the Military Traffic Management Command's Intrastate Rate Acquisition Program

In response to a congressional request, GAO reviewed the Military Traffic Management Command's (MTMC) proposed expansion of its intrastate rate acquisition program for moving household goods.

In 1980, MTMC introduced the program which requires carriers to submit rates for each military installation they desire to serve, and the low ratesetter is offered the opportunity to move 50 percent of the total intrastate tonnage at the installation. MTMC plans to expand the program, which is presently used in seven states, to all remaining states except Alaska and Hawaii. GAO found that the proposed expansion of the program: (1) is reasonable; (2) will facilitate rate solicitation, submission, and analysis; (3) will promote needed competition; and (4) has the potential of reducing the government's cost of moving household goods. The Department of Defense concurred with these findings; however, moving industry representatives are concerned about certain aspects of the program, such as the impact of increased administrative costs and the award of incentive tonnage to the carriers involved.