Defense Transportation

Pursuant to a congressional request, GAO reviewed correspondence stating that the cost of the Army's Personal Property Pilot Project to outsource personal property transportation services at Hunter Army Airfield would greatly exceed the current cost for commercial moving services. GAO focused on the: (1) estimated costs of an average shipment under the pilot project and current program; and (2) basis for the American Movers Conference's, an association of commercial moving companies, estimates. GAO did not independently verify the source data provided by the Army or the American Movers Conference.

GAO noted that: (1) until the Army accumulates sufficient data on actual Hunter Army Airfield shipments, GAO cannot determine an average shipment cost for the pilot project; (2) however, absent actual data, the model the Army used to estimate costs during its evaluation of proposals provides a means of making preliminary cost estimates; (3) therefore, using the model and available data, GAO estimates that the cost of an average shipment under the planned pilot project is about $6,900 and that the cost of an average shipment under the current program is about $6,400, or roughly 8 percent less than GAO's preliminary estimate for the pilot project; (4) while GAO recognizes that its estimate is subject to change based on the actual data generated from the pilot project, GAO's estimate for the pilot project is about the same as the American Movers Conference's estimate of $7,000; (5) however, GAO's $6,400 estimate for the current program is substantially different from the American Movers Conference's estimates because they are based on different models, prices, cost factors, and time frames; (6) GAO believes that its approach represents the most appropriate method for making a preliminary cost comparison of the pilot project and current program until actual data are available; and (7) GAO's estimates are based on the more current price data and include more comprehensive cost data.