Household Goods: DOD Can Improve Claims Recovery on Direct Procurement
Method Shipments (Letter Report, 11/29/93, GAO/NSIAD-94-39).

This report reviews the Defense Department's (DOD) efforts to recover
from government contractors the money it paid to military and civilian
personnel for lost or damaged personal property moved under DOD's Direct
Procurement Method of shipment.  DOD nearly always tries to recover loss
and damage claims from destination contractors, even though others,
particularly the origin contractor or one of the freight carriers, may
be more responsible for losses and damages and may have greater
liability limits than does the destination contractor.  Claims officials
have recovered less than they could have and have indirectly forced
destination contractors to boost rates to offset the claims losses.  In
addition, origin transportation officers have received only minimal
feedback, which could have been helpful in reducing the loss and damage
and improving the quality of service on future shipments. This report
explains in detail the reasons the claims officials did not attempt
recovery from other than the destination contractor.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  NSIAD-94-39
     TITLE:  Household Goods: DOD Can Improve Claims Recovery on Direct 
             Procurement Method Shipments
      DATE:  11/29/93
   SUBJECT:  Department of Defense contractors
             Personal property
             Household goods
             Freight transportation operations
             Freight damage claims
             Liability (legal)
             Debt collection
             Claims processing
             Documentation
             Claims settlement

             
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