94-12057. Defense Logistic Agency's Termination of the Regional Freight Consolidation Center Program

[Federal Register Volume 59, Number 96 (Thursday, May 19, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12057]


[[Page Unknown]]

[Federal Register: May 19, 1994]


-----------------------------------------------------------------------

DEPARTMENT OF DEFENSE
Defense Logistics Agency

 

Defense Logistic Agency's Termination of the Regional Freight 
Consolidation Center Program

AGENCY: Defense Logistics Agency, DOD.

ACTION: Notification of termination of RFCC program.

-----------------------------------------------------------------------

SUMMARY: The Defense Logistics Agency has terminated its Regional 
Freight Consolidation Center program and will no longer use the centers 
in new contract solicitations. To avoid the expense of modifying 
contracts, however, DLA will allow vendors with outstanding contracts 
to ship to the RFCCs until July 22, 1994.
    Before DLA created The RFCC program in November 1988, vendors 
delivered all products directly to DLA depots. The RFCC program was 
designed to reduce vendor transportation costs by consolidating small 
package and less-than-truckload shipments at regional centers, which 
then shipped the larger loads to DLA depots. DLA believed that vendors 
would pass these savings on to the government as lower-priced bids for 
Department of Defense contracts. At its peak, the program included 
seven regional centers--five operated by commercial firms and two 
operated by DLA depots.
    DLA officials decided to end the program for several reasons. Most 
important, DLA was not satisfied that vendors were passing 
transportation savings on to DOD in the form of lower contract prices 
and the RFCCs sometimes increased delivery time to customers. In 
addition, because DOD is downsizing, the volume of shipments is 
decreasing and the cost of operating the centers would outweigh the 
savings realized.

EFFECTIVE DATE: July 22, 1994.

FOR FURTHER INFORMATION CONTACT:
Mr. David Beckner, Defense Logistics Agency, MMATT, room 4B474, Cameron 
Station, Alexandria, VA 22304-6100/[phone].

Albert R. Heffner,
Team Chief, Transportation Services, Transportation Group.
[FR Doc. 94-12057 Filed 5-18-94; 8:45 am]
BILLING CODE 3620-01-P-M