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S ec t i on I : I n t roduc t i on
Transportation Management in the Federal Government
| Best Practices Report: 2012
FY 2011 actual amounts that federal agencies reported to the Office of Management and Budget
for “outbound” transportation
* OGP Transportation Study, February 5, 2010.
** LMI Study, September, 2012.
Source: Office of Government-wide Policy, Office of Asset and Transportation Management, Transportation Policy Program.
F I G U R E 2 :
Federal Transportation Spending in 2011
Object Class 22 Reports (FY 2011):
DoD outbound and intra-agency
$25.306 B
USPS (mail and non-mail freight)
$6.981 B
Other civilian agencies outbound
$0.54 B
$0.879 B
Object Class 22 Total
$35 B
Civilian agencies, Object Class 25.2 (Contract Services)—
estimate of the transportation component*
$12.0 B
All agencies, inbound freight transportation spend estimate** $3.96 B ($2.74B DoD; $1.43B civilian)
Looking strictly at outbound transportation—the easiest opportunity
to calculate—there is about $10 billion spent on non-defense
outbound transportation services of which the U.S. Postal Service
accounts for nearly 70 percent. This is in addition to an estimated
$12 billion spent in 2011 on transportation related to contract
services provided to civil agencies (Object Class 25.2). Quetica,
a consulting and advisory firm, estimates this segment could take
advantage of a 10 percent cost savings if the non-Defense agencies
pooled their resources on freight movements and the government
leveraged its scale in transportation procurement initiatives to obtain
the lowest possible rates.
Further, Quetica calculates that the government sector’s non-managed
inbound transportation (pre-paid and allowed) cost as part of the fully
landed price accounts for more than half of the government’s total
transportation spend. Based on a cross-agency sample of transportation
charges broken out of the fully landed cost for goods, the federal
government pays between 25 to 50 percent higher transportation costs
when compared to GSA transportation rates. This represents an oppor-
tunity for billions of dollars in savings to the federal government. The
GSA’s Transportation Policy Fact Sheet estimates that federal agencies
spent about $4 billion on managed inbound transportation in 2011.