C0W=TROUER r,ENEBP.L OF Y-HE UNlTED !3TATES *- 9 WASHtNS.TON. D.C. ZOW3 Dear Sk, XMtehurst: J%xrther reference is-made to your letter dated October 6, 1970, and subazzquent communications with our representa,tives, requesting that we detezz&ne ðer the Government is getting the most for its money under the 2reseat mix%fW&.&l service and contract longshoremen'and certain ~~~.~~~~~~~~~~~~~.ortshorernen~,.at _..,. the Naval +pply Center, Norfolk, UirgzZr&. We &ave concluded that the present civil service longshoreman force of X22 employees, working in six gangs of 17 men each, and the shortshore- msn $?orce recently increased from 50 to 80 employees has proven to be the most &ficient number of in-house employees, when firstname.lastname@example.org contract empl@;,vees as necessary. In making this determination, we reviewed work load s.~5 xork force statistical data, records, reports, and studies. We used the criteria provided in Bureau of the Budget Circular IJo. A-76 in evalrzzting the Navy's cost study. We also interviewed Supply Center and NavaX Area Budit Office personnel and union officials representing the civ2 service workers. Z?~L;Sizpply Center supplements its civil service work force during per&& of peak work loads by using contract longshoremen between ships and p2ers and contract shortshoremen between piers and warehouses. The contr-ct for these services was competitively awarded in 1969 and was eKteded to cover 1970. The 1970 contract amount was about $3 million. %!ecently the Supply Center's work load and work force has declined as sti;hn in the following table: SUPPLYCENTE??WORKL0AD January 1?6? through December 1970 7 Work load in Work force in m3n4ays Period measurement tons (note a) Civil servzce Contract \:or Ju_ly through Sept. 1969 393,000 5,792 9,126 Oct. through Dec. 1969 400,000 5,624 5,076 Jan. through Mar. 1970 2l4,ooo 5,968 3,240 Apr. through June 1970 237,000 5,848 2,&4 July through Sept. 1970 212,000 5832 3,186 act. through Dec. 1970 163,000 4,688 1,836 aA unit of volume for cargo freight--usually &C cubic feet. The following changes in the number of gangs have been made since November 1967. N&ber of gangs Date Tvoe of action remaining November 196'7 Eliminated one gang 10 October 1968 Eliminated three gangs 7 November 1969 One gang added 8 &Y 1970 Eliminated two gangs 6 The Supply Center has made cost studies at different times to determine the most economical mix of civil service and contract longshoremen and short- shoremen. The most recent study, completed in August 1970, showed t&at six civil service longshoremen gangs could be fuJ.ly employed and wotid be the most economical work force when supplemented by contract labor to meet peak work load requirements. The study showed that, although the daily cost for a civil service longshoreman was only aSout 58 percent of the cost for a contract longshoreman, an all civil service or an all contract force would be more costly than a mixed work force because of work load fluctuations. The Navy study showed that the daily cost of civil service shortshoremen was about 83 percent of that of contract shortshoremen, and the force was increased from 50 to the optimum number-&XI. -2- . B-169935 The Navy study understated the daily cost for a contract longshoreman because Supply Center overhead and the contractor's indirect labor and profit were omitted. As a result the optimum number of civil service longshoremen was understated by one or two gangs. Nevertheless, the present civil service force of six gangs proved to be the optimum number because the work load had declined since the Supply Center study. The Navy made the same omissions in developing the shortshoremen cost. Our evaluation showed that the 30 workers added to that force brought it tc the optimum level. The commanding officer said that the Supply Center would include the omitted cost elements in its future evaluations of requirements for long- shoremen and shortshoremen, which will be-de monthly because of constantly changing work loads. e Department of the Navy and Department of Defense officials have not been &ven an opportunity to comment on the matters discussed In this repcrt. In accordance with discussions with your office, we are sending requested *. *e*. _ copies of this report to Senators Harry F. Byrd, Jr., and William B. Sponq, Jr We trust that the results of our inquiries are responsive to your request. .. I Sincerely yours, ASSista~~t Comptroller General of the United States The Honorable G. William Whitehurst House of Representatives -3-
Determination of Optimum Mix of Civil Service and Contract Longshoremen and Shortshoremen
Published by the Government Accountability Office on 1971-04-13.
Below is a raw (and likely hideous) rendition of the original report. (PDF)