Poor Invoicing Has Led to Issues in the DOD
After the Department of Defense found that some transportation contractors had falsified weight tickets, Maersk Line has settled the allegations with $3.66 million in civil penalties.
Maersk’s Farrell Lines and its logistics branch, Damco, appeared to be at fault due to a poor invoicing system. It is unclear whether there was any attempt to falsify the shipment weights, as the matter was settled before going to court.
The large fines indicate the stringent standards placed on DoD contractor equipment and practices — with strict scrutiny expected even for large and established contractors.
Why the DoD Fined Two Maersk Subsidiaries
The transportation companies had been subcontracted to move DoD cargo out of Scott AFB in Illinois. As per the terms of the contract, billing was weight-based. However, the companies did not create authentic weight tickets when shipping the loads — employees had apparently written up 563 tickets after shipment.
With the DoD contractor equipment available today, automated record keeping and material handling should prevent these sorts of invoicing issues.
Maersk had previously paid a $32 million settlement for overcharges to the DoD in 2012, but has been awarded billions in contracts since.
About GSA-Approved DoD Contractor Equipment
Firms with government contracts should take advantage of modern material handling equipment to automate many processes. At DJ Products, we offer GSA-approved truck pushers, trailer caddies, the BombCaddy remote explosive trailer, and other military contractor equipment.
These devices not only make it easier to push and pull heavy equipment and vehicles, but doing so can also make it easier to streamline operations and staffing needs.
Find out more about DoD contractor equipment at DJProducts.com.