**GSA FUEL SURCHARGE**

**EFFECTIVE MAY 1, 2007**

On the first Monday of each calendar month, the national U.S. average
price per gallon of diesel fuel will be determined based on the price
stated by the U.S. Department of Energy (DOE) Energy information
Administration's survey of Retail On-Highway Diesel Prices.

If the first Monday of the calendar month is a Federal holiday, the
price will be determined based on the stated DOE price available on the
next subsequent business day.

The DOE fuel price obtained will apply for shipments loaded beginning on
the 15^th^ day of the month and will remain in effect through 14^th^ day
of the following month.

**For shipments picked up between May 1, 2007 and May 14, 2007,
calculation of the surcharge will be based on the April 2, 2007 DOE Fuel
Price**

Effective with shipments picked up on or after May 1, 2007, the
calculation of the Fuel Surcharge on domestic and international
shipments will be calculated based on the shipment's origin and
destination, and if applicable, the distance for delivery in or delivery
out of storage in transit (SIT), using the billable mileage as currently
identified by ALK Technologies.

For international relocations, the fuel surcharge can only be calculated
on the portion of the shipment which was handled under traffic in the
conterminous United States to the port of debarkation and from the port
of embarkation to a location in the conterminous United States.

For origins and/or destinations in Canada, Rand-McNally mileage will be
used in lieu of ALK Technologies. Rand-McNally will also be used for
mileage between the gateways on Alaskan shipments traveling by land
through Canada.

When the cost of diesel fuel exceeds \$1.399 as identified by the DOE on
the first Monday of the month, with an effective date of the 15^th^ of
the same month, the Transportation Service Provider (TSP) may calculate
a fuel surcharge based on the difference between the DOE price and the
trigger price of \$1.40.

To determine the fuel surcharge, the TSP must divide the billable miles
by 4.5 to determine the number of gallons of fuel used. The total
gallons will then be multiplied by the cost difference between the DOE
price and \$1.399.

Example

DOE Fuel \$2.629 Miles 750

750/4.5 = 166.66 gallons \$2.629 - \$1.399 = \$1.23

\$1.23 X 166.66 = \$204.99 Fuel surcharge = \$204.99

To eliminate rounding issues, calculations will be truncated at 2
decimals for the gallons consumed, the difference in the cost of fuel,
and the calculation of the charge. No rounding up or down will take
place.

**Gallons Consumed**

1,200 miles 1,200/4.5 = 266.666 Gallons will be 266.66

876 miles 876/4.5 = 194.666 Gallons will be 194.66

**Fuel Cost**

DOE price \$2.794 \$2.794 - \$1.399 = \$1.395 \$1.39 will be used

DOE price \$2.925 \$2.925 - \$1.399 = \$1.526 \$1.52 will be used

**Calculation**

\$1.39 X 266.66 = \$370.657 \$370.65 will be used

\$1.52 X 194.66 = \$295.883 \$295.88 will be used

**FAQ**

**How does the fuel surcharge work on International relocations?**

*The calculation will be based on the billable miles between the port of
embarkation or debarkation and the origin or destination of the shipment
within the conterminous United States.*

**How does the fuel surcharge apply to the 415-G Section 6 water charges
for Alaskan shipments?**

*The fuel surcharge is tied to billable mileage using the DOE average
Retail On Highway Diesel Price. Therefore, section 6 will not be subject
to the GSA fuel surcharge*.

**How does the TSP provide documentation for the billable mileage on
shipments** **delivered into or delivered out of SIT?**

*At billing, the TSP will need to provide documentation of the distance
between the SIT facility and the shipment origin (for SIT at origin) or
the distance between the SIT facility and the shipment destination (for
SIT at destination), using the billable mileage as currently identified
by ALK Technologies and the applicable Household Goods Request for
Offers. The TSP must also provide documentation identifying the date of
the pickup to SIT or delivery out of SIT.*

**How is a POV impacted by the fuel surcharge?**

*If the POV is transported with the HHG, it is not subject to a fuel
surcharge.*

**How will the fuel surcharge apply to a shipment that is moving between
the lower 48 states and Alaska with travel through Canada?**

*Normal transportation is to and from the port in Seattle. If an agency
authorizes a shipment to be driven between Alaska and the lower 48
states, ALK Technologies and Rand McNally will both be used in the
calculation of applicable miles.*

*ALK mileage will be used to and from the gateways. For travel between
the gateways in Canada, the mileage will be based on Rand McNally.
Documentation for the fuel surcharge must include the gateways used for
the relocation.*

If you have any additional questions or comments, please contact Brian
Kellhofer via e-mail at <brian.kellhofer@gsa.gov>