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> PART 102-117---TRANSPORTATION MANAGEMENT **§102-117.75**
>
> \(b\) Pay any other charges imposed by the other agency for external
> use of their contract or rate tender; and
>
> \(c\) Ensure the terms of the other agency's contract or rate tender
> allow you to use it.
>
> **§102-117.50---What are the advantages and disadvantages of
> contracting directly with a TSP under the FAR?**
>
> \(a\) The FAR is an advantage to use when:
>
> \(1\) You ship consistent volumes in consistent traffic lanes;
>
> \(2\) You have sufficient time to follow FAR contracting procedures;
> and
>
> \(3\) Your contract office is able to handle the require- ment.
>
> \(b\) The FAR may be a disadvantage when you:
>
> \(1\) Cannot prepare and execute a FAR contract within your time
> frame; or
>
> \(2\) Have recurring shipments between designated places, but do not
> expect sufficient volume to obtain favorable rates.
>
> **§102-117.55---What are the advantages and disadvantages of using a
> rate tender?**
>
> \(a\) Using a rate tender is an advantage when you:
>
> \(1\) Have a shipment that must be made within too short a time frame
> to identify or solicit for a suitable contract; or
>
> \(2\) Have shipments recurring between designated places, but do not
> expect sufficient volume to obtain favorable rates.
>
> \(b\) Using a rate tender may be a disadvantage when:
>
> \(1\) You have sufficient time to use the FAR and this would achieve
> better results;
>
> \(2\) You require transportation service for which no rate tender
> currently exists; or
>
> \(3\) A TSP may revoke or terminate the tender on short notice.
>
> **§102-117.60---What is the importance of terms and conditions in a
> rate tender or other transportation document?**
>
> Terms and conditions are important to protect the Govern- ment's
> interest and establish the performance and standards expected of the
> TSP. It is important to remember that terms and conditions are:
>
> \(a\) Negotiated between the agency and the TSP before movement of any
> item; and
>
> \(b\) Included in all contracts and rate tenders listing the ser-
> vices the TSP is offering to perform at the cost presented in the rate
> tender or other transportation document.
>
> **Note to §102-117.60:** You must reference the negotiated contract or
> rate tender on all transportation documents. For further informa- tion
> see §102-117.65.

**§102-117.65---What terms and conditions must all rate tenders or
contracts include?**

All rate tenders and contracts must include, at a minimum, the following
terms and conditions:

> \(a\) Charges cannot be prepaid.
>
> \(b\) Charges are not paid at time of delivery.

\(c\) Interest shall accrue from the voucher payment date on overcharges
made and shall be paid at the same rate in effect on that date as
published by the Secretary of the Treasury according to the Debt
Collection Act of 1982, U.S.C. 3717;

\(d\) To qualify for the rates specified in a rate tender filed under
the provisions of the Federal transportation procure- ment statutes (49
U.S.C. 10721 or 13712), property must be shipped by or for the
Government and the rate tender must indicate the Government is either
the consignor or the con- signee and include the following statement:

> Transportation is for the (agency name) and the total charges paid to
> the transportation service provider by the consignor or consignee are
> for the benefit of the Government.

\(e\) When using a rate tender for transportation under a
cost-reimbursable contract, include the following statement in the rate
tender:

> Transportation is for the (agency name), and the actual total
> transportation charges paid to the transportation service provider by
> the consignor or consignee are to be reimbursed by the Govern- ment
> pursuant to cost reimbursable contract
>
> (number). This may be confirmed by contacting the agency
> representative at (name, address and telephone number).

\(f\) Other terms and conditions that may be specific to your agency or
the TSP such as specialized packaging require- ments or HAZMAT. For
further information see the "U.S. Government Freight Transportation
Handbook," available by contacting:

> General Services Administration
>
> Federal Supply Service Audit Division (FBA)
>
> 1800 F Street, NW. Washington DC 20405
>
> *http://www.fss.gsa.gov/transtrav*

**§102-117.70---Where do I find more information on terms and
conditions?**

You may find more information about terms and condi- tions in part
102-118 of this chapter, or the "U.S. Government Freight Transportation
Handbook" (see §102-117.65(f)).

**§102-117.75---How do I reference the rate tender on transportation
documents?**

To ensure proper reference of a rate tender on all ship- ments, you must
show the applicable rate tender number and

> (Amendment 2004-02)
>
> **AMENDMENT 2004--02 SEPTEMBER 24, 2004**
>
> **§102-117.80** FEDERAL MANAGEMENT REGULATION
>
> carrier identification on all transportation documents, such as,
> section 13712 quotation, "ABC Transportation Company, Tender Number
> \*\*\*".
>
> **§102-117.80---How are rate tenders filed?**
>
> \(a\) The TSP must file an electronic rate tender with your agency.
> Details of what must be included when submitting electronic tenders is
> located in §102-118.260(b) of this sub- chapter.
>
> \(b\) You must send two copies of the rate tender to: General Services
> Administration
>
> Federal Supply Service, Audit Division (FBA)
>
> 1800 F Street, NW. Washington, DC 20405 *www.gsa.gov/transaudits.*
>
> **§102-117.85---What is the difference between a**
>
> **Government bill of lading (GBL) and a bill of lading?**
>
> \(a\) A Government bill of lading (GBL), Optional Forms
>
> 1103 and 1203, is a controlled document that conveys specific terms
> and conditions to protect the Government interest and serves as the
> contract of carriage.
>
> \(b\) A bill of lading, sometimes referred to as a commercial bill of
> lading, is the document used as a receipt of goods and documentary
> evidence of title.
>
> \(c\) Use a bill of lading for Government shipments if the specific
> terms and conditions of a GBL are included in any contract or rate
> tender (see §102-117.65) and the bill of lading makes reference to
> that contract or rate tender (see
>
> §102-117.75 and the "U.S. Government Freight Transporta- tion
> Handbook").
>
> **§102-117.90---May I use U.S. Government bill of lading**
>
> **(GBL) (Optional Forms 1103 and 1203), to acquire freight, household
> goods or other related transportation services?**
>
> You may use the GBL, Optional Forms 1103 or 1203, to acquire
> transportation services offered under a contract or rate tender until
> March 31, 2002. The GBL will completely phase out for domestic
> shipments on March 31, 2002, and be replaced by commercial bills of
> lading. After March 31, 2002, you may use the GBL only for
> international shipments (including domestic offshore shipments).
>
> **§102-117.95---After the GBLs retire for domestic shipments, what
> transportation documents must I use to acquire freight, household
> goods or other transportation services?**
>
> Bills of lading and purchase orders are the transportation documents
> you use to acquire freight, household goods and other transportation
> services after the GBLs retire for domes- tic shipments. Terms and
> conditions in §102-117.65 and the
>
> "U.S. Government Freight Transportation Handbook" will

still be required. For further information on payment meth- ods, see
part 102-118 of this chapter.

> **Subpart C---Business Rules to Consider**
>
> **Before Shipping Freight or Household Goods**

**§102-117.100---What business rules must I consider before acquiring
transportation or related services?** When acquiring transportation or
related services you

must:

\(a\) Use the mode or individual transportation service pro- vider (TSP)
that provides the overall best value to the agency. For more
information, see §§102-117.105 through

102-117.130;

\(b\) Demonstrate no preferential treatment to any TSP when arranging
for transportation services except on interna- tional shipments.
Preference on international shipments must be given to United States
registered commercial vessels and aircraft;

\(c\) Ensure that small businesses receive equal opportunity to compete
for all business they can perform to the maximum extent possible,
consistent with the agency's interest (see

48 CFR part 19);

\(d\) Encourage minority-owned businesses and women-owned businesses, to
compete for all business they can perform to the maximum extent
possible, consistent with the agency's interest (see 48 CFR part 19);

\(e\) Review the need for insurance. Generally, the Govern- ment is
self-insured; however, there are instances when the Government will
purchase insurance coverage for Govern- ment property. An example may be
cargo insurance for inter- national air cargo shipments to cover losses
over those allowed under the International Air Transport Association

(IATA) or for ocean freight shipments; and

\(f\) Consider the added requirements on international trans- portation
found in subpart D of this part.

**§102-117.105---What does best value mean when routing a shipment?**

Best value to your agency when routing a shipment means using the mode
or individual TSP providing the best combi- nation of satisfactory
service factors.

**§102-117.110---What is satisfactory service?**

You should consider the following factors in assessing whether a TSP
offers satisfactory service:

> \(a\) Availability and suitability of the TSP's equipment;

\(b\) Adequacy of shipping and receiving facilities at origin and
destination;

> \(c\) Adequacy of pickup and/or delivery service;
>
> \(d\) Availability of accessorial and special services;
>
> \(e\) Estimated time in transit;
>
> 102-117-4
>
> PART 102-117---TRANSPORTATION MANAGEMENT **§102-117.150**
>
> \(f\) Record of past performance of the TSP including accu- racy of
> billing;
>
> \(g\) Capability of warehouse equipment and storage space;
>
> and
>
> \(h\) Experience of company, management, and personnel to perform the
> requirements.
>
> **§102-117.115---How do I calculate total delivery costs?**
>
> You calculate total delivery costs for a shipment by con- sidering all
> costs related to the shipping or receiving process, such as packing,
> blocking, bracing, drayage, loading and unloading, and transporting.
>
> **§102-117.120---To what extent must I equally distribute orders for
> transportation and related services among TSPs?**
>
> You must assure that small businesses, socially or econom- ically
> disadvantaged and women-owned TSPs have equal opportunity to provide
> the transportation or related services.
>
> **§102-117.125---How detailed must I describe property for shipment
> when communicating to a TSP?**
>
> You must describe property in enough detail for the TSP to determine
> the type of equipment or any special precautions necessary to move the
> shipment. Details might include weight, volume, measurements, routing,
> hazardous cargo, or special handling designations.
>
> **§102-117.130---Must I select TSPs who use alternative fuels?**
>
> No, but, whenever possible, you are encouraged to select TSPs that use
> alternative fuel vehicles and equipment, under policy in the Clean Air
> Act Amendments of 1990
>
> (42 U.S.C. 7612) or the Energy Policy Act of 1992
>
> (42 U.S.C. 13212).
>
> **Subpart D---Restrictions That Affect International Transportation of
> Freight and Household Goods**
>
> **§102-117.135---What are the international transportation
> restrictions?**
>
> Several statutes mandate the use of U.S. flag carriers for
> international shipments (see 48 CFR part 47, subparts 47.4 and 47.5).
> For example:
>
> \(a\) Arrangements for international air transportation ser- vices
> must follow the Fly America Act (International Air Transportation Fair
> Competitive Practices Act of 1974)
>
> (49 U.S.C. 40118); and
>
> \(b\) International movement of property by water is subject to the
> cargo preference laws (see 46 CFR part 381 and
>
> 48 CFR part 47, subpart 47.5), which require the use of a U.S.

flag carrier when service is available. The Maritime Admin- istration
(MARAD) monitors agency compliance of these laws. All Government
shippers must send a rated copy of the ocean carrier's bill of lading to
MARAD within 30 days of loading aboard a vessel to:

> Department of Transportation
>
> Maritime Commission
>
> Office of Cargo Preference
>
> 400 7th Street, SW. Washington, DC 20590 *http://www.marad.dot.gov/*
> Tel. 1--800--9US--FLAG
>
> E-mail: cargo@marad.dot.gov

**Note to §102-117.135(b):** Non-vessel Operations Common Car- rier
(NVOCC) or freight forwarder bills of lading are not acceptable

(see 48 CFR part 47).

**§102-117.140---What is cargo preference?**

Cargo preference is the statutory requirement that all, or a portion of
all, ocean-borne cargo that moves internationally be transported on U.S.
flag vessels. Deviations or waivers from the cargo preference laws must
be approved by:

> Department of Transportation Maritime Administration Office of Cargo
> Preference
>
> 400 7th Street, SW. Washington, DC 20590 *http://www.marad.dot.gov/*
> Tel. 1--800--9US--FLAG
>
> e-mail: cargo@marad.dot.gov

**§102-117.145---What are coastwise laws?**

Coastwise laws refer to laws governing shipment of freight, household
goods and passengers by water between points in the United States or its
territories. The purpose of these laws is to assure reliable shipping
service and the exist- ence of a maritime capability in times of war or
national emer- gency (see section 27 of the Merchant Marine Act of 1920,
46

App. U.S.C. 883, 19 CFR 4.80).

**§102-117.150---What do I need to know about coastwise laws?**

> You need to know that:

\(a\) Goods transported entirely or partly by water between U.S. points,
either directly or via a foreign port, must travel in U.S. Maritime
Administration (MARAD) authorized U.S. Flag vessels;

\(b\) There are exceptions and limits for the U. S. Island ter- ritories
and possessions in the Atlantic and Pacific Oceans

(see §102-117.155); and

\(c\) The Secretary of the Treasury is empowered to impose monetary
penalties against agencies that violate the coastwise laws.

> (Amendment 2004-02)
>
> **AMENDMENT 2004--02 SEPTEMBER 24, 2004**
>
> **§102-117.155** FEDERAL MANAGEMENT REGULATION
>
> **§102-117.155---Where do I go for further information about coastwise
> laws?**
>
> You may refer to 46 App. U.S.C. 883, 19 CFR 4.80, DOT MARAD, the U.S.
> Coast Guard or U.S. Customs Service for further information on
> exceptions to the coastwise laws.
>
> **Subpart E---Shipping Freight**
>
> **§102-117.160---What is freight?**
>
> Freight is property or goods transported as cargo.
>
> **§102-117.165---What shipping process must I use for freight?**
>
> Use the following shipping process for freight:
>
> \(a\) For domestic shipments you must:
>
> \(1\) Identify what you are shipping;
>
> \(2\) Decide if the cargo is HAZMAT, classified, or sen- sitive that
> may require special handling or placards;
>
> \(3\) Decide mode;
>
> \(4\) Check for applicable contracts or rate tenders within your
> agency or other agencies, including GSA;
>
> \(5\) Select the most efficient and economical TSP that gives the best
> value;
>
> \(6\) Prepare shipping documents; and
>
> \(7\) Schedule pickup, declare released value and ensure prompt
> delivery with a fully executed receipt, and oversee shipment.
>
> \(b\) For international shipments you must follow all the domestic
> procedures and, in addition, comply with the cargo preference laws.
> For specific information, see subpart D of this part.
>
> **§102-117.170---What reference materials are available to ship
> freight?**
>
> \(a\) The following is a partial list of handbooks and guides
> available from GSA:
>
> \(1\) U.S. Government Freight Transportation Hand- book;
>
> \(2\) Limited Authority to Use Commercial Forms and
>
> Procedures;
>
> \(3\) Submission of Transportation Documents; and
>
> \(4\) Things to be Aware of When Routing or Receiving
>
> Freight Shipments.
>
> \(b\) For the list in paragraph (a) of the section and other ref-
> erence materials, contact:
>
> General Services Administration
>
> Federal Supply Service Audit Division (FBA)
>
> 1800 F Street, NW. Washington, DC 20405
>
> *www.gsa.gov/transaudits*
>
> or
>
> General Services Administration
>
> Federal Supply Service
>
> 1500 Bannister Road Kansas City, MO 64131
> *http://www.kc.gsa.gov/fsstt.*

**§102-117.175---What factors do I consider to determine the mode of
transportation?**

Your shipping urgency and any special handling require- ments determine
which mode of transportation you select. Each mode has unique
requirements for documentation, lia- bility, size, weight and delivery
time. HAZMAT, radioactive, and other specialized cargo may require
special permits and may limit your choices.

**§102-117.180---What transportation documents must I**

> **use to ship freight?**
>
> To ship freight:
>
> \(a\) By land (domestic shipments), use a bill of lading;
>
> \(b\) By land (international shipments), use the GBL;

\(c\) By ocean, use an ocean bill of lading, when suitable, along with
the GBL; and

> \(d\) By air, use a bill of lading.

**§102-117.185---Where must I send a copy of the transportation
documents?**

\(a\) You must forward an original copy of all transportation documents
to:

> General Services Administration
>
> Federal Supply Service Audit Division (FBA)
>
> 1800 F Street, NW. Washington, DC 20405

\(b\) For all property shipments subject to the cargo prefer- ence laws
(see §102-117.140), a copy of the ocean carrier's bill of lading,
showing all freight charges, must be sent to MARAD within 30 days of
vessel loading.

**§102-117.190---Where do I file a claim for loss or damage to
property?**

You must file a claim for loss or damage to property with the TSP.

**§102-117.195---Are there time limits affecting filing of a claim?**

Yes, several statutes limit the time for administrative or judicial
action against a TSP. Refer to part 102-118 of this chapter for more
information and the time limit tables.

> 102-117-6
>
> **AMENDMENT 2004--02 SEPTEMBER 24, 2004**
>
> **PART 102-118---TRANSPORTATION PAYMENT AND AUDIT**
>
> *Sec.*

**Subpart A---General**

> **Introduction**
>
> transportation bills?

102-118.100--- What must my agency ensure is on each

> SF 1113?
>
> 102-118.5--- What is the purpose of this part?
>
> 102-118.10--- What is a transportation audit?
>
> 102-118.15--- What is a transportation payment?
>
> 102-118.20--- Who is subject to this part?
>
> 102-118.25--- Does GSA still require my agency to submit its overall
> transportation policies for approval?
>
> 102-118.30--- Are Government corporations bound by this part?
>
> **Definitions**

102-118.35--- What definitions apply to this part? **Subpart
B---Ordering and Paying for Transportation and Transportation Services**

> 102-118.40--- How does my agency order transportation and
> transportation services?
>
> 102-118.45--- How does a transportation service provider
>
> (TSP) bill my agency for transportation and transportation services?
>
> 102-118.50--- How does my agency pay for transportation services?
>
> 102-118.55--- What administrative procedures must my agency establish
> for payment of freight, household goods, or other transportation
> services?
>
> 102-118.60--- To what extent must my agency use electronic commerce?
>
> 102-118.65--- Can my agency receive electronic billing for payment of
> transportation services?
>
> 102-118.70--- Must my agency make all payments via electronic funds
> transfer?
>
> 102-118.75--- What if my agency or the TSP does not have an account
> with a financial institution or approved payment agent?
>
> 102-118.80--- Who is responsible for keeping my agency's electronic
> commerce transportation billing records?
>
> 102-118.85--- Can my agency use a Government contractor issued charge
> card to pay for transportation services?
>
> 102-118.90--- If my agency orders transportation and/or transportation
> services with a Government contractor issued charge card or charge
> account citation, is this subject to prepayment audit?
>
> 102-118.91--- May my agency authorize the use of cash?
>
> 102-118.92--- How does my agency handle receipts, tickets or other
> records of cash payments?
>
> 102-118.95--- What forms can my agency use to pay

102-118.105--- Where can I find the rules governing the use of a
Government Bill of Lading?

102-118.110--- Where can I find the rules governing the use of a
Government Transportation Request?

102-118.115--- Must my agency use a GBL?

102-118.120--- Must my agency use a GTR?

102-118.125--- What if my agency uses a TD other than a

> GBL?

102-118.130--- Must my agency use a GBL for express, courier, or small
package shipments?

102-118.135--- Where are the mandatory terms and conditions governing
the use of bills of lading?

102-118.140--- What are the major mandatory terms and conditions
governing the use of GBLs and bills of lading?

102-118.145--- Where are the mandatory terms and conditions governing
the use of passenger transportation documents?

102-118.150--- What are the major mandatory terms and conditions
governing the use of passenger transportation documents?

102-118.155--- How does my agency handle supplemental billings from the
TSP after payment of the original bill?

102-118.160--- Who is liable if my agency makes an overpayment on a
transportation bill?

102-118.165--- What must my agency do if it finds an error on a TSP
bill?

102-118.170--- Will GSA continue to maintain a centralized numbering
system for Government transportation documents?

> **Subpart C---Use of Government Billing**
>
> **Documents**
>
> **Terms and Conditions Governing Acceptance and Use of a Government
> Bill of Lading (GBL) or Government Transportation Request (GTR)**
>
> **(Until Form Retirement)**

102-118.175--- Must my agency prepare for the GBL

> retirement?

102-118.180--- Must my agency prepare for the GTR

> retirement?

102-118.185--- When buying freight transportation, must my agency
reference the applicable contract or tender on the bill of lading
(including a GBL)?

102-118.190--- When buying passenger transportation must my agency
reference the applicable contract?

> 102-118-i
>
> **AMENDMENT 2004--02 SEPTEMBER 24, 2004**
>
> 102-118.195--- What documents must a transportation service provider
> (TSP) send to receive payment for a transportation billing?
>
> 102-118.196--- What does the TSP do with unused tickets
>
> (E-ticket or paper ticket)?
>
> 102-118.200--- Can a TSP demand advance payment for the transportation
> charges submitted on a bill of lading (including GBL)?
>
> 102-118.205--- May my agency pay a subcontractor or agent functioning
> as a warehouseman for the TSP providing service under the bill of
> lading?
>
> 102-118.210--- May my agency use bills of lading other than the GBL
> for a transportation shipment?
>
> 102-118.215--- May my agency pay a TSP any extra fees to pay for the
> preparation and use of the GBL or GTR?
>
> 102-118.220--- If a transportation debt is owed to my agency by a TSP
> because of loss or damage to property, does my agency report it to
> GSA?
>
> 102-118.225--- What constitutes final receipt of shipment?
>
> 102-118.230--- What if my agency creates or eliminates a field office
> approved to prepare transportation documents?
>
> **Agency Responsibilities When Using Govern- ment Bills of Lading
> (GBLs) or**
>
> **Government Transportation Requests (GTRs)**
>
> 102-118.235--- Must my agency keep physical control and accountability
> of the GBL and GTR forms or GBL and GTR numbers?
>
> 102-118.240--- How does my agency get GBL and GTR
>
> forms?
>
> 102-118.245--- How does my agency get an assigned set of
>
> GBL or GTR numbers?
>
> 102-118.250--- Who is accountable for the issuance and use of GBL and
> GTR forms?
>
> 102-118.255--- Are GBL and GTR forms numbered and used sequentially?
>
> **Quotations, Tenders or Contracts**
>
> 102-118.260--- Must my agency send all quotations, tenders, or
> contracts with a TSP to GSA?
>
> **Subpart D---Prepayment Audits of**
>
> **Transportation Services**
>
> **Agency Requirements for Prepayment Audits**
>
> 102-118.265--- What is a prepayment audit?
>
> 102-118.270--- Must my agency establish a prepayment audit program?
>
> 102-118.275--- What must my agency consider when designing and
> implementing a prepayment audit program?
>
> 102-118.280--- What advantages does the prepayment audit offer my
> agency?
>
> FEDERAL MANAGEMENT REGULATION

102-118.285--- What options for performing a prepayment audit does my
agency have?

102-118.290--- Must every electronic and paper transportation bill
undergo a prepayment audit?

102-118.295--- What are the limited exceptions to every bill undergoing
a prepayment audit?

102-118.300--- How does my agency fund its prepayment audit program?

102-118.305--- Must my agency notify the TSP of any adjustment to the
TSP's bill?

102-118.310--- Must my agency prepayment audit program establish appeal
procedures whereby a TSP may appeal any reduction in the amount billed?

102-118.315--- What must my agency do if the TSP disputes the findings
and my agency cannot resolve the dispute?

102-118.320--- What information must be on transportation bills that
have completed my agency's prepayment audit?

> **Maintaining an Approved Program**

102-118.325--- Must I get approval for my agency's prepayment audit
program?

102-118.330--- What are the elements of an acceptable prepayment audit
program?

102-118.335--- What does the GSA Audit Division consider when verifying
an agency prepayment audit program?

102-118.340--- How does my agency contact the GSA Audit

> Division?

102-118.345--- If my agency chooses to change an approved prepayment
audit program, does the program need to be reapproved?

> **Liability for Certifying and Disbursing Officers.**

102-118.350--- Does establishing a prepayment audit system or program
change the responsibilities of the certifying officers?

102-118.355--- Does a prepayment audit waiver change any liabilities of
the certifying officer?

102-118.360--- What relief from liability is available for the
certifying official under a postpayment audit?

102-118.365--- Do the requirements of a prepayment audit change the
disbursing official's liability for overpayment?

102-118.370--- Where does relief from prepayment audit liability for
certifying, accountable, and disbursing officers reside in my agency?

> **Waivers from Mandatory Prepayment Audit**

102-118.375--- Who has the authority to grant a waiver of the prepayment
audit requirement?

> 102-118-ii
>
> FEDERAL MANAGEMENT REGULATION
>
> 102-118.380--- How does my agency apply for a waiver from a prepayment
> audit of requirement?
>
> 102-118.385--- What must a waiver request include?
>
> 102-118.390--- On what basis does GSA grant a waiver to the prepayment
> audit requirement?
>
> 102-118.395--- How long will GSA take to respond to a waiver request?
>
> 102-118.400--- Must my agency renew a waiver of the prepayment audit
> requirements?
>
> 102-118.405--- Are my agency's prepayment audited transportation bills
> subject to periodic postpayment audit oversight from the GSA Audit
> Division?
>
> **Suspension of Agency Prepayment Audit Pro- grams**
>
> 102-118.410--- Can GSA suspend my agency's prepayment audit program?
>
> **Subpart E---Postpayment Transportation Audits**
>
> 102-118.415--- Will the widespread mandatory use of prepayment audits
> eliminate postpayment audits?
>
> 102-118.420--- Can the Administrator of General Services waive the
> postpayment auditing provisions of this subpart?
>
> 102-118.425--- Is my agency allowed to perform a postpayment audit on
> our transportation bills?
>
> 102-118.430--- What information must be on my agency's transportation
> bills submitted for a postpayment audit?
>
> 102-118.435--- What procedures does GSA use to perform a postpayment
> audit?
>
> 102-118.440--- What are the postpayment audit responsibilities and
> roles of the GSA Audit Division?
>
> 102-118.445--- Must my agency pay for a postpayment audit when using
> the GSA Audit Division?
>
> **Subpart F---Claims and Appeal Procedures**
>
> **General Agency Information for All Claims**
>
> 102-118.450--- Can a TSP file a transportation claim against my
> agency?
>
> 102-118.455--- What is the time limit for a TSP to file a
> transportation claim against my agency?
>
> 102-118.460--- What is the time limit for my agency to file a court
> claim with a TSP for freight charges, reparations, and loss or damage
> to the property?
>
> 102-118.465--- Must my agency pay interest on a disputed amount
> claimed by a TSP?
>
> 102-118.470--- Are there statutory time limits for a TSP on
>
> filing a administrative claim with the GSA Audit Division?

102-118.475--- Does interest apply after certification of payment of
claims?

102-118.480--- How does my agency settle disputes with a

> TSP?

102-118.485--- Is there a time limit for my agency to issue a decision
on disputed claims?

102-118.490--- What if my agency fails to settle a dispute within 30
days?

102-118.495--- May my agency appeal a decision by the

> General Services Board of Contract Appeals
>
> (GSBCA)?

102-118.500--- How does my agency handle a voluntary refund submitted by
a TSP?

102-118.505--- Must my agency send a voluntary refund to the Treasurer
of the United States?

102-118.510--- Can my agency revise or alter a GSA Form 7931,
Certificate of Settlement?

102-118.515--- Does my agency have any recourse not to pay a Certificate
of Settlement?

102-118.520--- Who is responsible for determining the standards for
collection, compromise, termination, or suspension of collection action
on any outstanding debts to my agency?

102-118.525--- What are my agency's responsibilities for verifying the
correct amount of transportation charges?

102-118.530--- Will GSA instruct my agency's disbursing offices to
offset unpaid TSP billings?

102-118.535--- re there principles governing my agency's

> TSP debt collection procedures?

102-118.540--- Who has the authority to audit, settle accounts, and/or
start collection action for all transportation services provided for my
agency?

> **Transportation Service Provider (TSP) Filing**
>
> **Requirements**

102-118.545--- What information must a TSP claim include?

102-118.550--- How does a TSP file an administrative claim using EDI or
other electronic means?

102-118.555--- Can a TSP file a supplemental administrative claim?

102-118.560--- What is the required format that a TSP must use to file
an administrative claim?

102-118.565--- What documentation is required when filing an
administrative claim?

> **Transportation Service Provider (TSP) and Agency Appeal Procedures
> for Prepayment Au- dits**
>
> (Amendment 2004-02)
>
> 102-118.570--- If my agency denies the TSP's challenge to the
> statement of difference, may the TSP appeal?
>
> 102-118.575--- If a TSP disagrees with the decision of my agency, can
> the TSP appeal?
>
> 102-118.580--- May a TSP appeal a prepayment audit decision of the GSA
> Audit Division?
>
> 102-118.585--- May a TSP appeal a prepayment audit decision of the
> GSBCA?
>
> 102-118.590--- May my agency appeal a prepayment audit decision of the
> GSA Audit Division?
>
> 102-118.595--- May my agency appeal a prepayment audit decision by the
> GSBCA?
>
> **Transportation Service Provider (TSP) and Agency Appeal Procedures
> for Postpayment Au- dits**
>
> 102-118.600--- When a TSP disagrees with a Notice of Overcharge
> resulting from a postpayment audit, what are the appeal procedures?
>
> 102-118.605--- What if a TSP disagrees with the Notice of
>
> Indebtedness?
>
> 102-118.610--- Is a TSP notified when GSA allows a claim?
>
> 102-118.615--- Will GSA notify a TSP if they internally offset a
> payment?
>
> 102-118.620--- How will a TSP know if the GSA Audit
>
> Division disallows a claim?
>
> FEDERAL MANAGEMENT REGULATION

102-118.625--- Can a TSP request a reconsideration of a settlement
action by the GSA Audit Division?

102-118.630--- How must a TSP refund amounts due to

> GSA?

102-118.635--- Can the Government charge interest on an amount due from
a TSP?

102-118.640--- If a TSP fails to pay or to appeal an overcharge, what
actions will GSA pursue to collect the debt?

102-118.645--- Can a TSP file an administrative claim on collection
actions?

102-118.650--- Can a TSP request a review of a settlement action by the
Administrator of General Services?

102-118.655--- Are there time limits on a TSP request for an
administrative review by the GSBCA?

102-118.660--- May a TSP appeal a postpayment audit decision of the
GSBCA?

102-118.665--- May my agency appeal a postpayment audit decision by the
GSBCA?

> **Transportation Service Provider (TSP) Non- Payment of a Claim**

102-118.670--- If a TSP cannot immediately pay a debt, can they make
other arrangements for payment?

102-118.675--- What recourse does my agency have if a TSP

> does not pay a transportation debt?
>
> 102-118-iv

(Amendment 2004-02)

> **AMENDMENT 2004--02 SEPTEMBER 24, 2004**
>
> PART 102-118---TRANSPORTATION PAYMENT AND AUDIT **§102-118.35**
>
> **PART 102-118---TRANSPORTATION PAYMENT AND AUDIT**
>
> **Subpart A---General**
>
> **Introduction**
>
> **§102-118.5---What is the purpose of this part?**
>
> The purpose of this part is to interpret statutes and other policies
> that assure that payment and payment mechanisms for agency
> transportation services are uniform and appropri- ate. This part
> communicates the policies clearly to agencies and transportation
> service providers (TSPs). (See
>
> §102-118.35 for the definition of TSP.)
>
> **§102-118.10---What is a transportation audit?**
>
> A transportation audit is a thorough review and validation of
> transportation related bills. The audit must examine the validity,
> propriety, and conformity of the charges with tariffs, quotations,
> agreements, or tenders, as appropriate. Each agency must ensure that
> its internal transportation audit pro- cedures prevent duplicate
> payments and only allow payment for authorized services, and that the
> TSP's bill is complete with required documentation.
>
> **§102-118.15---What is a transportation payment?**
>
> A transportation payment is a payment made by an agency to a TSP for
> the movement of goods or people and/or trans- portation related
> services.
>
> **§102-118.20---Who is subject to this part?**
>
> All agencies and TSPs defined in §102-118.35 are subject to this part.
> Your agency is required to incorporate this part into its internal
> regulations.
>
> **§102-118.25---Does GSA still require my agency to submit its overall
> transportation policies for approval?**
>
> GSA no longer requires your agency to submit its overall
> transportation policies for approval. However, as noted in
>
> §102-118.325, agencies must submit their prepayment audit plans for
> approval. In addition, GSA may from time to time request to examine
> your agency's transportation policies to verify the correct
> performance of the prepayment audit of your agency's transportation
> bills.
>
> **§102-118.30---Are Government corporations bound by this part?**
>
> No, Government corporations are not bound by this part. However, they
> may choose to use it if they wish.
>
> **Definitions**
>
> **§102-118.35---What definitions apply to this part?**
>
> The following definitions apply to this part:

"Agency" as used in this part, means a department, agency, or
instrumentality of the United States Government.

**Note to the definition of Agency:** All agencies' payments for
transportation services are subject to the transportation audit provi-
sions of section 322 of the Transportation Act of 1940, as amended

(31 U.S.C. 3726).

"Agency claim" means any demand by an agency upon a TSP for the payment
of overcharges, ordinary debts, fines, penalties, administrative fees,
special charges, and interest. Bill of lading, sometimes referred to as
a commercial bill of lading (but includes GBLs), is the document used as
a receipt of goods and documentary evidence of title. It is also a
contract of carriage when movement is under

49 U.S.C. 10721 and 49 U.S.C. 13712.

"Cash" means cash, personal checks, personal charge cards, and travelers
checks. Cash may only be used to pay for transportation expenses in
extremely limited cases where government payment mechanisms are not
available or accept- able.

"Document reference number" means the unique number on a bill of lading,
Government Bill of Lading, Government Transportation Request, or
transportation ticket, used to track the movement of shipments and
individuals.

"EDI signature" means a discrete authentication code which serves in
place of a paper signature and binds parties to the terms and conditions
of a contract in electronic communi- cation.

"Electronic commerce" means electronic techniques for performing
business transactions (ordering, billing, and pay- ing for goods and
services), including electronic mail or mes- saging, Internet
technology, electronic bulletin boards, charge cards, electronic funds
transfers, and electronic data inter- change.

"Electronic data interchange" means electronic techniques for carrying
out transportation transactions using electronic transmissions of the
information between computers instead of paper documents. These
electronic transmissions must use established and published formats and
codes as authorized by the applicable Federal Information Processing
Standards.

"Electronic funds transfer" means any transfer of funds, other than
transactions initiated by cash, check, or similar paper instrument, that
is initiated through an electronic termi- nal, telephone, computer, or
magnetic tape, for the purpose of ordering, instructing, or authorizing
a financial institution to debit or credit an account. The term includes
Automated Clearinghouse transfers, Fed Wire transfers, and transfers
made at automatic teller machines and point of sale terminals.

> "Government Bill of Lading (GBL)" means Optional

Forms 1103 and 1203, the transportation documents issued by

> 102-118-1
>
> **§102-118.35** FEDERAL MANAGEMENT REGULATION
>
> GSA and used as a receipt of goods, evidence of title, and gen- erally
> a contract of carriage.
>
> "Government contractor-issued charge card" means both an individually
> billed travel card, which the individual is required to pay, and a
> centrally billed account for paying travel expenses, which the agency
> is required to pay.
>
> "Government Transportation Request (GTR)" means Optional Form 1169,
> the Government document used to buy transportation services. The
> document normally obligates the Government to pay for the
> transportation services provided.
>
> "Offset" means agency use of money owed by the agency to a
> transportation service provider (TSP) to cover a previous debt
> incurred to the agency by the TSP.
>
> "Ordinary debt" means an amount that a TSP owes an agency other than
> for the repayment of an overcharge. Ordi- nary debts include, but are
> not limited to, payments for trans- portation services ordered and not
> provided (including unused transportation tickets), duplicate
> payments, and amounts for which a TSP is liable because of loss and/or
> dam- age to property it transported.
>
> "Overcharge" means those charges for transportation and travel
> services that exceed those applicable under the contract for carriage.
> This also includes charges more than those appli- cable under rates,
> fares and charges established pursuant to section 13712 and 10721 of
> the Revised Interstate Commerce Act, as amended (49 U.S.C. 13712 and
> 10721), or other equivalent contract, arrangement or exemption from
> regula- tion.
>
> "Postpayment audit" means an audit of transportation bill- ing
> documents after payment to decide their validity, propri- ety, and
> conformity with tariffs, quotations, agreements, or tenders. This
> process may also include subsequent adjust- ments and collections
> actions taken against a TSP by the Gov- ernment.
>
> "Prepayment audit" means an audit of transportation bill- ing
> documents before payment to determine their validity, propriety, and
> conformity with tariffs, quotations, agree- ments, or tenders.
>
> "Privately Owned Personal Property Government Bill of Lading,"
> Optional Form 1203, means the agency transporta- tion document used as
> a receipt of goods, evidence of title, and generally a contract of
> carriage. It is only available for the transportation of household
> goods. Use of this form is man- datory for Department of Defense, but
> optional for other agencies.
>
> "Rate authority" means the document that establishes the legal charges
> for a transportation shipment. Charges included in a rate authority
> are those rates, fares, and charges for trans- portation and related
> services contained in tariffs, tenders, and other equivalent
> documents.
>
> "Released value" is stated in dollars and is considered the assigned
> value of the cargo for reimbursement purposes, not necessarily the
> actual value of the cargo. Released value may

be more or less than the actual value of the cargo. The released value
is the maximum amount that could be recovered by the agency in the event
of loss or damage for the shipments of freight and household goods. In
return, when negotiating for rates and the released value is proposed to
be less than the actual value of the cargo, the TSP should offer a rate
lower than other rates for shipping cargo at full value. The statement
of released value may be shown on any applicable tariff, ten- der,
contract, transportation document or other documents covering the
shipment.

"Reparation" means the payment involving a TSP to or from an agency of
an improper transportation billing as deter- mined by a postpayment
audit. Improper routing, over- charges, or duplicate payments may cause
such improper billing. This is different from payments to settle a claim
for loss and damage to items shipped under those rates.

"Standard carrier alpha code (SCAC)" means an unique four-letter code
assigned to each TSP by the National Motor Freight Traffic Association,
Inc.

"Statement of difference" means a statement issued by an agency or its
designated audit contractor during a prepayment audit when they
determine that a TSP has billed the agency for more than the proper
amount for the services. This statement tells the TSP on the invoice,
the amount allowed and the basis for the proper charges. The statement
also cites the applicable rate references and other data relied on for
support. The agency issues a separate statement of difference for each
transportation transaction.

"Statement of difference rebuttal" means a document used by the agency
to respond to a TSP's claim about an improper reduction made against the
TSP's original bill by the paying agency.

"Supplemental bill" means a bill for services that the TSP submits to
the agency for additional payment after reimburse- ment for the original
bill. The need to submit a supplemental bill may occur due to an
incorrect first bill or due to charges which were not included on the
original bill.

"Taxpayer identification number (TIN)" means the num- ber required by
the Internal Revenue Service to be used by the TSP in reporting income
tax or other returns. For a TSP, the TIN is an employer identification
number.

"Transportation document (TD)" means any executed agreement for
transportation service, such as a bill of lading

(including a Government Bill of Lading), a Government

Transportation Request, or transportation ticket.

"Transportation service" means service involved in the physical movement
(from one location to another) of prod- ucts, people, household goods,
and any other objects by a TSP for an agency as well as activities
directly relating to or sup- porting that movement. Examples of this are
storage, crating, or connecting appliances.

"Transportation service provider (TSP)" means any party, person, agent,
or carrier that provides freight or passenger

> 102-118-2

(Amendment 2004-02)

> **AMENDMENT 2004--02 SEPTEMBER 24, 2004**
>
> PART 102-118---TRANSPORTATION PAYMENT AND AUDIT **§102-118.55**
>
> transportation and related services to an agency. For a freight
> shipment this would include packers, truckers, and storers. For
> passenger transportation this would include airlines, travel agents
> and travel management centers.
>
> "Transportation service provider claim" means any

and transportation services determines the manner in which a

TSP bills for service. This is shown in the following table:

> **TRANSPORTATION SERVICE PROVIDER BILLING**
>
> **(a) Ordering Method (b) Billing Method**
>
> demand by the TSP for amounts not included in the original bill that
> the TSP believes an agency owes them. This includes amounts deducted
> or offset by an agency; amounts previously refunded by the TSP, which
> they now believe they are owed; and any subsequent bills from the TSP
> resulting from a trans- action that was pre- or postpayment audited by
> the GSA Audit Division.
>
> "Virtual GBL (VGBL)" means the use of a unique GBL number on a
> commercial document, which binds the TSP to the terms and conditions
> of a GBL.
>
> **Note to §102-118.35:** 49 U.S.C. 13102, et seq., defines addi-
> tional transportation terms not listed in this section.

\(1\) (i) Government issued agency charge card,

> \(ii\) Centrally billed travel account citation.

\(2\) (i) Purchase order,

> \(ii\) Bill of lading,
>
> \(iii\) Government Bill of Lading,
>
> \(iv\) Government Transportation
>
> Request.

\(3\) (i) Contractor issued individual travel charge card,

> \(ii\) Personal charge card,
>
> \(iii\) Personal cash.

\(1\) Bill from charge card company (may be electronic).

\(2\) Bill from TSP (may be electronic).

\(3\) Voucher from employee

> (may be electronic).
>
> **Subpart B---Ordering and Paying for**
>
> **Transportation and Transportation Services**
>
> **§102-118.40---How does my agency order transportation and
> transportation services?**
>
> Your agency orders---
>
> \(a\) Transportation of freight and household goods and related
> transportation services (e.g., packing, storage) with a Government
> contractor-issued charge card, purchase order
>
> (or electronic equivalent), or a Government bill of lading for
> international shipments (including domestic overseas ship- ments). In
> extremely limited cases, cash can be used where government payment
> mechanisms are not available or accept- able.
>
> \(b\) Transportation of people through the purchase of trans-
> portation tickets with a Government issued charge card (or centrally
> billed travel account citation), Government issued individual travel
> charge card, personal charge card, cash (in accordance with Department
> of the Treasury regulations), or in limited prescribed situations, a
> Government Transportation Request (GTR). See the "U.S. Government
> Passenger Trans- portation---Handbook," obtainable from:
>
> General Services Administration
>
> Federal Supply Service Audit Division (FBA)
>
> 1800 F Street, NW. Washington, DC 20405 *www.gsa.gov/transaudits.*
>
> **§102-118.45---How does a transportation service provider**
>
> **(TSP) bill my agency for transportation and transportation
> services?**
>
> The manner in which your agency orders transportation

**§102-118.50---How does my agency pay for transportation services?**

Your agency may pay for transportation services in three ways:

\(a\) *Electronic funds transfer (EFT) (31 U.S.C. 3332, et seq.)*. Your
agency is required by statute to make all pay- ments by EFT unless your
agency receives a waiver from the Department of the Treasury.

\(b\) *Check*. For those situations where EFT is not possible and the
Department of the Treasury has issued a waiver, your agency may make
payments by check.

\(c\) *Cash*. In very unusual circumstances and as a last option, your
agency payments may be made in cash in accor- dance with Department of
the Treasury regulations

(31 CFR part 208).

**§102-118.55---What administrative procedures must my agency establish
for payment of freight, household goods, or other transportation
services?**

Your agency must establish administrative procedures which assure that
the following conditions are met:

> \(a\) The negotiated price is fair and reasonable;

\(b\) A document of agreement signifying acceptance of the arrangements
with terms and conditions is filed with the par- ticipating agency by
the TSP;

\(c\) The terms and conditions are included in all transpor- tation
agreements and referenced on all transportation docu- ments (TDs);

\(d\) Bills are only paid to the TSP providing service under the bill of
lading to your agency and may not be waived;

\(e\) All fees paid are accounted for in the aggregate deliv- ery costs;

\(f\) All payments are subject to applicable statutory limita- tions;

> 102-118-3
>
> **AMENDMENT 2004--02 SEPTEMBER 24, 2004**
>
> **§102-118.60** FEDERAL MANAGEMENT REGULATION
>
> \(g\) Procedures (such as an unique numbering system) are established
> to prevent and detect duplicate payments, prop- erly account for
> expenditures and discrepancy notices;
>
> \(h\) All transactions are verified with any indebtedness list. On
> charge card transactions, your agency must consult any indebtedness
> list if the charge card contract provisions allow for it; and
>
> \(i\) Procedures are established to process any unused tick- ets.
>
> **§102-118.60---To what extent must my agency use electronic
> commerce?**
>
> Your agency must use electronic commerce in all areas of your
> transportation program. This includes the use of elec- tronic systems
> and forms for ordering, receiving bills and paying for transportation
> and transportation services.
>
> **§102-118.65---Can my agency receive electronic billing for payment
> of transportation services?**
>
> Yes, when mutually agreeable to the agency and the GSA Audit Division,
> your agency is encouraged to use electronic billing for the
> procurement and billing of transportation ser- vices.
>
> **§102-118.70---Must my agency make all payments via electronic funds
> transfer?**
>
> Yes, under 31 U.S.C. 3332, et seq., your agency must make all payments
> for goods and services via EFT (this includes goods and services
> ordered using charge cards).
>
> **§102-118.75---What if my agency or the TSP does not have an account
> with a financial institution or approved payment agent?**
>
> Under 31 U.S.C. 3332, et seq., your agency must obtain an account with
> a financial institution or approved payment agent in order to meet the
> statutory requirements to make all Federal payments via EFT unless
> your agency receives a waiver from the Department of the Treasury. To
> obtain a waiver, your agency must contact:
>
> The Commissioner
>
> Financial Management Service
>
> Department of the Treasury
>
> 401 Fourteenth Street, SW Washington, DC 20227
> *http://www.fms.treas.gov/*
>
> **§102-118.80---Who is responsible for keeping my agency's electronic
> commerce transportation billing records?** Your agency's internal
> financial regulations will identify responsibility for recordkeeping.
> In addition, the GSA Audit Division keeps a central repository of
> electronic transporta- tion billing records for legal and auditing
> purposes. There-

fore, your agency must forward all relevant electronic transportation
billing documents to:

> General Services Administration
>
> Federal Supply Service Audit Division (FBA)
>
> 1800 F Street, NW. Washington, DC 20405 *www.gsa.gov/transaudits*

**§102-118.85---Can my agency use a Government contractor issued charge
card to pay for transportation services?**

Yes, your agency may use a Government contractor issued charge card to
purchase transportation services if permitted under the charge card
contract or task order. In these circum- stances your agency will
receive a bill for these services from the charge card company.

**§102-118.90---If my agency orders transportation and/or transportation
services with a Government contractor issued charge card or charge
account citation, is this subject to prepayment audit?**

Generally, no transportation or transportation services ordered with a
Government contractor issued charge card or charge account citation can
be prepayment audited because the bank or charge card contractor pays
the TSP directly, before your agency receives a bill that can be audited
from the charge card company. However, if your agency contracts with the
charge card or charge account provider to provide for a prepayment
audit, then, as long as your agency is not liable for paying the bank
for improper charges (as determined by the prepayment audit verification
process), a prepayment audit can be used. As with all prepayment audit
programs, the charge card prepayment audit must be approved by the GSA
Audit Division prior to implementation. If the charge card contract does
not provide for a prepayment audit, your agency must submit the
transportation line items on the charge card to the GSA Audit Division
for a postpayment audit.

**§102-118.91---May my agency authorize the use of cash?** Yes, in
limited circumstances, a Government employee can use cash where
government payment mechanisms are not

available or acceptable.

**§102-118.92---How does my agency handle receipts, tickets or other
records of cash payments?**

Your agency must ensure that its employees keep the orig- inal receipts
for transportation purchases over \$75.00 made with cash. If it is
impractical to furnish receipts in any instance as required by this
subtitle, the failure to do so must be fully explained on the travel
voucher. Mere inconvenience in the matter of taking receipts will not be
considered. These receipts must be saved for a possible postpayment
audit by the GSA Audit Division. If your agency requires the filing of

> 102-118-4
>
> **AMENDMENT 2004--02 SEPTEMBER 24, 2004**
>
> PART 102-118---TRANSPORTATION PAYMENT AND AUDIT **§102-118.135**
>
> paper receipts, then you must do so. For transportation pur- chases
> over \$75.00, your agency must ensure that copies of all original
> papers are retained at your agency. Copies of tickets from a TSP must
> be sent to-
>
> General Services Administration
>
> Federal Supply Service
>
> Audit Division (FBA)
>
> 1800 F Street, NW. Washington, DC 20405 *www.gsa.gov/transaudits*
>
> **§102-118.95---What forms can my agency use to pay transportation
> bills?**
>
> Your agency must use commercial payment practices and forms to the
> maximum extent possible; however, when viewed necessary by your
> agency, your agency may use the following Government forms to pay
> transportation bills:
>
> \(a\) Standard Form (SF) 1113, Public Voucher for Trans- portation
> Charges, and SF 1113-A, Memorandum Copy;
>
> \(b\) Optional Form (OF) 1103, Government Bill of Lading and OF 1103A
> Memorandum Copy (used for movement of things, both privately owned and
> Government property for official uses);
>
> \(c\) OF 1169, Government Transportation Request (used to pay for
> tickets to move people); and
>
> \(d\) OF 1203, Privately Owned Personal Property Govern- ment Bill of
> Lading, and OF 1203A, Memorandum Copy
>
> (used by the Department of Defense to move private property for
> official transfers).
>
> **Note to §102-118.95:** By March 31, 2002, your agency may no longer
> use the GBLs (OF 1103 and OF 1203) for domestic ship- ments. After
> March 31, 2002, your agency should minimize the use of GTRs (OF 1169).
>
> **§102-118.100---What must my agency ensure is on each**
>
> **SF 1113?**
>
> Your agency must ensure during its prepayment audit of a TSP bill that
> the TSP filled out the Public Vouchers, SF 1113, completely including
> the taxpayer identification number
>
> (TIN), and standard carrier alpha code (SCAC). An SF 1113
>
> must accompany all billings.
>
> **§102-118.105---Where can I find the rules governing the use of a
> Government Bill of Lading?**
>
> The "U.S. Government Freight Transportation---Hand- book" contains
> information on how to prepare this GBL form. To get a copy of this
> handbook, you may write to:
>
> General Services Administration
>
> Federal Supply Service Audit Division (FBA)
>
> 1800 F Street, NW. Washington, DC 20405
>
> *www.gsa.gov/transaudits*

**§102-118.110---Where can I find the rules governing the use of a
Government Transportation Request?**

The "U.S. Government Passenger Transportation---Hand- book" contains
information on how to prepare this GTR form. To get a copy of this
handbook, you may write to:

> General Services Administration
>
> Federal Supply Service Audit Division (FBA)
>
> 1800 F Street, NW. Washington, DC 20405 *www.gsa.gov/transaudits*

**§102-118.115---Must my agency use a GBL?**

No, your agency is not required to use a GBL and must use commercial
payment practices to the maximum extent possi- ble. Effective March 31,
2002, your agency must phase out the use of the Optional Forms 1103 and
1203 for domestic shipments. After this date, your agency may use the
GBL solely for international shipments.

**§102-118.120---Must my agency use a GTR?**

No, your agency is not required to use a GTR. Your agency must adopt
commercial practices and eliminate GTR use to the maximum extent
possible.

**§102-118.125---What if my agency uses a TD other than a**

> **GBL?**

If your agency uses any other TD for shipping under its account, the
requisite and the named safeguards must be in place (i.e., terms and
conditions found in this part and in the

"U.S. Government Freight Transportation---Handbook,"

appropriate numbering, etc.).

**§102-118.130---Must my agency use a GBL for express, courier, or small
package shipments?**

No, however, in using commercial forms all shipments must be subject to
the terms and conditions set forth for use of a bill of lading for the
Government. Any other non-con- flicting applicable contracts or
agreements between the TSP and an agency involving buying transportation
services for Government traffic remain binding. This purchase does not
require a SF 1113. When you are using GSA's schedule for small package
express delivery, the terms and conditions of that contract are binding.

**§102-118.135---Where are the mandatory terms and conditions governing
the use of bills of lading?**

The mandatory terms and conditions governing the use of bills of lading
are contained in this part and the "U.S. Govern- ment Freight
Transportation---Handbook."

> 102-118-5
>
> **AMENDMENT 2004--02 SEPTEMBER 24, 2004**
>
> **§102-118.140** FEDERAL MANAGEMENT REGULATION
>
> **§102-118.140---What are the major mandatory terms and conditions
> governing the use of GBLs and bills of lading?**
>
> The mandatory terms and conditions governing the use of
>
> GBLs and bills of lading are:
>
> \(a\) Your agency must use electronic commerce in all areas of your
> transportation program. This includes the use of elec- tronic systems
> and forms for ordering, receiving bills and paying for transportation
> and transportation services;
>
> \(b\) The shipment must be made at the restricted or limited valuation
> specified in the tariff or classification or limited contract,
> arrangement or exemption at or under which the lowest rate is
> available, unless indicated on the GBL or bill of lading. (This is
> commonly referred to as an alternation of rates);
>
> \(c\) Receipt for the shipment is subject to the consignee's
> annotation of loss, damage, or shrinkage on the delivering TSP's
> documents and the consignee's copy of the same doc- uments. If loss or
> damage is discovered after delivery or receipt of the shipment, the
> consignee must promptly notify the nearest office of the last
> delivering TSP and extend to the TSP the privilege of examining the
> shipment;
>
> \(d\) The rules and conditions governing commercial ship- ments for
> the time period within which notice must be given to the TSP, or a
> claim must be filed, or suit must be instituted, shall not apply if
> the shipment is lost, damaged or undergoes shrinkage in transit. Only
> with the written concurrence of the Government official responsible
> for making the shipment is the deletion of this item considered to
> valid;
>
> \(e\) Interest shall accrue from the voucher payment date on the
> overcharges made and shall be paid at the same rate in effect on that
> date as published by the Secretary of the Trea- sury pursuant to the
> Debt Collection Act of 1982
>
> (31 U.S.C. 3717); and
>
> \(f\) Additional mandatory terms and conditions are in this part and
> the "U.S. Government Freight Transportation--- Handbook."
>
> **§102-118.145---Where are the mandatory terms and conditions
> governing the use of passenger transportation documents?**
>
> The mandatory terms and conditions governing the use of passenger
> transportation documents are contained in this part and the "U.S.
> Government Passenger Transportation---Hand- book."
>
> **§102-118.150---What are the major mandatory terms and conditions
> governing the use of passenger transportation documents?**
>
> The mandatory terms and conditions governing the use of passenger
> transportation documents are:
>
> \(a\) Government travel must be via the lowest cost avail- able, that
> meets travel requirements; e.g., Government con-

tract, fare, through, excursion, or reduced one way or round trip fare.
This should be done by entering the term "lowest coach" on the
Government travel document if the specific fare basis is not known;

\(b\) The U.S. Government is not responsible for charges exceeding those
applicable to the type, class, or character authorized in transportation
documents;

\(c\) The U.S. Government contractor-issued charge card must be used to
the maximum extent possible to procure pas- senger transportation
tickets. GTRs must be used minimally;

\(d\) Government passenger transportation documents must be in
accordance with Federal Travel Regulation Chapters 300 and 301 (41 CFR
chapters 300 and 301), and the "U.S. Government Passenger
Transportation---Hand- book";

\(e\) Interest shall accrue from the voucher payment date on overcharges
made hereunder and shall be paid at the same rate in effect on that date
as published by the Secretary of the Trea- sury pursuant to the Debt
Collection Act of 1982;

\(f\) The TSP must insert on the TD any known dates on which travel
commenced;

\(g\) The issuing official or traveler, by signature, certifies that the
requested transportation is for official business;

\(h\) The TSP must not honor any request containing era- sures or
alterations unless the TD contains the authentic, valid initials of the
issuing official; and

\(i\) Additional mandatory terms and conditions are in this part and the
"U. S. Government Passenger Transportation--- Handbook."

**§102-118.155---How does my agency handle supplemental billings from
the TSP after payment of the original bill?**

Your agency must process, review, and verify supplemen- tal billings
using the same procedures as on an original bill- ing. If the TSP
disputes the findings, your agency must attempt to resolve the disputed
amount.

**§102-118.160---Who is liable if my agency makes an overpayment on a
transportation bill?**

If the agency conducts prepayment audits of its transpor- tation bills,
agency transportation certifying and disbursing officers are liable for
any overpayments made. If GSA has granted a waiver to the prepayment
audit requirement and the agency performs a postpayment audit (31 U.S.C.
3528 and

31 U.S.C. 3322) neither the certifying nor disbursing officers are
liable for the reasons listed in these two cited statutes.

**§102-118.165---What must my agency do if it finds an error on a TSP
bill?**

Your agency must advise the TSP via statement of differ- ence of any
adjustment that you make either electronically or in writing within 7
days of receipt of the bill, as required by

> 102-118-6
>
> **AMENDMENT 2004--02 SEPTEMBER 24, 2004**
>
> PART 102-118---TRANSPORTATION PAYMENT AND AUDIT **§102-118.205**
>
> the Prompt Payment Act (31 U.S.C. 3901, et seq.). This notice must
> include the TSP's taxpayer identification number, standard carrier
> alpha code, bill number and document refer- ence number, agency name,
> amount requested by the TSP, amount paid, payment voucher number,
> complete tender or tariff authority, the applicable rate authority and
> the complete fiscal authority including the appropriation.
>
> **§102-118.170---Will GSA continue to maintain a centralized numbering
> system for Government transportation documents?**
>
> Yes, GSA will maintain a numbering system for GBLs and GTRs. For
> commercial TDs, each agency must create a unique numbering system to
> account for and prevent dupli- cate numbers. The GSA Audit Division
> must approve this system. Write to:
>
> General Services Administration
>
> Federal supply Service Audit Division (FBA)
>
> 1800 F Street, NW. Washington, DC 20405 *www.gsa.gov/transaudits*
>
> **Subpart C---Use of Government Billing**
>
> **Documents**
>
> **Terms and Conditions Governing Acceptance and Use of a Government
> Bill of Lading (GBL) or Government Transportation Request (GTR)**
>
> **(Until Form Retirement)**
>
> **§102-118.175---Must my agency prepare for the GBL**
>
> **retirement?**
>
> Yes, your agency must prepare for retirement of the paper GBL.
> Effective September 30, 2001, your agency must have phased out use of
> Standard Form (SF) 1103, Government Bill of Lading, and OF 1203,
> Privately Owned Personal Property Government Bill of Lading (PPGBL)
> for domestic shipments. Effective September 30, 2001, your agency may
> use the GBL or PPGBL solely for international shipments (including
> domestic overseas shipments).
>
> **§102-118.180---Must my agency prepare for the GTR**
>
> **retirement?**
>
> Yes, your agency must use the GTR only in situations that do not lend
> themselves to the use of commercial payment methods.
>
> **§102-118.185---When buying freight transportation, must my agency
> reference the applicable contract or tender on the bill of lading
> (including a GBL)?**
>
> Yes, your agency must reference the applicable contract or

tender when buying transportation on a bill of lading (includ- ing
GBLs). However, the referenced information on a GBL or bill of lading
does not limit an audit of charges.

**§102-118.190---When buying passenger transportation must my agency
reference the applicable contract?** Yes, when buying passenger
transportation, your agency

must reference the applicable contract on a GTR or passenger
transportation document (e.g., ticket).

**§102-118.195---What documents must a transportation service provider
(TSP) send to receive payment for a transportation billing?**

For shipments bought on a TD, the TSP must submit an original properly
certified GBL, PPGBL, or bill of lading attached to an SF 1113, Public
Voucher for Transportation Charges. The TSP must submit this package and
all support- ing documents to the agency paying office.

**§102-118.196---What does the TSP do with unused tickets**

> **(E-ticket or paper ticket)?**

The TSP must refund the value of the unused tickets (after expiration)
to the GSA Audit Division if no Redemption of Unused Tickets (SF 1170)
is received. TSPs are required to make such refunds within 90 days after
the expiration date. The ticket number and the amount being refunded
must be included in addition to all information pertinent to the refund,
including the GTR numbers if applicable. Additional infor- mation is in
the Government Passenger Transportation Hand- book. Refund checks are to
made payable to the U.S. Treasury and sent to---

> General Services Administration
>
> Federal Supply Service
>
> Audit Division (FBA)
>
> 1800 F Street, NW. Washington, DC 20405 *www.gsa.gov/transaudits*

**§102-118.200---Can a TSP demand advance payment for the transportation
charges submitted on a bill of lading**

> **(including GBL)?**

No, a TSP cannot demand advance payment for transpor- tation charges
submitted on a bill of lading (including GBL), unless authorized by law.

**§102-118.205---May my agency pay a subcontractor or agent functioning
as a warehouseman for the TSP providing service under the bill of
lading?**

No, your agency may only pay the TSP with whom it has a contract. The
bill of lading will list the TSP with whom the Government has a
contract.

> 102-118-7
>
> **AMENDMENT 2004--02 SEPTEMBER 24, 2004**
>
> **§102-118.210** FEDERAL MANAGEMENT REGULATION
>
> **§102-118.210---May my agency use bills of lading other than the GBL
> for a transportation shipment?**
>
> Yes, as long as the mandatory terms and conditions con- tained in this
> part (as also stated on a GBL) apply. The TSP must agree in writing to
> the mandatory terms and conditions
>
> (also found in the "U.S. Government Freight Transporta-
> tion---Handbook") contained in this part.
>
> **§102-118.215---May my agency pay a TSP any extra fees to pay for the
> preparation and use of the GBL or GTR?** No, your agency must not pay
> any additional charges for the preparation and use of the GBL or GTR.
> Your agency may not pay a TSP a higher rate than comparable under
> commer- cial procedures for transportation bought on a GBL or GTR.
>
> **§102-118.220---If a transportation debt is owed to my agency by a
> TSP because of loss or damage to property, does my agency report it to
> GSA?**
>
> No, if your agency has administratively determined that a TSP owes a
> debt resulting from loss or damage, follow your agency regulations.
>
> **§102-118.225---What constitutes final receipt of shipment?**
>
> Final receipt of the shipment occurs when the consignee or a TSP
> acting on behalf of the consignee with the agency's per- mission,
> fully signs and dates both the delivering TSP's doc- uments and the
> consignee's copy of the same documents indicating delivery and/or
> explaining any delay, loss, damage, or shrinkage of shipment.
>
> **§102-118.230---What if my agency creates or eliminates a field
> office approved to prepare transportation documents?**
>
> Your agency must tell the GSA Audit Division whenever it approves a
> new or existing agency field office to prepare transportation
> documents or when an agency field office is no longer authorized to do
> so. This notice must show the name, field office location of the
> bureau or office, and the date on which your agency granted or
> canceled its authority to sched- ule payments for transportation
> service.
>
> **Agency Responsibilities When Using Government**
>
> **Bills of Lading (GBLs) or**
>
> **Government Transportation Requests (GTRs)**
>
> **§102-118.235---Must my agency keep physical control and
> accountability of the GBL and GTR forms or GBL and GTR numbers?**
>
> Yes, your agency is responsible for the physical control and
> accountability of the GBL and GTR stock and must have procedures in
> place and available for inspection by GSA.

Your agency must consider these Government transportation documents to
be the same as money.

**§102-118.240---How does my agency get GBL and GTR**

> **forms?**

Your agency can get GBL and GTR forms, in either blank or prenumbered
formats, from:

> General Services Administration
>
> Federal Supply Service
>
> General Products Commodity Center (7FXM-WS)
>
> 819 Taylor Street, Room 6A24
>
> Fort Worth, TX 76102

**§102-118.245---How does my agency get an assigned set of**

> **GBL or GTR numbers?**
>
> If your agency does not use prenumbered GBL and GTR

forms, you may get an assigned set of numbers from: General Services
Administration

> Federal Supply Service
>
> General Products Commodity Center (7FXM-WS)
>
> 819 Taylor Street, Room 6A24
>
> Fort Worth, TX 76102

**§102-118.250---Who is accountable for the issuance and use of GBL and
GTR forms?**

Agencies and employees are responsible for the issuance and use of GBL
and GTR forms and are accountable for their disposition.

**§102-118.255---Are GBL and GTR forms numbered and used sequentially?**

Yes, GBL and GTR forms are always sequentially num- bered when printed
and/or used. No other numbering of the forms, including additions or
changes to the prefixes or addi- tions of suffixes, is permitted.

> **Quotations, Tenders or Contracts**

**§102-118.260---Must my agency send all quotations, tenders, or
contracts with a TSP to GSA?**

\(a\) Yes, your agency must send copies of each quotation, tender, or
contract of special rates, fares, charges, or conces- sions with TSPs
including those authorized by 49 U.S.C.

10721 and 13712, upon execution to--- General Services Administration

> Federal Supply Service Audit Division (FBA)
>
> 1800 F Street, NW. Washington, DC 20405 *www.gsa.gov/transaudits.*

\(b\) Tenders must be submitted electronically, following the
instructions provided by the requesting agency. The fol- lowing
information must be submitted with the tender:

> \(1\) Issuing TSP, Bureau, Agency or Conference.
>
> 102-118-8
>
> **AMENDMENT 2004--02 SEPTEMBER 24, 2004**
>
> PART 102-118---TRANSPORTATION PAYMENT AND AUDIT **§102-118.285**
>
> \(2\) Tender number.
>
> \(3\) Standard Carrier Alpha Code (SCAC).
>
> \(4\) TSP Tax Identification Number (TIN).
>
> \(5\) ssue date.
>
> \(6\) Effective date.
>
> \(7\) Expiration date.
>
> \(8\) Origin and destination.
>
> \(9\) (Freight Classification and/or commodity descrip- tion
> (including origin and destination).
>
> \(10\) Rate or charge for line haul rates.
>
> \(11\) Minimum weights.
>
> \(12\) Route(s).
>
> \(13\) Accessorial services description(s) with rate or charge and
> governing publication.
>
> \(14\) TSP operating authority.
>
> \(c\) The TSP must include a statement that the TSP will adhere and
> agree to the following general terms and condi- tions. The services
> provided in this tender will be performed in accordance with
> applicable Federal, State and municipal laws and regulations,
> including Federal Management Regula- tion parts 102-117 and 102-118
> (41 CFR parts 102-117 and
>
> 102-118), and the TSP(s) hold(s) the required operating authority to
> transport the commodity from, to, or between the places specified in
> the authorized certificates, permits or tem- porary operating
> authorities.
>
> \(d\) The TSP shall bill the United States Government on Standard Form
> (SF) 1113, Public Voucher for Transportation Charges, appropriately
> completed and supported. The TSP(s) will send bills to the \"Bill
> Charges To\" address on the face of the bill of lading or
> agency--ordering document.
>
> \(e\) The Optional Form (OF) 280, Uniform Tender of Rates and/or
> Charges for Transportation Services, includes all the provisions of
> paragraph (c) of this section and is another option to file a tender
> with the Government.
>
> **Subpart D---Prepayment Audits of**
>
> **Transportation Services**
>
> **Agency Requirements for Prepayment Audits**
>
> **§102-118.265---What is a prepayment audit?**
>
> A prepayment audit is a review of a transportation service provider
> (TSP) bill that occurs prior to your agency making payment to a TSP.
> This review compares the charges on the bill against the charge
> permitted under the contract, rate ten- der, or other agreement under
> which the TSP provided the transportation and/or transportation
> related services.
>
> **§102-118.270---Must my agency establish a prepayment audit
> program?**
>
> \(a\) Yes, under 31 U.S.C. 3726, your agency is required to establish
> a prepayment audit program. Your agency must send a preliminary copy
> of your prepayment audit program to:
>
> General Services Administration
>
> Office of Transportation and Personal Property (MT)
>
> 1800 F Street, NW. Washington, DC 20405
>
> *http://policyworks.gov/org/main/MT*
>
> \(b\) The final plan must be approved and in place by

April 20, 2000.

**§102-118.275---What must my agency consider when designing and
implementing a prepayment audit program?**

\(a\) As shown in §102-118.45, the manner in which your agency orders
transportation services determines how and by whom the bill for those
services will be presented. Each method of ordering transportation and
transportation services may require a different kind of prepayment
audit.

Your agency\'s prepayment audit program must consider all of the methods
that you use to order and pay for transportation services. With each
method of ordering transportation ser- vices, your agency should ensure
that each TSP bill or employee travel voucher contains enough
information for the prepayment audit to determine which contract or rate
tender is used and that the type and quantity of any additional ser-
vices are clearly delineated.

\(b\) For transportation payments made through cost reim- bursable
contracts, the agency must include a statement in the contract that the
contractor shall submit to the address identi- fied for prepayment
audit, transportation documents which show that the United States will
assume freight charges that were paid by the contractor.

\(c\) Cost reimbursable contractors shall only submit for audit bills of
lading with freight shipment charges exceeding

\$100.00. Bills under \$100.00 shall be retained on-site by the
contractor and made available for on-site audits.

**§102-118.280---What advantages does the prepayment audit offer my
agency?**

Prepayment auditing will allow your agency to detect and eliminate
billing errors before payment and will eliminate the time and cost of
recovering agency overpayments.

**§102-118.285---What options for performing a prepayment audit does my
agency have?**

> Your agency may perform a prepayment audit by:
>
> \(a\) Creating an internal prepayment audit program;

\(b\) Contracting directly with a prepayment audit service provider; or

\(c\) Using the services of a prepayment audit contractor under GSA's
multiple award schedule covering audit and financial management
services.

**Note to §102-118.285:** Either of the choices in paragraph (a), (b),
or (c) of this section might include contracts with charge card com-
panies that provide prepayment audit services.

> 102-118-9
>
> **AMENDMENT 2004--02 SEPTEMBER 24, 2004**
>
> **§102-118.290** FEDERAL MANAGEMENT REGULATION
>
> **§102-118.290---Must every electronic and paper transportation bill
> undergo a prepayment audit?**
>
> Yes, all transportation bills and payments must undergo a prepayment
> audit unless your agency's prepayment audit pro- gram uses a
> statistical sampling technique of the bills or the Administrator of
> General Services grants a specific waiver from the prepayment audit
> requirement. If your agency chooses to use statistical sampling, all
> bills must be at or below the Comptroller General specified limit of
> \$2,500.00
>
> (31 U.S.C. 3521(b)) and General Accounting Office Policy and
> Procedures Manual Chapter 7, obtainable from:
>
> U.S. General Accounting Office
>
> P.O. Box 6015
>
> Gaithersburg, MD 20884--6015
>
> *http://www.gao.gov*
>
> **§102-118.295---What are the limited exceptions to every bill
> undergoing a prepayment audit?**
>
> The limited exceptions to bills undergoing a prepayment audit are
> those bills subject to a waiver from GSA (which may include bills
> determined to be below your agency's thresh- old). The waiver to
> prepayment audit requirements may be for bills, mode or modes of
> transportation or for an agency or sub- agency.
>
> **§102-118.300---How does my agency fund its prepayment audit
> program?**
>
> Your agency must pay for the prepayment audit from those funds
> appropriated for transportation services.
>
> **§102-118.305---Must my agency notify the TSP of any adjustment to
> the TSP's bill?**
>
> Yes, your agency must notify the TSP of any adjustment to the TSP's
> bill either electronically or in writing within 7 days of receipt of
> the bill. This notice must refer to the TSP's bill number, agency
> name, taxpayer identification number, stan- dard carrier alpha code,
> document reference number, amount billed, amount paid, payment voucher
> number, complete ten- der or tariff authority, including item or
> section number.
>
> **§102-118.310---Must my agency prepayment audit program establish
> appeal procedures whereby a TSP may appeal any reduction in the amount
> billed?**
>
> Yes, your agency must establish an appeal process that directs TSP
> appeals to an agency official who is able to pro- vide adequate
> consideration and review of the circumstances of the claim. Your
> agency must complete the review of the appeal within 30 days.
>
> **§102-118.315---What must my agency do if the TSP disputes the
> findings and my agency cannot resolve the dispute?**

\(a\) If your agency is unable to resolve the disputed amount with the
TSP, your agency should forward all relevant docu- ments including a
complete billing history, and the appropri- ation or fund charged, to:

> General Services Administration
>
> Federal Supply Service Audit Division (FBA)
>
> 1800 F Street, NW. Washington, DC 20405 *www.gsa.gov/transaudits*

\(b\) The GSA Audit Division will review the appeal of an agency's
final, full or partial denial of a claim and issue a deci- sion. A TSP
must submit claims within 3 years under the guidelines established in
§102-118.460.

**§102-118.320---What information must be on transportation bills that
have completed my agency's prepayment audit?**

\(a\) The following information must be annotated on all transportation
bills that have completed a prepayment audit:

> \(1\) The date received from a TSP;
>
> \(2\) A TSP's bill number;
>
> \(3\) Your agency name;
>
> \(4\) A Document Reference Number (DRN);
>
> \(5\) The amount billed;
>
> \(6\) The amount paid;
>
> \(7\) The payment voucher number;

\(8\) Complete tender or tariff authority, including item or section
number;

> \(9\) The TSP's taxpayer identification number (TIN);
>
> \(10\) The TSP's standard carrier alpha code (SCAC);
>
> \(11\) The auditor's authorization code or initials; and
>
> \(12\) A copy of any statement of difference sent to the

TSP.

\(b\) Your agency can find added guidance in the "U.S. Gov- ernment
Freight Transportation---Handbook," obtainable from:

> General Services Administration
>
> Federal Supply Service Audit Division (FBA)
>
> 1800 F Street, NW. Washington, DC 20405 *www.gsa.gov/transaudits*
>
> **Maintaining an Approved Program**

**§102-118.325---Must I get approval for my agency's prepayment audit
program?**

Yes, your agency must get approval for your prepayment audit program.
The highest level budget or financial official of each agency, such as
the Chief Financial Officer, initially approves your agency's prepayment
audit program. After internal agency approval, your agency submits the
plan in writing to the GSA Audit Division for final approval.

> 102-118-10
>
> **AMENDMENT 2004--02 SEPTEMBER 24, 2004**
>
> PART 102-118---TRANSPORTATION PAYMENT AND AUDIT **§102-118.365**
>
> **§102-118.330---What are the elements of an acceptable prepayment
> audit program?**
>
> An acceptable prepayment audit program must:
>
> \(a\) Verify all transportation bills against filed rates and charges
> before payment;
>
> \(b\) Comply with the Prompt Payment Act
>
> (31 U.S.C. 3901, et seq.);
>
> \(c\) Allow for your agency to establish minimum dollar thresholds for
> transportation bills subject to audit;
>
> \(d\) Require your agency\'s paying office to offset, if directed by
> GSA\'s Audit Division, debts from amounts owed to the TSP within the 3
> years as per 31 U.S.C. 3726(b);
>
> \(e\) Be approved by the GSA Audit Division. After the ini- tial
> approval, the agency may be subject to periodic program review and
> reapproval;
>
> \(f\) Complete accurate audits of transportation bills and notify the
> TSP of any adjustment within 7 calendar days of receipt;
>
> \(g\) Create accurate notices to the TSPs that describe in detail the
> reasons for any full or partial rejection of the stated charges on the
> invoice. An accurate notice must include the TSP's invoice number, the
> billed amount, TIN, standard car- rier alpha code, the charges
> calculated by the agency, and the specific reasons including
> applicable rate authority for the rejection;
>
> \(h\) Forward documentation monthly to the GSA Audit Division, which
> will store paid transportation bills under the General Records
> Schedule 9, Travel and Transportation
>
> (36 CFR Chapter XII, 1228.22) which requires keeping records for 3
> years. GSA will arrange for storage of any doc- ument requiring
> special handling (e.g., bankruptcy, court case, etc.). These bills
> will be retained pursuant to
>
> 44 U.S.C. 3309 until claims have been settled;
>
> \(i\) Establish procedures in which transportation bills not subject
> to prepayment audit (i.e., bills for unused tickets and charge card
> billings) are handled separately and forwarded to the GSA Audit
> Division; and
>
> \(j\) Implement a unique agency numbering system to han- dle
> commercial paper and practices (see §102-118.55).
>
> **§102-118.335---What does the GSA Audit Division consider when
> verifying an agency prepayment audit program?**
>
> The GSA Audit Division bases verification of agency pre- payment audit
> programs on objective cost-savings, paper- work reductions, current
> audit standards and other positive improvements, as well as adherence
> to the guidelines listed in this part.
>
> **§102-118.340---How does my agency contact the GSA Audit Division?**
>
> Your agency may contact the GSA Audit Division by writ- ing to:
>
> General Services Administration
>
> Federal Supply Service Audit Division (FBA)
>
> 1800 F Street, NW. Washington, DC 20405 *www.gsa.gov/transaudits*

**§102-118.345---If my agency chooses to change an approved prepayment
audit program, does the program need to be reapproved?**

Yes, you must receive approval of any changes in your agency's
prepayment audit program from the GSA Audit Division.

> **Liability for Certifying and Disbursing Officers.**

**§102-118.350---Does establishing a prepayment audit system or program
change the responsibilities of the certifying officers?**

Yes, in a prepayment audit environment, an official certi- fying a
transportation voucher is held liable for verifying transportation
rates, freight classifications, and other infor- mation provided on a
transportation billing instrument or transportation request undergoing a
prepayment audit

(31 U.S.C. 3528).

**§102-118.355---Does a prepayment audit waiver change any liabilities
of the certifying officer?**

Yes, a certifying official is not personally liable for verify- ing
transportation rates, freight classifications, or other infor- mation
provided on a GBL or passenger transportation request when the
Administrator of General Services or desig- nee waives the prepayment
audit requirement and your agency uses postpayment audits.

**§102-118.360---What relief from liability is available for the
certifying official under a postpayment audit?**

The agency counsel relieves a certifying official from lia- bility for
overpayments in cases where postpayment is the approved method of
auditing and:

\(a\) The overpayment occurred solely because the adminis- trative
review before payment did not verify transportation rates; and

\(b\) The overpayment was the result of using improper transportation
rates or freight classifications or the failure to deduct the correct
amount under a land grant law or agree- ment.

**§102-118.365---Do the requirements of a prepayment audit change the
disbursing official's liability for overpayment?**

Yes, the disbursing official has a liability for overpayments on all
transportation bills subject to prepayment audit

(31 U.S.C. 3322).

> 102-118-11
>
> **§102-118.370** FEDERAL MANAGEMENT REGULATION
>
> **§102-118.370---Where does relief from prepayment audit liability for
> certifying, accountable, and disbursing officers reside in my
> agency?**
>
> Your agency's counsel has the authority to relieve liability and give
> advance opinions on liability issues to certifying, accountable, and
> disbursing officers (31 U.S.C. 3527).
>
> **Waivers from Mandatory Prepayment Audit**
>
> **§102-118.375---Who has the authority to grant a waiver of the
> prepayment audit requirement?**
>
> Only the Administrator of General Services or designee has the
> authority to grant waivers from the prepayment audit requirement.
>
> **§102-118.380---How does my agency apply for a waiver from a
> prepayment audit of requirement?**
>
> Your agency must submit a request for a waiver from the requirement to
> perform a prepayment in writing to:
>
> General Services Administration
>
> Office of Transportation and Personal Property (MT)
>
> 1800 F Street, NW. Washington, DC 20405
>
> *http://policyworks.gov/org/main/MT*
>
> **§102-118.385---What must a waiver request include?**
>
> A waiver request must explain in detail how the use of a prepayment
> audit increases costs over a postpayment audit, decreases efficiency,
> involves a relevant public interest, adversely affects the agency's
> mission, or is not feasible for the agency. A waiver request must
> identify the mode or modes of transportation, agency or subagency to
> which the waiver would apply.
>
> **§102-118.390---On what basis does GSA grant a waiver to the
> prepayment audit requirement?**
>
> GSA issues waivers to the prepayment audit requirement based on:
>
> \(a\) Cost-effectiveness;
>
> \(b\) Government efficiency;
>
> \(c\) Public interest; or
>
> \(d\) Other factors the Administrator of General Services considers
> appropriate.
>
> **§102-118.395---How long will GSA take to respond to a waiver
> request?**
>
> GSA will respond to a written waiver request within
>
> 30 days from the receipt of the request.
>
> **§102-118.400---Must my agency renew a waiver of the prepayment audit
> requirements?**
>
> Yes, your agency waiver to the prepayment audit require- ment will not
> exceed 2 years. Your agency must reapply to

ensure the circumstances at the time of approval still apply.

**§102-118.405---Are my agency's prepayment audited transportation bills
subject to periodic postpayment audit oversight from the GSA Audit
Division?**

Yes, two years or more after starting prepayment audits, the GSA Audit
Division (depending on its evaluation of the results) may subject your
agency's prepayment audited trans- portation bills to periodic
postpayment audit oversight rather than blanket postpayment audits. The
GSA Audit Division will then prepare a report analyzing the success of
your agency's prepayment audit program. This report will be on file at
GSA and available for your review.

> **Suspension of Agency Prepayment Audit Programs**

**§102-118.410---Can GSA suspend my agency's prepayment audit program?**

\(a\) Yes, the Director of the GSA Audit Division may sus- pend your
agency's prepayment audit program based on his or her determination of a
systematic or frequent failure of the program to:

\(1\) Conduct an accurate prepayment audit of your agency's
transportation bills;

> \(2\) Abide by the terms of the Prompt Payment Act;

\(3\) Adjudicate TSP claims disputing prepayment audit positions of the
agency regularly within 30 days of receipt;

\(4\) Follow Comptroller General decisions, GSA Board of Contract
Appeals decisions, the Federal Management Reg- ulation and GSA
instructions or precedents about substantive and procedure matters;
and/or

\(5\) Provide information and data or to cooperate with on-site
inspections necessary to conduct a quality assurance review.

\(b\) A systematic or a multitude of individual failures will result in
suspension. A suspension of an agency's prepayment audit program may be
in whole or in part for failure to conduct proper prepayment audits.

> **Subpart E---Postpayment Transportation**
>
> **Audits**

**§102-118.415---Will the widespread mandatory use of prepayment audits
eliminate postpayment audits?**

No, the mandatory use of prepayment audits will not elim- inate
postpayment audits because:

\(a\) Postpayment audits will continue for those areas which do not lend
themselves to the prepayment audit; and

\(b\) The GSA Audit Division will continue to review and survey the
progress of the prepayment audit by performing a postpayment audit on
the bills. The GSA Audit Division has a Congressionally mandated
responsibility under

31 U.S.C. 3726 to perform oversight on transportation bill

> 102-118-12

(Amendment 2004-02)

> PART 102-118---TRANSPORTATION PAYMENT AND AUDIT **§102-118.445**
>
> payments. During the early startup period for prepayment audits,
> transportation bills are subject to a possible postpay- ment audit to
> discover the effectiveness of the prepayment audit process.
>
> **§102-118.420---Can the Administrator of General Services waive the
> postpayment auditing provisions of this subpart?**
>
> Yes, in certain circumstances, the Administrator of Gen- eral Services
> or designee may waive the postpayment audit oversight requirements of
> this subpart on a case by case basis.
>
> **§102-118.425---Is my agency allowed to perform a postpayment audit
> on our transportation bills?**
>
> No, your agency must forward all transportation bills to GSA for a
> postpayment audit regardless of any waiver allow- ing for postpayment
> audit.
>
> **§102-118.430---What information must be on my agency's
> transportation bills submitted for a postpayment audit?**
>
> Your agency must annotate all of its transportation bills submitted
> for postpayment audit with:
>
> \(a\) The date received from a TSP;
>
> \(b\) A TSP's bill number;
>
> \(c\) Your agency name;
>
> \(d\) A Document Reference Number;
>
> \(e\) The amount requested;
>
> \(f\) The amount paid;
>
> \(g\) The payment voucher number;
>
> \(h\) Complete tender or tariff authority, including contract price
> (if purchased under the Federal Acquisition Regula- tion), item or
> section number;
>
> \(i\) The TSP's taxpayer identification number; and
>
> \(j\) The TSP's standard carrier alpha code (SCAC).
>
> **§102-118.435---What procedures does GSA use to perform a postpayment
> audit?**
>
> When GSA performs a postpayment audit, the GSA Audit Division has the
> delegated authority to implement the follow- ing procedures:
>
> \(a\) Audit selected TSP bills after payment;
>
> \(b\) Audit selected TSP bills before payment as needed to protect the
> Government's interest (i.e., bankruptcy, fraud);
>
> \(c\) Examine, settle, and adjust accounts involving pay- ment for
> transportation and related services for the account of agencies;
>
> \(d\) Adjudicate and settle transportation claims by and against
> agencies;
>
> \(e\) Offset an overcharge by any TSP from an amount sub- sequently
> found to be due that TSP;
>
> \(f\) Issue a Notice of Overcharge stating that a TSP owes a debt to
> the agency. This notice states the amount paid, the

basis for the proper charge for the document reference num- ber, and
cites applicable tariff or tender along with other data relied on to
support the overcharge. A separate Notice of Overcharge is prepared and
mailed for each bill; and

\(g\) Issue a GSA Notice of Indebtedness when a TSP owes an ordinary
debt to an agency. This notice states the basis for the debt, the TSP's
rights, interest, penalty, and other results of nonpayment. The debt is
due immediately and subject to interest charges, penalties, and
administrative cost under

31 U.S.C. 3717.

**§102-118.440---What are the postpayment audit responsibilities and
roles of the GSA Audit Division?** When the GSA Audit Division performs
a postpayment

audit for your agency, GSA will:

\(a\) Examine and analyze payments to discover their valid- ity,
relevance and conformity with tariffs, quotations, con- tracts,
agreements or tenders and make adjustments to protect the interest of an
agency;

\(b\) Examine, adjudicate, and settle transportation claims by and
against the agency;

\(c\) Collect from TSPs by refund, setoff, offset or other means, the
amounts determined to be due the agency;

\(d\) Adjust, terminate or suspend debts due on TSP over- charges;

\(e\) Prepare reports to the Attorney General of the United States with
recommendations about the legal and technical bases available for use in
prosecuting or defending suits by or against an agency and provide
technical, fiscal, and factual data from relevant records;

\(f\) Provide transportation specialists and lawyers to serve as expert
witnesses, assist in pretrial conferences, draft plead- ings, orders,
and briefs, and participate as requested in con- nection with
transportation suits by or against an agency;

\(g\) Review agency policies, programs, and procedures to determine
their adequacy and effectiveness in the audit of freight or passenger
transportation payments, and review related fiscal and transportation
practices;

\(h\) Furnish information on rates, fares, routes, and related technical
data upon request;

\(i\) Tell an agency of irregular shipping routing practices, inadequate
commodity descriptions, excessive transportation cost authorizations,
and unsound principles employed in traf- fic and transportation
management; and

\(j\) Confer with individual TSPs or related groups and asso- ciations
presenting specific modes of transportation to resolve mutual problems
concerning technical and accounting mat- ters and acquainting them with
agency requirements.

**§102-118.445---Must my agency pay for a postpayment audit when using
the GSA Audit Division?**

No, the expenses of postpayment audit contract adminis- tration and
audit-related functions are financed from overpay-

> (Amendment 2004-02)
>
> **§102-118.450** FEDERAL MANAGEMENT REGULATION
>
> ments collected from the TSP's bills previously paid by the agency and
> similar type of refunds.
>
> **Subpart F---Claims and Appeal Procedures**
>
> **General Agency Information for All Claims**

**§102-118.455---What is the time limit for a TSP to file a
transportation claim against my agency?**

> The time limits on a TSP transportation claim against the

Government differ by mode as shown in the following table:

> **TIME LIMITS ON ACTIONS TAKEN BY TSP**
>
> **Freight**
>
> **§102-118.450---Can a TSP file a transportation claim**

**Mode**

**Charges Statute**

> **against my agency?**
>
> Yes, a TSP may file a transportation claim against your

\(a\) Air Domestic 6 years 28 U.S.C. 2401, 2501

\(b\) Air International 6 years 28 U.S.C. 2401, 2501

> agency under 31 U.S.C. 3726 for:
>
> \(a\) Amounts owed but not included in the original billing;

\(c\) Freight Forwarders

> (subject to the IC Act)

3 years 49 U.S.C. 14705(f)

> \(b\) Amounts deducted or set off by an agency that are dis- puted by
> the TSP;

\(d\) Motor 3 years 49 U.S.C. 14705(f)

\(e\) Rail 3 years 49 U.S.C. 14705(f)

> \(c\) Requests by a TSP for amounts previously refunded in error by
> that TSP; and/or
>
> \(d\) Unpaid original bills requiring direct settlement by
>
> GSA, including those subject to doubt about the suitability of

\(f\) Water

> (subject to the IC Act)

\(g\) Water

> (not subject to the IC Act)

3 years 49 U.S.C. 14705(f)

2 years 46 U.S.C. 745

> payment (mainly bankruptcy or fraud).

\(h\) TSPs exempt from regulation 6 years 28 U.S.C. 2401, 2501

> **§102-118.460---What is the time limit for my agency to file a court
> claim with a TSP for freight charges, reparations, and loss or damage
> to the property?** Statutory time limits vary depending on the mode
> and the
>
> service involved and may involve freight charges. The fol- lowing
> tables list the time limits:
>
> **(a) TIME LIMITS ON ACTIONS TAKEN BY THE FEDERAL GOVERNMENT AGAINST
> TSPS**
>
> **Mode Freight Charges Reparations Loss and Damage**
>
> \(1\) Rail 3 years
>
> 49 U.S.C. 11705
>
> \(2\) Motor 3 years
>
> 49 U.S.C. 14705(f)
>
> 3years

49 U.S.C. 11705

> 3years

49 U.S.C. 14705(f)

> 6 years

28 U.S.C. 2415

> 6 years

28 U.S.C. 2415

> \(3\) Freight Forwarders subject to the IC Act
>
> \(4\) Water
>
> (subject to the IC Act)
>
> \(5\) Water
>
> (not subject to the IC Act)
>
> 3 years

49 U.S.C. 14705(f)

> 3 years

49 U.S.C. 14705(f)

> 6 years

28 U.S.C. 2415

> 3years

49 U.S.C. 14705(f)

> 3years

49 U.S.C. 14705(f)

> 2years

46 U.S.C. 821

> 6 years

28 U.S.C. 2415

> 6 years

28 U.S.C. 2415

> 1 year

46 U.S.C.

1303(6) (if subject to Carriage of

Goods by Sear Act, 46 U.S.C.

1300---1315)

> \(6\) Domestic Air 6 years
>
> 28 U.S.C. 2415
>
> \(7\) International Air 6 years
>
> 28 U.S.C. 2415
>
> 6 years

28 U.S.C. 2415

> 2 years

49 U.S.C. 40105

> **(b) TIME LIMITS ON ACTIONS TAKEN BY THE FEDERAL GOVERNMENT AGAINST
> TSPS EXEMPT FROM REGULATION**
>
> **Mode Freight Charges Reparations Loss and Damage**
>
> \(1\) All 6 years
>
> 28 U.S.C. 2415
>
> 6 years

28 U.S.C. 2415

> 102-118-14

(Amendment 2004-02)

> **AMENDMENT 2004--02 SEPTEMBER 24, 2004**
>
> PART 102-118---TRANSPORTATION PAYMENT AND AUDIT **§102-118.520**
>
> **§102-118.465---Must my agency pay interest on a disputed amount
> claimed by a TSP?**
>
> No, interest penalties under the Prompt Payment Act,
>
> (31 U.S.C. 3901, et seq.), are not required when payment is delayed
> because of a dispute between an agency and a TSP.
>
> **§102-118.470---Are there statutory time limits for a TSP on filing a
> administrative claim with the GSA Audit Division?**
>
> Yes, an administrative claim must be received by the GSA Audit
> Division or its designee (the agency where the claim arose) within 3
> years beginning the day after the latest of the following dates
> (except in time of war):
>
> \(a\) Accrual of the cause of action;
>
> \(b\) Payment of charges for the transportation involved;
>
> \(c\) Subsequent refund for overpayment of those charges;
>
> or
>
> \(d\) Deductions made to a TSP claim by the Government under 31 U.S.C.
> 3726.
>
> **§102-118.475---Does interest apply after certification of payment of
> claims?**
>
> Yes, interest under the Prompt Payment Act
>
> (31 U.S.C. 3901, et seq.) begins 30 days after certification for
> payment by GSA.
>
> **§102-118.480---How does my agency settle disputes with a**
>
> **TSP?**
>
> As a part of the prepayment audit program, your agency must have a
> plan to resolve disputes with a TSP. This program must allow a TSP to
> appeal payment decisions made by your agency.
>
> **§102-118.485---Is there a time limit for my agency to issue a
> decision on disputed claims?**
>
> Yes, your agency must issue a ruling on a disputed claim within 30
> days of receipt of the claim.
>
> **§102-118.490---What if my agency fails to settle a dispute within 30
> days?**
>
> \(a\) If your agency fails to settle a dispute within 30 days, the TSP
> may appeal to:
>
> General Services Administration
>
> Federal Supply Service Audit Division (FBA) Code: CC
>
> 1800 F Street, NW. Washington, DC 20405 *www.gsa.gov/transaudits*
>
> \(b\) If the TSP disagrees with the administrative settlement by the
> Audit Division, the TSP may appeal to the General Ser- vices Board of
> Contract Appeals.

**§102-118.495---May my agency appeal a decision by the**

> **General Services Board of Contract Appeals**
>
> **(GSBCA)?**
>
> No, your agency may not appeal a decision made by the

GSBCA.

**§102-118.500---How does my agency handle a voluntary refund submitted
by a TSP?**

\(a\) An agency must report all voluntary refunds to the GSA Audit
Division (so that no Notice of Overcharge or financial offset occurs),
unless other arrangements are made

(e.g., charge card refunds, etc.). These reports must be addressed to:

> General Services Administration
>
> Federal Supply Service Audit Division (FBA) Code: CC
>
> 1800 F Street, NW. Washington, DC 20405 *www.gsa.gov/transaudits*

\(b\) Once a Notice of Overcharge is issued by the GSA Audit Division,
then any refund is no longer considered vol- untary and the agency must
forward the refund to the GSA Audit Division.

**§102-118.505---Must my agency send a voluntary refund to the Treasurer
of the United States?**

No, your agency may keep and use voluntary refunds sub- mitted by a TSP,
if the refund was made prior to a Notice of Overcharge issued by the GSA
Audit Division.

**§102-118.510---Can my agency revise or alter a GSA Form 7931,
Certificate of Settlement?**

Generally, no, an agency must not revise or alter amounts on a GSA Form
7931. The only change an agency can make to a GSA Form 7931 is to change
the agency financial data to a correct cite. Any GSA Form 7931 that
cannot be paid

(e.g., an amount previously paid), must be immediately returned to the
GSA Audit Division with an explanation.

**§102-118.515---Does my agency have any recourse not to pay a
Certificate of Settlement?**

No, a Certificate of Settlement is the final administrative action.

**§102-118.520---Who is responsible for determining the standards for
collection, compromise, termination, or suspension of collection action
on any outstanding debts to my agency?**

Under the Federal Claims Collection Act of 1966, as amended (31 U.S.C.
3711, et seq.), the Comptroller General and the Attorney General have
joint responsibility for issuing standards for your agency.

> 102-118-15
>
> **AMENDMENT 2004--02 SEPTEMBER 24, 2004**
>
> **§102-118.525** FEDERAL MANAGEMENT REGULATION
>
> **§102-118.525---What are my agency's responsibilities for verifying
> the correct amount of transportation charges?**
>
> Your agency's employees are responsible for diligently verifying the
> correct amount of transportation charges prior to payment (31 U.S.C.
> 3527).
>
> **§102-118.530---Will GSA instruct my agency's disbursing offices to
> offset unpaid TSP billings?**
>
> Yes, GSA will instruct one or more of your agency's dis- bursing
> offices to deduct the amount due from an unpaid TSP's bill. A 3-year
> limitation applies on the deduction of overcharges from amounts due a
> TSP (31 U.S.C. 3726) and a
>
> 10-year limitation applies on the deduction of ordinary debts
>
> (31 U.S.C. 3716).
>
> **§102-118.535---re there principles governing my agency's**
>
> **TSP debt collection procedures?**
>
> Yes, the principles governing your agency collection pro- cedures for
> reporting debts to the General Accounting Office
>
> (GAO) or the Department of Justice are found in
>
> 4 CFR parts 101 through 105 and in the GAO Policy and Pro- cedures
> Manual for Guidance of Federal Agencies. The man- ual may be obtained
> by writing:
>
> Superintendent of Documents Government Printing Office Washington, DC
> 20402 *http://www.access.gpo.gov/*
>
> **§102-118.540---Who has the authority to audit, settle accounts,
> and/or start collection action for all transportation services
> provided for my agency?**
>
> The Director of the GSA Audit Division has the authority and
> responsibility to audit and settle all transportation related accounts
> (31 U.S.C. 3726). The reason for this is that he or she has access to
> Governmentwide data on a TSP's payments and billings with the
> Government. Your agency has the responsibility to correctly pay
> individual transportation claims.
>
> **Transportation Service Provider (TSP) Filing**
>
> **Requirements**
>
> **§102-118.545---What information must a TSP claim include?**
>
> Transportation service provider (TSP) claims received by
>
> GSA or its designee must include one of the following:
>
> \(a\) The signature of an individual or party legally entitled to
> receive payment for services on behalf of the TSP;
>
> \(b\) The signature of the TSP's agent or attorney accompa- nied by a
> duly executed power of attorney or other documen- tary evidence of the
> agent's or attorney's right to act for the

TSP; or

> \(c\) An electronic signature, when mutually agreed upon.

**§102-118.550---How does a TSP file an administrative claim using EDI
or other electronic means?**

The medium and precise format of data for an administra- tive claim
filed electronically must be approved in advance by the GSA Audit
Division. GSA will use an authenticating EDI signature to certify
receipt of the claim. The data on the claim must contain proof of the
delivery of goods, and an itemized bill reflecting the services
provided, with the lowest charges available for service. The TSP must be
able to locate, identify, and reproduce the records in readable form
without loss of clarity.

**§102-118.555---Can a TSP file a supplemental administrative claim?**

Yes, a TSP may file a supplemental administrative claim. Each
supplemental claim must cover charges relating to one paid
transportation document.

**§102-118.560---What is the required format that a TSP**

> **must use to file an administrative claim?**

A TSP must bill for charges claimed on a SF 1113, Public Voucher for
Transportation Charges, in the manner prescribed in the "U.S. Government
Freight Transportation---Hand- book" or the "U.S. Government Passenger
Transportation--- Handbook." To get a copy of these handbooks, you may
write to:

> General Services Administration
>
> Federal Supply Service Audit Division (FBA)
>
> 1800 F Street, NW., Washington, DC 20405 *www.gsa.gov/transaudits*

**§102-118.565---What documentation is required when filing an
administrative claim?**

An administrative claim must be accompanied by the transportation
document, payment record, reports and infor- mation available to GSA
and/or to the agency involved and the written and documentary records
submitted by the TSP. Oral presentations supplementing the written
record are not acceptable.

> **Transportation Service Provider (TSP) and Agency**
>
> **Appeal Procedures for Prepayment Audits**

**§102-118.570---If my agency denies the TSP's challenge to the
statement of difference, may the TSP appeal?**

Yes, the TSP may appeal if your agency denies its chal- lenge to the
statement of difference. However, the appeal must be handled at a higher
level in your agency.

> 102-118-16
>
> **AMENDMENT 2004--02 SEPTEMBER 24, 2004**
>
> PART 102-118---TRANSPORTATION PAYMENT AND AUDIT **§102-118.630**
>
> **§102-118.575---If a TSP disagrees with the decision of my agency,
> can the TSP appeal?**
>
> Yes, the TSP may file a claim with the GSA Audit Divi- sion, which
> will review the TSP's appeal of your agency's final full or partial
> denial of a claim. The TSP may also appeal to the GSA Audit Division
> if your agency has not responded to a challenge within 30 days.
>
> **§102-118.580---May a TSP appeal a prepayment audit decision of the
> GSA Audit Division?**
>
> \(a\) Yes, the TSP may appeal to the GSA's Board of Con- tract Appeals
> (GSBCA), under guidelines established in this subpart, or file a claim
> with the United States Court of Federal Claims. The TSP's request for
> review must be received by the GSBCA in writing within 6 months (not
> including time of war) from the date the settlement action was taken
> or within the periods of limitation specified in 31 U.S.C. 3726, as
> amended, whichever is later. The TSP must address requests to:
>
> GSA Board of Contract Appeals
>
> 1800 F Street, NW. Room 7022
>
> Washington, DC 20405
>
> \(b\) The GSBCA will accept legible submissions via fac- simile (FAX)
> on (202) 501--0664.
>
> **§102-118.585---May a TSP appeal a prepayment audit decision of the
> GSBCA?**
>
> No, a ruling by the GSBCA is the final administrative rem- edy
> available and the TSP has no statutory right of appeal. This subpart
> governs administrative actions only and does not affect any of the
> TSP's rights. A TSP may still pursue a legal remedy through the
> courts.
>
> **§102-118.590---May my agency appeal a prepayment audit decision of
> the GSA Audit Division?**
>
> No, your agency may not appeal. A GSA Audit Division decision is
> administratively final for your agency.
>
> **§102-118.595---May my agency appeal a prepayment audit decision by
> the GSBCA?**
>
> No, your agency may not appeal a prepayment audit deci- sion. Your
> agency must follow the ruling of the GSBCA.
>
> **Transportation Service Provider (TSP) and Agency**
>
> **Appeal Procedures for Postpayment Audits**
>
> **§102-118.600---When a TSP disagrees with a Notice of Overcharge
> resulting from a postpayment audit, what are the appeal procedures?**
>
> A TSP who disagrees with the Notice of Overcharge may submit a written
> request for reconsideration to the GSA Audit Division at:
>
> General Services Administration
>
> Federal Supply Service Audit Division (FBA)
>
> 1800 F Street, NW. Washington, DC 20405 *www.gsa.gov/transaudits*

**§102-118.605---What if a TSP disagrees with the Notice of**

> **Indebtedness?**
>
> If a TSP disagrees with an ordinary debt, as shown on a

Notice of Indebtedness, it may:

\(a\) Inspect and copy the agency's records related to the claim;

\(b\) Seek administrative review by the GSA Audit Division of the claim
decision; and/or

\(c\) Enter a written agreement for the payment of the claims.

**§102-118.610---Is a TSP notified when GSA allows a claim?**

Yes, the GSA Audit Division will acknowledge each pay- able claim using
GSA Form 7931, Certificate of Settlement. The certificate will give a
complete explanation of any amount that is disallowed. GSA will forward
the certificate to the agency whose funds are to be charged for
processing and payment.

**§102-118.615---Will GSA notify a TSP if they internally offset a
payment?**

Yes, the GSA Audit Division will inform the TSP if they internally
offset a payment.

**§102-118.620---How will a TSP know if the GSA Audit**

> **Division disallows a claim?**

The GSA Audit Division will furnish a GSA Form 7932, Settlement
Certificate, to the TSP explaining the disallow- ance.

**§102-118.625---Can a TSP request a reconsideration of a settlement
action by the GSA Audit Division?**

Yes, a TSP desiring a reconsideration of a settlement action may request
a review by the Administrator of General Ser- vices.

**§102-118.630---How must a TSP refund amounts due to**

> **GSA?**

\(a\) TSPs must promptly refund amounts due to GSA, pref- erably by EFT.
If an EFT is not used, checks must be made payable to "General Services
Administration", including the document reference number, TSP name, bill
number(s), tax- payer identification number and standard carrier alpha
code, then mailed to:

> General Services Administration
>
> 102-118-17
>
> **AMENDMENT 2004--02 SEPTEMBER 24, 2004**
>
> **§102-118.635** FEDERAL MANAGEMENT REGULATION
>
> P.O. Box 93746
>
> Chicago, IL 60673
>
> \(b\) If an EFT address is needed, please contact the GSA Audit
> Division at:
>
> General Services Administration
>
> Federal Supply Service Audit Division (FBA)
>
> 1800 F Street, NW. Washington, DC 20405 *www.gsa.gov/transaudits*
>
> **Note to §102-118.630:** Amounts collected by GSA are returned to the
> Treasurer of the United States (31 U.S.C. 3726).
>
> **§102-118.635---Can the Government charge interest on an amount due
> from a TSP?**
>
> Yes, the Government can charge interest on an amount due from a TSP.
> This procedure is provided for under the Debt Collection Act (31
> U.S.C. 3717), the Federal Claims Collec- tion Standards (4 CFR parts
> 101 through 105), and
>
> 41 CFR part 105-55.
>
> **§102-118.640---If a TSP fails to pay or to appeal an overcharge,
> what actions will GSA pursue to collect the debt?**
>
> GSA will pursue debt collection through one of the follow- ing
> methods:
>
> \(a\) When an indebted TSP files a claim, GSA will apply all or any
> portion of the amount it determines to be due the TSP, to the
> outstanding balance owed by the TSP, under the Federal Claims
> Collection Standards (4 CFR parts 101 through 105) and 41 CFR part
> 105-55;
>
> \(b\) When the action outlined in paragraph (a) of this sec- tion
> cannot be taken by GSA, GSA will instruct one or more Government
> disbursing offices to deduct the amount due to the agency from an
> unpaid TSP's bill. A 3-year limitation applies on the deduction of
> overcharges from amounts due a TSP (31 U.S.C. 3726) and a 10-year
> limitation applies on the deduction of ordinary debt (31 U.S.C. 3716);
>
> \(c\) When collection cannot be accomplished through either of the
> procedures in paragraph (a) or (b) of this section, GSA normally sends
> two additional demand letters to the indebted TSP requesting payment
> of the amount due within a specified time. Lacking a satisfactory
> response, GSA may place a complete stop order against amounts
> otherwise pay- able to the indebted TSP by adding the name of that TSP
> to the Department of the Army "List of Contractors Indebted to the
> United States"; and/or
>
> \(d\) When collection actions, as stated in paragraphs (a)
>
> through (c) of this section are unsuccessful, GSA may report the debt
> to the Department of Justice for collection, litigation, and related
> proceedings, as prescribed in 4 CFR parts 101 through 105.

**§102-118.645---Can a TSP file an administrative claim on collection
actions?**

Yes, a TSP may file an administrative claim involving col- lection
actions resulting from the transportation audit per- formed by the GSA
directly with the GSA Audit Division. Any claims submitted to GSA will
be considered "disputed claims" under section 4(b) of the Prompt Payment
Act

(31 U.S.C. 3901, et seq.). The TSP must file all other trans- portation
claims with the agency out of whose activities they arose. If this is
not feasible (e.g., where the responsible agency cannot be determined or
is no longer in existence) claims may be sent to the GSA Audit Division
for forwarding to the responsible agency or for direct settlement by the
GSA Audit Division. Claims for GSA processing must be addressed to:

> General Services Administration
>
> Federal Supply Service Audit Division (FBA)
>
> 1800 F Street, NW. Washington, DC 20405 *www.gsa.gov/transaudits*

**§102-118.650---Can a TSP request a review of a settlement action by
the Administrator of General Services?**

Yes, a TSP desiring a review of a settlement action taken by the
Administrator of General Services may request a review by the GSA Board
of Contract Appeals (GSBCA) or file a claim with the United States Court
of Federal Claims

(28 U.S.C. 1491).

**§102-118.655---Are there time limits on a TSP request for an
administrative review by the GSBCA?**

\(a\) Yes, the GSBCA must receive a request for review from the TSP
within six months (not including time of war) from the date the
settlement action was taken or within the periods of limitation
specified in 31 U.S.C. 3726, as amended, whichever is later. The request
must be addressed to:

> GSA Board of Contract Appeals
>
> 1800 F Street, NW. Room 7022
>
> Washington, DC 20405

\(b\) The GSBCA will accept legible submissions via fac- simile (FAX) on
(202) 501--0664.

**§102-118.660---May a TSP appeal a postpayment audit decision of the
GSBCA?**

No, a ruling by the GSBCA is the final administrative rem- edy and the
TSP has no statutory right of appeal. This subpart governs
administrative actions only and does not affect any rights of the TSPs.
A TSP may still pursue a legal remedy through the courts.

> 102-118-18
>
> PART 102-118---TRANSPORTATION PAYMENT AND AUDIT **§102-118.675**
>
> **§102-118.665---May my agency appeal a postpayment audit decision by
> the GSBCA?**
>
> No, your agency may not appeal a postpayment audit deci- sion and must
> follow the ruling of the GSBCA.
>
> **Transportation Service Provider (TSP) Non-Payment of a Claim**
>
> **§102-118.670---If a TSP cannot immediately pay a debt, can they make
> other arrangements for payment?**

Yes, if a TSP is unable to pay the debt promptly, the Direc- tor of the
GSA Audit Division has the discretion to enter into alternative
arrangements for payment.

**§102-118.675---What recourse does my agency have if a**

> **TSP does not pay a transportation debt?**

If a TSP does not pay a transportation debt, GSA may refer delinquent
debts to consumer reporting agencies and Federal agencies including the
Department of the Treasury and Department of Justice.

> (Amendment 2004-02)
>
> **§102-118.675** FEDERAL MANAGEMENT REGULATION
>
> This page intentionally left blank.
>
> 102-118-20