GENERAL SERVICES ADMINISTRATION

Washington, DC 20405

January 14, 2005

FEDERAL MANAGEMENT REGULATION\
Amendment 2005-1

> TO: Heads of Federal agencies
>
> SUBJECT: FMR Case 2004-102-8 Change in Consumer Price Index Minimal
> Value
>
> 1\. [Purpose.]{.underline} This document includes pages that reflect
> amendments to Part 102-42 of the Federal Management Regulation.
>
> 2\. [Effective date.]{.underline} This rule was published in the
> *Federal Register* on January 12, 2005, and became effective on
> January 1, 2005.
>
> 3\. [Explanation of changes.]{.underline} Public Law 95-105 requires
> that at 3-year intervals following January 1, 1981, minimal value for
> reporting foreign gifts be redefined by the Administrator of General
> Services, after consultation with the Secretary of State, to reflect
> changes in the Consumer Price Index for the immediately preceding
> 3-year period. The required consultation has been completed and the
> minimal value has been increased to mean \$305 or less as of January
> 1, 2005.
>
> 4\. [Filing instructions.]{.underline} Make the following page
> changes: [Remove pages:]{.underline} [Insert pages:]{.underline}
>
> 102-42-1 and 102-42-2 102-42-1 and 102-42-2

![](media/image1.png){width="2.5236111111111112in"
height="0.3763888888888889in"}

> G. Martin Wagner
>
> Associate Administrator
>
> Office of Governmentwide Policy

(BLANK PAGE)

## AMENDMENT 2005-1 JANUARY 1, 2005

## PART 102-42-UTILIZATION, DONATION, AND DISPOSAL OF FOREIGN GIFTS AND DECORATIONS §102-42.15

PART 102-42-UTILIZATION, DONATION, AND DISPOSAL OF FOREIGN GIFTS\
AND DECORATIONS

**Subpart A-General Provisions**

**§102-42.5\--What does this** part cover?

This part covers the acceptance, utilization, donation, and disposal of
gifts and decorations from foreign governments under 5 U.S.C. 7342. If
you receive gifts other than from a foreign government you should refer
to [§ 102-36.405.]{.underline}

**Definitions**

**§102-42.10-What definitions apply to this part?**

The following definitions apply to this part:

\"Decoration\" means an order, device, medal, badge, insig­nia, emblem,
or award offered by or received from a foreign government.

\"Employee\" means:

\(1\) An employee as defined by 5 U.S.C. 2105 and an officer or employee
of the United States Postal Service or of the Postal Rate Commission;

\(2\) An expert or consultant who is under contract under 5 U.S.C. 3109
with the United States or any agency, depart­ment, or establishment
thereof, including, in the case of an organization performing services
under that section, any indi­vidual involved in the performance of such
services;

\(3\) An individual employed by or occupying an office or position in
the government of a territory or possession of the United States or the
government of the District of Columbia;

\(4\) A member of a uniformed service as specified in 10 U.S.C.101;

\(5\) The President and the Vice President;

\(6\) A Member of Congress as defined by 5 U.S.C. 2106 (except the Vice
President) and any Delegate to the Congress; and

\(7\) The spouse of an individual described in paragraphs
[(]{.underline} through [(6)]{.underline} of this definition of
\"employee\" (unless this individual and his or her spouse are
separated) or a dependent (within the meaning of section 152 of the
Internal Revenue Code of 1986 (26 U.S.C. 152)) of this individual, other
than a spouse or dependent who is an employee under paragraphs
[(]{.underline} through [(6)]{.underline} of this definition of
\"employee.\"

\"Employing agency\" means:

\(1\) The department, agency, office, or other entity in which an
employee is employed, for other legislative branch employees and for all
executive branch employees;

\(2\) The Committee on Standards of Official Conduct of the House of
Representatives, for Members and employees of the House of
Representatives, except that those responsibili­ties specified in 5
U.S.C. 7342(c)(2)(A), (e)(1), and (g)(2)(B) must be carried out by the
Clerk of the House;

\(3\) The Select Committee on Ethics of the Senate, for Sen­ators and
employees of the Senate, except that those respon­sibilities (other than
responsibilities involving approval of the employing agency) specified
in 5 U.S.C. 7342(c)(2), (d), and (g)(2)(B) must be carried out by the
Secretary of the Senate; and

\(4\) The Administrative Offices of the United States Courts, for judges
and judicial branch employees.

\"Foreign government\" means:

\(1\) Any unit of foreign government, including any national, State,
local, and municipal government and their for­eign equivalents;

\(2\) Any international or multinational organization whose membership
is composed of any unit of a foreign government; and

\(3\) Any agent or representative of any such foreign gov­ernment unit or
organization while acting as such.

\"Gift\" means a monetary or non-monetary present (other than a
decoration) offered by or received from a foreign gov­ernment. A monetary
gift includes anything that may com­monly be used in a financial
transaction, such as cash or currency, checks, money orders, bonds,
shares of stock, and other securities and negotiable financial
instruments.

\"Minimal value\" means a retail value in the United States at the time
of acceptance of \$305 or less, except that­

\(1\) GSA will adjust the definition of \"minimal value\" in regulations
prescribed by the Administrator of General Ser­vices every three years,
in consultation with the Secretary of State, to reflect changes in the
consumer price index for the immediately preceding 3-year period; and

\(2\) Regulations of an employing agency may define \"min­imal value\"
for its employees to be less, but not more than, the value provided
under this definition.

**Care, Handling and Disposition**

**§102-42.15-Under what circumstances may an employee retain a foreign
gift or decoration?**

Employees, with the approval of their employing agencies, may accept and
retain:

\(a\) Gifts of minimal value received as souvenirs or marks of courtesy.
When a gift of more than minimal value is accepted, the gift becomes the
property of the U.S. Govern­ment, not the employee, and must be reported.

\(b\) Decorations that have been offered or awarded for out­standing or
unusually meritorious performance. If the employing agency disapproves
retention of the decoration by the employee, the decoration becomes the
property of the U.S. Government.

> 102-42-1

**§102-42.20** FEDERAL MANAGEMENT REGULATION

**§102-42.20-What is the typical disposition process for gifts and
decorations that employees are not authorized** **to retain?**

*(a) Non-monetary gifts or decorations.* When an employee receives a
non-monetary gift above the minimal value or a decoration that he/she is
not authorized to retain:

\(1\) The employee must report the gift or decoration to his/her
employing agency within 60 days after accepting it.

\(2\) The employing agency determines if it will keep the gift or
decoration for official use.

\(3\) If it does not return the gift or decoration to the donor or keep
it for official use, the employing agency reports it as excess personal
property to GSA for Federal utilization screening under [§
102-42.95.]{.underline}

\(4\) If GSA does not transfer the gift or decoration dur­ing Federal
utilization screening, the employee may purchase the gift or decoration
(see [§ 102-42.140).]{.underline}

\(5\) If the employee declines to purchase the gift or dec­oration, and
there is no Federal requirement for either, GSA may offer it for
donation through State Agencies for Surplus Property (SASP) under part
101-44 of this title.

\(6\) If no SASP requests the gift or decoration for dona­tion, GSA may
offer it for public sale, with the approval of the Secretary of State,
or will authorize the destruction of the gift or decoration under part
101-45 of this title.

*(b) Monetary gifts.* When an employee receives a mone­tary gift above
the minimal value:

\(1\) The employee must report the gift to his/her employing agency
within 60 days after accepting it.

\(2\) The employing agency must:

\(i\) Report a monetary gift with possible historic or numismatic (i.e.,
collectible) value to GSA; or

\(ii\) Deposit a monetary gift that has no historic or numismatic value
with the Department of the Treasury.

**§102-42.25-Who retains custody of gifts and decorations pending
disposal?**

\(a\) The employing agency retains custody of gifts and dec­orations that
employees have expressed an interest in pur­chasing.

\(b\) GSA will accept physical custody of gifts above the minimal value,
which employees decline to purchase, or dec­orations that are not
retained for official use or returned to donors.

**Note to [§102-42.25(b):]{.underline}** GSA will not accept physical
custody of foreign gifts of firearms. Firearms reported by the agency as
excess must be disposed of in accordance with part 101-42 of this title.

**§102-42.30-Who is responsible for the security, care and handling, and
delivery of gifts and decorations to GSA,**

**and all costs associated with such functions?**

The employing agency is responsible for the security, care and handling,
and delivery of gifts and decorations to GSA, and all costs associated
with such functions.

**§102-42.35-Can the employing agency be reimbursed for transfers of
gifts and decorations?**

No, all transfers of gifts and decorations to Federal agen­cies or
donation through SASPs will be without reimburse­ment. However, the
employing agency may require the receiving agency to pay all or part of
the direct costs incurred by the employing agency in packing,
preparation for ship­ment, loading, and transportation.

### Appraisals

**§102-42.40-When is a commercial appraisal necessary?**

\(a\) A commercial appraisal is necessary when an employee indicates an
interest in purchasing a gift or decora­tion and must be obtained before
the gift or decoration is reported to GSA for screening.

\(b\) GSA may also require the employing agency to obtain a commercial
appraisal of a gift or decoration that the agency no longer needs before
accepting the agency\'s report of the item as excess personal property.

**§102-42.45-Who obtains a commercial appraisal?**

The employing agency obtains a commercial appraisal.

**§102-42.50-Is there a special format for a commercial appraisal?**

There is no special format for a commercial appraisal, but

it must be:

\(a\) On official company letterhead; (b) Prepared in the United States;
(c) Dated; and

\(d\) Expressed in U.S. dollars.

**§102-42.55-What does the employing agency do with the appraisal?**

The employing agency must attach the commercial appraisal to a Standard
Form (SF) 120, Report of Excess Per­sonal Property.

**Special Disposals**

**§102-42.60-Who is responsible for gifts and decorations received by
Senators and Senate employees?**

Gifts and decorations received by Senators and Senate employees are
deposited with the Secretary of the Senate for disposal by the
Commission on Art and Antiquities of the

102-42-2 (Amendment 2005-1)

#### ADDENDUM

Due to inaccuracies found in certain replacement pages in FMR Amendment
2004-02 issued October 18, 2004, the following pages are being reissued.
Please remove and replace the following pages in the FMR:

+--------------------------------------+-------------------------------+
| > Remove paqes:                      | > Insert paqes:               |
+--------------------------------------+-------------------------------+
| 102-118-1 and 102-118-2              | 102-118-1 and 102-118-2       |
+--------------------------------------+-------------------------------+
| 102-118-5 thru 102-118-10            | 102-118-5 thru **102-118-10** |
|                                      | 102-118-1111010               |
+--------------------------------------+-------------------------------+

(BLANK PAGE)

> **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 appropri­ate. This part
communicates the policies clearly to agencies and transportation service
providers (TSPs). (See [\$102-118.35]{.underline} 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 pro­cedures 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 trans­portation related services.

**§102-118.20-Who is subject to this part?**

All agencies and TSPs defined in [§ 102-118.35]{.underline} 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,]{.underline}
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.

\"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 accept­able.

\"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 communi­cation.

\"Electronic commerce\" means electronic techniques for performing
business transactions (ordering, billing, and pay­ing for goods and
services), including electronic mail or mes­saging, Internet technology,
electronic bulletin boards, charge cards, electronic funds transfers,
and electronic data inter­change.

\"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 termi­nal, 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

(Amendment 2004-02, Correction) 102-118-1

**§102-118.35** FEDERAL MANAGEMENT REGULATION

GSA and used as a receipt of goods, evidence of title, and gen­erally 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. Ordi­nary debts include, but are not
limited to, payments for trans­portation services ordered and not
provided (including unused transportation tickets), duplicate payments,
and amounts for which a TSP is liable because of loss and/or damage 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 appli­cable 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 regula­tion.

\"Postpayment audit\" means an audit of transportation bill­ing documents
after payment to decide their validity, propri­ety, and conformity with
tariffs, quotations, agreements, or tenders. This process may also
include subsequent adjust­ments and collections actions taken against a
TSP by the Gov­ernment.

\"Prepayment audit\" means an audit of transportation bill­ing documents
before payment to determine their validity, propriety, and conformity
with tariffs, quotations, agree­ments, or tenders.

\"Privately Owned Personal Property Government Bill of Lading,\"
Optional Form 1203, means the agency transporta­tion 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 manda­tory 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 trans­portation 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, ten­der,
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 deter­mined by a postpayment audit.
Improper routing, over­charges, 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 reimburse­ment 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 num­ber 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 prod­ucts, people, household
goods, and any other objects by a TSP for an agency as well as
activities directly relating to or sup­porting 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, Correction)

> **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 pur­chases 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.]{.underline}*](http://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 Trans­portation
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 Govern­ment 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:]{.underline} 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-Hand­book\" 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.]{.underline}*](http://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-Hand­book\" 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.]{.underline}*](http://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 possi­ble. 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-con­flicting 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. Govern­ment Freight
Transportation-Handbook.\"

(Amendment 2004-02, Correction) 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:

\(a\) Unless otherwise permitted by statute and approved by the agency,
the TSP may not demand prepayment or collect charges from the consignee.
The TSP, providing service under the bill of lading, must present a
legible copy of the bill of lad­ing or an original, properly certified
GBL attached to Standard Form (SF) 1113, Public Voucher for
Transportation Charges, to the paying office for payment;

\(b\) 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 docu­ments. 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 ship­ments 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 Trea­sury 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 Transportation­Handbook.\"

**§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-Hand­book.\"

**§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 avail­able, that
meets travel requirements; e.g., Government con­tract, 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 pas­senger 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-Handbook\";

\(e\) 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 Trea­sury 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 era­sures 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 Transportation­Handbook.\"

**§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 supplemen­tal billings using
the same procedures as on an original billing. 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 transporta­tion 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 differ­ence 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, Correction)

###### 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 refer­ence 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 dupli­cate 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.]{.underline}*](http://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 (includ­ing 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 support­ing 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 infor­mation is in
the Government Passenger Transportation Hand­book. 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.]{.underline}*](http://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 transpor­tation 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.

(Amendment 2004-02, Correction) 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 con­tained 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 Transporta­tion-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 commer­cial 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 per­mission, fully signs
and dates both the delivering TSP\'s doc­uments 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 sched­ule 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 num­bered when printed
and/or used. No other numbering of the forms, including additions or
changes to the prefixes or addi­tions 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 conces­sions 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
>
> [*[wwwgsa.gov/transaudits.]{.underline}*](http://wwwgsa.gov/transaudits.)

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

102-118-8 (Amendment 2004-02, Correction)

> **AMENDMENT 2004-02 SEPTEMBER 24, 2004**

PART 102-118-TRANSPORTATION PAYMENT AND AUDIT **§102-118.285**

(1) Issuing TSP, Bureau, Agency or Conference.

(2) Tender number.

\(3\) Standard Carrier Alpha Code (SCAC). (4) TSP Tax Identification
Number (TIN). (5) Issue date.

\(6\) Effective date.

\(7\) Expiration date.

\(8\) Origin and destination.

\(9\) Freight Classification and/or commodity descrip­tion (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 condi­tions. The services
provided in this tender will be performed in accordance with applicable
Federal, State and municipal laws and regulations, including Federal
Management Regula­tion 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 tem­porary 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 ten­der, 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.]{.underline}](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,]{.underline} 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 services, 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 ser­vices
are clearly delineated.

\(b\) For transportation payments made through cost reim­bursable
contracts, the agency must include a statement in the contract that the
contractor shall submit to the address identi­fied 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:]{.underline}** Either of the choices in
paragraph k\~!), Q2), or (c) of this section might include contracts
with charge card com­

panies that provide prepayment audit services.

(Amendment 2004-02, Correction) 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 pro­gram 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]{.underline}](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 thresh­old). The waiver to prepayment audit
requirements may be for bills, mode or modes of transportation or for an
agency or sub­agency.

**§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, stan­dard carrier alpha code, document
reference number, amount billed, amount paid, payment voucher number,
complete ten­der 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 pro­vide 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 docu­ments including a
complete billing history, and the appropri­ation or fund charged, to:

General Services Administration Federal Supply Service Audit Division
(FBA) 1800 F Street, NW. Washington, DC 20405
[*[wwwgsa.gov/transaudits.]{.underline}*](http://wwwgsa.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 deci­sion. A TSP
must submit claims within 3 years under the guidelines established in [§
102-118.460.]{.underline}

**§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. Gov­ernment
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.]{.underline}*](http://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, Correction)