Title 41—Public Contracts and Property Management--Volume 1
PART 102-2—FEDERAL MANAGEMENT REGULATION SYSTEM
§ 102-80.115   Is there more than one option for establishing that an equivalent level of safety exists?
Yes, the following are three options for establishing that an equivalent level of safety exists:
(a) In the first option, the margin of safety provided by various alternatives is compared to that obtained for a code complying building with complete sprinkler protection. The margin of safety is the difference between the available safe egress time and the required safe egress time. Available safe egress time is the time available for evacuation of occupants to an area of safety prior to the onset of untenable conditions in occupied areas or the egress pathways. The required safe egress time is the time required by occupants to move from their positions at the start of the fire to areas of safety. Available safe egress times would be developed based on analysis of a number of assumed reasonable worst case fire scenarios including assessment of a code complying fully sprinklered building. Additional analysis would be used to determine the expected required safe egress times for the various scenarios. If the margin of safety plus an appropriate safety factor is greater for an alternative than for the fully sprinklered building, then the alternative should provide an equivalent level of safety.
(b) A second alternative is applicable for typical office and residential scenarios. In these situations, complete sprinkler protection can be expected to prevent flashover in the room of fire origin, limit fire size to no more than 1 megawatt (950 Btu/sec), and prevent flames from leaving the room of origin. The times required for each of these conditions to occur in the area of interest must be determined. The shortest of these three times would become the time available for escape. The difference between the minimum time available for escape and the time required for evacuation of building occupants would be the target margin of safety. Various alternative protection strategies would have to be evaluated to determine their impact on the times at which hazardous conditions developed in the spaces of interest and the times required for egress. If a combination of fire protection systems provides a margin of safety equal to or greater than the target margin of safety, then the combination could be judged to provide an equivalent level of safety.
(c) As a third option, other technical analysis procedures, as approved by the responsible agency head, can be used to show equivalency.
§ 102-80.120   What analytical and empirical tools should be used to support the life safety equivalency evaluation?
Analytical and empirical tools, including fire models and grading schedules such as the Fire Safety Evaluation System (Alternative Approaches to Life Safety, NEPA 101A) should be used to support the life safety equivalency evaluation. If fire modeling is used as part of an analysis, an assessment of the predictive capabilities of the fire models must be included. This assessment should be conducted in accordance with the American Society for Testing and Materials Standard Guide for Evaluating the Predictive Capability of Fire Models (ASTM E 1355).
§ 102-80.125   Who has the responsibility for determining the acceptability of each equivalent level of safety analysis?
The head of the agency responsible for physical improvements in the facility or providing Federal assistance or a designated representative will determine the acceptability of each equivalent level of safety analysis. The determination of acceptability must include a review of the fire protection engineer's qualifications, the appropriateness of the fire scenarios for the facility, and the reasonableness of the assumed maximum probable loss. Agencies should maintain a record of each accepted equivalent level of safety analysis and provide copies to fire departments or other local authorities for use in developing pre-fire plans.
§ 102-80.130   Who must perform the equivalent level of safety analysis?
A qualified fire protection engineer must perform the equivalent level of safety analysis.
§ 102-80.135   Who is a qualified fire protection engineer?
A qualified fire protection engineer is defined as an individual with a thorough knowledge and understanding of the principles of physics and chemistry governing fire growth, spread, and suppression, meeting one of the following criteria:
(a) An engineer having an undergraduate or graduate degree from a college or university offering a course of study in fire protection or fire safety engineering, plus a minimum of 4 years work experience in fire protection engineering.
(b) A professional engineer (P.E. or similar designation) registered in Fire Protection Engineering.
(c) A professional engineer (P.E. or similar designation) registered in a related engineering discipline and holding Member grade status in the International Society of Fire Protection Engineers.
§ 102-80.140   What is meant by “room of origin”?
Room of origin means an area of a building where a fire can be expected to start. Typically, the size of the area will be determined by the walls, floor, and ceiling surrounding the space. However, this could lead to unacceptably large areas in the case of open plan office space or similar arrangements. Therefore, the maximum allowable fire area should be limited to 200 m2 (2000 ft2), including intervening spaces. In the case of residential units, an entire apartment occupied by one tenant could be considered as the room of origin to the extent it did not exceed the 200 m2 (2000 ft2) limitation.
§ 102-80.145   What is meant by “flashover”?
Flashover means fire conditions in a confined area where the upper gas layer temperature reaches 600 °C (1100 °F) and the heat flux at floor level exceeds 20 kW/m2 (1.8 Btu/ft2/sec).
§ 102-80.150   What is meant by “reasonable worst case fire scenario”?
Reasonable worst case fire scenario means a combination of an ignition source, fuel items, and a building location likely to produce a fire that would have a significant adverse impact on the building and its occupants. The development of reasonable worst case scenarios must include consideration of types and forms of fuels present (e.g., furniture, trash, paper, chemicals), potential fire ignition locations (e.g., bedroom, office, closet, corridor), occupant capabilities (e.g., awake, intoxicated, mentally or physically impaired), numbers of occupants, detection and suppression system adequacy and reliability, and fire department capabilities. A quantitative analysis of the probability of occurrence of each scenario and combination of events will be necessary.
§ 102-81.5   What does this part cover?
This part covers physical security in and at nonmilitary federally owned and leased facilities and grounds under the jurisdiction, custody, or control of the U.S. General Services Administration (GSA), including those facilities and grounds that have been delegated by the Administrator of General Services. Federal facility means all or any part of any federally owned or leased building, physical structure or associated support infrastructure ( e.g., parking facilities and utilities) that is under the jurisdiction, custody, or control of GSA. Federal grounds mean all or any part of any area outside a Federal facility that is under the jurisdiction, custody, or control of GSA.
§ 102-81.10   What basic physical security policy governs Federal agencies?
The Interagency Security Committee (ISC) is responsible for developing and evaluating physical security standards for nonmilitary Federal facilities. In accordance with E.O. 12977, the ISC sets policies and recommendations that govern physical security at Federal facilities and on Federal grounds occupied by Federal employees for nonmilitary activities. This includes the ISC Risk Management Process Standard (the RMP Standard) that Federal agencies use in the protection of the real property they occupy, including the protection of persons on the property. The goal of the RMP Standard is a level of protection commensurate with the level of risk. ISC policies do not supersede other laws, regulations, and Executive orders that are intended to protect unique assets.
§ 102-81.15   What are the governing authorities for this part?
The governing authorities are as follows:
(a) 40 U.S.C. 121(c) and 581.
(b) E.O. 12977.
(c) E.O. 13286, sec. 23.
(d) 6 U.S.C. 232.
(e) Homeland Security Presidential Directive 12.
(f) REAL ID Act of 2005 (Pub. L. 109-13).
§ 102-81.20   Who must comply with this part?
Each agency occupying a Federal facility or Federal grounds under the jurisdiction, custody, or control of GSA, including those facilities and grounds that have been delegated by the Administrator of General Services, for nonmilitary activities must comply with this part, except where the Director of National Intelligence determines that compliance would jeopardize intelligence sources and methods or the Secretary of Energy determines that compliance would conflict with the authorities of the Secretary of Energy over Restricted Data and Special Nuclear Material under, among others, sections 141, 145, 146, 147, and 161 of the Atomic Energy Act of 1954, as amended, the Department of Energy Organization Act, or any other statute. In situations where a Federal facility is occupied by multiple Federal agencies for both military and nonmilitary activities, and each such occupancy is substantial, those occupants will coordinate on the physical security of the facility.
§ 102-81.25   Who is responsible for implementing, maintaining, and upgrading physical security standards in each Federal facility and on Federal grounds under the jurisdiction, custody, or control of GSA?
Each agency occupying a Federal facility or Federal grounds under the jurisdiction, custody, or control of GSA, including those facilities and grounds that have been delegated by the Administrator of General Services, for nonmilitary activities is responsible for implementing, maintaining, and upgrading the physical security standards, except where the Director of National Intelligence determines that compliance would jeopardize intelligence sources and methods or the Secretary of Energy determines that compliance would conflict with the authorities of the Secretary of Energy over Restricted Data and Special Nuclear Material under, among others, sections 141, 145, 146, 147, and 161 of the Atomic Energy Act of 1954, as amended, the Department of Energy Organization Act, or any other statute. An occupant agency, if it is the only Federal occupant agency in the building, or the Facility Security Committee (FSC), as applicable, uses the facility security assessment reports they receive from the U.S. Department of Homeland Security—Federal Protective Service to inform deliberations regarding recommended countermeasures and other security-related actions. GSA will facilitate the implementation of the countermeasures or other actions after occupant agency or FSC approval, as applicable, and commitment of each occupant agency to pay its pro rata share of the cost.
§ 102-81.30   Are there any special considerations for existing Federal facilities and Federal grounds under the jurisdiction, custody, or control of GSA?
No, the RMP Standard applies to existing nonmilitary Federal facilities as part of the periodic risk assessment process. The security organization responsible for the Federal facility or Federal grounds will conduct a periodic risk assessment and recommend countermeasures and design features to be implemented at the Federal facility or on the Federal grounds. The FSC will determine whether the recommended countermeasures will be implemented or if risk will be accepted. The design and implementation of approved countermeasures at existing facilities must comply with applicable laws, regulations, and Executive orders. For approved countermeasures that cannot be implemented immediately, a plan to phase in countermeasures and achieve compliance must be instituted and documented in accordance with the RMP Standard. In some cases, the implementation of countermeasures must be delayed until renovations or modernization programs occur.
§ 102-81.31   Are there any special considerations for leased facilities or new construction?
Yes. GSA will coordinate with the occupant agency and the security organization responsible for the Federal facility or Federal grounds when determining the applicable physical security clauses to use in the procurement package.
§ 102-82.5   What does this part cover?
This part covers the procurement and management of public utility services. It does not cover utilities that are provided as part of a lease. For more information on the procurement of utility services refer to Federal Acquisition Regulation (FAR) in 48 CFR part 41. For more information on the management of Utility Services, refer to 40 U.S.C. 501.
§ 102-82.10   What are the governing authorities for this part?
The authorities for the regulations in this part are:
(a) 40 U.S.C. 121(c); and
(b) 40 U.S.C. 501.
§ 102-82.15   Who must comply with the provisions of this part?
All Executive agencies procuring, managing, or supplying utility services under Title 40 of the United States Code, including GSA's Public Buildings Service (PBS), Department of Defense, Department of Energy, and those agencies operating under, or subject to, the authorities of the Administrator of General Services must comply with the provisions of this part. For information on a utility services delegation of authority, refer to § 102-72.100 of this chapter.
§ 102-82.20   To whom do “we,” “you,” and their variants refer?
Unless otherwise indicated, use of pronouns “we,” “you,” and their variants throughout this part refer to an Executive agency. Refer to part 102-71 of this chapter for the definition of Executive agency.
§ 102-82.25   How do we request a deviation from the provisions of this part?
Refer to §§ 102-2.60 through 102-2.110 of this chapter for information on how to obtain a deviation from this part.
§ 102-82.30   What authority must my agency have in order to procure utility service(s)?
If you do not have a delegation of authority issued by GSA to procure utility services, or independent authority for such procurements, you cannot procure utility services. The Secretary of Defense is independently authorized to take such actions without a delegation from GSA, when the Secretary determines such actions to be in the best interests of national security. For more information on a utility services delegation of authority refer to §§ 102-72.100 and 102-72.105 of this chapter.
§ 102-82.35   Can Executive agencies enter into contracts for utility services?
Executive agencies, operating under a utility services delegation from GSA, or the Secretary of Defense, when the Secretary determines it to be in the best interests of national security, may enter into contracts for utility services (such as commodities and utility rebate programs), pursuant to the terms and conditions contained in the delegation and in accordance with FAR part 41. FAR part 41 requires that agencies provide or procure from sources of supply that are the most advantageous to the Federal Government in terms of economy, efficiency, reliability, or quality of service; while 40 U.S.C. 501(c) requires that agencies provide or procure such services with due regard to the mission responsibilities of the agencies concerned. For information on utility services delegation of authority refer to part 102-72 of this chapter. For additional information on contracts for utility services, search on the topics Utility or Energy on the Acquisition Gateway, http://www.gsa.gov .
§ 102-82.40   What are Executive agencies' rate intervention responsibilities?
Unless otherwise authorized by law, absent a delegation from GSA, Executive agencies must not engage in the types of representation referenced at 40 U.S.C. 501(c), Services for Executive agencies. The Secretary of Defense is independently authorized to take such actions without a delegation from GSA, when the Secretary determines such actions to be in the best interests of national security. Refer to part 102-71 of this chapter for definitions of Executive agencies and state. For information on delegation of authority refer to part 102-72 of this chapter.
§ 102-83.05   What does this part cover?
This part covers GSA's considerations when making location decisions for Federal agencies in both Federally owned and leased space and the considerations of those Federal agencies operating under or subject to the real property authorities of the Administrator of General Services (Administrator), including those using delegated real property authority, when making their own location decisions. It directs practices that foster the policies and programs of the Federal Government and improve the management, efficiency, and effectiveness of Government activities.
§ 102-83.10   What are the governing authorities for this part?
The authorities for this regulation are as follows:
(a) Rural Development Act of 1972, as amended (7 U.S.C. 2204b-1), requires executive agencies to give first priority to locating in rural areas.
(b) Federal Urban Land Use Act of 1949, as amended (40 U.S.C. 901-905), requires GSA and other Federal agencies to consult and engage with the unit of general local government exercising zoning and land use jurisdiction. To the greatest extent possible, GSA must coordinate Federal projects with local planning agencies to be in accordance with zoning, land use practices and planning and development objectives.
(c) Competition in Contracting Act of 1984, as amended, (41 U.S.C. 3301 et seq. ) (CICA), requires executive agencies to consider whether the delineated area will provide for adequate competition when acquiring leased space.
(d) 40 U.S.C. 113(d) authorizes the Administrator to provide space to the Senate, the House of Representatives, and the Architect of the Capitol upon their request.
(e) 40 U.S.C. 121(c) authorizes the Administrator to issue regulations that the Administrator considers necessary to carry out the Administrator's functions under subtitle I of title 40 of the United States Code.
(f) National Historic Preservation Act of 1966, as amended, 54 U.S.C. 300101 et seq., encourages, among other things, the public and private preservation and utilization of all usable elements of the Nation's historic built environment.
(g) 40 U.S.C. 584 authorizes the Administrator to assign and reassign space for an executive agency in any Federal Government-owned or leased building.
(h) 40 U.S.C. 581(c)(1) authorizes the Administrator to acquire, by purchase, condemnation or otherwise, real estate and interests in real estate.
(i) 40 U.S.C. 585 authorizes the Administrator to enter into a lease agreement for the accommodation of a federal agency in a building or improvement that is in existence or being erected by the lessor to accommodate the federal agency, and to assign and reassign the leased space to a federal agency.
(j) Section 1 of Reorganization Plan No. 18 of 1950, 15 FR 3177, 64 Stat. 1270 (40 U.S.C. 301 note), which, with certain exceptions, transferred all function with respect to acquiring space in buildings by lease, and all functions with respect to assigning and reassigning space in buildings for use by agencies (including both space acquired by lease and space in Government-owned buildings) to the Administrator.
(k) 28 U.S.C. 462(f) authorizes the Administrator to provide space to the judicial branch upon request from the Director of the Administrative Office of the United States Court.
(l) E.O. 12072 encourages Federal agencies to locate and use real estate in ways that serve to strengthen the Nation's cities and make them attractive places to live and work, conserve existing urban resources, and encourage the development and redevelopment of cities. Toward this end, the E.O. requires executive agencies to give first consideration to centralized community business areas and other areas recommended by local officials as possible locations for Federal facilities when locating in urban areas.
(m) E.O. 13006 requires that, when operationally appropriate and economically prudent, and subject to the RDA and E.O. 12072, when locating Federal facilities, Federal agencies must give first consideration to historic properties within historic districts. If no such property is suitable, then Federal agencies must consider other developed or undeveloped sites within historic districts. Federal agencies must then consider historic properties outside of historic districts, if no suitable site within a district exists.
§ 102-83.15   Which Federal agencies must comply with these provisions?
All Federal agencies operating under or subject to the real property authorities of the Administrator, including those using delegated real property authority, must comply with these provisions. Refer to 41 CFR 102-71.20 for the definition of Federal agency. Federal agencies using independent authority must still comply with statutory requirements and E.O.s (consistent with such authority), but this part does not apply to these agencies. Agencies with independent authority may use these provisions at agency discretion.
§ 102-83.20   How does an agency request a deviation from the provisions of this part?
Refer to §§ 102-2.60 through 102-2.110 of this chapter for information on how to obtain a deviation from this part.
§ 102-83.25   Intentionally Omitted.
§ 102-83.30   What basic location of space policy governs a Federal agency?
(a) All Federal agencies when planning for location decisions under the authorities of the Administrator, including those using delegated real property authority, are required to apply the applicable laws, regulations, and E.O.s outlined in this part to their activities. This applies to agencies using the space and to agencies acquiring a leasehold interest or a new site to accommodate a space requirement.
(b) Federal agencies intending to use space under this part are responsible for identifying the geographic area within which to locate their activities ( i.e., the delineated area) to support their mission and program requirements. Agencies must define delineated areas that support the applicable laws, regulations, and E.O.s outlined in this part. In addition to these responsibilities, agencies conducting a space acquisition have certain additional specific responsibilities as outlined in this part.
§ 102-83.35   Is there a general hierarchy of consideration that agencies must follow in their utilization of space?
Yes. In accordance with part 79, Assignment and Utilization of Space, Federal agencies must follow the hierarchy of consideration, giving first priority to Government-owned and Government-leased buildings. When no existing Government-owned or Government-leased space meets the space need, Federal agencies must follow the hierarchy of geographic consideration in § 102-83.95 when obtaining new space as identified in this subpart.
§ 102-83.40   What is a delineated area?
The delineated area is the specific geographic boundary within which space will be obtained to satisfy a Federal agency space requirement.
§ 102-83.45   What is a Core-Based Statistical Area?
A Core-Based Statistical Area (CBSA) is a geographic area established by the Office of Management and Budget (OMB). Current CBSAs are listed in OMB Bulletin No. 20-01, “Revised Delineations of Metropolitan Statistical Areas, Micropolitan Statistical Areas, and Combined Statistical Areas, and Guidance on Uses of the Delineations of These Areas,” dated March 6, 2020, or succeeding OMB Bulletin. In this part, the CBSA designation is used to distinguish between urban and rural areas, which have different directives associated with them.
§ 102-83.50   How is a CBSA defined?
A CBSA is defined by OMB using U.S. Census data as an area that has at its core an urban center and includes the adjacent areas that are socioeconomically tied to the urban center by commuting patterns pursuant to the Standards for Delineating Metropolitan and Micropolitan Statistical Areas, as updated periodically and published in the Federal Register, pursuant to 31 U.S.C. 1104(d) and 44 U.S.C. 3504.
§ 102-83.55   What is a rural area?
A rural area is any area that is not contained within the geographic boundaries of a CBSA.
§ 102-83.60   What is an urban area?
An urban area is any area contained within the geographic boundaries of a CBSA.
§ 102-83.65   What is a principal city?
(a) A principal city is an incorporated place or census designated place within a CBSA that meets certain employment and population-based criteria. Major metropolitan areas typically have several principal cities.
(b) The principal city designation is established by OMB pursuant to the Standards for Delineating Metropolitan and Micropolitan Statistical Areas, as updated periodically and published in the Federal Register, pursuant to 31 U.S.C. 1104(d) and 44 U.S.C. 3504(e). OMB regularly publishes an updated list of Principal Cities (OMB Bulletin No. 20-01, and succeeding). In this part, the principal city designation is used to help the Federal agency focus local consultation and engagement.
§ 102-83.70   What are centralized community business areas and centralized business districts?
A centralized community business area (CBA) or centralized business district, also commonly referred to as a central business district, is an area of concentration of commercial real estate and activity within a principal city, including other specific areas of similar character that may be recommended by local officials. The CBA may be part of a traditional downtown area or part of another area that local government officials have identified as supportive of their long-term economic development objectives. CBAs are designated by local governments and not by Federal agencies, so Federal agencies must consult and engage with local officials to understand the current boundaries of these areas. As described in E.O. 12072, these areas may include other specific areas that are recommended by local officials.
§ 102-83.75   What is environmental justice?
Environmental justice is the just treatment and meaningful involvement of all people, regardless of income, race, color, national origin, Tribal affiliation, or disability, in agency decision-making and other Federal activities that affect human health and the environment so that people are fully protected from disproportionate and adverse human health and environmental effects including risks and hazards, such as those related to climate change and cumulative impacts of environmental and other burdens on communities with environmental justice concerns; and have equitable access to a healthy, sustainable, and resilient environment. Advancing environmental justice further requires Federal agencies to provide opportunities for meaningful engagement of the public, including communities with environmental justice concerns who are potentially affected by Federal activities. When planning for location decisions, which is the federal activity for purposes of this rule, Federal agencies must be especially mindful of how proposed locations would impact communities with environmental justice concerns. As appropriate and consistent with applicable law, Federal agencies should seek to minimize negative and maximize positive impacts in these areas, using available data and meaningful engagement with local stakeholders to identify such communities, and identify, analyze, and address adverse human health and environmental effects (including risks) and hazards of the Federal activity.
§ 102-83.80   What is equitable development?
Equitable development is a positive development approach that employs processes, policies, and programs that aim to meet the needs of all communities and community members, with a particular focus on underserved communities and populations. When seeking Federal locations, agencies should, to the extent consistent with applicable law, consider the needs of communities, including those communities that are underserved, through policies and actions that reduce disparities while fostering communities that are healthy and vibrant.
§ 102-83.85   In addition to Federal agency mission, security and program requirements, what other factors and principles must agencies consider when establishing a potential delineated area and planning for location decisions?
(a) In addition to agency mission, security and program requirements, Federal agencies also must give serious consideration to the impact a location decision will have on improving the social, economic, environmental, and cultural conditions of communities, including those that have been historically harmed by environmental injustice and inequality, as well as avoiding harm to such communities, while at the same time promoting efficient and cost-effective Government real estate management. These factors and principles derive from the relevant authorities in this part and include the following:
(1) Cost to the Government, including both upfront real estate acquisition as well as long-term operating costs;
(2) Opportunities to reduce the Federal real estate footprint and optimize agency space usage;
(3) Ability to manage the local Federal real estate portfolio strategically to optimize effective operations over the long term; and
(4) Consideration of the competition requirements under CICA, if applicable to the site location decision.
(b) In addition to agency mission, security and program requirements, Federal agencies also must consider a series of factors meant to promote Federal investment that supports larger Federal program goals and local development objectives. These factors include the following:
(1) Compatibility with State and local economic development objectives, such as local and regional comprehensive plans, housing and transportation plans, neighborhood scale plans and local plans covering sustainability and resilience goals. When planning for location decisions, agencies should align, where possible, with local and regional planning goals. Agencies should meaningfully engage with local officials and community members potentially impacted by a location decision and consider their recommendations in light of Federal mission needs and equitability and sustainability goals, including where affected populations have experienced historic and ongoing harms due to environmental injustice and inequality;
(2) Promoting environmentally sustainable development, reduced greenhouse gas emissions, increased resilience to the impacts of climate change, and stewardship of regional natural resources;
(3) Maximizing the use of existing resources by leveraging investment in existing infrastructure;
(4) Prioritizing development of brownfields (properties, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant), greyfields (previously developed land that is underutilized) and infill development;
(5) Locating facilities along transportation corridors to encourage the use of alternate modes of transportation, and seeking efficient locations that provide a variety of transportation options for employees and the public, especially walking, biking and public transit options, while maximizing use of existing infrastructure and minimizing employee and visitor travel by car;
(6) Prioritizing central business districts, existing employment centers and rural town centers, and locating in areas that are accessible by public transit, where it exists, to a broad range of the workforce and population, such as those seeking services or needing to visit Federal space locations;
(7) Avoiding development in floodplains or impacts to wetlands to the extent practicable;
(8) Fostering protection of the natural environment by preserving ecosystems, including native ecosystems, avoiding development of green space, and promoting climate change adaptation planning;
(9) Advancing environmental justice and equitable development; and
(10) Advancing Federal and local historic preservation objectives and promoting the preservation of historic resources and other existing buildings.
(c) The factors listed in paragraphs (a) and (b) of this section must be considered when applying the hierarchy of geographic consideration in § 102-83.90. The optimal Federal location decision is the choice that meets Federal agency mission, security and program requirements and is cost effective, while leveraging Federal development in support of these other Federal programs policies and goals, as well as local development objectives.
§ 102-83.90   What hierarchy of geographic consideration must agencies apply to location decisions?
(a) Agencies must develop policies and procedures for applying the goals of this part in their business practices. These policies and procedures must include methods for applying the hierarchy outlined in paragraph (b) of this section.
(b) When making new location decisions, agencies must give preference to geographic areas in the following order:
(1) Agencies must give first priority to locating in a rural area in accordance with the Rural Development Act of 1972 (RDA). As with other elements of this part, acquiring agencies must develop their own policies and procedures for implementing the goals of the RDA. Agencies must consider the objectives outlined in § 102-83.85 and use these principles and factors to differentiate among potential locations. Agencies are encouraged to seek a location that best meets these factors or meet multiple factors. If an agency's mission cannot be accomplished in a rural area, the agency may locate in an urban area.
(2) When an agency's mission requires location in an urban area, the agency must give priority to the CBA within a principal city of a CBSA or other areas as recommended by local officials. Agencies must consider the objectives outlined in § 102-83.85 and use these principles and factors to differentiate among potential locations. Agencies are encouraged to seek a location that best meets these factors or meets multiple factors.
(3) If an agency mission cannot be met within a principal city, or where areas, such as existing employment centers, outside the principal city offer better opportunities to advance the objectives outlined in § 102-83.85, in accordance with their established policies and procedures, agencies may proceed to seek space in those areas.
(4) Once an agency has set a delineated area in a rural or urban area, agencies must comply with the requirements for consideration of historic properties and districts set forth in § 102-78.60.
§ 102-83.95   How must agencies consult and engage with local officials and communities to comply with the consultation and engagement elements of part 102-83?
Agencies have wide latitude to develop their own internal policies for consulting and engaging in ways that are both effective and efficient based upon the intent of this part, the relevant development context and the agency's core business practices. Agencies must develop internal policies and procedures that guide consultation and engagement using different methods for actions of varying scale or scope. Location decisions to support fee simple acquisition and Federal construction in most cases will require direct consultation and engagement with local officials during the location evaluation process to meet the intent of this part. Conversely, for acquisition of existing space through a lease contract, agencies may develop internal procedures that apply the hierarchy outlined in this part such that no transaction-specific consultation or engagement with local officials would be required if the delineated area is within a recognized CBA or other area recommended by local officials. To expedite effective and efficient implementation of this part, where appropriate, agencies are encouraged to pursue consultation and engagement actively with local officials and communities, as appropriate, to discuss development goals well ahead of specific space actions.
(a) Under multiple guiding authorities, acquiring agencies must consult and engage with local officials to apply the principles outlined in this part properly. Consultation and engagement and consideration of local input must occur in urban areas, and agencies are encouraged to perform similar consultation and engagement in rural areas, as appropriate.
(b) Federal agencies should refer to their agency Tribal consultation policies and applicable legal requirements, and confer if needed with agency counsel, to determine whether consultation with Tribal governments, Alaska Native corporations, Native Hawaiian Organizations, or other entities is required, such as if the Federal location decision may include or affect Tribal trust or reserved lands, and natural resources, and if so conduct such consultation.
(c) Where communities are likely to face displacement risks associated with a Federal location decision, based on agency analysis of existing data and consultation and engagement with local officials, or where communities have been harmed historically by inequity, such as persistent poverty or underinvestment, or environmental injustice, agency engagement should occur not only with relevant regional and local officials but also with members of the affected communities.
(d) Meaningful engagement with local stakeholders outside of government or those who have been historically left out of community and economic development planning requires agencies to identify and include community members in federal location planning activities early enough in the process for them to have insight into and for their input to be reflected in the decision making process. This includes opportunities for significant participation through modes that reduce known barriers to participation, such as plain language use, translation, transportation, digital and non-digital access, culture, time of day, and availability of childcare and other supportive services.
§ 102-83.100   What flexibility do Federal agencies have to implement part 102-83 in high cost areas?
Agencies have flexibility in considering the differing costs among principal cities within a single CBSA and in setting delineated areas to incorporate lower-cost markets.
There may be some instances where the head of the responsible acquiring agency or the head of the agency's designee determines that cost and security issues take precedence over the hierarchy of consideration in this part. Federal agencies may deviate from the hierarchy only where doing so would represent significant cost savings or security advantages to the Government. In such cases, agencies must consult and engage with and consider the recommendations of local officials, review and affirm this determination, and document the file accordingly.
In every instance, agencies must seek to meet the intent of the governing authorities described in § 102-83.10, and they must incorporate their applicable process into their internal policies and procedures.
§ 102-83.105   Are Federal agencies required to give preference to historic properties when acquiring leased space?
Yes. Federal agencies must give a price preference to historic properties when acquiring leased space. See § 102-73.30 of this chapter for additional guidance.
§ 102-83.110   Does GSA provide assistance to Federal agencies by consulting and engaging with local officials to establish recommended delineated areas?
Yes. GSA may, at its discretion, assist agencies by consulting and engaging with local officials to establish recommended delineated areas for use in Federal location decisions. These GSA-recommended delineated areas may be proactively developed independent of a specific space requirement. These recommended delineated areas will take into consideration the factors discussed in this part. The final delineated area used in the space acquisition may differ from these recommended areas, depending on the agency mission requirements, CICA and other factors relevant to a specific space action.
§ 102-83.115   Are Federal agencies required to consider whether the CBA or other areas recommended by local officials will provide for adequate competition when acquiring leased space?
Yes. In accordance with CICA, Federal agencies must consider whether restricting the delineated area for obtaining leased space to CBAs or other areas recommended by local officials will provide for adequate competition when acquiring space. If a Federal agency determines that the delineated area must be expanded beyond the preferred areas to provide adequate competition, the agency may expand the delineated area in consultation and engagement with local officials. Federal agencies must continue to include the preferred area in such expanded areas.
§ 102-83.120   What information and data must agencies provide to the Administrator of General Services, or other acquiring agency head, to comply with the provisions of this part?
Efficient and effective space management of Federally owned and leased facilities through the activities described in this part requires that Federal agencies cooperate with acquiring agencies and furnish any related data and information requested by the acquiring agencies, to the extent not prohibited by law. This includes information or data that allows for:
(a) Selecting, acquiring, managing, and disposing of Federal space in a manner that will foster the policies and programs of the Federal Government and improve the management and administration of Government activities;
(b) Issuing regulations, standards and criteria for the selection, acquisition and management of Federally owned and leased space;
(c) Surveying space requirements, space utilization and daily occupancy data of executive agencies;
(d) Meeting essential space requirements in a manner that is economically feasible and prudent; and
(e) Making maximum use of existing Federally controlled facilities that, in the acquiring agency head's judgment, are adequate or economically adaptable to meeting the space needs of executive agencies.
§ 102-83.125   Who must approve the final delineated area?
The Federal agency conducting the space acquisition must approve the final delineated area for the site acquisition or action. The acquiring agency must confirm that the final delineated area complies with all applicable laws, regulations and E.O.s.
§ 102-83.130   When is written justification for a delineated area in urban areas required?
If the delineated area identified is outside the CBA in a principal city, or differs from a GSA-recommended delineated area that has been developed in accordance with the guiding authorities in this part, an agency must demonstrate, in writing, that preference has been given to the CBA of a principal city or GSA's recommended delineated area, and that the agency considered the environmental and socioeconomic factors in subpart B, Location of Space, of this part. The agency justification also must address, at a minimum, the efficient performance of the mission(s) and program(s) of the agency, the nature and function of the facility or facilities involved, and the convenience of the public being served.
§ 102-83.135   How will GSA negotiate changes to the final delineated area with requesting agencies?
For space acquisitions conducted by GSA, if, based on its review of a requesting agency's identified delineated area, GSA concludes that the requesting agency's identified delineated area should be modified, GSA will discuss its recommended changes with the requesting agency. If, after discussions, the requesting agency does not agree with GSA's delineated area recommendation, the requesting agency may appeal GSA's determination in accordance with § 102-83.140. If a requesting agency elects to ask for a review of GSA's delineated area recommendation, GSA will continue to work on the requirements development and other activities related to the requesting agency's space request. GSA will not issue a solicitation to satisfy an agency's space request until a final delineated area is determined through the appeal process.
§ 102-83.140   Where may Federal agencies appeal GSA decisions and recommendations concerning the delineated area?
Agencies may appeal decisions and recommendations, in writing, to the GSA Regional Commissioner of Public Buildings in the region where the space acquisition is to take place or to the GSA Regional Commissioner's designee. The written request for review must include all relevant facts and other considerations and must justify the alternative delineated area identified by the requesting agency with regard to the location requirements set forth in all applicable statutes, E.O.s and regulations. Once submitted to the Regional Commissioner or the Regional Commissioner's designee, the requesting agency's appeal will proceed according to the process established internally by GSA.
§ 102-83.145   Do these regulations apply in GSA's National Capital Region?
The presence of the Federal Government in the National Capital Region is such that the distribution of Federal facilities has been, and will continue to be, a major influence on the character and extent of development in the National Capital Region. In view of the special nature of the National Capital Region and the preponderance of Federal space contained therein, these regulations will be applied in the National Capital Region in conjunction with regional plans and will guide the development of strategic plans for the housing of Federal agencies within the National Capital Region.
§ 102-83.150   What portions of this part are severable?
All provisions of this part are separate and severable from one another. If any provision is stayed or determined to be invalid, it is GSA's intention that the remaining provisions will continue in effect.
§ 102-85.5   By what authority is the pricing policy in this part prescribed?
(a) General authority is granted in the Federal Property and Administrative Services Act of 1949, as amended, Sec. 205(c) and 210(j), 63 Stat. 390 and 86 Stat. 219; (40 U.S.C. 486(c) and 40 U.S.C. 490(j), respectively).
(b) This part implements the applicable provisions of Federal law, including, but not limited to, the:
(1) Federal Property and Administrative Services Act of 1949, 63 Stat. 377, as amended;
(2) Act of July 1, 1898 (40 U.S.C. 285);
(3) Act of April 28, 1902 (40 U.S.C. 19);
(4) Act of August 27, 1935 (40 U.S.C. 304c);
(5) Public Buildings Act of 1959, as amended (40 U.S.C. 601-619);
(6) Public Buildings Amendments of 1972, Pub. L. 92-313, (86 Stat. 219);
(7) Rural Development Act of 1972, Pub. L. 92-419, (86 Stat. 674);
(8) Reorganization Plan No. 18 of 1950 (40 U.S.C. 490 note);
(9) Title VIII of the Civil Rights Act of 1968 (42 U.S.C. 3601 et seq. );
(10) National Environmental Policy Act of 1969, as amended (42 U.S.C. 4321 et seq. );
(11) Intergovernmental Cooperation Act of 1968 and the Federal Urban Land Use Act (42 U.S.C. 4201-4244; 40 U.S.C. 531-535);
(12) Public Buildings Cooperative Use Act of 1976, as amended (40 U.S.C. 490(a)(16)-(19), 601a and 612a);
(13) Public Buildings Amendments of 1988, Pub. L. 100-678, (102 Stat. 4049);
(14) National Historic Preservation Act of 1966 as amended (16 U.S.C. 461 et seq. );
(15) Executive Order 12072 of August 16, 1978 (43 FR 36869);
(16) Executive Order 12411 of March 29, 1983 (48 FR 13391);
(17) Executive Order 12512 of April 29, 1985 (50 FR 18453);
(18) Executive Order 13005 of May 21, 1996 (61 FR 26069); and
(19) Executive Order 13006 of May 21, 1996 (61 FR 26071).
§ 102-85.10   What is the scope of this part?
(a) This part describes GSA policy and principles for the assignment and occupancy of space under its control and the rights and obligations of GSA and the customer agencies that request or occupy such space pursuant to GSA Occupancy Agreements (OA).
(b) Space managed by agencies under delegation of authority from GSA is subject to the provisions of this part.
(c) This part is not applicable to:
(1) Licenses, permits or leases with non-Federal entities under the Public Buildings Cooperative Use Act (40 U.S.C. 490(a)(16-19)); or
(2) The disposal of surplus lease space under section 210(h)(2) of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 490(h)(2)).
§ 102-85.15   What are the basic policies for charging Rent for space and services?
(a) GSA will charge for space and services furnished by GSA (unless otherwise exempted by the Administrator of General Services) a Rent charge which will approximate commercial charges for comparable space and services. Rent for all assignments for GSA-controlled space will be priced according to the principles of the pricing policy in this part. These principles are reflected in the following elements of GSA Rent charges:
(1) “Shell” Rent based on approximate commercial charges for comparable space and services for Federally owned space (accomplished using appraisal procedures);
(2) Rent based on actual cost of the lease, including the costs (if any) of services not provided by the lessor, plus a GSA fee;
(3) Amortization of any tenant improvement allowance used;
(4) Any applicable real estate taxes, operating costs, parking, security and joint use fees; and
(5) For certain projects involving new construction or major renovation of Federally-owned buildings, a return on investment pricing approach if an appraisal-determined rental value does not provide a minimum return (OMB discount rate for calculating the present value of yearly costs plus 2%) on the cost of the prospective capital investment. Each specific use of Return on Investment (ROI) pricing must be approved by OMB and duly recorded in an Occupancy Agreement (OA) with the customer agency. Once the ROI methodology is employed to establish Rent for a capital investment, the ROI method must be retained for the duration of the OA term.
(b) Special services not included in the standard levels of service may be provided by GSA on a reimbursable basis. GSA may also furnish alterations on a reimbursable basis in buildings where GSA is responsible for alterations only.
(c) The financial terms and conditions under which GSA assigns, and a customer agency occupies, each block of GSA-controlled space, shall be documented in a written OA.
§ 102-85.20   What does an Occupancy Agreement (OA) do?
An OA defines GSA's relationship with each customer agency and:
(a) Establishes specific financial terms, provisions, rights, and obligations of GSA and its customer for each space assignment;
(b) Minimizes exposure to future unknown costs for both GSA and customer agencies;
(c) Stabilizes Rent payments to the extent reasonable and desired by customers; and
(d) Allows tailoring of space and related services to meet customer agency needs.
§ 102-85.25   What is the basic principle governing OAs?
The basic principle governing OAs is to adopt the private sector practice of capturing in a written document the business terms to which GSA and a customer agency agree concerning individual space assignments.
§ 102-85.30   Are there special rules for certain Federal customers?
Yes, in lieu of OAs, GSA is able to enter into agreements with customer agencies that reflect the parties particular needs. For example, the space and services provided to the U.S. House of Representatives and the U.S. Senate are governed by existing memoranda of agreement (MOA). When there are conflicts between the provisions of this part and MOAs, the MOAs prevail.
§ 102-85.35   What definitions apply to this part?
The following definitions apply to this part:
Accept space or acceptance of space means a commitment from an agency to occupy specified GSA-controlled space.
Agency-controlled and/or operated space means:
(1) Space that is owned, leased, or otherwise controlled or operated by Federal agencies under any authority other than the Federal Property and Administrative Services Act of 1949, as amended; and
(2) it also includes agency-acquired space for which acquisition authority has been delegated or otherwise granted to the agency by GSA. It does not include space covered by an OA.
Assign or assignment is defined in the definition for space assignment.
Building shell means the complete enveloping structure, the base-building systems, and the finished common areas (building common and floor common) of a building that bound the tenant areas.
Customer agency means any department, agency, or independent establishment in the Federal Government, including any wholly-owned corporation; any executive agency or any establishment in the legislative or judicial branch of the Government (except the Senate, the House of Representatives, and the Architect of the Capitol, and any activities under his direction).
Emergency relocation is a customer move that results from an extraordinary event such as a fire, natural disaster, or immediate threat to the health and safety of occupants that renders a current space assignment unusable and requires that it be vacated, permanently or temporarily.
Federal Buildings Fund means the fund into which Rent charges and other revenues are deposited, and collections cited in section 210(j) of the Federal Property and Administrative Services Act of 1949, as amended (U.S.C. 490(j)), and from which monies are available for expenditures for real property management and related activities in such amounts as are specified in annual appropriations acts without regard to fiscal year limitations.
Federally controlled space means workspace for which the United States Government has a right of occupancy by ownership, by lease, or by any other means, such as by contract, barter, license, easement, permit, requisition, or condemnation. Such workspace excludes space owned or leased by private sector entities performing work on Government contracts.
Federally owned space means space, the title to which is vested in the United States Government or which will vest automatically according to an existing agreement.
Forced move means the involuntary physical relocation, from one space assignment to another, of a customer agency housed in GSA-controlled space initiated by another customer agency or by GSA, before the expiration of a lease or an OA term. (See also the definition of GSA-initiated move.)
General use space means all types of space other than “warehouse,” “parking,” or “unique” space, as defined elsewhere in this part. Examples of general use space are:
(1) Office and office-related space such as file areas, libraries, meeting rooms, computer rooms, mail rooms, training and conference, automated data processing operations, courtrooms, and judicial chambers; and
(2) Storage space that contains different quality and finishes from general use space, but that is within a building where predominantly general use space is located.
GSA-controlled space means Federally controlled space under the custody or control of GSA. It includes space for which GSA has delegated operational, maintenance, or protection authority to the customer agency.
GSA-delegated space (or GSA delegated building) means GSA-controlled space for which GSA has delegated operational, maintenance or protection authority to the customer agency.
GSA-initiated move means any relocation action in GSA-controlled space that:
(1) Is involuntary to the customer agency and required to be effective prior to the expiration of an effective OA, or in the case of leased space, prior to the expiration of the lease; or
(2) Is an emergency relocation initiated by GSA.
Initial space alteration (ISA). See definition of “tenant improvement.”
Initial space layout means the specific placement of workstations, furniture and equipment within new space assignments.
Inventory means a summary or itemized list of the real property, and associated descriptive information, that is under the control of a Federal agency.
Joint-use space means common space within a Federally controlled facility, not specifically assigned to any one agency, and available for use by multiple agencies, such as cafeterias, auditoriums, conference rooms, credit unions, visitor parking spaces, snack bars, certain wellness/physical fitness facilities, and child care centers.
Leased space means space for which the United States Government has a right of use and occupancy by virtue of having acquired a leasehold interest.
Non-cancelable space means space that, due to its layout, design, location, or other characteristics, is unlikely to be needed by another GSA customer agency. Typical conditions that might cause space to be defined as non-cancelable are:
(1) Special space construction features;
(2) Lack of any realistic Federal need for the space other than by the requesting agency; and
(3) Remote location or unusual term (short or long) desired by the agency.
Occupancy Agreement (OA) means a written agreement descriptive of the financial terms and conditions under which GSA assigns, and a customer agency occupies, the GSA-controlled space identified therein.
Parking or parking space means surface land, structures, or areas within structures designed and designated for the purpose of parking vehicles.
Personnel means the peak number of persons to be housed during a single shift, regardless of how many workstations are provided for them. In addition to permanent employees of the agency, personnel includes temporaries, part-time, seasonal, and contractual employees, budgeted vacancies, and employees of other agencies and organizations who are housed in a space assignment.
Portfolio leases mean long term or “master” leases, usually negotiated to house several agencies whose individual term requirements differ from the terms of the underlying GSA lease with the lessor, and from each other. These may also be leases housing single agencies, but which entail for GSA responsibilities (burdens and benefits) which mimic an ownership position, or equity rights, even though no equity interest or ownership liability exists. An example of the latter would be long term renewal options on a lease which, in order to enjoy, involve substantial capital outlays by GSA to improve the building infrastructure. In both these cases, GSA is assuming risks or capital expenditures outside of the conventions of single transactions or occupancies. Accordingly, for a portfolio lease, it is not appropriate merely to pass through to the customer agency(ies) the rental rate of the underlying GSA lease. Portfolio leases are treated for pricing purposes as owned space, with Rent set by appraisal.
Predominant use means the use to which the greatest portion of a location is put. Predominant use is determined by the Public Buildings Service (PBS), GSA, and will typically result in the designation of a location as one of four types of space—General Use, Warehouse, Unique, or Parking—even though some smaller portions of the space may be used for one or more of the other types of uses.
Rent means the amounts charged by GSA for space and related services to the customer agencies with tenancy in GSA-controlled space. The word “Rent” is capitalized to differentiate it from the contract “rent” that GSA pays lessors.
Rentable square footage means the amount of space as defined in “Building Owners and Managers Association (BOMA)/American National Standards Institute (ANSI) Standard Z65.1-1996.” The BOMA/ANSI standard also defines “gross,” “office area,” “floor common,” and “building common” areas. Any references to these terms in this part refer to the BOMA/ANSI standard definitions. This standard has been adopted in accordance with GSA's interest in conforming its practices to nationally recognized industry standards to the extent possible.
Rentable square footage generally includes square footage of areas occupied by customers plus a prorated share of floor common areas such as elevator lobbies, building corridors, public restrooms, utility closets, and machine rooms. Rentable square footage also includes a prorated share of building common areas located throughout the building. Examples of building common space include ground floor entrance lobby, enclosed atrium, loading dock, and mail room.
Request for space or space request means a written or electronically submitted document or an oral request, within which an agency's space needs are summarized. A request for space is requisite for development of an OA. Thus, it must be submitted to GSA by a duly authorized official of the customer agency, and it must be accompanied by documentation of the customer agency's ability to fund payment of required Rent charges.
Return on Investment (ROI) pricing is one possible methodology used to establish a Rent rate for certain owned space. Typically, ROI pricing is a Rent rate that ensures GSA a reasonable return on its cost to acquire and improve the asset. ROI pricing may be used where no other comparable commercial space is available or no other appraisal method would be appropriate. It may also be used in cases in which an appraisal-based rental rate will not meet GSA's minimum return requirements for the planned level of investment.
Security fees mean Rent charges for building services provided by GSA's Federal Protective Service. Security fees are comprised of basic and building specific charges.
(a) A basic security fee is assessed in all PBS-controlled properties where the Federal Protective Service (FPS) provides security services. The rate is set annually on a per-square-foot basis. The charge includes the following services:
(1) General law enforcement on PBS-controlled property;
(2) Physical security assessments;
(3) Crime prevention and awareness training;
(4) Advice and assistance to building security committees;
(5) Intelligence sharing program;
(6) Criminal investigation;
(7) Assistance and coordination in Occupancy Emergency Plan development;
(8) Coordination of mobilization and response to terrorist threat or civil disturbance;
(9) Program administration for security guard contracts; and
(10) Megacenter operations for monitoring building perimeter alarms and dispatching appropriate law enforcement response.
(b) The building specific security charge is comprised of two elements: Operating expenses and amortized capital costs. Building specific charges, whether operating expenses or capital costs, are distributed overall federal users by building or facility in direct proportion to each customer agency's percentage of federal occupancy. As with joint use charges, the distribution of building-specific charges among customer agencies is not re-adjusted for vacancy.
Space means a defined area within a building and/or parcel of land. (Personal property and furniture are not included.)
Space allocation standard (SAS) means a standard agreed upon by GSA and a customer agency, written in terms that permit nationwide or regional application, that is used as a basis for establishing that agency's space requirements. An SAS may describe special GSA and customer agency funding responsibilities, although such responsibilities will be covered in OAs for space assignments. An SAS may also be developed between GSA and customer agencies on a regional level to standardize or simplify transactions, provided that the terms of a regional SAS are consistent with the terms of that agency's national SAS and the terms of this part.
Space assignment or assignments means a transaction between GSA and a customer agency that results in a customer agency's right to occupy certain GSA-controlled space, usually in return for customer agency payment(s) to GSA for use of the space. Space assignment rights, obligations, and responsibilities not covered in this part, or in the customer guides, are formalized in an OA.
Space planning means the process of using recognized professional techniques of planning, layout and interior design to determine the best internal location and the most efficient configuration for satisfying agency space needs.
Space program of requirements means a summary statement of an agency's space needs. These requirements will generally include information about location, square footage, construction requirements, and duration of the agency's space need. They may be identified in any format mutually agreeable to GSA and the agency.
Special space means space which has unusual architectural/construction features, requires the installation of special equipment, or requires disproportionately high or low costs to construct, maintain and/or operate as compared to office or storage space. Special space generally refers to space which has construction features, finishes, services, utilities, or other additional costs beyond those specified in the customer general allowance (e.g., courtrooms, laboratories).
Standard level of service. See § 102-85.165 for the definition of standard level of service.
Telecommunications means electronic processing of information, either voice or data or both, over a wide variety of media, (e.g., copper wire, microwave, fiber optics, radio frequencies), between individuals or offices within a building (e.g., local area networks), between buildings, and between cities.
Tenant improvement (TI) means a finished component of an interior block of space. Tenant improvements represent additions to or alterations of the building shell that adapt the workspace to the specific uses of the customer. If made at initial occupancy, the TIs are known as initial space alterations or ISAs.
Tenant improvement (TI) allowance means the dollar amount, including design, labor, materials, contractor costs (if contractors are used), management, and inspection, that GSA will spend to construct, alter, and finish space for customer occupancy (excluding personal property and furniture, which are customer agency responsibilities) at initial occupancy. The dollar amounts for the allowances are different for each agency and bureau to accommodate agencies' different mission needs. The dollar amounts also may vary by locations reflecting different costs in different markets. The PBS bill will only reflect the actual amount the customers spend, not the allowance. The amount of the TI allowance is determined by GSA. Agencies can request that GSA revise the TI allowance amount by project or categorically for an entire bureau. The cost of replacement of tenant improvements is borne by the customer agency.
Unique space means space for which there is no commercial market comparable (e.g., border stations).
Warehouse or warehouse space means space contained in a structure primarily intended for the housing of files, records, equipment, or other personal property, and is not primarily intended for housing personnel and office operations. Warehouse space generally is designed and constructed to lower specifications than office buildings, with features such as exposed ceilings, unfinished perimeter and few dividing partitions. Warehouse space also is usually heated to a lesser degree but not air-conditioned, and is cleaned to lesser standards than office space.
Workspace means Federally controlled space in buildings and structures (permanent, semi-permanent, or temporary) that provides an acceptable environment for the performance of agency mission requirements by employees or by other persons occupying it.
§ 102-85.40   What are the major components of the pricing policy?
The major components of the pricing policy are:
(a) An OA between a customer agency and GSA;
(b) Tenant improvement allowance; and
(c) The establishment of Rent the agency pays to GSA based on the OA for:
(1) Leased space, a pass-through to the customer agency of the underlying GSA lease contract costs, and a PBS fee; or
(2) GSA-owned space, Rent determined by appraisal.
§ 102-85.45   When is an Occupancy Agreement required?
An Occupancy Agreement (OA) is required for each customer agency's space assignment. The OA must be agreed to by GSA and the customer agency prior to GSA's commitment of funds for occupancy and formal assignment of space.
§ 102-85.50   When does availability of funding have to be certified?
The customer agency must sign an OA prior to GSA's making any major contractual commitments associated with the space request. Typically, this should occur at the earliest possible opportunity-i.e., when funds become available. However, in no event shall certification occur later than just prior to the award of the contract to a design architect in the case of Federal construction or renovation in Federally owned space or prior to the award of a lease. This serves as a customer agency's funding commitment unless certification is provided on another document.
§ 102-85.55   What are the terms and conditions included in an OA?
The terms and conditions are modeled after commercial practice. They are intended to reflect a full mutual understanding of the financial terms and agreement of the parties. The OA describes the actual space and services to be provided and all associated actual costs to the customer during the term of occupancy. The OA does not include any general provisions or terms contained in this part. OAs typically describe the following, depending on whether the space is leased or Federally owned:
(a) Assigned square footage;
(b) Shell Rent and term of occupancy;
(c) Amortized amount of customer allowance used;
(d) Operating costs and escalations;
(e) One time charges; e.g., lump sum payments by the customer;
(f) Real estate tax and escalations;
(g) Parking and escalations;
(h) Additional/reduced services;
(i) Security services and associated Rent;
(j) Joint use space and associated Rent;
(k) PBS fee;
(l) Customer rights and provisions for occupancy after OA expiration;
(m) Cancellation provisions if different from this part or the customer service guides;
(n) Any special circumstances associated with the occupancy, such as environmental responsibilities, unusual use restrictions, or agreements with local authorities;
(o) Emergency relocations;
(p) Clauses specific to the agreement;
(q) Other Rent, e.g., charges for antenna sites, land;
(r) Agency standard clauses; and
(s) General clauses defining the obligations of both parties.
§ 102-85.60   Who can execute an OA?
Authorized GSA and customer agency officials who can commit or obligate the funds of their respective agencies can execute an OA. Higher level signatories may be appropriate from both agencies for space assignments in owned or leased space, that are unusual in size, location, duration, public interest, or other factors. Each agency decides its appropriate signatory level.
§ 102-85.65   How does an OA obligate the customer agency?
An OA obligates the executing customer agency to fund the current-year Rent obligation owed GSA, as well as to reimburse GSA for any other bona fide obligations that GSA may have incurred on behalf of the customer agency. Although the OA is an interagency agreement, memorializing the understanding of GSA and its customer agency, the OA may not be construed as obligating future year customer agency funds until they are legally available. A multi-year OA commitment assumes the customer agency will seek the necessary funding through budget and appropriations processes.
§ 102-85.70   Are the standard OA terms appropriate for non-cancelable space?
Yes, most of the standard terms apply; however, the right to cancel upon a 4-month (120 day) notice is not available. See § 102-85.35 for the definition of non-cancelable space.
§ 102-85.75   When can space assignments be terminated?
(a) Customer agencies can terminate any space assignments, except those designated as non-cancelable, with the following stipulations:
(1) The agency must give GSA written notice at least four months prior to termination.
(2) The agency is responsible for reimbursing GSA for the unpaid balance of the cost of tenant improvements, generally prior to GSA releasing the agency from the space assignment. In the event the customer agency received a rent concession (e.g., free rent) at the inception of the assignment as part of the consideration for the entire lease term, then the amount of the concession applicable to the remaining term must be repaid to GSA.
(3) If the space to be vacated is ready for occupancy by another customer and marketable, GSA accepts the termination of assignment.
(4) If the agency has vacated all of the space and removed all personal property and equipment from the space by the cancellation date in the written notice, the agency will be released effective that date from further Rent payments.
(5) An agency may terminate a GSA space assignment with less than a four-month advance written notice to GSA, if:
(i) Either GSA or the terminating agency has identified another agency customer for the assigned space and that substitute agency wants and is able to fully assume the Rent payments due from the terminating agency; and
(ii) The terminating agency continues to pay Rent until the new agency starts paying Rent.
(b) GSA can terminate space assignments according to GSA regulations for emergency or forced moves.
(c) OAs terminate automatically at expiration.
§ 102-85.80   Who is financially responsible for expenses resulting from tenant non-performance?
The customer agencies are financially responsible for expenses incurred by the Government as a result of any failure on their part to fulfill a commitment outlined in an OA or other written agreements in advance of, or in addition to, the OA. Customer agencies are also financially responsible for revised design costs and any additional costs resulting from changes to space requirements or space layouts made by the agency after a lease, alteration, design, or construction contract has been awarded by GSA.
§ 102-85.85   What if a customer agency participates in a consolidation?
If an agency agrees to participate in a consolidation upon expiration of an OA, the relocation expenses will be addressed in the new OA negotiated by GSA and the customer agency. The customer agency generally pays such costs.
§ 102-85.90   What is a tenant improvement allowance?
A tenant improvement (TI) allowance enables the customer agency to design, configure and build out space to support its program operations. It is based on local market construction costs and the specific bureau's historical use of space. (See also the definition at § 102-85.35.)
§ 102-85.95   Who pays for the TI allowance?
The customer agency pays for the amount of the tenant improvement allowance actually used.
§ 102-85.100   How does a customer agency pay for tenant improvements?
To pay for the installation of tenant improvements, the customer agency may spend an amount not to exceed the tenant allowance. The amount spent by the customer agency for TIs is amortized over a period of time specified in the OA, not to exceed the useful life of the improvements. This amortization payment is in addition to the shell rent and services.
§ 102-85.105   How does an agency pay for customer alterations that exceed the TI allowance?
Amounts exceeding the TI allowance are paid in a one-time lump sum and are not amortized over the term of the occupancy. The agency certifies lump sum funds are available prior to GSA proceeding with the work.
§ 102-85.110   Can the allowance amount be changed?
The GSA schedule of allowances for new assignments is adjusted annually for design and construction cost changes. As the need arises, GSA may adjust an agency or bureau's TI allowance. GSA may also adjust a TI allowance for a specific project, if conditions warrant. This decision is solely GSA's. In addition, the customer agency may waive any part or all of its customization allowance in the case of a new space assignment. In the case of backfill space (also known as relet space), the customer agency can also waive any part or all of the tenant general allowance, if the customer agency will use the existing tenant improvements, with or without modifications.
§ 102-85.115   How is the Rent determined?
Unless an exemption is granted under the authority of the Administrator of General Services, the Rent charged approximates commercial charges for comparable space and space-related services as follows:
(a) Generally, Rent for Federally owned space provided by GSA is based on market appraisals of fully serviced rental values for the predominant use to which space in a building is put; e.g., general use, warehouse use, and parking use. In cases where market appraisals are not practical; e.g., in cases involving unique space or when market comparables are not available, GSA may establish Rent on the basis of alternate commercial practices. See the discussion of alternate valuation methods in § 102-85.125. Amortization of tenant improvements, parking fees, and security charges are calculated separately and added to the appraised shell Rent to establish the Rent charge. Customer agencies also pay for a pro rata share of joint use space.
(b) Generally, Rent for space leased by GSA is based on the actual cost of the lease, including the costs (if any) of services not provided by the lessor, plus a GSA fee, and security charges and parking (if not in the lease).
(1) The Rent is based on the terms and conditions of the OA, starting with the shell Rent.
(2) In addition to the shell Rent, the Rent includes amortization of TI allowances used, real estate taxes, operating costs, extra services, parking, GSA fee for its services, and charges for security, joint-use, and other applicable rental charges (e.g., antenna site, land, wareyard).
§ 102-85.120   What is shell Rent?
Shell Rent is that portion of GSA Rent charged for the building envelope and land. (See § 102-85.35 for the definition of building shell.)
§ 102-85.125   What alternate methods may be used to establish Rent in Federally-owned space?
Alternate methods of establishing Rent are based on private sector models. They include, but are not limited to:
(a) Return on investment (ROI) approach or a similar cost recovery method used when market comparables are not available and/or GSA must “build to suit” to fulfill customer agency requirements; e.g., border stations; and
(b) Rent schedules for the right to use rooftops and other floor areas not suitable for workspace; e.g., antenna sites and signage.
§ 102-85.130   How are exemptions from Rent granted?
Exemptions from Rent are rare. However, the Administrator of General Services may exempt any GSA customer from Rent after a determination that application of Rent would not be feasible or practical. Customer agency requests for exemptions must be addressed to the Administrator of General Services and submitted in accordance with GSA Order PBS 4210.1, “Rent Exemption Procedures,” dated December 20, 1991, or in accordance with any superseding GSA order. A copy of the order may be obtained from the Office of Portfolio Management, General Services Administration, 1800 F Street, NW., Washington, DC 20405.
§ 102-85.135   What if space and services are provided by other executive agencies?
Any executive agency other than GSA providing space and services is authorized to charge the occupant for the space and services at rates approved by the Administrator of General Services and the Director of the Office of Management and Budget. If space and services are of the type provided by the Administrator of General Services, the executive agency providing the space and services must credit the monies derived from any fees or charges to the appropriation or fund initially charged for providing the space or services, as prescribed by Subsection 210(k) of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 490(k)).
§ 102-85.140   How are changes in Rent reflected in OAs?
(a) If Rent changes in ways that are identified in the OA, then no change to the OA is required. Typically, OAs state that certain components of Rent are subject to annual escalation; e.g., operating expenses, real estate taxes, parking charges, the basic security charge, and building-specific security operating and amortized capital expenses which do not entail a change in service level. Also, in Federally-owned space, OAs state that the shell rent is re-marked to market every five years. In leased space, the OA will identify any programmed changes in the lease contract rent (such as pre-set increases or steps in the contract rent rate) that will translate into a change in the customer agency's Rent. Changes in Rent specified in OAs will serve as notice to agencies of future Rent changes for budgeting purposes. For a discussion of budgeting for Rent, see § 102-85.160.
(b) Changes to Rent other than those identified in paragraph (a) of this section typically require an amended OA. There are many events that might occasion a change in Rent, and an amended OA, such as:
(1) An agency expands or contracts at an existing location;
(2) PBS agrees to fund additional tenant improvements that are then amortized over the remaining OA term, or over an extended OA term;
(3) Upon physical re-measurement, the true square footage of the space assignment is found to be different from the square footage of record;
(4) The amount of joint use space in the building changes;
(5) The level of building-specific security services changes; or
(6) PBS undertakes new capital expenditures for new or enhanced security countermeasures.
§ 102-85.145   When are customer agencies responsible for Rent charges?
(a) When a customer agency occupies cancelable space, it is responsible for Rent charges until:
(1) The date of release specified in the OA, or until the date space is actually vacated, whichever occurs later; or
(2) Four months after having provided GSA written notice of release; or
(3) The date space is actually vacated, whenever occupancy extends beyond the date agreed upon under either paragraph (a)(1) or (2) of this section.
(b) When a customer agency releases non-cancelable space, it is responsible for all attributable Rent and other space charges until the OA expires. This responsibility is mitigated to the extent that GSA is able to assign the space to another user or dispose of it. (See § 102-85.65 How does an OA obligate the customer agency?)
(c) When a customer agency commits to occupy space in an OA or other binding document, but never occupies that space, that agency is responsible for:
(1) Non-cancelable space: Rent payments due for the space until the OA expires, unless GSA can mitigate; or
(2) All other space: Either GSA's space charges for 4 months plus the cost of tenant improvements or GSA's actual costs, whichever is less.
§ 102-85.150   How will Rent charges be reflected on the customer agency's Rent bill?
Rent charges are billed monthly, in arrears, based on an annual rate which is divided by 12. Billing commences the first month in which the agency occupies the space for more than half of the month, and ends in the last month the agency occupies the space.
§ 102-85.155   What does a customer agency do if it does not agree with a Rent bill?
(a) If a customer agency does not agree with the way GSA has determined its Rent obligation (e.g., the agency does not agree with GSA's space classification, appraised Rent, or the allocation of space), the agency may appeal its Rent bill to GSA.
(b) GSA will not increase or otherwise change Rent for any assignment, except as agreed in an OA, in the case of errors, or when the OA is amended. However, customer agencies may at any time request a regional review of the measurement, classification, service levels provided, or charges assessed that pertain to the space assignment without resorting to formal procedures. Such requests do not constitute appeals and should be directed to the appropriate GSA Regional Administrator.
(c) If a customer agency still wants to pursue a formal appeal of Rent charges, they may do so, but with the following limitations:
(1) Terms, including rates, to which the parties agree in an OA are not appealable;
(2) In leased space, the contract rent passed through from the underlying lease cannot be appealed;
(3) In GSA-owned space, when the fully-serviced shell Rent is established through appraisal, the appraised rate must exceed comparable commercial square foot rates by 20 percent. When shell Rent in owned space is established on the basis of ROI at the inception of an OA, and the customer agency executes the OA, then the ROI rate cannot later be appealed. Other components of Rent that are established on the basis of actual cost—eg., amortization of TIs and building specific security charges—also cannot be appealed.
(4) Additionally, the customer agency is required to compare its assigned space with other space in the surrounding community that:
(i) Is available in similar size block of space in a comparable location;
(ii) Is comparable in quality to the space provided by GSA;
(iii) Provides similar service levels as part of the charges;
(iv) Contains similar contractual terms, conditions, and escalations clauses; and
(v) Represents a lease transaction completed at a similar point in time.
(5) Data from at least three comparable locations will be necessary to demonstrate a market trend sufficient to warrant revising an appraised Rent charge.
(d) A customer agency filing an appeal for a particular location or building must develop documentation supporting the appeal and file the appeal with the appropriate Regional Administrator. The GSA regional office will verify all pertinent information and documentation supporting the appeal. The GSA Regional Administrator will accept or deny the appeal and will notify the appealing agency of his or her ruling.
(e) A further appeal may be filed by the customer agency's headquarters level officials with the Commissioner, Public Buildings Service, if equitable resolution has not been obtained from the initial appeal. A head of a customer agency may further appeal to the Administrator of the General Services. Documentation of the procedures followed for prior resolution must accompany an appeal to the Administrator. Decisions made by the Administrator are final.
(f) Adjustments of Rent resulting from reviews and appeals will be effective in the month that the agency submitted a properly documented appeal. Adjustments in Rent made under this section remain in effect for the remainder of the 5-year period in which the charges cited in the OA were applicable.
§ 102-85.160   How does a customer agency know how much to budget for Rent?
GSA normally provides customer agencies an estimate of Rent increases approximately 2 months prior to the agencies' Office of Management and Budget (OMB) submission for the fiscal year in which GSA will charge Rent. This gives the affected customer agencies an opportunity to budget for an increase or decrease. However, GSA must obtain the concurrence of OMB for such changes prior to notifying customer agencies. In the event GSA is unable to provide timely notice of a future Rent increase, customer agencies are nonetheless obligated to pay the increased Rent amount. For existing assignments in owned buildings, GSA charges for fully serviced shell Rent, in aggregate, shall not exceed the bureau level budget estimates provided to the customer agencies annually. This provision does not apply to:
(a) New assignments;
(b) Changes in current assignments;
(c) Leased space;
(d) New tenant improvement amortization;
(e) Building specific security costs; and
(f) New amortization of capital expenditures under ROI pricing due to changes in scope of proposed projects or repair and/or replacement of building components
§ 102-85.165   What are standard levels of service?
(a) The standard levels of service covered by GSA Rent are comparable to those furnished in commercial practice. They are based on the effort required to service the customer agency's space for a 5-day week (Monday to Friday), one-shift regular work schedule. GSA will provide adequate building startup services, before the beginning of the customer's regular one-shift work schedule, and shutdown services after the end of this schedule.
(b) Without additional charge, GSA customers may use their assigned space and supporting automatic elevator systems, lights and small office and business machines including personal computers on an incidental basis, unless specified otherwise in the OA.
§ 102-85.170   Can flexitime and other alternative work schedules cost the customer agency more?
Yes, GSA customers who extend their regular work schedule by a system of flexible hours shall reimburse GSA for its approximate cost of the additional services required.
§ 102-85.175   Are the standard level services for cleaning, mechanical operation, and maintenance identified in an OA?
Unless specified otherwise in the OA, standard level services for cleaning, mechanical operation, and maintenance shall be provided in accordance with the GSA standard level of services as defined in § 102-85.165, and in the PBS Customer Guide to Real Property. A copy of the guide may be obtained from the General Services Administration, Office of Business Performance (PX), 1800 F Street, NW., Washington, DC 20405.
§ 102-85.180   Can there be other standard services?
GSA may provide additional services to its customers at the levels and times deemed by the Administrator of General Services to be necessary for efficient operations and proper servicing of space under the assignment responsibility of GSA.
§ 102-85.185   Can space be exempted from the standard levels of service
Yes, customer agencies may be excused from paying for standard service levels for space assignments when:
(a) In GSA-delegated space, the customer agency provides for these services itself and thus pays Rent minus charges for these services; or
(b) In rare instances, standard service levels may be waived by the Administrator of General Services in instances where charging for such standard services would not be feasible or practical, e.g., in assignments of limited square footage or functional use.
§ 102-85.190   Can GSA Rent be adjusted when standard levels of service are performed by other customer agencies?
Customer agencies that arrange and pay separately for the costs of standard level services normally covered by GSA Rent will receive a Rent credit or other type of reimbursement by GSA for the amount GSA would have charged for such services. The type of reimbursement is at GSA's discretion. The reimbursement is limited to the amount included for the services in GSA Rent. Approval to perform or contract for such services must be obtained in advance by the customer agency from the appropriate GSA regional office.
§ 102-85.195   Does GSA provide special services?
Yes, GSA provides special services on a cost-reimbursable basis:
(a) In GSA-controlled space, GSA may provide for special services that cannot be separated from the building or space costs (inseparable services, such as utilities, which are not individually metered). GSA's estimate of the special service cost is the basis for the bill amount. The bill amount for separable special services is either based on a previously agreed upon fixed price or the actual cost, including a fee for GSA's services.
(b) GSA can also provide special services to other Federal agencies in agency-controlled and operated space on a cost-reimbursable basis.
§ 102-85.200   Can customer agencies continue occupancy of space or must they relocate at the end of an OA?
The answer is contingent upon whether the customer agency is in Federally owned or leased space.
(a) Unless stated otherwise in the OA, a customer agency within a GSA controlled, Federally owned building has automatic occupancy rights at the end of the OA term for occupied space. However, a new OA must be negotiated.
(b) In leased space, the OA generally reflects the provisions of the underlying lease and will specify whether or not renewal options are available. If the OA does not include a renewal option, customer agencies should assume relocation would be necessary upon OA expiration, and budget for it. Further, renewal options are not, in themselves, a guarantee of continued occupancy at that location. In some cases, the renewal rate is substantially above market or the option was not part of the initial price evaluation for the occupancy. In such cases, GSA may be required to run a competition for the replacement lease, and a relocation may ensue. Nonetheless, it is also possible that GSA may execute a succeeding lease with the incumbent lessor, in which case there is no move.
(c) GSA and customer agencies should initiate discussions at least 18-20 months in advance of OA expiration to address an action for the replacement or continued occupancy of the existing space assignment. This allows both agencies time to budget for the work and the cost.
§ 102-85.205   What happens if a customer agency continues occupancy after the expiration of an OA?
A mutual goal of GSA and its customers is to have current OAs in place for all space assignments. However, provisions are necessary to cover the GSA and customer relationship if an OA expires prior to execution of a mutually desired succeeding agreement. Because the risks, liabilities, and consequences of a customer's continued occupancy depend on whether the assigned space is leased or Federally owned, different provisions in the following table apply:
Holdover Tenancy—Customer Agency Responsibilities in the Event of Tenant Delay in Vacating Space
§ 102-85.210   What if a customer agency has to relocate?
If the agency or GSA determines relocation is necessary at the expiration of an OA for either Federally owned or leased space, the customer agency is responsible for all costs associated with relocation at that time.
§ 102-85.215   What if another customer agency forces a GSA customer to move?
If a GSA customer agency, or GSA, forces the relocation of another GSA customer agency prior to the expiration of the customer's OA, the “forcing” agency is responsible:
(a) For all reasonable costs associated with the relocation of the agency being “forced” to move, including architectural-engineering design, move coordination and physical relocation, telecommunications and ADP equipment relocation and installation;
(b) To GSA for all of the relocated agency's unpaid tenant improvements, if any; and
(c) To the customer agency for the undepreciated amount of any lump sum payment that was already made by the agency for alterations.
§ 102-85.220   Can a customer agency forced to relocate waive the reimbursements?
Yes, a customer agency forced to relocate can waive some or all of the reimbursements from the forcing agency that are prescribed in § 102-85.215. However, a relocated customer agency cannot waive the requirement for the forcing customer agency to reimburse GSA for unpaid tenant improvements. If GSA is the “forcing” agency, it is responsible for the same costs as any other forcing customer agency.
§ 102-85.225   What are the funding responsibilities for relocations resulting from emergencies?
(a) In emergencies, swift remedies, including the possible relocation of a customer agency to alternate space, are required. The remedies may include requests for funding authorizations from OMB and Congress. GSA may serve as the central coordinator of such remedies.
(b) Funding responsibility will vary by situation. If a customer agency is only temporarily displaced from its space, GSA typically covers the cost of temporary set-up in a provisional location. If the agency is obliged to relocate permanently, an OA will be prepared which will address all terms of the occupancy. In such cases, new tenant improvements will be constructed which can be amortized over the life of a new occupancy term, and a new Rent rate will be developed.
§ 102-117.5   What is transportation management?
Transportation management is agency oversight of the physical movement of commodities, household goods (HHG) and other freight from one location to another by a transportation service provider (TSP).
§ 102-117.10   What is the scope of this part?
This part addresses shipping freight and household goods worldwide. Freight is property or goods transported as cargo. Household goods are not Government property, but are employees' personal property entrusted to the Government for shipment.
§ 102-117.15   To whom does this part apply?
This part applies to all agencies and wholly-owned Government corporations as defined in 5 U.S.C. 101, et seq. and 31 U.S.C. 9101(3), except as otherwise expressly provided.
§ 102-117.20   Are any agencies exempt from this part?
(a) The Department of Defense is exempted from this part by an agreement under the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 501 et seq. ), except for the rules to debar or suspend a TSP under the Federal Acquisition Regulation (48 CFR part 9, subpart 9.4).
(b) Subpart D of this part, covering household goods, does not apply to the uniformed service members, under Title 37 of the United States Code, “Pay and Allowances of the Uniformed Services,” including the uniformed service members serving in civilian agencies such as the U.S. Coast Guard, National Oceanic and Atmospheric Administration and the Public Health Service.
§ 102-117.25   What definitions apply to this part?
The following definitions apply to this part:
Accessorial charges means charges that are applied to the base tariff rate or base contract of carriage rate. Examples of accessorial charges are:
(1) Bunkers, destination/delivery, container surcharges, and currency exchange for international shipments.
(2) Inside delivery, redelivery, re-consignment, and demurrage or detention for freight.
(3) Packing, unpacking, appliance servicing, blocking and bracing, and special handling for household goods.
Agency means a department, agency, and independent establishment in the executive branch of the Government as defined in 5 U.S.C. 101 et seq., and a wholly-owned Government corporation as defined in 31 U.S.C. 9101(3).
Bill of lading (BOL), sometimes referred to as a commercial bill of lading, but includes a Government bill of lading (GBL), means the document used as a receipt of goods, a contract of carriage, and documentary evidence of title.
Cargo preference is the legal requirement for all, or a portion of all, ocean-borne cargo to be transported on U.S. flag vessels.
Commuted rate system is the system under which an agency may allow its employees to make their own household goods shipping arrangements, and apply for reimbursement.
Consignee is the person or agent to whom freight or household goods are delivered.
Consignor, also referred to as the shipper, is the person or firm that ships freight or household goods to a consignee.
Contract of carriage is a contract between the TSP and the agency to transport freight or household goods.
Debarment is an action to exclude a TSP, for a period of time, from providing services under a rate tender or any contract under the Federal Acquisition Regulation (48 CFR part 9, subpart 9.406).
Declared value means the actual value of cargo as declared by the agency for reimbursement purposes or to establish duties, taxes, or other customs fees. The declared 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, unless the declared value exceeds the carrier's released value (see “Released value”). The statement of declared value must be shown on any applicable tariff, tender, contract, bill of lading, or other document covering the shipment.
Demurrage is the penalty charge to an agency for delaying the agreed time to load or unload shipments by rail or ocean TSPs.
Detention is the penalty charge to an agency for delaying the agreed time to load or unload shipments by truck TSPs. It is also a penalty charge in some ocean shipping contracts of carriage that take effect after the demurrage time ends.
Electronic commerce is an electronic technique for carrying out business transactions (ordering 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.
Foreign flag vessel is any vessel of foreign registry including vessels owned by U.S. citizens but registered in a foreign country.
Freight is property or goods transported as cargo.
Government bill of lading (GBL) means the transportation document used as a receipt of goods, evidence of title, and a contract of carriage for Government international shipments (see Bill of Lading (BOL) definition).
Government-wide Transportation Policy Council (GTPC) is an interagency forum to help GSA formulate policy. It provides agencies managing transportation programs a forum to exchange information and ideas to solve common problems. For further information on this council, see website: https://gsa.gov/transportationpolicy .
Hazardous material (HAZMAT) is a substance or material the Secretary of Transportation determines to be an unreasonable risk to health, safety, and property when transported in commerce, and labels as hazardous under section 5103 of the Federal Hazardous Materials Transportation Law (49 U.S.C. 5103 et seq. ). When transported internationally hazardous material may be classified as “Dangerous Goods.” All such freight must be marked in accordance with applicable regulations and the carrier must be notified in advance.
Household goods (HHG) are the personal effects of Government employees and their dependents.
Line-Haul is the movement of freight between cities excluding pickup and delivery service.
Mode is a method of transportation, such as rail, motor, air, water, or pipeline.
Rate schedule is a list of freight rates, taxes, and charges assessed against non-household goods cargo.
Rate tender is an offer a TSP sends to an agency, containing service rates and charges.
Receipt is a written or electronic acknowledgment by the consignee or TSP as to when and where a shipment was received.
Released value means an assigned value of the cargo for reimbursement purposes that is not necessarily the actual value of the cargo. Released value may be more or less than the actual value of the cargo; however, in the event of loss or damage to the shipment, if the released value exceeds the actual value, reimbursement would be the lesser of the two values. When the released value is agreed upon as the basis of reimbursement and the actual value exceeds the released value, the released value is the maximum amount that could be recovered by the agency in the event of loss or damage to the shipments of freight or household goods. 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 in any applicable tariff, tender, contract, transportation document or other documents covering the shipment.
Reparation is a payment to or from an agency to correct an improper transportation billing involving a TSP. Improper routing, overcharges or duplicate payments may cause such improper billing. This is different from a payment to settle a claim for loss and damage.
Suspension is an action taken by an agency to disqualify a TSP from receiving orders for certain services under a contract or rate tender (48 CFR part 9, subpart 9.407).
Third Party Logistics (3PL) is an entity that provides multiple logistics services for use by customers. Among the transportation services that 3PLs generally provide are integration transportation, warehousing, cross-docking, inventory management, packaging, and freight forwarding.
Transportation document (TD) means any executed document for transportation service, such as a bill of lading, a tariff, a tender, a contract, a Government Transportation Request (GTR), invoices, paid invoices, any transportation bills, or other equivalent documents, including electronic documents.
Transportation Officer (TO) is a person authorized, in accordance with this part, to select transportation service providers using rate tenders. Duties may include, but are not limited to, selecting Third Party Logistics (3PL) or Transportation Service Providers (TSP), and issuing bills of lading.
Transportation Officer Warrant is an agency-issued document that authorizes a Transportation Officer (TO) to procure transportation services using rate tenders, which may include, but are not limited to, selecting Third Party Logistics (3PL) or Transportation Service Providers (TSP), issuing bills of lading, and otherwise performing the duties of a TO.
Transportation service provider (TSP) means any party, person, agent, or carrier that provides freight, household goods, or passenger transportation or related services to an agency.
U.S. flag air carrier is an air carrier holding a certificate issued by the United States under 49 U.S.C. 41102 (49 U.S.C. 40118, 48 CFR part 47, subpart 47.4).
U.S. flag vessel is a commercial vessel, registered and operated under the laws of the U.S., owned and operated by U.S. citizens, and used in commercial trade of the United States.
§ 102-117.30   What choices do I have when acquiring transportation or related services?
When you acquire transportation or related services you may:
(a) Use the GSA tender of service;
(b) Use another agency's contract or rate tender with a TSP only if allowed by the terms of that agreement or if the Administrator of General Services delegates authority to another agency to enter an agreement available to other Executive agencies;
(c) Contract directly with a TSP using the acquisition procedures under the Federal Acquisition Regulation (FAR) (48 CFR chapter 1); or
(d) Negotiate a rate tender under a Federal transportation procurement statute, 49 U.S.C. 10721 or 13712.
§ 102-117.35   What are the advantages and disadvantages of using GSA's tender of service?
(a) It is an advantage to use GSA's tender of service when you want to:
(1) Use GSA's authority to negotiate on behalf of the Federal Government and take advantage of the lower rates and optimum service that result from a larger volume of business;
(2) Use a uniform tender of service;
(3) Obtain assistance with loss and damage claims; and
(4) Use GSA's Transportation management and operations expertise.
(b) It is a disadvantage to use GSA's tender of service when:
(1) You want an agreement that is binding for a longer term than the GSA tender of service;
(2) You have sufficient time to follow FAR contracting procedures and are in position to make volume or shipment commitments under a FAR contract; and
(3) Rates are not cost effective, as determined by the agency.
§ 102-117.40   When is it advantageous for me to use another agency's contract or rate tender for transportation services?
It is advantageous to use another agency's contract or rate tender for transportation services when the contract or rate tender offers better or equal value than otherwise available to you.
§ 102-117.45   What other factors must I consider when using another agency's contract or rate tender?
When using another agency's contract or rate tender, you must:
(a) Assure that the contract or rate tender meets any special requirements unique to your agency;
(b) Pay any other charges imposed by the other agency for external use of their contract or rate tender;
(c) Ensure the terms of the other agency's contract or rate tender allow you to use it; and
(d) Ensure that the agency offering this service has the authority or a delegation of authority from GSA to offer such services to your agency.
§ 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 requirement.
(b) The FAR may be a disadvantage when you:
(1) Cannot prepare and execute a FAR contract within your time frame;
(2) Have recurring shipments between designated places, but do not expect sufficient volume to obtain favorable rates; or
(3) Do not have the manpower to monitor quality control and administer a contract.
§ 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;
(2) Have shipments recurring between designated places, but do not expect sufficient volume to obtain favorable rates; or
(3) Are not in a position to make a definite volume and shipment commitment under a FAR contract.
(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 Government'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 services the TSP is offering to perform at the cost presented in the rate tender or other transportation document.
You must reference the negotiated contract or rate tender on all transportation documents. For further information 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, 31 U.S.C. 3717.
(d) To qualify for the rates specified in a rate tender filed under the provisions of the Federal transportation procurement 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 consignee 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 Government 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 requirements or HAZMAT. For further information see the “U.S. Government Freight Transportation Handbook,” available at https://gsa.gov/transaudits .
§ 102-117.70   Where do I find more information on terms and conditions?
You may find more information about terms and conditions 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 shipments, you must show the applicable rate tender number and 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 subchapter.
(b) You must send two copies of the rate tender to: General Services Administration, Office of Travel, Employee Relocation and Transportation, Attn: Transportation Audits Division, 1800 F Street NW, 3rd Floor, Mail Hub 3400, Washington, DC 20405, or email:
(1) SDDCRates@gsa.gov subject line SDDC OTO Tenders (DoD only); or
(2) TEAL-Library@gsa.gov subject line GSA Rate Quotes, Tenders/Rate Quotes/Tariffs (all agencies except DoD).
§ 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), Standard Form 1103, is a document that conveys specific terms and conditions to protect the Government interest and serves as the contract of carriage.
(b) A GBL is used only for international shipments.
(c) A bill of lading, sometimes referred to as a commercial bill of lading, establishes the terms of contract between a shipper and TSP. It serves as a receipt of goods, a contract of carriage, and documentary evidence of title.
(d) 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 Transportation Handbook”).
§ 102-117.90   May I use a U.S. Government bill of lading (GBL) to acquire freight, household goods or other related transportation services?
You may use the Government bill of lading (GBL) only for international shipments (including domestic offshore shipments).
§ 102-117.95   What transportation documents must I use to acquire freight, household goods or other related transportation services?
(a) Bills of lading and purchase orders are the transportation documents you use to acquire freight, household goods shipments, and other transportation services. Terms and conditions in § 102-117.65 and the “U.S. Government Freight Transportation Handbook” are still required. For further information on payment methods, see part 102-118 of this chapter (41 CFR part 102-118).
(b) Government bills of lading (GBLs) are optional transportation documents for international shipments (including domestic offshore shipments).
§ 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 provider (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 international 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 Government is self-insured; however, there are instances when the Government will purchase insurance coverage for Government property. An example may be cargo insurance for international 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 transportation 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 that provides satisfactory service with the best combination of service factors and price that meets the agency's requirements. A lower price may not be the best value if the service offered fails to meet the requirements of the shipment.
§ 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;
(f) Record of past performance of the TSP, including accuracy of billing and past performance record with Government agencies;
(g) Capability of warehouse equipment and storage space;
(h) Experience of company, management, and personnel to perform the requirements;
(i) The TSP's safety record; and
(j) The TSP's loss and damage record, including claims resolution.
§ 102-117.115   How do I calculate total delivery costs?
You calculate total delivery costs for a shipment by considering all costs related to the shipping or receiving process, such as packing, blocking, bracing, drayage, loading and unloading, and transporting. Surcharges such as fuel, currency exchange, war risk insurance, and other surcharges should also be factored into the costs.
§ 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 economically 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).
§ 102-117.135   What are the international transportation restrictions?
Several statutes mandate the use of U.S. flag carriers for international shipments, such as 49 U.S.C. 40118, commonly referred to as the “Fly America Act”, and 46 U.S.C. 55305, the Cargo Preference Act of 1954, as amended. The principal restrictions are as follows:
(a) Air cargo: The use of foreign-flag air carriers when funded by the U.S. Government should be rare. International movement of cargo by air is subject to the Fly America Act, 49 U.S.C. 40118, which requires the use of U.S. flag air carrier service for all air cargo movements funded by the U.S. Government, including cargo shipped by contractors, grantees, and others at Government expense, except when one of the following exceptions applies:
(1) The transportation is provided under a bilateral or multilateral air transportation agreement to which the U.S. Government and the government of a foreign country are parties, and which the Department of Transportation has determined meets the requirements of the Fly America Act.
(i) Information on bilateral or multilateral air transport agreements impacting U.S. Government procured transportation can be accessed at https://www.state.gov/civil-air-transport-agreements and
(ii) If determined appropriate, GSA may periodically issue FMR Bulletins providing further guidance on bilateral or multilateral air transportation agreements impacting U.S. Government procured transportation. These bulletins may be accessed at http://www.gsa.gov/bulletins;
(2) When the costs of transportation are reimbursed in full by a third party, such as a foreign government, an international agency, or other organization; or
(3) Use of a foreign air carrier is determined to be a matter of necessity by your agency, on a case-by-case basis, when:
(i) No U.S. flag air carrier can provide the specific air transportation needed;
(ii) No U.S. flag air carrier can meet the time requirements in cases of emergency;
(iii) There is a lack of or inadequate U.S. flag air carrier aircraft;
(iv) There is an unreasonable risk to safety when using a U.S. flag carrier aircraft ( e.g., terrorist threats). Written approval of the use of foreign air carrier service based on an unreasonable risk to safety must be approved by your agency on a case-by-case basis and must be supported by a travel advisory notice issued by the Federal Aviation Administration, Department of State, or the Transportation Security Administration; or
(v) No U.S. flag air carrier can accomplish the agency's mission.
(b) Ocean cargo. International movement of property by water is subject to the Cargo Preference Act of 1954, as amended, 46 U.S.C. 55305, and the implementing regulations found at 46 CFR part 381, which require the use of a U.S. flag carrier for at least 50% of the tonnage shipped by each department or agency when service is available (see 46 CFR 381.7). The Maritime Administration (MARAD) monitors agency compliance with these laws. All departments or agencies shipping Government-impelled cargo must comply with the reporting provisions of 46 CFR 381.3. For further information contact MARAD, Tel: 202-366-4610, Email: cargo.marad@dot.gov . For further information on international ocean shipping, go to: https://www.maritime.dot.gov/ports/cargo-preference/cargo-preference .
§ 102-117.140   What is cargo preference?
Cargo preference is the statutory requirement that all, or a portion of all, U.S. Government owned, procured, furnished, or financed ocean-borne cargo that moves internationally be transported on U.S. flag vessels.
§ 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 existence of a maritime capability in times of war or national emergency (see section 27 of the Merchant Marine Act of 1920, 46 U.S.C. Chapter 551, 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. flag vessels that have a coastwise endorsement;
(b) There are exceptions and limits for the U.S. Island territories and possessions in the Atlantic and Pacific Oceans (see § 102-117.155); and
(c) The Commissioner of United States Customs and Border Protection, by delegation of the Secretary of the Department of Homeland Security, and the Secretary of the Treasury are authorized to impose monetary penalties against agencies that violate the coastwise laws.
§ 102-117.155   Where do I go for further information about coastwise laws?
You may refer to 46 U.S.C. Chapter 551, 19 CFR 4.80, DOT MARAD (202-336-4610 or www.cargo.marad@dot.gov ), the U.S. Coast Guard or U.S. Customs and Border Protection for further information on exceptions to the coastwise laws.
§ 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 sensitive 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) Information and guidance on shipping Government-owned freight is available at https://gsa.gov/transportationpolicy .
(b) Information on transportation programs is available at https://gsa.gov/transportation .
(c) Transportation handbooks are available at https://gsa.gov/transaudits .
(d) Resources related to the transportation of freight are available on the Acquisition Gateway ( https://hallways.cap.gsa.gov/ ). See the Transportation and Logistics Services Hallway for information specific to shipping freight.
§ 102-117.175   What factors do I consider to determine the mode of transportation?
Your shipping urgency and any special handling requirements determine which mode of transportation you select. Each mode has unique requirements for documentation, liability, 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), you may, but are not required to, use the optional GBL;
(c) By ocean, use an ocean bill of lading, when suitable, along with the GBL. You only need an ocean bill of lading for door-to-door movements; 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, Office of Travel, Employee Relocation and Transportation, Attn: Transportation Audits Division, 1800 F Street NW, 3rd Floor, Mail Hub 3400, Washington, DC 20405, or email:
(1) SDDCRates@gsa.gov —subject line SDDC OTO Tenders (DOD only).
(2) TEAL-Libray@gsa.gov —subject line GSA Rate Quotes, Tenders/Rate Quotes/Tariffs (all agencies except DOD).
(b) For all property shipments subject to cargo preference 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 20 working days of the date of loading for shipments originating in the United States, the District of Columbia, its territories or possessions and within 30 working days for shipments originating outside the United States, the District of Columbia, its territories or possessions.
§ 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.
§ 102-117.200   What is HAZMAT?
HAZMAT is a substance or material the Secretary of Transportation determines to be an unreasonable risk to health, safety and property when transported in commerce. Therefore, there are restrictions on transporting HAZMAT (49 U.S.C. 5103 et seq. ).
§ 102-117.205   What are the restrictions for transporting HAZMAT?
Agencies that ship HAZMAT are subject to the Environmental Protection Agency and the Department of Transportation regulations, as well as applicable State and local government rules and regulations.
§ 102-117.210   Where can I get guidance on transporting HAZMAT?
The Secretary of Transportation prescribes regulations for the safe transportation of HAZMAT in intrastate, interstate, and foreign commerce in 49 CFR parts 171 through 180. The Environmental Protection Agency also prescribes regulations on transporting HAZMAT in 40 CFR parts 260 through 266. You may also call the HAZMAT information hotline at 1-800-467-4922 (Washington, DC area, call 202-366-4488).
§ 102-117.215   What are household goods (HHG)?
Household goods (HHG) are the personal effects of Government employees and their dependents.
§ 102-117.220   What choices do I have to ship HHG?
(a) You may choose to ship HHG by:
(1) Using the commuted rate system;
(2) GSA's Centralized Household Goods Traffic Management Program (CHAMP);
(3) Contracting directly with a TSP, (including a relocation company that offers transportation services) using the acquisition procedures under the Federal Acquisition Regulation (FAR) (see § 102-117.30);
(4) Using another agency's contract with a TSP (see §§ 102-117.40 and 102-117.45);
(5) Using a rate tender under the Federal transportation procurement statutes (49 U.S.C. 10721 or 13712) (see § 102-117.35).
(b) As an alternative to the choices in paragraph (a) of this section, you may request the Department of State to assist with shipments of HHG moving to, from, and between foreign countries or international shipments originating in the continental United States. The nearest U.S. Embassy or Consulate may assist with arrangements of movements originating abroad. For further information contact:
§ 102-117.225   What is the difference between a contract or a rate tender and a commuted rate system?
(a) Under a contract or a rate tender, the agency prepares the bill of lading and books the shipment. The agency is the shipper and pays the TSP the applicable charges. If loss or damage occurs, the agency may either file a claim on behalf of the employee directly with the TSP, or help the employee in filing a claim against the TSP.
(b) Under the commuted rate system an employee arranges for shipping HHG and is reimbursed by the agency for the resulting costs. Use this method only within the continental United States (not Hawaii or Alaska).
(c) Rate table information and the commuted rate schedule can be found at www.gsa.gov/relocationpolicy or the appropriate office designated in your agency.
§ 102-117.230   Must I compare costs between a contract or a rate tender and the commuted rate system before choosing which method to use?
Yes, you must compare the cost between a contract or a rate tender, and the commuted rate system before you make a decision.
§ 102-117.235   How do I get a cost comparison?
(a) You may calculate a cost comparison internally according to 41 CFR part 302-7.
(b) You may request GSA to perform the cost comparison if you participate in the CHAMP program by sending GSA the following information as far in advance as possible:
(1) Name of employee;
(2) Origin city, county, and State;
(3) Destination city, county, and State;
(4) Date of household goods pick up;
(5) Estimated weight of shipments;
(6) Number of days storage-in-transit (if applicable); and
(7) Other relevant data.
(c) For more information on cost comparisons contact the Employee Relocation Resource Center at errc@gsa.gov .
§ 102-117.240   What is my agency's financial responsibility to an employee who chooses to move all or part of their HHG under the commuted rate system?
(a) Your agency is responsible for reimbursing the employee what it would cost the Government to ship the employee's HHG by the most cost-effective means available or the employee's actual moving expenses, whichever is less.
(b) The employee is liable for the additional cost when the cost of transportation arranged by the employee is more than what it would cost the Government.
For information on how to ship household goods, refer to the Federal Travel Regulation, 41 CFR part 302-7, Transportation and Temporary Storage of Household Goods, Professional Books, Papers, and Equipment, (PBP&E) and Baggage Allowance.
§ 102-117.245   What is my responsibility in providing guidance to an employee who wishes to use the commuted rate system?
You must counsel employees that they may be liable for all costs above the amount reimbursed by the agency if they select a TSP that charges more than provided under the Commuted Rate Schedule.
§ 102-117.250   What are my responsibilities after shipping the household goods?
(a) Each agency should develop an evaluation survey for the employee to complete following the move.
(b) Under the CHAMP program, you must counsel employees to fill out their portion of the GSA Form 3080, Household Goods Carrier Evaluation Report. This form reports the quality of the TSP's performance. TSPs generate the GSA Form 3080 within GSA's Transportation Management Services Solution (TMSS) system and send the employee a link to complete the form.
§ 102-117.255   What actions may I take if the TSP's performance is not satisfactory?
If the TSP's performance is not satisfactory, you may place a TSP in temporary nonuse, suspended status, or debarred status. For more information on doing this, see subpart I of this part and the FAR (48 CFR 9.406-3 and 9.407-3).
§ 102-117.260   What are my responsibilities to employees regarding the TSP's liability for loss or damage claims?
Regarding the TSP's liability for loss or damage claims, you must:
(a) Advise employees on the limits of the TSP's liability for loss of and damage to their HHG so the employee may evaluate the need for added insurance;
(b) Inform the employee about the procedures to file claims for loss and damage to HHG with the TSP; and
(c) Counsel employees, who have a loss or damage to their HHG that exceeds the amount recovered from a TSP, on procedures for filing a claim against the Government for the difference. Agencies may compensate employees up to $40,000 on claims for loss and damage under 31 U.S.C. 3721, 3723 (41 CFR 302-7.12).
§ 102-117.265   Are there time limits that affect filing a claim with a TSP for loss or damage?
Yes, several statutes limit the time for filing claims or taking other administrative or judicial action against a TSP. Refer to part 102-118 of this chapter for information on claims.
§ 102-117.270   What are agency performance measures for transportation?
(a) Agency performance measures are indicators of how you are supporting your customers and doing your job. By tracking performance measures you can report specific accomplishments and your success in supporting the agency mission. The GPRA Modernization Act of 2010 (31 U.S.C. 1115) requires agencies to develop business plans and set up program performance measures.
(b) Examples of performance measurements in transportation would include how well you:
(1) Increase the use of electronic commerce;
(2) Adopt industry best practices and services to meet your agency requirements;
(3) Use TSPs with a track record of successful past performance or proven superior ability;
(4) Take advantage of competition in moving agency freight and household goods;
(5) Assure that delivery of freight and household goods is on time against measured criteria; and
(6) Create simplified procedures to be responsive and adaptive to the customer needs and concerns.
§ 102-117.275   What performance must I expect from a TSP?
You must expect the TSP to provide consistent and satisfactory service to meet your agency transportation needs.
§ 102-117.280   What aspects of the TSP's performance are important to measure?
Important TSP performance measures may include, but are not limited to the:
(a) TSP's percentage of on-time deliveries;
(b) Percentage of shipments that include overcharges or undercharges;
(c) Percentage of claims received in a given period;
(d) Percentage of returns received on-time;
(e) Percentage of shipments rejected;
(f) Percentage of billing improprieties;
(g) Average response time on tracing shipments;
(h) TSP's safety record (accidents, losses, damages or misdirected shipments) as a percentage of all shipments;
(i) TSP's driving record (accidents, traffic tickets and driving complaints) as a percentage of shipments; and
(j) Percentage of customer satisfaction reports on carrier performance.
§ 102-117.285   What are my choices if a TSP's performance is not satisfactory?
You may choose to place a TSP in temporary nonuse, suspension, or debarment if performance is unsatisfactory.
§ 102-117.290   What is the difference between temporary nonuse, suspension and debarment?
(a) Temporary nonuse is limited to your agency and initiated by the agency transportation officers for a period not to exceed 90 days for:
(1) Willful violations of the terms of the rate tender;
(2) Persistent or willful failure to meet requested packing and pickup service;
(3) Failure to meet required delivery dates;
(4) Violation of Department of Transportation (DOT) hazardous material regulations;
(5) Mishandling of freight, damaged or missing transportation seals, improper loading, blocking, packing or bracing of property;
(6) Improper routing of property;
(7) Subjecting your shipments to unlawful seizure or detention by failing to pay debts;
(8) Operating without legal authority;
(9) Failure to settle claims according to Government regulations; or
(10) Repeated failure to comply with regulations of DOT, Surface Transportation Board, State or local governments or other Government agencies.
(b) Suspension is disqualifying a TSP from receiving orders for certain services under a contract or rate tender pending an investigation or legal proceeding. A TSP may be suspended on adequate evidence of:
(1) Fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a contract for transportation;
(2) Violation of Federal or State antitrust statutes;
(3) Embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; and
(4) Any other offense indicating a lack of business integrity or business honesty that seriously and directly affects the present responsibility of the TSP as a transporter of the Government's property or the HHG of its employees relocated for the Government.
(c) Debarment means action taken to exclude a contractor from contracting with all Federal agencies. The seriousness of the TSP's acts or omissions and the mitigating factors must be considered in making any debarment decisions. A TSP may be debarred for the following reasons:
(1) Failure of a TSP to take the necessary corrective actions within the period of temporary nonuse; or
(2) Conviction of or civil judgment for any of the causes for suspension.
§ 102-117.295   Who makes the decisions on temporary nonuse, suspension and debarment?
(a) The transportation officer may place a TSP in temporary nonuse for a period not to exceed 90 days.
(b) The serious nature of suspension and debarment requires that these sanctions be imposed only in the public interest for the Government's protection and not for purposes of punishment. Only the agency head or  designee may suspend or debar a TSP.
§ 102-117.300   Do the decisions on temporary nonuse, suspension and debarment go beyond the agency?
(a) Temporary nonuse does not go beyond the agency.
(b) Decisions on suspended or debarred TSPs do go beyond the agency and are available to the general public on the System for Award Management (SAM) maintained by GSA at https://sam.gov/ .
§ 102-117.305   Where do I go for information on the process for suspending or debarring a TSP?
Refer to the Federal Acquisition Regulation (48 CFR part 9, subpart 9.4) for policies and procedures governing suspension and debarment of a TSP.
§ 102-117.310   What records must I keep on temporary nonuse, suspension or debarment of a TSP?
(a) You must set up a program consistent with your agency's internal record retention procedures to document the placement of TSPs in a nonuse, suspended or debarred status.
(b) For temporary nonuse, your records must contain the following information:
(1) Name, address, and Standard Carrier Alpha Code and Taxpayer Identification Number of each TSP placed in temporary nonuse status;
(2) The duration of the temporary nonuse status;
(3) The cause for imposing temporary nonuse, and the facts showing the existence of such a cause;
(4) Information and arguments in opposition to the temporary nonuse period sent by the TSP or its representative; and
(5) The reviewing official's determination about keeping or removing temporary nonuse status.
(c) For suspended or debarred TSPs, your records must include the same information as paragraph (b) of this section and you must:
(1) Assure your agency does not award contracts to a suspended or debarred TSP; and
(2) Notify GSA (see § 102-117.315).
§ 102-117.315   Whom must I notify on suspension or debarment of a TSP?
Agencies must report electronically any suspension or debarment actions in accordance with the provisions of 48 CFR 9.404(c).
§ 102-117.320   What is a transportation regulatory body proceeding?
A transportation regulatory body proceeding is a hearing before a transportation governing entity, such as a State public utility commission, the Surface Transportation Board, or the Federal Maritime Commission. The proceeding may be at the Federal or State level depending on the activity regulated.
§ 102-117.325   May my agency appear on its own behalf before a transportation regulatory body proceeding?
Generally, no executive agency may appear on its own behalf in any proceeding before a transportation regulatory body, unless the Administrator of General Services delegates the authority to the agency. The statutory authority for the Administrator of General Services to participate in regulatory proceedings on behalf of all Federal agencies is in section 201(a)(4) of the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 501(c)(1)(B)).
§ 102-117.330   When, or under what circumstances, would GSA delegate authority to an agency to appear on its own behalf before a transportation regulatory body proceeding?
GSA will delegate authority when it does not have the expertise, or when it is outside of GSA's purview, to make a determination on an issue such as a protest of rates, routings or excessive charges.
§ 102-117.335   How does my agency ask for a delegation of authority to represent itself in a regulatory body proceeding?
You must email your request with enough detail to explain the circumstances surrounding the need for a delegation of authority for representation to GSA-OGP-Transportationpolicy@gsa.gov .
§ 102-117.340   What other types of assistance may GSA provide agencies in dealing with regulatory bodies?
(a) GSA has oversight of all public utilities used by the Federal Government including transportation. There are specific regulatory requirements a TSP must meet at the State level, such as the requirement to obtain a certificate of public convenience and necessity.
(b) GSA has a list of TSPs, which meet certain criteria regarding insurance and safety, approved by DOT. You must furnish GSA with an affidavit to determine if the TSP meets the basic qualification to protect the Government's interest. As an oversight mandate, GSA coordinates this function. For further information email transportation.programs@gsa.gov or contact: General Services Administration, Federal Acquisition Service, Office of Travel, Employee Relocation and Transportation, 1800 F Street NW, Washington, DC 20405.
§ 102-117.345   [Reserved]
§ 102-117.350   Do I have to report transportation data?
No, however all agencies are strongly encouraged to report data by October 31 for the preceding fiscal year to GSA at GSA-OGP-Transportationpolicy@gsa.gov .
§ 102-117.355   Why should I report?
(a) Reporting your agency's prior fiscal year transaction level transportation data for freight and cargo, including HHG, procured either through contract or tender, as well as your transportation management information will enable GSA to:
(1) Assess the magnitude and key characteristics of transportation within the Government ( e.g., how much agencies spend; what type of commodity is shipped; most used lanes, etc.); and
(2) Analyze and recommend changes to Governmentwide policies, standards, practices, and procedures to improve Government transportation management.
(b) Agencies that choose to report may identify opportunities within their organization to improve transportation management program performance as a result of the data analytics.
§ 102-117.356   What information should I report?
You should report your agency's prior fiscal year transaction level transportation data for freight and cargo, including HHG, and transportation management information. Transportation data that currently is otherwise provided to GSA in compliance with 31 U.S.C. 3726 is not requested. Transaction level transportation data submitted by agencies will remain confidential. Transportation management information should also be reported and should include related environmental information, agency points of contact, and transportation officer warrant and training data.
§ 102-117.360   [Reserved]
§ 102-117.361   What is the Government-wide Transportation Policy Council (GTPC)?
The Office of Government-wide Policy sponsors a Government-wide Transportation Policy Council (GTPC) to help agencies establish, improve, and maintain effective transportation management policies, practices and procedures. The council:
(a) Collaborates with private and public stakeholders to develop valid performance measures and promote solutions that lead to effective results; and
(b) Provides assistance to your agency with reporting your transportation activity to GSA.
§ 102-117.362   Where can I get more information about the GTPC?
For more information about the GTPC, email GSA-OGP-Transportationpolicy@gsa.gov or visit https://www.gsa.gov/transportationpolicy .
§ 102-117.365   What are the responsibilities of a Transportation Officer?
A Transportation Officer's (TO) responsibilities may include:
(a) Negotiating rates;
(b) Signing bills of lading (BOL);
(c) Approving additional accessorial charges;
(d) Selecting and procuring services of a TSP;
(e) Selecting and procuring services of a 3PL;
(f) Serving as a transportation subject matter expert to a Contracting Officer (CO); and/or
(g) Other roles/responsibilities, such as serving as a certifying official for BOL or as a disbursement official.
§ 102-117.370   Should I have a Transportation Officer warrant to acquire transportation services using a rate tender?
Yes, it is recommended that you have a written document, such as a warrant, issued by the head of your agency or their designee, which expressly allows you to acquire transportation services for using approved non-Federal Acquisition Regulation (FAR) acquisition methods for specified transportation services, and states a dollar limit or range for the warrant authority.
§ 102-117.375   Are there instances where a Transportation Officer warrant is not necessary to acquire transportation services?
Yes, a Transportation Officer warrant is not necessary to:
(a) Ship packages through a contract under the GSA Schedules program, including any Blanket Purchase Agreement, as these are FAR-based contracts;
(b) Ship packages or other materials through any other FAR-based contract; or
(c) Send items through the United States Postal Service.
§ 102-117.380   What should be contained in a Transportation Officer warrant to acquire transportation services?
The warrant for authority to acquire transportation services for freight and cargo, including HHGs, issued by the agency head or their designee should:
(a) State that you have sufficient experience (any combination of Federal, public, and/or commercial) and/or training in transportation services, including any relevant acquisition or certifying officer training, that qualifies you to acquire the transportation services needed by your agency;
(b) List the maximum dollar limit, if any, and any other limits, such as the types of services that you may acquire;
(c) State your agency's necessary conditions to maintain the warrant; and
(d) Include an expiration date for the warrant, recommended not to exceed three years from the date of issuance.
§ 102-117.385   Is there a standard format for a Transportation Officer warrant?
No. Agencies may model the Transportation Officer warrant after the Contracting Officer warrant, or they may establish their own format.
§ 102-117.390   What are the recommended Transportation Officer training and/or experience levels?
The following are recommended agency transportation officer training and/or experience baselines:
(a) For a Basic (Level 1) Transportation Officer Warrant:
(1) Twenty-four (24) hours of training in Federal transportation; or
(2) Two (2) years of Federal, public, and/or commercial experience in acquiring transportation through rate tenders.
(b) For an Experienced (Level 2) Transportation Officer Warrant:
(1) Thirty-two (32) hours of training in transportation, including twenty (20) hours of training in Federal transportation; or
(2) Three (3) years of Federal, public, and/or commercial experience in acquiring transportation through rate tenders.
(c) For a Senior (Level 3) Transportation Officer Warrant:
(1) Sixty (60) hours of training in transportation, including forty (40) hours of training in Federal transportation; or
(2) Five (5) years of Federal, public, and/or commercial experience in acquiring transportation through rate tenders.
§ 102-117.395   Should I continue my training to maintain my warrant?
Yes, you should continue your training. Your agency will determine the continuing education that applies specifically to your warrant. It is recommended that at least twelve (12) hours of transportation training per year be completed in order to maintain a Transportation Officer warrant.
§ 102-117.400   How should my warrant be documented?
The head of your agency or their designee should state, in writing, that you have the recommended training and/or experience suggested by § 102-117.390. You should retain a copy of this Transportation Officer warrant. Agency heads or their designee(s) may amend, suspend, or terminate warrants in accordance with agency policies and/or procedures.
§ 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 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 documents and bills. The audit must examine the validity, propriety, and conformity of the charges or rates with tariffs, quotations, contracts, agreements, or tenders, as appropriate.
§ 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, people or transportation related services.
§ 102-118.20   Who is subject to this part?
This part applies to all agencies (including the Department of Defense (DoD)) and TSPs defined in § 102-118.35, and wholly-owned Government corporations as defined in 31 U.S.C. 101, et seq. and 31 U.S.C. 9101(3). Your agency is required to incorporate this part into its internal regulations.
§ 102-118.25   What must my agency provide to GSA regarding its transportation policies?
As part of the evaluation of agencies' transportation program and postpayment audit, GSA is required to examine your agency's transportation prepayment audit program and policies to verify the performance of the prepayment audit. GSA Office of Government-wide Policy, Transportation Policy Division and GSA Transportation Audits Division may suggest revisions of agencies' audit program or policies.
§ 102-118.30   Are Government-controlled corporations bound by this part?
This part does not apply to Government-controlled corporations and mixed-ownership Government corporations as defined in 31 U.S.C. 9101(1) and (2).
§ 102-118.35   What definitions apply to this part?
The following definitions apply to this part:
ACH (automated clearinghouse) means a nationwide network through which depository institutions send each other batches of electronic credit and debit transfers.
Agency means a department, agency, or instrumentality of the United States Government (31 U.S.C. 101).
Agency purchase card means a charge card used by an authorized agency purchaser to procure, order, and pay for supplies and services.
Bill of lading (BOL), sometimes referred to as a commercial bill of lading, but includes a Government bill of lading (GBL), means the document used as a receipt of goods, a contract of carriage, and documentary evidence of title.
Cash means cash, personal checks, personal charge/credit cards, and traveler's checks.
Certificate of Settlement means a formal notice to an agency that provides a complete explanation of any amount that is disallowed. GSA produces and transmits the Certificate of Settlement (GSA Form 7931) to the agency whose funds are to be charged for processing and payment.
Civilian Board of Contract Appeals (CBCA) means an independent court within GSA that settles transportation payment claims disputes between Federal agencies and transportation service providers (TSPs). For additional information on the CBCA see https://www.cbca.gov/index.html.
Claim means—
(1) Any demand by an agency upon a transportation service provider (TSP) for the payment of overcharges, ordinary debts, fines, penalties, administrative fees, special charges, and interest; or
(2) Any 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 is believed to be owed; and any subsequent bills from the TSP resulting from a transaction that was prepayment or postpayment audited by the GSA Transportation Audits Division.
Document reference number (DRN) means the unique number on a bill of lading, Government Transportation Request (GTR), or transportation ticket used to track the movement of shipments and individuals.
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 (EDI) 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 the transportation document used as a receipt of goods, evidence of title, and a contract of carriage for Government international shipments (see Bill of lading (BOL) definition).
Government contractor issued charge card means an individually billed travel card or an agency purchase card.
Government Transportation Request (GTR) ( Optional Form 1169 )—means a Government document used to procure passenger transportation services from a TSP. The document obligates the Government to pay for transportation services provided and is used when a Government contractor issued charge card is not accepted by the TSP.
Individually billed travel card means the charge card used by authorized individuals to pay for official travel and transportation related expenses for which the contractor bills the employee. This is different from a centrally billed account paying for official travel and transportation related expenses for which the agency is billed.
Notice of Indebtedness means a formal notice issued to a TSP that 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 is subject to interest charges, penalties, and administrative cost under 31 U.S.C. 3717.
Notice of Overcharge means a formal notice to a TSP that owes a debt to the agency. It shows the TSP the amount paid and the basis for the proper charge for the document reference number (DRN), and cites applicable contract, tariff, or tender, along with other data relied on to support the overcharge.
Offset means withholding money from a payment. In this part, money withheld refers to the funds owed a TSP that are not released by the agency but instead used to repay the Government for a debt incurred 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 that exceed those applicable under the executed agreement for services such as bill of lading (including a GBL, contract, rate tender or a GTR).
Postpayment audit means an audit of transportation billing documents, and all related transportation documents after payment, to decide their validity, propriety, and conformity of rates with tariffs, quotations, agreements, contracts, or tenders. The audit process may also include subsequent adjustments and collection actions taken against a TSP by the Government (31 U.S.C. 3726).
Prepayment audit means an audit of transportation billing documents before payment to determine their validity, propriety, and conformity of rates with tariffs, quotations, agreements, contracts, or tenders (31 U.S.C. 3726).
Privately Owned Personal Property Government Bill of Lading 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, contracts, bills of lading, and other equivalent documents.
Refund means the amount collected from outside sources for payments made in error, overpayment, or adjustments for previous amounts disbursed.
Standard Carrier Alpha Code (SCAC) is a unique code, typically two to four characters, used to identify transportation companies.
Statement of difference means a statement issued by an agency or its designated audit contractor during a prepayment audit when it has been determined that a TSP has billed the agency for more than the proper amount for the services. This statement tells the TSP 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. This can be an electronic process.
Supplemental bill means the bill for services that the TSP submits to the agency for additional payment of the services provided.
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 means service involved in the physical movement (from one location to another) of people, household goods, and freight by a TSP or a Third Party Logistics (3PL) entity for an agency, as well as activities directly relating to or supporting that movement. These activities are defined in 49 U.S.C. 13102.
Transportation Audits Management System (TAMS) means the GSA's cloud-based postpaid transportation invoice auditing solution for Federal agencies and TSPs.
Transportation document (TD) means any executed document for transportation services, such as a bill of lading, a tariff, a tender, a contract, a GTR, invoices, paid invoices, any transportation bills, or other equivalent documents, including electronic documents.
Transportation service provider (TSP) means any party, person, agent, or carrier that provides freight, household goods, or passenger transportation or related services to an agency.
15 U.S.C. 96, et seq., 49 U.S.C. 13102, et seq., and 41 CFR Chapter 302 Federal Travel Regulation defines additional transportation terms not listed in this section.
§ 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., packaging, storage) with a Government contractor issued charge card, purchase order (or electronic equivalent), or a bill of lading including a Government bill of lading. In extremely limited cases, cash can be used where government payment mechanisms are not available or acceptable.
(b) Transportation of people through the purchase of transportation tickets with a Government contractor issued charge card, centrally billed travel account, personal charge/credit 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 Transportation Handbook,” available at https://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 and transportation services determines the manner in which a TSP bills for service. This is shown in the following table:
Transportation Service Provider Billing
§ 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). Your agency is required by statute (31 U.S.C. 3332, et seq. ) to make all payments 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 accordance with Department of the Treasury regulations.
§ 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 participating agency by the TSP;
(c) The terms and conditions are included in all transportation agreements and referenced on all transportation documents (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 delivery costs;
(f) All payments are subject to applicable statutory limitations;
(g) Procedures (such as an unique numbering system) are established to prevent and detect duplicate payments, properly 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 tickets.
§ 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 electronic 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 Transportation Audits Division, your agency is encouraged to use electronic billing for the procurement and billing of transportation services.
§ 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 Secretary of the Treasury. For information visit: https://www.fiscal.treasury.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 Transportation Audits Division keeps a central repository of electronic transportation billing records for legal and auditing purposes. Therefore, your agency must utilize the Transportation Audits Management System (TAMS) ( https://tams.gsa.gov ) to submit all relevant electronic transportation billing documents or submit via email to: qmcatariffs@gsa.gov.
§ 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 circumstances 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 Transportation Audits 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 Transportation Audits 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 original 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 Transportation Audits Division. If your agency requires the filing of 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.
§ 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) Standard Form (SF) 1103, Government Bill of Lading (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) Privately Owned Personal Property Government Bill of Lading (used by the Department of Defense to move private property for official transfers).
§ 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, when required, the TSP filled out the Public Voucher for Transportation Charges, SF 1113, completely including the taxpayer identification number (TIN) and standard carrier alpha code (SCAC).
§ 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. This handbook is available at https://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—Handbook” contains information on how to prepare this GTR form. This handbook is available at https://www.gsa.gov/transaudits.
§ 102-118.115   Must my agency use a GBL?
No. Your agency is required to use commercial payment practices to the maximum extent possible. Your agency may use a GBL as needed for domestic shipments and should use a GBL for international shipments. When used for shipments, a GBL is a receipt of goods, evidence of title, and a contract of carriage for Government shipments and was developed to protect the interest of the U.S. Government.
§ 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 herein 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.
§ 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.”
§ 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. An agency may choose not to require that an SF 1113 be attached to the bill of lading and invoice if the TSP submits invoices using the agency's approved third-party payment system (TPPS);
(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 be 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 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—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);
(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 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 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 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?
No. For GTRs, GBLs, and commercial TDs, each agency must create a unique numbering system to account for and prevent duplicate numbers.
§ 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 and, when appropriate, an SF 1113, Public Voucher for Transportation Charges. The TSP must submit this package and all supporting documents to the agency paying office.
§ 102-118.200   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.
§ 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 Transportation Audits 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.
§ 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, use, and accountability of GBLs and GTRs and must have procedures in place to track, manage, and account for these documents when necessary.
§ 102-118.240   How does my agency get GBL and GTR forms?
The GBL (SF 1103) and GTR (OF 1169) are available in the GSA Forms Library at https://www.gsa.gov/forms.
§ 102-118.245   How does my agency get an assigned set of GBL or GTR numbers?
GSA no longer assigns numbers to GBLs or GTRs. Pursuant to § 102-118.55(g) you must establish administrative procedures including creating a unique numbering system to prevent and detect duplicate payments. These procedures should include agency assigned unique numbers for GBLs and GTRs.
§ 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, GBLs and GTRs must be sequentially numbered by agencies when used.
§ 102-118.260   Must my agency send all quotations, tenders, or contracts with a TSP to GSA?
(a) Yes, your agency must send a copy of each quotation, tender, or contract of special rates, fares, charges, or concessions with TSPs including those authorized by 49 U.S.C. 10721, 13712, and 15504 upon execution to qmcatariffs@gsa.gov.
(b) Tenders must be submitted electronically, following the instructions provided by the requesting agency. The following information must be submitted with the tender:
(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.
§ 102-118.265   What is a prepayment audit?
Prepayment audit means a review of transportation documentation before payment to determine their validity, propriety, and conformity of rates with tariffs, quotations, agreements, contracts, or tenders. Prepayment auditing by your agency will detect and eliminate billing errors before payment (31 U.S.C. 3726).
§ 102-118.270   Must my agency establish a transportation prepayment audit program, and how is it funded?
(a) Yes, under 31 U.S.C. 3726, your agency is required to establish a transportation prepayment audit program. Your agency's Chief Financial Officer (CFO) must approve the prepayment audit program.
(b) Your agency must pay for the prepayment audit program from those funds appropriated for transportation services.
(1) Agencies are encouraged to consider using a GSA Transportation Audits Division approved third party electronic payment processor for transportation invoice processing, payment, and prepayment audit. These electronic payment processors are no cost to the agency and are fully compliant with GSA Transportation Audits Division prepayment audit requirements.
(2) Use of these third party payment processors generally means your agency will not have to provide any additional prepayment or postpayment documentation to GSA Transportation Audits Division.
§ 102-118.275   What must my agency consider when developing a transportation prepayment audit program?
(a) Your agency's transportation prepayment audit program must consider all of the methods that your agency uses to order and pay for passenger, household goods, and freight transportation to include Government contractor-issued charge cards (see § 102-118.35 for definition Government contractor-issued charge cards).
(b) Each method of ordering transportation and transportation services for passenger, household goods, and freight transportation may require a different kind of prepayment audit process. The manner in which your agency orders or procures transportation services determines how and by whom the bill for those services will be presented. 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.
(c) The prepayment audit cannot be conducted by the same firm providing the transportation services for the agency. If a move manager is being utilized, the move manager may not have any affiliation with or financial interest in the transportation company providing the transportation services for which the prepayment audit is being conducted. Contracts with charge card companies that provide prepayment audit services are a valid option. The agency can choose to—
(1) Create an internal prepayment audit program;
(2) Contract directly with a prepayment audit service provider;
(3) Use the services of a prepayment audit contractor under GSA's multiple award schedule covering audit services, including transportation prepayment audit services (541211 Auditing Services); or
(4) Use a third-party payment system (TPPS) or charge card company that includes prepayment audit functions.
(d) An appeals process must be established for a TSP to appeal any reduction in the amount billed. It is recommended the agency establish an electronic appeal process that will direct TSP-filed appeals to an agency official for determination of the claim.
(e) A process to ensure that all agency transportation procurement and related documents including contracts and tenders are submitted electronically to GSA Transportation Audits Division.
(f) Use of GSA Transportation Audits Division's Prepayment Audit Program template is recommended (contact Audit.Policy@gsa.gov for a copy of the template). If the template is not used, provide the same information listed on the template to GSA Transportation Audits Division.
§ 102-118.280   Must all transportation payment records, whether they are electronic or paper, undergo a prepayment audit?
Yes, all transportation bills and payment records, whether they are electronic or paper, must undergo a prepayment audit with the following exceptions:
(a) Your agency's prepayment audit program uses a statistical sampling technique of the bills. If your agency chooses to use statistical sampling, all bills must be
(1) Within the specified limits established by the Comptroller General (31 U.S.C. 3521(b)); and
(2) In compliance with the U.S. Government Accountability Office Using Statistical Sampling (GAO/PEMD-10.1.6), Rev. 1992, Chapter 7 Random Selection Procedures obtainable from http://www.gao.gov; or
(b) The Administrator of General Services grants your agency a specific exemption from the prepayment audit requirement which may include bills determined to be below your agency's threshold, mode or modes of transportation, or for an agency or subagency.
§ 102-118.285   What must be included in an agency's transportation prepayment audit program?
The agency prepayment audit program must include—
(a) The agency's CFO approval of the transportation prepayment audit program with submission to GSA Transportation Audits Division;
(b) Compliance with the Prompt Payment Act (31 U.S.C. 3901, et seq. );
(c) Assurance that each TSP bill or employee travel voucher contains appropriate 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;
(d) Verification of all transportation bills against filed rates and charges before payment;
(e) Agencies must use GSA Transportation Audits Division's electronic commerce system, TAMS, to fulfill all monthly reporting requirements. Filing all documents through TAMS ensures that GSA Transportation Audits Division will properly maintain and store transportation records, including paid transportation bills, in accordance with the General Records Schedule 1.1 et seq. (36 CFR part 1220). GSA will also arrange for storage of any document requiring special handling, such as bankruptcy and court cases. These bills will be retained pursuant to 44 U.S.C. 3309 until claims have been settled.
(f) A minimum dollar threshold for transportation bills subject to audit;
(g) A statement in a cost reimbursable contracts contract or rate tender that the contractor shall submit to the address and in the electronic format identified for prepayment audit, transportation documents which show that the United States will assume freight charges that were paid by the contractor. 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 Government audits (Federal Acquisition Regulation (FAR) 52.247-67);
(h) Require your agency's paying office to offset, if directed by GSA's Transportation Audits Division, debts from amounts owed to the TSP within the 3 years (31 U.S.C. 3726(d));
(i) A process to ensure complete and accurate audits of all transportation bills and notification to the TSP of any adjustment within 7 calendar days of receipt of the bill;
(j) An appeals process as part of the approved prepayment audit program for a TSP to appeal any reduction in the amount billed. Refer to § 102-118.295 for details regarding the appeals process.
(k) Accurate notices and agency procedures for notifying the TSPs with a detailed description of the reasons for any full or partial rejection of the stated charges on the invoice. Refer to § 102-118.290 for notice requirements; and
(l) A unique agency numbering system to handle commercial paper and practices (see § 102-118.55 for information on administrative procedures your agency must establish).
§ 102-118.290   Must my agency notify the TSP of any adjustment to the TSP bill?
(a) Yes, your agency must notify the TSP of any adjustment to the TSP bill either electronically or in writing within seven calendar days of the agency receipt of the bill.
(b) This notice must include:
(1) TSP's bill number;
(2) Agency name;
(3) TSP's TIN;
(4) SCAC;
(5) DRN;
(6) Date invoice submitted;
(7) Amount billed;
(8) Date invoice was approved for payment;
(9) Date and amount agency paid;
(10) Payment location number and agency organization name;
(11) Payment voucher number;
(12) Complete contract, tender or tariff authority, including item or section number;
(13) Reason for the adjustment; and
(14) Complete information on the agency appeal process.
(c) A TSP must submit claims to the agency within three years under the guidelines established in subpart F, Claims and Appeals Procedures, of this part.
§ 102-118.295   Does my agency transportation prepayment audit program need to establish appeal procedures?
Yes, your agency must establish, in the approved prepayment audit program, an appeals process for a TSP to appeal any reduction in the amount billed. It is recommended the agency establish an electronic appeal process that will direct TSP-filed appeals to an agency official for determination of the claim. Your agency must complete the review of the appeal and inform the TSP of the agency determination within 30 calendar days of the receipt of the appeal, either electronically or in writing.
§ 102-118.300   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 must submit, within 30 calendar days, all relevant transportation documentation associated with the dispute, including a complete billing history and the appropriation or fund charged, to GSA Transportation Audits Division via TAMS ( https://tams.gsa.gov ), or by email to Audit.Policy@gsa.gov” .
(b) The GSA Transportation Audits Division will review the appeal of an agency's final, full, or partial denial of a claim and issue a decision within 30 calendar days of receipt of appeal.
(c) A TSP must submit claims to the agency within three years under the guidelines established in subpart F of this part.
§ 102-118.305   What information must be on all transportation payment records that have completed my agency's prepayment audit?
(a) The following information must be annotated on all transportation payment records, electronically or on paper, that have completed your agency's prepayment audit and for submission to GSA Transportation Audits Division:
(1) The date the bill was received from a TSP;
(2) A TSP's invoice number;
(3) Your agency name;
(4) DRN;
(5) Amount billed;
(6) Date invoice was approved for payment;
(7) Date and amount agency paid;
(8) Payment location code number and office or organization name;
(9) Payment voucher number;
(10) Complete contract, tender or tariff authority, including item or section number;
(11) The TSP's TIN;
(12) The TSP's SCAC;
(13) The auditor's authorization code or initials; and
(14) A copy of any statement of difference and the date it was sent to the TSP.
(b) Your agency can find added guidance in the “U.S. Government Freight Transportation Handbook.” This handbook is located at www.gsa.gov/transaudits.
§ 102-118.310   What does the GSA Transportation Audits Division consider when verifying an agency prepayment audit program?
GSA Transportation Audit Division bases verification of agency prepayment audit programs on objective cost-savings, paperwork reductions, current audit standards, and other positive improvements, as well as adherence to the guidelines listed in this part.
§ 102-118.315   How does my agency contact the GSA Transportation Audits Division?
Your agency may contact the GSA Transportation Audits Division at Audit.Policy@gsa.gov.
§ 102-118.320   What action should my agency take if the agency's transportation prepayment audit program changes?
(a) If your agency's transportation prepayment audit program changes in any way to include changes in prepayment auditors, your agency must submit the CFO-approved revised transportation prepayment audit program to GSA Transportation Audits Division via email at Audit.Policy@gsa.gov, Subject line: Agency PPA-Revised.
(b) If GSA determines the agency's approved plan is insufficient, GSA will contact the agency CFO to inform of the prepayment audit program deficiencies and request corrective action and resubmission to GSA Transportation Audits Division.
§ 102-118.325   Does establishing an agency Chief Financial Officer-approved transportation prepayment audit program change the responsibilities of the certifying officers?
No, in a prepayment audit program, the official certifying a transportation voucher is held liable for verifying transportation rates, freight classifications, and other information provided on a transportation billing instrument or transportation request undergoing a prepayment audit (31 U.S.C. 3528).
§ 102-118.330   Does a transportation prepayment audit waiver change any liabilities of the certifying officer?
Yes, a certifying official is not personally liable for verifying transportation rates, freight classifications, or other information provided on a bill of lading or passenger transportation request when the Administrator of General Services or designee waives the prepayment audit requirement and your agency uses postpayment audits.
§ 102-118.335   What relief from liability is available for the certifying official under a transportation postpayment audit?
The agency counsel relieves a certifying official from liability for transportation overpayments in cases where—
(a) Postpayment is the approved method of auditing;
(b) The overpayment occurred solely because the administrative review before payment did not verify transportation rates; and
(c) 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 agreement.
§ 102-118.340   Do the requirements of a transportation prepayment audit change the disbursing official's liability for overpayment?
No, the disbursing official has a liability for overpayments on all transportation bills subject to prepayment audit (31 U.S.C. 3322).
§ 102-118.345   Where does relief from transportation 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).