24568 Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / Rules and Regulations

GENERAL SERVICES

ADMINISTRATION

41 CFR Parts 101–41 and 102–118

[FPMR Amendment G–115]

RIN 3090–AH15

Transportation Payment and Audit

AGENCY: Office of Governmentwide

Policy, GSA.

ACTION: Final rule.

SUMMARY: The General Services

Administration (GSA) is revising the

Federal Property Management

Regulations (FPMR) by moving coverage

on transportation payment and audit

into the Federal Management Regulation

(FMR). A cross-reference is added to the

FPMR to direct readers to the coverage

in the FMR. The FMR coverage is

written in plain language to provide

agencies with updated regulatory

material that is easy to read and

understand.

DATES: Effective Date: This final rule is

effective April 20, 2000.

Applicability Date: In order to protect

the interests of the Government, the

Administrator of General Services grants

a waiver to the prepayment audit

provisions for all agencies who do not

have a verified audit system by April 20,

2000. This exemption for agencies will

extend until October 1, 2000 or the

issuance of an approved agency

transportation prepayment audit plan,

whichever occurs first, to allow agencies

a reasonable time to incorporate these

regulations into transportation

prepayment audit plans and to allow

agencies to coordinate the GSA’s

regulations with the proper fiscal

systems.

FOR FURTHER INFORMATION CONTACT: Mr.

Ed Davis, Program Analyst,

Transportation Management Policy

Division, Office of Governmentwide

Policy, General Services

Administration, at 202–208–7638, or Email at ed.davis@gsa.gov.

SUPPLEMENTARY INFORMATION:

A. Background

In response to President Clinton’s

mandate to Federal agencies to make

communication with the public more

understandable, GSA is revising and

clarifying the transportation

management policies by:

(1) Writing them in plain language

and making substantive changes; and

(2) Allowing the use of commercial

bills of lading and electronic commerce.

This rewrite incorporates Public Law

105–264, section 3, which amended 31

U.S.C. 3322, 31 U.S.C. 3528, and 31

U.S.C. 3726. The major change required

is the mandatory use of prepayment

audits for transportation billings.

The Federal Management Regulation

(FMR) is in the question and answer

format. Question and answer format is

an effective way to engage the reader

and to break the information into

manageable pieces. The FMR asks

questions in the first person, as the user

would. It then answers the questions in

the second and third person. The FMR

addresses the agency in the singular.

B. Substantive Changes

This final rule clarifies existing

transportation payment and audit

requirements and makes substantive

changes in this final rule.

We implement the mandatory use of

prepayment audits, as required by

Public Law 105–264, section 3, which

amended 31 U.S.C. 3322, 31 U.S.C.

3528, and 31 U.S.C. 3726. Under a

prepayment audit, the agency will keep

more of its transportation dollars, by

verifying transportation billings to

eliminate potential overpayments.

We encourage agencies to expand the

use of charge cards, commercial bills of

lading, and electronic payment methods

in place of the Government forms

(Government Bill Of Lading and

Government Transportation Request)

used currently. The use of electronic

bills of lading and existing commercial

forms are the preferred methods to

decrease the need for paperwork,

retention of duplicate copies, and to

lessen stockpiles of archived paper files

and storage space.

The appeals process for a claim must

begin within an agency and the first

level of appeal must be handled at an

appropriate level within the agency. In

exchange for keeping funds through the

use of prepayment audits, agencies will

have responsibilities related to the setup

and function of their prepayment audit

programs.

FMR part 118 affects any department

or establishment of the Federal

Government defined by 5 U.S.C. 305,

whose payment for transportation

services are subject to the transportation

audit provisions of section 322 of the

Transportation Act of 1940, as amended

(31 U.S.C. 3726).

A proposed rule was published on

February 22, 2000, at 65 FR 8818.

Comments were received from nine

agencies and no members of the public.

All comments were considered in the

formulation of the final rule and, as a

result, a number of changes were made

to the proposed rule.

C. Executive Order 12866

GSA has determined that this final

rule is not a significant regulatory action

for the purposes of Executive Order

12866 of September 30, 1993.

D. Regulatory Flexibility Act

This final rule will not have a

significant economic impact on a

substantial number of small entities

within the meaning of the Regulatory

Flexibility Act, 5 U.S.C. 601, et seq.,

because the rule only applies to internal

agency management and will not have

a significant effect on the public.

E. Paperwork Reduction Act

The Paperwork Reduction Act does

not apply because this final rule does

not impose recordkeeping or

information collection requirements, or

the collection of information from

offerors, contractors, or members of the

public which require the approval of the

Office of Management and Budget

(OMB) under 44 U.S.C. 3501, et seq.

F. Small Business Regulatory

Enforcement Fairness Act

This final rule is exempt from

Congressional review under 5 U.S.C.

801 since it relates solely to agency

management and personnel.

List of Subjects in 41 CFR Parts 101–41

and 102–118

Accounting, Claims, Government

property management, Surplus

Government property, Reporting and

recordkeeping requirements,

Transportation.

For the reasons set forth in the

preamble, 41 CFR chapters 101 and 102

are amended as follows:

CHAPTER 101—[AMENDED]

1. Part 101–41 is revised to read as

follows:

PART 101–41—TRANSPORTATION

DOCUMENTATION AND AUDIT

Authority: 31 U.S.C. 3726; and 40 U.S.C.

486(c).

§ 101–41.000 Cross-reference to the

Federal Management Regulation (FMR) (41

CFR chapter 102, parts 102–1 through 102–

220).

For transportation payment and audit

policy, see FMR part 102–118 (41 CFR

part 102–118).

CHAPTER 102—[AMENDED]

2. Part 102–118 is added to

subchapter D to read as follows:

Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / Rules and Regulations 24569

PART 102–118—TRANSPORTATION

PAYMENT AND AUDIT

Subpart A—General

Introduction

Sec.

102–118.5 What is the purpose of this part?

102–118.10 What is a transportation audit?

102–118.15 What is a transportation

payment?

102–118.20 Who is subject to this part?

102–118.25 Does GSA still require my

agency to submit its overall

transportation policies for approval?

102–118.30 Are Government corporations

bound by this part?

Definitions

102–118.35 What definitions apply to this

part?

Subpart B—Ordering and Paying for

Transportation and Transportation Services

102–118.40 How does my agency order

transportation and transportation

services?

102–118.45 How does a transportation

service provider (TSP) bill my agency for

transportation and transportation

services?

102–118.50 How does my agency pay for

transportation services?

102–118.55 What administrative

procedures must my agency establish for

payment of freight, household goods, or

other transportation services?

102–118.60 To what extent must my agency

use electronic commerce?

102–118.65 Can my agency receive

electronic billing for payment of

transportation services?

102–118.70 Must my agency make all

payments via electronic funds transfer?

102–118.75 What if my agency or the TSP

does not have an account with a

financial institution or approved

payment agent?

102–118.80 Who is responsible for keeping

my agency’s electronic commerce

transportation billing records?

102–118.85 Can my agency use a

Government contractor issued charge

card to pay for transportation services?

102–118.90 If my agency orders

transportation and/or transportation

services with a Government contractor

issued charge card or charge account

citation, is this subject to prepayment

audit?

102–118.95 What forms can my agency use

to pay transportation bills?

102–118.100 What must my agency ensure

is on each SF 1113?

102–118.105 Where can I find the rules

governing the use of a Government Bill

of Lading?

102–118.110 Where can I find the rules

governing the use of a Government

Transportation Request?

102–118.115 Must my agency use a GBL?

102–118.120 Must my agency use a GTR?

102–118.125 What if my agency uses a TD

other than a GBL?

102–118.130 Must my agency use a GBL for

express, courier, or small package

shipments?

102–118.135 Where are the mandatory

terms and conditions governing the use

of bills of lading?

102–118.140 What are the major mandatory

terms and conditions governing the use

of GBLs and bills of lading?

102–118.145 Where are the mandatory

terms and conditions governing the use

of passenger transportation documents?

102–118.150 What are the major mandatory

terms and conditions governing the use

of passenger transportation documents?

102–118.155 How does my agency handle

supplemental billings from the TSP after

payment of the original bill?

102–118.160 Who is liable if my agency

makes an overpayment on a

transportation bill?

102–118.165 What must my agency do if it

finds an error on a TSP bill?

102–118.170 Will GSA continue to

maintain a centralized numbering system

for Government transportation

documents?

Subpart C—Use of Government Billing

Documents

Terms and Conditions Governing

Acceptance and Use of a Government Bill of

Lading (GBL) or Government Transportation

Request (GTR) (Until Form Retirement)

102–118.175 Must my agency prepare for

the GBL retirement?

102–118.180 Must my agency prepare for

the GTR retirement?

102–118.185 When buying freight

transportation, must my agency reference

the applicable contract or tender on the

bill of lading (including GBLs)?

102–118.190 When buying passenger

transportation, must my agency reference

the applicable contract?

102–118.195 What documents must a

transportation service provider (TSP)

send to receive payment for a

transportation billing?

102–118.200 Can a TSP demand advance

payment for the transportation charges

submitted on a bill of lading (including

GBL)?

102–118.205 May my agency pay an agent

functioning as a warehouseman for the

TSP providing service under the bill of

lading?

102–118.210 May my agency use bills of

lading other than the GBL for a

transportation shipment?

102–118.215 May my agency pay a TSP any

extra fees to pay for the preparation and

use of the GBL or GTR?

102–118.220 If a transportation debt is

owed to my agency by a TSP because of

loss or damage to property, does my

agency report it to GSA?

102–118.225 What constitutes final receipt

of shipment?

102–118.230 What if my agency creates or

eliminates a field office approved to

prepare transportation documents?

Agency Responsibilities When Using

Government Bills of Lading (GBLs) or

Government Transportation Requests

(GTRs)

102–118.235 Must my agency keep physical

control and accountability of the GBL

and GTR forms or GBL and GTR

numbers?

102–118.240 How does my agency get GBL

and GTR forms?

102–118.245 How does my agency get an

assigned set of GBL or GTR numbers?

102–118.250 Who is accountable for the

issuance and use of GBL and GTR forms?

102–118.255 Are GBL and GTR forms

numbered and used sequentially?

Quotations, Tenders or Contracts

102–118.260 Must my agency send all

quotations, tenders, or contracts with a

TSP to GSA?

Subpart D—Prepayment Audits of

Transportation Services

Agency Requirements for Prepayment

Audits

102–118.265 What is a prepayment audit?

102–118.270 Must my agency establish a

prepayment audit program?

102–118.275 What must my agency

consider when designing and

implementing a prepayment audit

program?

102–118.280 What advantages does the

prepayment audit offer my agency?

102–118.285 What options for performing a

prepayment audit does my agency have?

102–118.290 Must every electronic and

paper transportation bill undergo a

prepayment audit?

102–118.295 What are the limited

exceptions to every bill undergoing a

prepayment audit?

102–118.300 How does my agency fund its

prepayment audit program?

102–118.305 Must my agency notify the

TSP of any adjustment to the TSP’s bill?

102–118.310 Must my agency prepayment

audit program establish appeal

procedures whereby a TSP may appeal

any reduction in the amount billed?

102–118.315 What must my agency do if

the TSP disputes the findings and my

agency cannot resolve the dispute?

102–118.320 What information must be on

transportation bills which have

completed my agency’s prepayment

audit?

Maintaining an Approved Program

102–118.325 Must I get approval for my

agency’s prepayment audit program?

102–118.330 What are the elements of an

acceptable prepayment audit program?

102–118.335 What does the GSA Audit

Division consider when verifying an

agency prepayment audit program?

102–118.340 How does my agency contact

the GSA Audit Division?

102–118.345 If my agency chooses to

change an approved prepayment audit

program, does the program need to be reapproved?

24570 Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / Rules and Regulations

Liability for Certifying and Disbursing

Officers

102–118.350 Does establishing a

prepayment audit system or program

change the responsibilities of the

certifying officers?

102–118.355 Does a prepayment audit

waiver, change any liabilities of the

certifying officer?

102–118.360 What relief from liability is

available for the certifying official under

a postpayment audit?

102–118.365 Do the requirements of a

prepayment audit change the disbursing

official’s liability for overpayment?

102–118.370 Where does relief from

prepayment audit liability for certifying,

accountable, and disbursing officers

reside in my agency?

Waivers From Mandatory Prepayment Audit

102–118.375 Who has the authority to grant

a waiver of the prepayment audit

requirement?

102–118.380 How does my agency apply for

a waiver from the prepayment audit

requirement?

102–118.385 What must a waiver request

include?

102–118.390 On what basis does GSA grant

a waiver to the prepayment audit

requirement?

102–118.395 How long will GSA take to

respond to a waiver request?

102–118.400 Must my agency renew a

waiver of the prepayment audit

requirements?

102–118.405 Are my agency’s prepayment

audited transportation bills subject to

periodic postpayment audit oversight

from the GSA Audit Division?

Suspension of Agency Prepayment Audit

Programs

102–118.410 Can GSA suspend my agency’s

prepayment audit program?

Subpart E—Postpayment Transportation

Audits

102–118.415 Will the widespread

mandatory use of prepayment audits

eliminate postpayment audits?

102–118.420 Can the Administrator of

General Services waive the postpayment

auditing provisions of this subpart?

102–118.425 Is my agency allowed to

perform a postpayment audit on our

transportation bills?

102–118.430 What information must be on

my agency’s transportation bills

submitted for a postpayment audit?

102–118.435 What procedures does GSA

use to perform a postpayment audit?

102–118.440 What are the postpayment

audit responsibilities and roles of the

GSA Audit Division?

102–118.445 Must my agency pay for a

postpayment audit when using the GSA

Audit Division?

Subpart F—Claims and Appeal Procedures

General Agency Information for All Claims

102–118.450 Can a TSP file a transportation

claim against my agency?

102–118.445 What is the time limit for a

TSP to file a transportation claim against

my agency?

102–118.460 What is the time limit for my

agency to file a court claim with a TSP

for freight charges, reparations, and loss

or damage to the property?

102–118.465 Must my agency pay interest

on a disputed amount claimed by a TSP?

102–118.470 Are there statutory time limits

for a TSP on filing an administrative

claim with the GSA Audit Division?

102–118.475 Does interest apply after

certification of payment of claims?

102–118.480 How does my agency settle

disputes with a TSP?

102–118.485 Is there a time limit for my

agency to issue a decision on disputed

claims?

102–118.490 What if my agency fails to

settle a dispute within 30 days?

102–118.495 May my agency appeal a

decision by the General Services Board

of Contract Appeals (GSBCA)?

102–118.500 How does my agency handle a

voluntary refund submitted by a TSP?

102–118.505 Must my agency send a

voluntary refund to the Treasurer of the

United States?

102–118.510 Can my agency revise or alter

a GSA Form 7931, Certificate of

Settlement?

102–118.515 Does my agency have any

recourse not to pay a Certificate of

Settlement?

102–118.520 Who is responsible for

determining the standards for collection,

compromise, termination, or suspension

of collection action on any outstanding

debts to my agency?

102–118.525 What are my agency’s

responsibilities for verifying the correct

amount of transportation charges?

102–118.530 Will GSA instruct my agency’s

disbursing offices to offset unpaid TSP

billings?

102–118.535 Are there principles governing

my agency’s TSP debt collection

procedures?

102–118.540 Who has the authority to

audit, settle accounts, and/or start

collection action for all transportation

services provided for my agency?

Transportation Service Provider (TSP) Filing

Requirements

102–118.545 What information must a TSP

claim include?

102–118.550 How does a TSP file an

administrative claim using EDI or other

electronic means?

102–118.555 Can a TSP file a supplemental

administrative claim?

102–118.560 What is the required format

that a TSP must use to file an

administrative claim?

102–118.565 What documentation is

required when filing an administrative

claim?

Transportation Service Provider (TSP) and

Agency Appeal Procedures for Prepayment

Audits

102–118.570 If my agency denies the TSP’s

challenge to the Statement of Difference,

may the TSP appeal?

102–118.575 If a TSP disagrees with the

decision of my agency, can the TSP

appeal?

102–118.580 May a TSP appeal a

prepayment audit decision of the GSA

Audit Division?

102–118.585 May a TSP appeal a

prepayment audit decision of the

GSBCA?

102–118 .590 May my agency appeal a

prepayment audit decision of the GSA

Audit Division?

102–118.595 May my agency appeal a

prepayment audit decision by the

GSBCA?

Transportation Service Provider (TSP) and

Agency Appeal Procedures for Postpayment

Audits

102–118.600 When a TSP disagrees with a

Notice of Overcharge resulting from a

postpayment audit, what are the appeal

procedures?

102–118.605 What if a TSP disagrees with

the Notice of Indebtedness?

102–118.610 Is a TSP notified when GSA

allows a claim?

102–118.615 Will GSA notify a TSP if they

internally offset a payment?

102–118.620 How will a TSP know if the

GSA Audit Division disallows a claim?

102–118.625 Can a TSP request a

reconsideration of a settlement action by

the GSA Audit Division?

102–118.630 How must a TSP refund

amounts due to GSA?

102–118.635 Can the Government charge

interest on an amount due from a TSP?

102–118.640 If a TSP fails to pay or to

appeal an overcharge, what actions will

GSA pursue to collect the debt?

102–118.645 Can a TSP file an

administrative claim on collection

actions?

102–118.650 Can a TSP request a review of

a settlement action by the Administrator

of General Services?

102–118.655 Are there time limits on a TSP

request for an administrative review by

the GSBCA?

102–118.660 May a TSP appeal a

postpayment audit decision of the

GSBCA?

102–118.665 May my agency appeal a

postpayment audit decision by the

GSBCA?

Transportation Service Provider (TSP) NonPayment of a Claim

102–118.670 If a TSP cannot immediately

pay a debt, can they make other

arrangements for payment?

102–118.675 What recourse does my agency

have if a TSP does not pay a

transportation debt?

Authority: 31 U.S.C. 3726; and 40 U.S.C.

481, et seq.

Subpart A—General

Introduction

§ 102–118.5 What is the purpose of this

part?

The purpose of this part is to interpret

statutes and other policies that assure

Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / Rules and Regulations 24571

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 bills. The audit must examine

the validity, propriety, and conformity

of the charges with tariffs, quotations,

agreements, or tenders, as appropriate.

Each agency must ensure that its

internal transportation audit procedures

prevent duplicate payments and only

allow payment for authorized services,

and that the TSP’s bill is complete with

required documentation.

§ 102–118.15 What is a transportation

payment?

A transportation payment is a

payment made by an agency to a TSP for

the movement of goods or people and/

or transportation related services.

§ 102–118.20 Who is subject to this part?

All agencies and TSPs defined in

§ 102–118.35 are subject to this part.

Your agency is required to incorporate

this part into its internal regulations.

§ 102–118.25 Does GSA still require my

agency to submit its overall transportation

policies for approval?

GSA no longer requires your agency

to submit its overall transportation

policies for approval. However, as noted

in § 102–118.325, agencies must submit

their prepayment audit plans for

approval. In addition, GSA may from

time to time request to examine your

agency’s transportation policies to verify

the correct performance of the

prepayment audit of your agency’s

transportation bills.

§ 102–118.30 Are Government

corporations bound by this part?

No, Government corporations are not

bound by this part. However, they may

choose to use it if they wish.

Definitions

§ 102–118.35 What definitions apply to this

part?

The following definitions apply to

this part:

Agency means Executive agency, but

does not include:

(1) A Government Controlled

Corporation;

(2) The Tennessee Valley Authority;

(3) The Virgin Islands Corporation;

(4) The Atomic Energy Commission;

(5) The Central Intelligence Agency;

(6) The Panama Canal Commission;

and

(7) The National Security Agency,

Department of Defense.

Note to the definition of Agency: All

agencies’ payments for transportation

services are subject to the transportation

audit provisions of section 322 of the

Transportation Act of 1940, as amended (31

U.S.C. 3726).

Agency claim means any demand by

an agency upon a TSP for the payment

of overcharges, ordinary debts, fines,

penalties, administrative fees, special

charges, and interest.

Bill of lading, sometimes referred to as

a commercial bill of lading (but includes

GBLs), is the document used as a receipt

of goods, and documentary evidence of

title. It is also a contract of carriage

when movement is under 49 U.S.C.

10721 and 49 U.S.C. 13712.

Document reference number means

the unique number on a bill of lading,

Government Bill of Lading, Government

Transportation Request, or

transportation ticket, used to track the

movement of shipments and

individuals.

EDI signature means a discrete

authentication code which serves in

place of a paper signature and binds

parties to the terms and conditions of a

contract in electronic communication.

Electronic commerce means electronic

techniques for performing business

transactions (ordering, billing, and

paying for goods and services),

including electronic mail or messaging,

Internet technology, electronic bulletin

boards, charge cards, electronic funds

transfers, and electronic data

interchange.

Electronic data interchange means

electronic techniques for carrying out

transportation transactions using

electronic transmissions of the

information between computers instead

of paper documents. These electronic

transmissions must use established and

published formats and codes as

authorized by the applicable Federal

Information Processing Standards.

Electronic funds transfer means any

transfer of funds, other than transactions

initiated by cash, check, or similar

paper instrument, that is initiated

through an electronic terminal,

telephone, computer, or magnetic tape,

for the purpose of ordering, instructing,

or authorizing a financial institution to

debit or credit an account. The term

includes Automated Clearinghouse

transfers, Fed Wire transfers, and

transfers made at automatic teller

machines and point of sale terminals.

Government Bill of Lading (GBL)

means Optional Forms 1103 and 1203,

the transportation documents issued by

GSA and used as a receipt of goods,

evidence of title, and generally a

contract of carriage.

Government contractor-issued charge

card means both an individually billed

travel card, which the individual is

required to pay, and a centrally billed

account for paying travel expenses,

which the agency is required to pay.

Government Transportation Request

(GTR) means Optional Form 1169, the

Government document used to buy

transportation services. The document

normally obligates the Government to

pay for the transportation services

provided.

Offset means agency use of money

owed by the agency to a transportation

service provider (TSP) to cover a

previous debt incurred to the agency by

the TSP.

Ordinary debt means an amount that

a TSP owes an agency other than for the

repayment of an overcharge. Ordinary

debts include, but are not limited to,

payments for transportation services

ordered and not provided (including

unused transportation tickets), duplicate

payments, and amounts for which a TSP

is liable because of loss and/or damage

to property it transported.

Overcharge means those charges for

transportation and travel services that

exceed those applicable under the

contract for carriage. This also includes

charges more than those applicable

under rates, fares and charges

established pursuant to section 13712

and 10721 of the Revised Interstate

Commerce Act, as amended (49 U.S.C.

13712 and 10721), or other equivalent

contract, arrangement or exemption

from regulation.

Postpayment audit means an audit of

transportation billing documents after

payment to decide their validity,

propriety, and conformity with tariffs,

quotations, agreements, or tenders. This

process may also include subsequent

adjustments and collections actions

taken against a TSP by the Government.

Prepayment audit means an audit of

transportation billing documents before

payment to determine their validity,

propriety, and conformity with tariffs,

quotations, agreements, or tenders.

Privately Owned Personal Property

Government Bill of Lading, Optional

Form 1203, means the agency

transportation document used as a

receipt of goods, evidence of title, and

generally a contract of carriage. It is only

available for the transportation of

household goods. Use of this form is

mandatory for Department of Defense,

but optional for other agencies.

Rate authority means the document

that establishes the legal charges for a

24572 Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / Rules and Regulations

transportation shipment. Charges

included in a rate authority are those

rates, fares, and charges for

transportation and related services

contained in tariffs, tenders, and other

equivalent documents.

Released value is stated in dollars and

is considered the assigned value of the

cargo for reimbursement purposes, not

necessarily the actual value of the cargo.

Released value may be more or less than

the actual value of the cargo. The

released value is the maximum amount

that could be recovered by the agency in

the event of loss or damage for the

shipments of freight and household

goods. In return, when negotiating for

rates and the released value is proposed

to be less than the actual value of the

cargo, the TSP should offer a rate lower

than other rates for shipping cargo at

full value. The statement of released

value may be shown on any applicable

tariff, tender, contract, transportation

document or other documents covering

the shipment.

Reparation means the payment

involving a TSP to or from an agency of

an improper transportation billing as

determined by a postpayment audit.

Improper routing, overcharges, or

duplicate payments may cause such

improper billing. This is different from

payments to settle a claim for loss and

damage to items shipped under those

rates.

Standard carrier alpha code (SCAC)

means an unique four-letter code

assigned to each TSP by the National

Motor Freight Traffic Association, Inc.

Statement of difference means a

statement issued by an agency or its

designated audit contractor during a

prepayment audit when they determine

that a TSP has billed the agency for

more than the proper amount for the

services. This statement tells the TSP on

the invoice, the amount allowed and the

basis for the proper charges. The

statement also cites the applicable rate

references and other data relied on for

support. The agency issues a separate

statement of difference for each

transportation transaction.

Statement of difference rebuttal

means a document used by the agency

to respond to a TSP’s claim about an

improper reduction made against the

TSP’s original bill by the paying agency.

Supplemental bill means a bill for

services that the TSP submits to the

agency for additional payment after

reimbursement for the original bill. The

need to submit a supplemental bill may

occur due to an incorrect first bill or due

to charges which were not included on

the original bill.

Taxpayer identification number (TIN)

means the number required by the

Internal Revenue Service to be used by

the TSP in reporting income tax or other

returns. For a TSP, the TIN is an

employer identification number.

Transportation document (TD) means

any executed agreement for

transportation service, such as a bill of

lading (including a Government Bill of

Lading), a Government Transportation

Request, or transportation ticket.

Transportation service means service

involved in the physical movement

(from one location to another) of

products, people, household goods, and

any other objects by a TSP for an agency

as well as activities directly relating to

or supporting that movement. Examples

of this are storage, crating, or connecting

appliances.

Transportation service provider (TSP)

means any party, person, agent, or

carrier that provides freight or passenger

transportation and related services to an

agency. For a freight shipment this

would include packers, truckers, and

storers. For passenger transportation

this would include airlines, travel

agents and travel management centers.

Transportation service provider claim

means any demand by the TSP for

amounts not included in the original

bill that the TSP believes an agency

owes them. This includes amounts

deducted or offset by an agency;

amounts previously refunded by the

TSP, which they now believe they are

owed; and any subsequent bills from the

TSP resulting from a transaction that

was pre- or postpayment audited by the

GSA Audit Division.

Virtual GBL (VGBL) means the use of

a unique GBL number on a commercial

document, which binds the TSP to the

terms and conditions of a GBL.

Note to § 102–118.35: 49 U.S.C. 13102, et

seq., defines additional transportation terms

not listed in this section.

Subpart B—Ordering and Paying for

Transportation and Transportation

Services

§ 102–118.40 How does my agency order

transportation and transportation services?

Your agency orders:

(a) Transportation of freight and

household goods and related

transportation services (e.g., packing,

storage) with a charge card, bill of

lading, purchase order (or electronic

equivalent), or for domestic shipments

until September 30, 2001, a Government

Bill of Lading (GBL). GBLs will continue

to be available after that date, if needed,

for international shipments (including

domestic overseas shipments).

(b) Transportation of people through

the purchase of transportation tickets

with a Government issued charge card

(or centrally billed travel account

citation), Government issued individual

travel charge card, personal charge card,

cash (in accordance with Department of

the Treasury regulations), or in limited

prescribed situations, a Government

Transportation Request (GTR). See the

‘‘U.S. Government Passenger

Transportation—Handbook,’’ obtainable

from:

General Services Administration

Federal Supply Service

Audit Division (FBA)

1800 F Street, NW.

Washington, DC 20405

http://pub.fss.gsa.gov/transtrav

§ 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

(a) Ordering method (b) Billing method

(1)(i) Government issued agency charge card, ......................... (1) Bill from charge card company (may be electronic).

(ii) Centrally billed travel account citation.

(2)(i) Purchase order, ................................................................ (2) Bill from TSP (may be electronic).

(ii) Bill of lading,

(iii) Government Bill of Lading,

(iv) Government Transportation Request.

(3)(i) Contractor issued individual travel charge card ............... (3) Voucher from employee (may be electronic).

Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / Rules and Regulations 24573

TRANSPORTATION SERVICE PROVIDER BILLING—Continued

(a) Ordering method (b) Billing method

(ii) Personal charge card,

(iii) Personal cash.

§ 102–118.50 How does my agency pay for

transportation services?

Your agency may pay for

transportation services in three ways:

(a) Electronic funds transfer (EFT) (31

U.S.C. 3332, et seq.). Your agency is

required by statute to make all 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 (31 CFR part 208).

§ 102–118.55 What administrative

procedures must my agency establish for

payment of freight, household goods, or

other transportation services?

Your agency must establish

administrative procedures which assure

that the following conditions are met:

(a) The negotiated price is fair and

reasonable;

(b) A document of agreement

signifying acceptance of the

arrangements with terms and conditions

is filed with the 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 should use electronic

commerce (i.e., electronic methods for

ordering, receiving bills, and paying for

transportation and transportation

services) to the maximum extent

possible.

§ 102–118.65 Can my agency receive

electronic billing for payment of

transportation services?

Yes, when mutually agreeable to the

agency and the GSA Audit Division,

your agency is encouraged to use

electronic billing for the procurement

and billing of transportation 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 Commissioner

Financial Management Service

Department of the Treasury

401 Fourteenth Street, SW.

Washington, DC 20227

http://www.fms.treas.gov/

§ 102–118.80 Who is responsible for

keeping my agency’s electronic commerce

transportation billing records?

Your agency’s internal financial

regulations will identify responsibility

for recordkeeping. In addition, the GSA

Audit Division keeps a central

repository of electronic transportation

billing records for legal and auditing

purposes. Therefore, your agency must

forward all relevant electronic

transportation billing documents to:

General Services Administration

Federal Supply Service

Audit Division (FBA)

1800 F Street, NW.

Washington, DC 20405

http://pub.fss.gsa.gov/transtrav

§ 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

Audit Division prior to implementation.

If the charge card contract does not

provide for a prepayment audit, your

agency must submit the transportation

line items on the charge card to the GSA

Audit Division for a postpayment audit.

§ 102–118.95 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;

24574 Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / Rules and Regulations

(b) Optional Form (OF) 1103,

Government Bill of Lading and OF

1103A Memorandum Copy (used for

movement of things, both privately

owned and Government property for

official uses);

(c) OF 1169, Government

Transportation Request (used to pay for

tickets to move people); and

(d) OF 1203, Privately Owned

Personal Property Government Bill of

Lading, and OF 1203A, Memorandum

Copy (used by the Department of

Defense to move private property for

official transfers).

Note to § 102–118.95: By September 30,

2001, your agency may no longer use the

GBLs (OF 1103 and OF 1203) for domestic

shipments. After September 30, 2000, your

agency should minimize the use of GTRs (OF

1169).

§ 102–118.100 What must my agency

ensure is on each SF 1113?

Your agency must ensure during its

prepayment audit of a TSP bill that the

TSP filled out the Public Vouchers, SF

1113, completely including the taxpayer

identification number (TIN), and

standard carrier alpha code (SCAC). An

SF 1113 must accompany all billings.

§ 102–118.105 Where can I find the rules

governing the use of a Government Bill of

Lading?

The ‘‘U.S. Government Freight

Transportation—Handbook’’ contains

information on how to prepare this GBL

form. To get a copy of this handbook,

you may write to:

General Services Administration

Federal Supply Service

Audit Division (FBA)

1800 F Street, NW

Washington, DC 20405

http://pub.fss.gsa.gov/transtrav

§ 102–118.110 Where can I find the rules

governing the use of a Government

Transportation Request?

The ‘‘U.S. Government Passenger

Transportation—Handbook’’ contains

information on how to prepare this GTR

form. To get a copy of this handbook,

you may write to:

General Services Administration

Federal Supply Service

Audit Division (FBA)

1800 F Street, NW

Washington, DC 20405

http://pub.fss.gsa.gov/transtrav

§ 102–118.115 Must my agency use a

GBL?

No, your agency is not required to use

a GBL and must use commercial

payment practices to the maximum

extent possible. Effective September 30,

2001, your agency must phase out the

use of the Optional Forms 1103 and

1203 for domestic shipments. After this

date, your agency may use the GBL

solely for international shipments.

§ 102–118.120 Must my agency use a

GTR?

No, your agency is not required to use

a GTR. Your agency must adopt

commercial practices and eliminate

GTR use to the maximum extent

possible.

§ 102–118.125 What if my agency uses a

TD other than a GBL?

If your agency uses any other TD for

shipping under its account, the requisite

and the named safeguards must be in

place (i.e., terms and conditions found

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. When you are using GSA’s

schedule for small package express

delivery, the terms and conditions of

that contract are binding.

102–118.135 Where are the mandatory

terms and conditions governing the use of

bills of lading?

The mandatory terms and conditions

governing the use of bills of lading are

contained in this part and the ‘‘U.S.

Government Freight Transportation

Handbook.’’

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, the TSP must not demand

prepayment or collect charges from the

consignee. The TSP, providing service

under the bill of lading, must present

the original, properly certified GBL or

bill of lading attached to an SF 1113,

Public Voucher for Transportation

Charges, to the paying office for

payment;

(b) The shipment must be made at the

restricted or limited valuation specified

in the tariff or classification or limited

contract, arrangement or exemption at

or under which the lowest rate is

available, unless indicated on the GBL

or bill of lading. (This is commonly

referred to as an alternation of rates);

(c) Receipt for the shipment is subject

to the consignee’s annotation of loss,

damage, or shrinkage on the delivering

TSP’s documents and the consignee’s

copy of the same documents. If loss or

damage is discovered after delivery or

receipt of the shipment, the consignee

must promptly notify the nearest office

of the last delivering TSP and extend to

the TSP the privilege of examining the

shipment;

(d) The rules and conditions

governing commercial shipments for the

time period within which notice must

be given to the TSP, or a claim must be

filed, or suit must be instituted, shall

not apply if the shipment is lost,

damaged or undergoes shrinkage in

transit. Only with the written

concurrence of the Government official

responsible for making the shipment is

the deletion of this item considered to

valid;

(e) Interest shall accrue from the

voucher payment date on the

overcharges made and shall be paid at

the same rate in effect on that date as

published by the Secretary of the

Treasury pursuant to the Debt

Collection Act of 1982 31 U.S.C. 3717);

and

(f) Additional mandatory terms and

conditions are in this part and the ‘‘U.S.

Government Freight 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. This should be

done by entering the term ‘‘lowest

coach’’ on the Government travel

document if the specific fare basis is not

known;

(b) The U.S. Government is not

responsible for charges exceeding those

applicable to the type, class, or

character authorized in transportation

documents;

Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / Rules and Regulations 24575

(c) The U.S. Government contractorissued 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?

Yes, GSA will maintain a numbering

system for GBLs and GTRs. For

commercial TDs, each agency must

create a unique numbering system to

account for and prevent duplicate

numbers. The GSA Audit Division must

approve this system. Write to:

General Services Administration

Federal supply Service

Audit Division (FBA)

1800 F Street, NW.

Washington, DC 20405

http://pub.fss.gsa.gov/transtrav

Subpart C—Use of Government Billing

Documents

Terms and Conditions Governing

Acceptance and Use of a Government

Bill of Lading (GBL) or Government

Transportation Request (GTR) (Until

Form Retirement)

§ 102–118.175 Must my agency prepare for

the GBL retirement?

Yes, your agency must prepare for the

GBL retirement. Effective September 30,

2001, your agency must phase out the

use of the SF 1103, Government Bill of

Lading, GBL, and SF 1203, Privately

Owned Personal Property Government

Bill of Lading (PPGBLs), for domestic

shipments. After September 30, 2001,

your agency may use the GBL or PPGBL

solely for international shipments

(including domestic overseas

shipments).

§ 102–118.180 Must my agency prepare for

the GTR retirement?

Yes, your agency must use the GTR

only in situations that do not lend

themselves to the use of commercial

payment methods.

§ 102–118.185 When buying freight

transportation, must my agency reference

the applicable contract or tender on the bill

of lading (including a GBL)?

Yes, your agency must reference the

applicable contract or tender when

buying transportation on a bill of lading

(including GBLs). However, the

referenced information on a GBL or bill

of lading does not limit an audit of

charges.

§ 102–118.190 When buying passenger

transportation must my agency reference

the applicable contract?

Yes, when buying passenger

transportation, your agency must

reference the applicable contract on a

GTR or passenger transportation

document (e.g., ticket).

§ 102–118.195 What documents must a

transportation service provider (TSP) send

to receive payment for a transportation

billing?

For shipments bought on a TD, the

TSP must submit an original properly

certified GBL, PPGBL, or bill of lading

attached to an SF 1113, Public Voucher

for Transportation Charges. The TSP

must submit this package and all

supporting documents to the agency

paying office.

§ 102–118.200 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 an

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.

24576 Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / Rules and Regulations

§ 102–118.225 What constitutes final

receipt of shipment?

Final receipt of the shipment occurs

when the consignee or a TSP acting on

behalf of the consignee with the

agency’s permission, fully signs and

dates both the delivering TSP’s

documents and the consignee’s copy of

the same documents indicating delivery

and/or explaining any delay, loss,

damage, or shrinkage of shipment.

§ 102–118.230 What if my agency creates

or eliminates a field office approved to

prepare transportation documents?

Your agency must tell the GSA Audit

Division whenever it approves a new or

existing agency field office to prepare

transportation documents or when an

agency field office is no longer

authorized to do so. This notice must

show the name, field office location of

the bureau or office, and the date on

which your agency granted or canceled

its authority to schedule payments for

transportation service.

Agency Responsibilities When Using

Government Bills of Lading (GBLs) or

Government Transportation Requests

(GTRs)

§ 102–118.235 Must my agency keep

physical control and accountability of the

GBL and GTR forms or GBL and GTR

numbers?

Yes, your agency is responsible for the

physical control and accountability of

the GBL and GTR stock and must have

procedures in place and available for

inspection by GSA. Your agency must

consider these Government

transportation documents to be the same

as money.

§ 102–118.240 How does my agency get

GBL and GTR forms?

Your agency can get GBL and GTR

forms, in either blank or prenumbered

formats, from:

General Services Administration

Federal Supply Service

General Products Commodity Center (7FXM–

WS)

819 Taylor Street, Room 6A24

Fort Worth, TX 76102

§ 102–118.245 How does my agency get an

assigned set of GBL or GTR numbers?

If your agency does not use

prenumbered GBL and GTR forms, you

may get an assigned set of numbers

from:

General Services Administration

Federal Supply Service

General Products Commodity Center (7FXM–

WS)

819 Taylor Street, Room 6A24

Fort Worth, TX 76102

§ 102–118.250 Who is accountable for the

issuance and use of GBL and GTR forms?

Agencies and employees are

responsible for the issuance and use of

GBL and GTR forms and are accountable

for their disposition.

§ 102–118.255 Are GBL and GTR forms

numbered and used sequentially?

Yes, GBL and GTR forms are always

sequentially numbered when printed

and/or used. No other numbering of the

forms, including additions or changes to

the prefixes or additions of suffixes, is

permitted.

Quotations, Tenders or Contracts

§ 102–118.260 Must my agency send all

quotations, tenders, or contracts with a TSP

to GSA?

(a) Yes, your agency must send two

copies of each quotation, tender, or

contract of special rates, fares, charges,

or concessions with TSPs including

those authorized by 49 U.S.C. 10721 and

13712, upon execution to:

General Services Administration

Federal Supply Service

Audit Division (FBA)

1800 F Street, NW.

Washington, DC 20405

http://pub.fss.gsa.gov/transtrav

(b) When this information is in an

electronic format approved by the GSA

Audit Division, your agency will

transfer the information electronically.

Subpart D—Prepayment Audits of

Transportation Services

Agency Requirements for Prepayment

Audits

§ 102–118.265 What is a prepayment

audit?

A prepayment audit is a review of a

transportation service provider (TSP)

bill that occurs prior to your agency

making payment to a TSP. This review

compares the charges on the bill against

the charge permitted under the contract,

rate tender, or other agreement under

which the TSP provided the

transportation and/or transportation

related services.

§ 102–118.270 Must my agency establish a

prepayment audit program?

(a) Yes, under 31 U.S.C. 3726, your

agency is required to establish a

prepayment audit program. Your agency

must send a preliminary copy of your

prepayment audit program to:

General Services Administration

Office of Transportation and Personal

Property (MT)

1800 F Street, NW.

Washington, DC 20405

http://policyworks.gov/org/main/MT

(b) The final plan must be approved

and in place by April 20, 2000.

§ 102–118.275 What must my agency

consider when designing and implementing

a prepayment audit program?

As shown in § 102–118.45, the

manner in which your agency orders

transportation services determines how

and by whom the bill for those services

will be presented. Your agency’s

prepayment audit program must

consider all of the methods that you use

to order and pay for transportation

services. With each method of ordering

transportation services, your agency

should ensure that each TSP bill or

employee travel voucher contains

enough information for the prepayment

audit to determine which contract or

rate tender is used and that the type and

quantity of any additional services are

clearly delineated. Each method of

ordering transportation and

transportation services may require a

different kind of prepayment audit.

§ 102–118.280 What advantages does the

prepayment audit offer my agency?

Prepayment auditing will allow your

agency to detect and eliminate billing

errors before payment and will

eliminate the time and cost of

recovering agency overpayments.

§ 102–118.285 What options for

performing a prepayment audit does my

agency have?

Your agency may perform a

prepayment audit by:

(a) Creating an internal prepayment

audit program;

(b) Contracting directly with a

prepayment audit service provider; or

(c) Using the services of a prepayment

audit contractor under GSA’s multiple

award schedule covering audit and

financial management services.

Note to § 102–118.285: Either of the

choices in paragraph (a), (b) or (c) of this

section might include contracts with charge

card companies that provide prepayment

audit services.

§ 102–118.290 Must every electronic and

paper transportation bill undergo a

prepayment audit?

Yes, all transportation bills and

payments must undergo a prepayment

audit unless your agency’s prepayment

audit program uses a statistical

sampling technique of the bills or the

Administrator of General Services grants

a specific waiver from the prepayment

audit requirement. If your agency

chooses to use statistical sampling, all

bills must be at or below the

Comptroller General specified limit of

$2,500.00 (31 U.S.C. 3521(b) and

General Accounting Office Policy and

Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / Rules and Regulations 24577

Procedures Manual Chapter 7,

obtainable from:

U.S. General Accounting Office

P.O. Box 6015

Gaithersburg, MD 20884–6015

http://www.gao.gov

§ 102–118.295 What are the limited

exceptions to every bill undergoing a

prepayment audit?

The limited exceptions to bills

undergoing a prepayment audit are

those bills subject to a waiver from GSA

(which may include bills determined to

be below your agency’s threshold). The

waiver to prepayment audit

requirements may be for bills, mode or

modes of transportation or for an agency

or subagency.

§ 102–118.300 How does my agency fund

its prepayment audit program?

Your agency must pay for the

prepayment audit from those funds

appropriated for transportation services.

§ 102–118.305 Must my agency notify the

TSP of any adjustment to the TSP’s bill?

Yes, your agency must notify the TSP

of any adjustment to the TSP’s bill

either electronically or in writing within

7 days of receipt of the bill. This notice

must refer to the TSP’s bill number,

agency name, taxpayer identification

number, standard carrier alpha code,

document reference number, amount

billed, amount paid, payment voucher

number, complete tender or tariff

authority, including item or section

number.

§ 102–118.310 Must my agency

prepayment audit program establish appeal

procedures whereby a TSP may appeal any

reduction in the amount billed?

Yes, your agency must establish an

appeal process that directs TSP appeals

to an agency official who is able to

provide adequate consideration and

review of the circumstances of the

claim. Your agency must complete the

review of the appeal within 30 days.

§ 102–118.315 What must my agency do if

the TSP disputes the findings and my

agency cannot resolve the dispute?

(a) If your agency is unable to resolve

the disputed amount with the TSP, your

agency should forward all relevant

documents including a complete billing

history, and the appropriation or fund

charged, to:

General Services Administration

Federal Supply Service

Audit Division (FBA)

1800 F Street, NW.

Washington, DC 20405

http://pub.fss.gsa.gov/transtrav

(b) The GSA Audit Division will

review the appeal of an agency’s final,

full or partial denial of a claim and issue

a decision. A TSP must submit claims

within 3 years under the guidelines

established in § 102–118.460.

§ 102–118.320 What information must be

on transportation bills that have completed

my agency’s prepayment audit?

(a) The following information must be

annotated on all transportation bills that

have completed a prepayment audit:

(1) The date received from a TSP;

(2) A TSP’s bill number;

(3) Your agency name;

(4) A Document Reference Number

(DRN);

(5) The amount billed;

(6) The amount paid;

(7) The payment voucher number;

(8) Complete tender or tariff authority,

including item or section number;

(9) The TSP’s taxpayer identification

number (TIN);

(10) The TSP’s standard carrier alpha

code (SCAC);

(11) The auditor’s authorization code

or initials; and

(12) A copy of any statement of

difference sent to the TSP.

(b) Your agency can find added

guidance in the ‘‘U.S. Government

Freight Transportation—Handbook,’’

obtainable from:

General Services Administration

Federal Supply Service

Audit Division (FBA)

1800 F Street, NW.

Washington, DC 20405

http://pub.fss.gsa.gov/transtrav

Maintaining an Approved Program

§ 102–118.325 Must I get approval for my

agency’s prepayment audit program?

Yes, your agency must get approval

for your prepayment audit program. The

highest level budget or financial official

of each agency, such as the Chief

Financial Officer, initially approves

your agency’s prepayment audit

program. After internal agency approval,

your agency submits the plan in writing

to the GSA Audit Division for final

approval.

§ 102–118.330 What are the elements of an

acceptable prepayment audit program?

An acceptable prepayment audit

program must:

(a) Verify all transportation bills

against filed rates and charges before

payment;

(b) Comply with the Prompt Payment

Act (31 U.S.C. 3901, et seq.);

(c) Allow for your agency to establish

minimum dollar thresholds for

transportation bills subject to audit;

(d) Require your agency’s paying

office to offset debts from amounts owed

to the TSP within the 3 years as per 31

U.S.C. 3726(b);

(e) Be approved by the GSA Audit

Division. After the initial approval, the

agency may be subject to periodic

program review and reapproval;

(f) Complete accurate audits of

transportation bills and notify the TSP

of any adjustment within 7 calendar

days of receipt;

(g) Create accurate notices to the TSPs

that describe in detail the reasons for

any full or partial rejection of the stated

charges on the invoice. An accurate

notice must include the TSP’s invoice

number, the billed amount, TIN,

standard carrier alpha code, the charges

calculated by the agency, and the

specific reasons including applicable

rate authority for the rejection;

(h) Forward documentation monthly

to the GSA Audit Division, which will

store paid transportation bills under the

General Records Schedule 9, Travel and

Transportation (36 CFR Chapter XII,

1228.22) which requires keeping records

for 3 years. GSA will arrange for storage

of any document requiring special

handling (e.g., bankruptcy, court case,

etc.). These bills will be retained

pursuant to 44 U.S.C. 3309 until claims

have been settled;

(i) Establish procedures in which

transportation bills not subject to

prepayment audit (i.e., bills for unused

tickets and charge card billings) are

handled separately and forwarded to the

GSA Audit Division; and

(j) Implement a unique agency

numbering system to handle

commercial paper and practices (see

§ 102–118.55).

§ 102–118.335 What does the GSA Audit

Division consider when verifying an agency

prepayment audit program?

The GSA Audit Division bases

verification of agency 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.

§ 102–118.340 How does my agency

contact the GSA Audit Division?

Your agency may contact the GSA

Audit Division by writing to:

General Services Administration

Federal Supply Service

Audit Division (FBA)

1800 F Street, NW.

Washington, DC 20405

http://pub.fss.gsa.gov/transtrav

§ 102–118.345 If my agency chooses to

change an approved prepayment audit

program, does the program need to be

reapproved?

Yes, you must receive approval of any

changes in your agency’s prepayment

24578 Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / Rules and Regulations

audit program from the GSA Audit

Division.

Liability for Certifying and Disbursing

Officers

§ 102–118.350 Does establishing a

prepayment audit system or program

change the responsibilities of the certifying

officers?

Yes, in a prepayment audit

environment, an official 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).

§ 102–118.355 Does a 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 GBL or passenger

transportation request when the

Administrator of General Services or

designee waives the prepayment audit

requirement and your agency uses

postpayment audits.

§ 102–118.360 What relief from liability is

available for the certifying official under a

postpayment audit?

The agency counsel relieves a

certifying official from liability for

overpayments in cases where

postpayment is the approved method of

auditing and:

(a) The overpayment occurred solely

because the administrative review

before payment did not verify

transportation rates; and

(b) The overpayment was the result of

using improper transportation rates or

freight classifications or the failure to

deduct the correct amount under a land

grant law or agreement.

§ 102–118.365 Do the requirements of a

prepayment audit change the disbursing

official’s liability for overpayment?

Yes, the disbursing official has a

liability for overpayments on all

transportation bills subject to

prepayment audit (31 U.S.C. 3322).

§ 102–118.370 Where does relief from

prepayment audit liability for certifying,

accountable, and disbursing officers reside

in my agency?

Your agency’s counsel has the

authority to relieve liability and give

advance opinions on liability issues to

certifying, accountable, and disbursing

officers (31 U.S.C. 3527).

Waivers from Mandatory Prepayment

Audit

§ 102–118.375 Who has the authority to

grant a waiver of the prepayment audit

requirement?

Only the Administrator of General

Services or designee has the authority to

grant waivers from the prepayment

audit requirement.

§ 102–118.380 How does my agency apply

for a waiver from a prepayment audit of

requirement?

Your agency must submit a request for

a waiver from the requirement to

perform a prepayment in writing to:

General Services Administration

Office of Transportation and Personal

Property (MT)

1800 F Street, NW.

Washington, DC 20405

http://policyworks.gov/org/main/MT

§ 102–118.385 What must a waiver request

include?

A waiver request must explain in

detail how the use of a prepayment

audit increases costs over a

postpayment audit, decreases efficiency,

involves a relevant public interest,

adversely affects the agency’s mission,

or is not feasible for the agency. A

waiver request must identify the mode

or modes of transportation, agency or

subagency to which the waiver would

apply.

§ 102–118.390 On what basis does GSA

grant a waiver to the prepayment audit

requirement?

GSA issues waivers to the prepayment

audit requirement based on:

(a) Cost-effectiveness;

(b) Government efficiency;

(c) Public interest; or

(d) Other factors the Administrator of

General Services considers appropriate.

§ 102–118.395 How long will GSA take to

respond to a waiver request?

GSA will respond to a written waiver

request within 30 days from the receipt

of the request.

§ 102–118.400 Must my agency renew a

waiver of the prepayment audit

requirements?

Yes, your agency waiver to the

prepayment audit requirement will not

exceed 2 years. Your agency must

reapply to ensure the circumstances at

the time of approval still apply.

§ 102–118.405 Are my agency’s

prepayment audited transportation bills

subject to periodic postpayment audit

oversight from the GSA Audit Division?

Yes, two years or more after starting

prepayment audits, the GSA Audit

Division (depending on its evaluation of

the results) may subject your agency’s

prepayment audited transportation bills

to periodic postpayment audit oversight

rather than blanket postpayment audits.

The GSA Audit Division will then

prepare a report analyzing the success of

your agency’s prepayment audit

program. This report will be on file at

GSA and available for your review.

Suspension of Agency Prepayment

Audit Programs

§ 102–118.410 Can GSA suspend my

agency’s prepayment audit program?

(a) Yes, the Director of the GSA Audit

Division may suspend your agency’s

prepayment audit program based on his

or her determination of a systematic or

frequent failure of the program to:

(1) Conduct an accurate prepayment

audit of your agency’s transportation

bills;

(2) Abide by the terms of the Prompt

Payment Act;

(3) Adjudicate TSP claims disputing

prepayment audit positions of the

agency regularly within 30 days of

receipt;

(4) Follow Comptroller General

decisions, GSA Board of Contract

Appeals decisions, the Federal

Management Regulation and GSA

instructions or precedents about

substantive and procedure matters; and/

or

(5) Provide information and data or to

cooperate with on-site inspections

necessary to conduct a quality assurance

review.

(b) A systematic or a multitude of

individual failures will result in

suspension. A suspension of an agency’s

prepayment audit program may be in

whole or in part for failure to conduct

proper prepayment audits.

Subpart E—Postpayment

Transportation Audits

§ 102–118.415 Will the widespread

mandatory use of prepayment audits

eliminate postpayment audits?

No, the mandatory use of prepayment

audits will not eliminate postpayment

audits because:

(a) Postpayment audits will continue

for those areas which do not lend

themselves to the prepayment audit;

and

(b) The GSA Audit Division will

continue to review and survey the

progress of the prepayment audit by

performing a postpayment audit on the

bills. The GSA Audit Division has a

Congressionally mandated

responsibility under 31 U.S.C. 3726 to

perform oversight on transportation bill

payments. During the early startup

period for prepayment audits,

transportation bills are subject to a

Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / Rules and Regulations 24579

possible postpayment audit to discover

the effectiveness of the prepayment

audit process.

§ 102–118.420 Can the Administrator of

General Services waive the postpayment

auditing provisions of this subpart?

Yes, in certain circumstances, the

Administrator of General Services or

designee may waive the postpayment

audit oversight requirements of this

subpart on a case by case basis.

§ 102–118.425 Is my agency allowed to

perform a postpayment audit on our

transportation bills?

No, your agency must forward all

transportation bills to GSA for a

postpayment audit regardless of any

waiver allowing for postpayment audit.

§ 102–118.430 What information must be

on my agency’s transportation bills

submitted for a postpayment audit?

Your agency must annotate all of its

transportation bills submitted for

postpayment audit with:

(a) The date received from a TSP;

(b) A TSP’s bill number;

(c) Your agency name;

(d) A Document Reference Number;

(e) The amount requested;

(f) The amount paid;

(g) The payment voucher number;

(h) Complete tender or tariff authority,

including contract price (if purchased

under the Federal Acquisition

Regulation), item or section number;

(i) The TSP’s taxpayer identification

number; and

(j) The TSP’s standard carrier alpha

code (SCAC).

§ 102–118.435 What procedures does GSA

use to perform a postpayment audit?

When GSA performs a postpayment

audit, the GSA Audit Division has the

delegated authority to implement the

following procedures:

(a) Audit selected TSP bills after

payment;

(b) Audit selected TSP bills before

payment as needed to protect the

Government’s interest (i.e., bankruptcy,

fraud);

(c) Examine, settle, and adjust

accounts involving payment for

transportation and related services for

the account of agencies;

(d) Adjudicate and settle

transportation claims by and against

agencies;

(e) Offset an overcharge by any TSP

from an amount subsequently found to

be due that TSP;

(f) Issue a Notice of Overcharge stating

that a TSP owes a debt to the agency.

This notice states the amount paid, the

basis for the proper charge for the

document reference number, and cites

applicable tariff or tender along with

other data relied on to support the

overcharge. A separate Notice of

Overcharge is prepared and mailed for

each bill; and

(g) Issue a GSA Notice of

Indebtedness when a TSP owes an

ordinary debt to an agency. This notice

states the basis for the debt, the TSP’s

rights, interest, penalty, and other

results of nonpayment. The debt is due

immediately and subject to interest

charges, penalties, and administrative

cost under 31 U.S.C. 3717.

§ 102–118.440 What are the postpayment

audit responsibilities and roles of the GSA

Audit Division?

When the GSA Audit Division

performs a postpayment audit for your

agency, GSA will:

(a) Examine and analyze payments to

discover their validity, relevance and

conformity with tariffs, quotations,

contracts, agreements or tenders and

make adjustments to protect the interest

of an agency;

(b) Examine, adjudicate, and settle

transportation claims by and against the

agency;

(c) Collect from TSPs by refund,

setoff, offset or other means, the

amounts determined to be due the

agency;

(d) Adjust, terminate or suspend debts

due on TSP overcharges;

(e) Prepare reports to the Attorney

General of the United States with

recommendations about the legal and

technical bases available for use in

prosecuting or defending suits by or

against an agency and provide technical,

fiscal, and factual data from relevant

records;

(f) Provide transportation specialists

and lawyers to serve as expert

witnesses, assist in pretrial conferences,

draft pleadings, orders, and briefs, and

participate as requested in connection

with transportation suits by or against

an agency;

(g) Review agency policies, programs,

and procedures to determine their

adequacy and effectiveness in the audit

of freight or passenger transportation

payments, and review related fiscal and

transportation practices;

(h) Furnish information on rates,

fares, routes, and related technical data

upon request;

(i) Tell an agency of irregular shipping

routing practices, inadequate

commodity descriptions, excessive

transportation cost authorizations, and

unsound principles employed in traffic

and transportation management; and

(j) Confer with individual TSPs or

related groups and associations

presenting specific modes of

transportation to resolve mutual

problems concerning technical and

accounting matters and acquainting

them with agency requirements.

§ 102–118.445 Must my agency pay for a

postpayment audit when using the GSA

Audit Division?

No, the expenses of postpayment

audit contract administration and auditrelated functions are financed from

overpayments collected from the TSP’s

bills previously paid by the agency and

similar type of refunds.

Subpart F—Claims and Appeal

Procedures

General Agency Information for All

Claims

§ 102–118.450 Can a TSP file a

transportation claim against my agency?

Yes, a TSP may file a transportation

claim against your agency under 31

U.S.C. 3726 for:

(a) Amounts owed but not included in

the original billing;

(b) Amounts deducted or set off by an

agency that are disputed by the TSP;

(c) Requests by a TSP for amounts

previously refunded in error by that

TSP; and/or

(d) Unpaid original bills requiring

direct settlement by GSA, including

those subject to doubt about the

suitability of payment (mainly

bankruptcy or fraud).

§ 102–118.455 What is the time limit for a

TSP to file a transportation claim against

my agency?

The time limits on a TSP

transportation claim against the

Government differ by mode as shown in

the following table:

TIME LIMITS ON ACTIONS TAKEN BY TSP

Mode Freight charges Statute

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

24580 Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / Rules and Regulations

TIME LIMITS ON ACTIONS TAKEN BY TSP—Continued

Mode Freight charges Statute

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

(c) Freight Forwarders (subject to the IC Act) ..... 3 years .......................... 49 U.S.C. 14705(f).

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

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

(f) Water (subject to the IC Act) ........................... 3 years .......................... 49 U.S.C. 14705(f).

(g) Water (not subject to the IC Act) .................... 2 years .......................... 46 U.S.C. 745.

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

§ 102–118.460 What is the time limit for my

agency to file a court claim with a TSP for

freight charges, reparations, and loss or

damage to the property?

Statutory time limits vary depending

on the mode and the service involved

and may involve freight charges. The

following tables list the time limits:

(A) TIME LIMITS ON ACTIONS TAKEN BY THE FEDERAL GOVERNMENT AGAINST TSPS

Mode Freight charges Reparations Loss and damage

(1) Rail ................................... 3 years ..................................

49 U.S.C. 11705 ...................

3 years ..................................

49 U.S.C. 11705 ...................

6 years.

28 U.S.C. 2415.

(2) Motor ................................ 3 years ..................................

49 U.S.C. ...............................

14705(f) .................................

3 years ..................................

49 U.S.C. ...............................

14705(f) .................................

6 years.

28 U.S.C. 2415.

(3) Freight Forwarders subject

to the IC Act.

3 years ..................................

49 U.S.C. ...............................

14705(f) .................................

3 years ..................................

49 U.S.C. ...............................

14705(f) .................................

6 years.

28 U.S.C. 2415.

(4) Water (subject to the IC

Act).

3 years ..................................

49 U.S.C. ...............................

14705(f) .................................

3 years ..................................

49 U.S.C. ...............................

14705(f) .................................

6 years.

28 U.S.C. 2415.

(5) Water (not subject to the

IC Act).

6 years 28 U.S.C. 2415 ........ 2 years 46 U.S.C. 821 .......... 1 year.

46 U.S.C.

1303(6) (if subject to Carriage of Goods by Sear

Act, 46 U.S.C. 1300–

1315).

(6) Domestic Air ..................... 6 years ..................................

28 U.S.C. 2415 .....................

................................................ 6 years.

28 U.S.C. 2415.

(7) International Air ................ 6 years ..................................

28 U.S.C. 2415 .....................

................................................ 2 years.

49 U.S.C. 40105.

(B) Time Limits on Actions Taken by the Federal Government Against TSPs Exempt From Regulation

Mode Freight Reparations Loss and damage

(1) All ...................................... 6 years ..................................

28 U.S.C. 2415 .....................

................................................ 6 years.

28 U.S.C. 2415.

Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / Rules and Regulations 24581

§ 102–118.465 Must my agency pay

interest on a disputed amount claimed by

a TSP?

No, interest penalties under the

Prompt Payment Act, (31 U.S.C. 3901, et

seq.), are not required when payment is

delayed because of a dispute between an

agency and a TSP.

§ 102–118.470 Are there statutory time

limits for a TSP on filing an administrative

claim with the GSA Audit Division?

Yes, an administrative claim must be

received by the GSA Audit Division or

its designee (the agency where the claim

arose) within 3 years beginning the day

after the latest of the following dates

(except in time of war):

(a) Accrual of the cause of action;

(b) Payment of charges for the

transportation involved;

(c) Subsequent refund for

overpayment of those charges; or

(d) Deductions made to a TSP claim

by the Government under 31 U.S.C.

3726.

§ 102–118.475 Does interest apply after

certification of payment of claims?

Yes, interest under the Prompt

Payment Act (31 U.S.C. 3901, et seq.)

begins 30 days after certification for

payment by GSA.

§ 102–118.480 How does my agency settle

disputes with a TSP?

As a part of the prepayment audit

program, your agency must have a plan

to resolve disputes with a TSP. This

program must allow a TSP to appeal

payment decisions made by your

agency.

§ 102–118.485 Is there a time limit for my

agency to issue a decision on disputed

claims?

Yes, your agency must issue a ruling

on a disputed claim within 30 days of

receipt of the claim.

§ 102–118.490 What if my agency fails to

settle a dispute within 30 days?

(a) If your agency fails to settle a

dispute within 30 days, the TSP may

appeal to:

General Services Administration

Federal Supply Service

Audit Division (FBA)

Code: CC 1800 F Street, NW.

Washington, DC 20405

http://pub.fss.gsa.gov/transtrav

(b) If the TSP disagrees with the

administrative settlement by the Audit

Division, the TSP may appeal to the

General Services Board of Contract

Appeals.

§ 102–118.495 May my agency appeal a

decision by the General Services Board of

Contract Appeals (GSBCA)?

No, your agency may not appeal a

decision made by the GSBCA.

§ 102–118.500 How does my agency

handle a volunary refund submitted by a

TSP?

(a) An agency must report all

voluntary refunds to the GSA Audit

Division (so that no Notice of

Overcharge or financial offset occurs),

unless other arrangements are made

(e.g., charge card refunds, etc.). These

reports must be addressed to:

General Services Administration

Federal Supply Service

Audit Division (FBA)

Code: CC

1800 F Street, NW.

Washington, DC 20405

http://pub.fss.gsa.gov/transtrav

(b) Once a Notice of Overcharge is

issued by the GSA Audit Division, then

any refund is no longer considered

voluntary and the agency must forward

the refund to the GSA Audit Division.

§ 102–118.505 Must my agency send a

voluntary refund to the Treasurer of the

United States?

No, your agency may keep and use

voluntary refunds submitted by a TSP,

if the refund was made prior to a Notice

of Overcharge issued by the GSA Audit

Division.

§ 102–118.510 Can my agency revise or

alter a GSA Form 7931, Certificate of

Settlement?

Generally, no, an agency must not

revise or alter amounts on a GSA Form

7931. The only change an agency can

make to a GSA Form 7931 is to change

the agency financial data to a correct

cite. Any GSA Form 7931 that cannot be

paid (e.g., an amount previously paid),

must be immediately returned to the

GSA Audit Division with an

explanation.

§ 102–118.515 Does my agency have any

recourse not to pay a Certificate of

Settlement?

No, a Certificate of Settlement is the

final administrative action.

§ 102–118.520 Who is responsible for

determining the standards for collection,

compromise, termination, or suspension of

collection action on any outstanding debts

to my agency?

Under the Federal Claims Collection

Act of 1966, as amended (31 U.S.C.

3711, et seq.), the Comptroller General

and the Attorney General have joint

responsibility for issuing standards for

your agency.

§ 102–118.525 What are my agency’s

responsibilities for verifying the correct

amount of transportation charges?

Your agency’s employees are

responsible for diligently verifying the

correct amount of transportation charges

prior to payment (31 U.S.C. 3527).

§ 102–118.530 Will GSA instruct my

agency’s disbursing offices to offset unpaid

TSP billings?

Yes, GSA will instruct one or more of

your agency’s disbursing offices to

deduct the amount due from an unpaid

TSP’s bill. A 3-year limitation applies

on the deduction of overcharges from

amounts due a TSP (31 U.S.C. 3726) and

a 10-year limitation applies on the

deduction of ordinary debts (31 U.S.C.

3716).

§ 102–118.535 Are there principles

governing my agency’s TSP debt collection

procedures?

Yes, the principles governing your

agency collection procedures for

reporting debts to the General

Accounting Office (GAO) or the

Department of Justice are found in 4

CFR parts 101 through 105 and in the

GAO Policy and Procedures Manual for

Guidance of Federal Agencies. The

manual may be obtained by writing:

Superintendent of Documents

Government Printing Office

Washington, DC 20402

http://www.access.gpo.gov/

§ 102–118.540 Who has the authority to

audit, settle accounts, and/or start

collection action for all transportation

services provided for my agency?

The Director of the GSA Audit

Division has the authority and

responsibility to audit and settle all

transportation related accounts (31

U.S.C. 3726). The reason for this is that

he or she has access to Governmentwide

data on a TSP’s payments and billings

with the Government. Your agency has

the responsibility to correctly pay

individual transportation claims.

Transportation Service Provider (TSP)

Filing Requirements

§ 102–118.545 What information must a

TSP claim include?

Transportation service provider (TSP)

claims received by GSA or its designee

must include one of the following:

(a) The signature of an individual or

party legally entitled to receive payment

for services on behalf of the TSP;

(b) The signature of the TSP’s agent or

attorney accompanied by a duly

executed power of attorney or other

documentary evidence of the agent’s or

attorney’s right to act for the TSP; or

(c) An electronic signature, when

mutually agreed upon.

24582 Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / Rules and Regulations

§ 102–118.550 How does a TSP file an

administrative claim using EDI or other

electronic means?

The medium and precise format of

data for an administrative claim filed

electronically must be approved in

advance by the GSA Audit Division.

GSA will use an authenticating EDI

signature to certify receipt of the claim.

The data on the claim must contain

proof of the delivery of goods, and an

itemized bill reflecting the services

provided, with the lowest charges

available for service. The TSP must be

able to locate, identify, and reproduce

the records in readable form without

loss of clarity.

§ 102–118.555 Can a TSP file a

supplemental administrative claim?

Yes, a TSP may file a supplemental

administrative claim. Each

supplemental claim must cover charges

relating to one paid transportation

document.

§ 102–118.560 What is the required format

that a TSP must use to file an administrative

claim?

A TSP must bill for charges claimed

on a SF 1113, Public Voucher for

Transportation Charges, in the manner

prescribed in the ‘‘U.S. Government

Freight Transportation—Handbook’’ or

the ‘‘U.S. Government Passenger

Transportation—Handbook.’’ To get a

copy of these handbooks, you may write

to:

General Services Administration

Federal Supply Service

Audit Division (FBA)

1800 F Street, NW.

Washington, DC 20405

http://pub.fss.gsa.gov/transtrav

§ 102–118.565 What documentation is

required when filing an administrative

claim?

An administrative claim must be

accompanied by the transportation

document, payment record, reports and

information available to GSA and/or to

the agency involved and the written and

documentary records submitted by the

TSP. Oral presentations supplementing

the written record are not acceptable.

Transportation Service Provider (TSP)

and Agency Appeal Procedures for

Prepayment Audits

§ 102–118.570 If my agency denies the

TSP’s challenge to the statement of

difference, may the TSP appeal?

Yes, the TSP may appeal if your

agency denies its challenge to the

statement of difference. However, the

appeal must be handled at a higher level

in your agency.

§ 102–118.575 If a TSP disagrees with the

decision of my agency, can the TSP

appeal?

Yes, the TSP may file a claim with the

GSA Audit Division, which will review

the TSP’s appeal of your agency’s final

full or partial denial of a claim. The TSP

may also appeal to the GSA Audit

Division if your agency has not

responded to a challenge within 30

days.

§ 102–118.580 May a TSP appeal a

prepayment audit decision of the GSA Audit

Division?

(a) Yes, the TSP may appeal to the

GSA’s Board of Contract Appeals

(GSBCA), under guidelines established

in this subpart, or file a claim with the

United States Court of Federal Claims.

The TSP’s request for review must be

received by the GSBCA in writing

within 6 months (not including time of

war) from the date the settlement action

was taken or within the periods of

limitation specified in 31 U.S.C. 3726,

as amended, whichever is later. The

TSP must address requests to:

GSA Board of Contract Appeals

1800 F Street, NW.

Room 7022

Washington, DC 20405

(b) The GSBCA will accept legible

submissions via facsimile (FAX) on

(202) 501–0664.

§ 102–118.585 May a TSP appeal a

prepayment audit decision of the GSBCA?

No, a ruling by the GSBCA is the final

administrative remedy available and the

TSP has no statutory right of appeal.

This subpart governs administrative

actions only and does not affect any of

the TSP’s rights. A TSP may still pursue

a legal remedy through the courts.

§ 102–118.590 May my agency appeal a

prepayment audit decision of the GSA Audit

Division?

No, your agency may not appeal. A

GSA Audit Division decision is

administratively final for your agency.

§ 102–118.595 May my agency appeal a

prepayment audit decision by the GSBCA?

No, your agency may not appeal a

prepayment audit decision. Your agency

must follow the ruling of the GSBCA.

Transportation Service Provider (TSP)

and Agency Appeal Procedures for

Postpayment Audits

§ 102–118.600 When a TSP disagrees with

a Notice of Overcharge resulting from a

postpayment audit, what are the appeal

procedures?

A TSP who disagrees with the Notice

of Overcharge may submit a written

request for reconsideration to the GSA

Audit Division at:

General Services Administration

Federal Supply Service

Audit Division (FBA)

1800 F Street, NW.

Washington, DC 20405

http://pub.fss.gsa.gov/transtrav

§ 102–118.605 What if a TSP disagrees

with the Notice of Indebtedness?

If a TSP disagrees with an ordinary

debt, as shown on a Notice of

Indebtedness, it may:

(a) Inspect and copy the agency’s

records related to the claim;

(b) Seek administrative review by the

GSA Audit Division of the claim

decision; and/or

(c) Enter a written agreement for the

payment of the claims.

§ 102–118.610 Is a TSP notified when GSA

allows a claim?

Yes, the GSA Audit Division will

acknowledge each payable claim using

GSA Form 7931, Certificate of

Settlement. The certificate will give a

complete explanation of any amount

that is disallowed. GSA will forward the

certificate to the agency whose funds are

to be charged for processing and

payment.

§ 102–118.615 Will GSA notify a TSP if

they internally offset a payment?

Yes, the GSA Audit Division will

inform the TSP if they internally offset

a payment.

§ 102–118.620 How will a TSP know if the

GSA Audit Division disallows a claim?

The GSA Audit Division will furnish

a GSA Form 7932, Settlement

Certificate, to the TSP explaining the

disallowance.

§ 102–118.625 Can a TSP request a

reconsideration of a settlement action by

the GSA Audit Division?

Yes, a TSP desiring a reconsideration

of a settlement action may request a

review by the Administrator of General

Services.

§ 102–118.630 How must a TSP refund

amounts due to GSA?

(a) TSPs must promptly refund

amounts due to GSA, preferably by EFT.

If an EFT is not used, checks must be

made payable to ‘‘General Services

Administration’’, including the

document reference number, TSP name,

bill number(s), taxpayer identification

number and standard carrier alpha code,

then mailed to:

General Services Administration

P.O. Box 93746

Chicago, IL 60673

(b) If an EFT address is needed, please

contact the GSA Audit Division at:

General Services Administration

Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / Rules and Regulations 24583

Federal Supply Service

Audit Division (FBA)

1800 F Street, NW.

Washington, DC 20405

http://pub.fss.gsa.gov/transtrav

Note to § 102–118.630: Amounts collected

by GSA are returned to the Treasurer of the

United States (31 U.S.C. 3726).

§ 102–118.635 Can the Government charge

interest on an amount due from a TSP?

Yes, the Government can charge

interest on an amount due from a TSP.

This procedure is provided for under

the Debt Collection Act (31 U.S.C.

3717), the Federal Claims Collection

Standards (4 CFR parts 101 through

105), and 41 CFR part 105–55.

§ 102–118.640 If a TSP fails to pay or to

appeal an overcharge, what actions will

GSA pursue to collect the debt?

GSA will pursue debt collection

through one of the following methods:

(a) When an indebted TSP files a

claim, GSA will apply all or any portion

of the amount it determines to be due

the TSP, to the outstanding balance

owed by the TSP, under the Federal

Claims Collection Standards (4 CFR

parts 101 through 105) and 41 CFR part

105–55;

(b) When the action outlined in

paragraph (a) of this section cannot be

taken by GSA, GSA will instruct one or

more Government disbursing offices to

deduct the amount due to the agency

from an unpaid TSP’s bill. A 3-year

limitation applies on the deduction of

overcharges from amounts due a TSP

(31 U.S.C. 3726) and a 10-year

limitation applies on the deduction of

ordinary debt (31 U.S.C. 3716);

(c) When collection cannot be

accomplished through either of the

procedures in paragraph (a) or (b) of this

section, GSA normally sends two

additional demand letters to the

indebted TSP requesting payment of the

amount due within a specified time.

Lacking a satisfactory response, GSA

may place a complete stop order against

amounts otherwise payable to the

indebted TSP by adding the name of

that TSP to the Department of the Army

‘‘List of Contractors Indebted to the

United States’’; and/or

(d) When collection actions, as stated

in paragraphs (a) through (c) of this

section are unsuccessful, GSA may

report the debt to the Department of

Justice for collection, litigation, and

related proceedings, as prescribed in 4

CFR parts 101 through 105.

§ 102–118.645 Can a TSP file an

administrative claim on collection actions?

Yes, a TSP may file an administrative

claim involving collection actions

resulting from the transportation audit

performed by the GSA directly with the

GSA Audit Division. Any claims

submitted to GSA will be considered

‘‘disputed claims’’ under section 4(b) of

the Prompt Payment Act (31 U.S.C.

3901, et seq.). The TSP must file all

other transportation claims with the

agency out of whose activities they

arose. If this is not feasible (e.g., where

the responsible agency cannot be

determined or is no longer in existence)

claims may be sent to the GSA Audit

Division for forwarding to the

responsible agency or for direct

settlement by the GSA Audit Division.

Claims for GSA processing must be

addressed to:

General Services Administration

Federal Supply Service

Audit Division (FBA)

1800 F Street, NW.

Washington, DC 20405

http://pub.fss.gsa.gov/transtrav

§ 102–118.650 Can a TSP request a review

of a settlement action by the Administrator

of General Services?

Yes, a TSP desiring a review of a

settlement action taken by the

Administrator of General Services may

request a review by the GSA Board of

Contract Appeals (GSBCA) or file a

claim with the United States Court of

Federal Claims (28 U.S.C. 1491).

§ 102–118.655 Are there time limits on a

TSP request for an administrative review by

the GSBCA?

(a) Yes, the GSBCA must receive a

request for review from the TSP within

six months (not including time of war)

from the date the settlement action was

taken or within the periods of limitation

specified in 31 U.S.C. 3726, as

amended, whichever is later. The

request must be addressed to:

GSA Board of Contract Appeals

1800 F Street, NW.

Room 7022

Washington, DC 20405

(b) The GSBCA will accept legible

submissions via facsimile (FAX) on

(202) 501–0664.

§ 102–118.660 May a TSP appeal a

postpayment audit decision of the GSBCA?

No, a ruling by the GSBCA is the final

administrative remedy and the TSP has

no statutory right of appeal. This

subpart governs administrative actions

only and does not affect any rights of

the TSPs. A TSP may still pursue a legal

remedy through the courts.

§ 102–118.665 May my agency appeal a

postpayment audit decision by the GSBCA?

No, your agency may not appeal a

postpayment audit decision and must

follow the ruling of the GSBCA.

Transportation Service Provider (TSP)

Non-Payment of a Claim

§ 102–118.670 If a TSP cannot immediately

pay a debt, can they make other

arrangements for payment?

Yes, if a TSP is unable to pay the debt

promptly, the Director of the GSA Audit

Division has the discretion to enter into

alternative arrangements for payment.

§ 102–118.675 What recourse does my

agency have if a TSP does not pay a

transportation debt?

If a TSP does not pay a transportation

debt, GSA may refer delinquent debts to

consumer reporting agencies and

Federal agencies including the

Department of the Treasury and

Department of Justice.

Dated: April 20, 2000.

David J. Barram,

Administrator of General Services.

[FR Doc. 00–10271 Filed 4–21–00; 12:47 pm]

BILLING CODE 3820–24–U