[Federal Register Volume 62, Number 233 (Thursday, December 4, 1997)]
[Notices]
[Pages 64225-64232]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31779]


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GENERAL SERVICES ADMINISTRATION


Federal Supply Service; Broker and Direct Move Management 
Services Provider Participation in the General Services 
Administration's Centralized Household Goods Traffic Management Program 
(CHAMP)

AGENCY: Federal Supply Service, GSA.

ACTION: Notice of proposed program changes for comment.

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SUMMARY: Earlier this year, GSA provided the household goods 
transportation industry an opportunity to comment on its draft 1997 
Household Goods Tender of Service (HTOS). GSA has received and reviewed 
the industry's comments on the draft 1997 HTOS and is in the process of 
making appropriate revisions to the document before issuing it in 
final. The provisions contained in this notice apply to household goods 
transportation broker and direct move management services provider 
participants in CHAMP and were not included in the original draft HTOS. 
We are offering these provisions for industry review and comment at 
this time.

DATES: Please submit your comments by January 5, 1998.

ADDRESSES: Mail comments to the Travel and Transportation Management 
Staff (FBX), General Services Administration, Washington, DC 20406, 
Attn: Federal Register Notice. GSA will consider your comments in 
developing the final move management services provisions. In the 
interim, rates filed in response to GSA's 1996 Request for Offers have 
been extended for 90 days from October 31, 1997 to January 29, 1998.

FOR FURTHER INFORMATION CONTACT: Larry Tucker, Senior Program Analyst, 
Travel and Transportation Management Staff, FSS/GSA, 703-305-7660.

Section xx--Move Management Services

Subsection A--General

xx-1. Scope

    This section establishes terms and conditions for participation by 
licensed move management services providers (hereinafter referred to as 
``broker'') and direct move management services providers in the 
General Services Administration's (GSA's) Centralized Household Goods 
Traffic Management Program (CHAMP).

xx-2. Applicable Provisions

    Except as otherwise provided in this section, the provisions of 
sections 1 through -- -- of this Household Goods Tender of Service 
(HTOS), and any amendments thereto, apply both to brokers and direct 
move management services providers covered under this section and to 
the transportation services furnished by them.

xx-3. Definition of Services

    CHAMP offers Federal agencies the following two kinds of services:
    A. Transportation services. Transportation services are the 
transportation and accessorial services normally associated with a 
household goods move as set out in interstate and intrastate tariffs or 
this HTOS for international moves.
    B. Move management services. Move management services are those set 
out in subsection B of this section plus transportation services as 
defined in paragraph xx-3A, above.

xx-4. Move Management Services Provider Treated as Carrier

    A. Use of the term ``carrier''. The term ``carrier'' as used in 
sections 1 through---- of this HTOS includes both a broker and a direct 
move management services provider.
    B. Service performance requirements. For purposes of participation 
in CHAMP, a broker or a direct move management services provider must 
furnish or otherwise comply with all applicable requirements of this 
HTOS, including services, delivery timeframes, billing, reporting, and 
liability responsibilities, unless waived by the GBL Issuing Officer or 
responsible Transportation Officer. A broker must handle any shipment 
an agency tenders it the same as if it were a carrier. A direct move 
management services provider must provide the move management services 
set out in subsection B of this section in conjunction with 
transportation services; it may not conduct any brokering of shipments 
under CHAMP.
    C. Other performance requirements. For purposes of participation in 
CHAMP, both a broker and a direct move management services provider 
must file a schedule of their service charges, including carrier 
transportation rates, and comply with requirements for paying GSA the 
specified shipment surcharge the same as any other participant in the 
program. Additionally, both are subject to the Customer Satisfaction 
Rating system.
    D. Carrier as subcontractor of broker. Since a broker participating 
in CHAMP is included in the term ``carrier'' as used in sections 1 
through---- of this HTOS, an actual carrier the broker uses to perform 
transportation under CHAMP is considered to be a subcontractor of the 
broker.
    E. Issuance of Government bill of lading (GBL) to broker. When an 
agency tenders a shipment to a broker, the agency will issue a GBL 
directly to the broker. The broker is responsible for billing shipment 
charges in conformity with its filed rates. The broker also is 
responsible for paying its agents directly for services furnished.
    F. Broker commission. If a broker has an agreement with a carrier 
it engages to provide transportation services under CHAMP and the 
agreement yields a commission, a discount, or anything else of value to 
the broker, the broker must comply with the following before it may 
accept the commission, discount, or anything else of value for work 
performed under CHAMP:
    (1) For agreements that yield a commission to the broker, the 
broker

[[Page 64226]]

must propose a single commission rate and a uniform rate structure 
forming the basis for the commission which it will use with all 
carriers it selects to perform work under CHAMP. The broker must 
disclose in writing to GSA its commission rate and structure 
(describing what the commission represents; e.g., a percentage of full 
tariff charges) and state that it will use only this rate for work 
performed under CHAMP;
    (2) For agreements that do not specify a commission but yield a 
discount or anything else of value to the broker, the broker must 
establish a rate structure with a uniform spread between the rate the 
Government pays the broker and the rate the broker pays the carrier it 
uses to perform work under CHAMP. The broker must disclose and fully 
describe in writing to GSA its uniform rate structure and uniform 
spread, including the basis (e.g., full tariff charges) for 
calculations under the rate structure, and must state that it will use 
only this rate structure and spread for work performed under CHAMP;
    (3) A broker must send its disclosure letter to the following 
address: General Services Administration (6FBX), 1500 E. Bannister 
Road, Room 1076, Kansas City, MO 64131, Attn: HHG Rate Filing; and
    (4) GSA will review the broker's proposed commission rate or 
uniform rate structure and either approve or reject the broker's 
arrangement.

xx-5. Restriction on Services Provided

    A broker may offer only move management services as described in 
paragraph xx-3B, above. A direct move management services provider may 
offer move management services only in conjunction with transportation 
services, as described in paragraph xx-3A, above, which it furnishes 
within its current approved scope of operations.

Subsection B--Move Management Services Provided

xx-100. General

    A broker or direct move management services provider is responsible 
for arranging, coordinating, and monitoring a relocated employee's 
household goods move from initial notification by the shipping agency 
through delivery at the new residence. A household goods move within 
the continental United States is a basic move consisting of one 
shipment of household goods and personal effects from one or more 
origins to one or more destinations. The move may include shipment of a 
privately owned vehicle(s), and a move outside the conterminous United 
States, including Alaska, may include shipment of unaccompanied air 
baggage.

xx-101. Carrier Performance Responsibility

    Notwithstanding the provisions of paragraph xx-11, below, ``Origin 
and destination on-site quality control,'' the broker or direct move 
management services provider, as applicable, must ensure that it 
furnishes transportation services in accordance with the provisions of 
this HTOS. It also must take necessary and appropriate action to 
protect the interests of the shipping agency, ensure proper service 
performance, and protect the real and personal property of the 
relocating employee. In the event the broker or direct move management 
services provider is negligent in executing its responsibilities and 
the shipping agency or relocating employee is adversely affected, the 
broker or direct move management services provider is liable for 
damages.

xx-102. Service Performance Audit

    The broker or direct move management services provider, as 
applicable, must audit transportation billings to determine that billed 
services were necessary to complete the move, properly authorized, and 
actually performed (this audit is unrelated to an audit of the billing 
charges). In performing the audit, the broker or direct move management 
services provider must issue a service performance certification 
specifying by line item whether the service (including any unauthorized 
service specifically requested by the relocating employee) was or was 
not necessary to complete the move, properly authorized, and actually 
performed. The broker or direct move management services provider may 
develop its own form for this purpose subject to shipping agency pre-
approval when the agency so requests.

xx-103. Employee Counseling

    The broker or direct move management services provider, as 
applicable, must provide employee counseling services including, but 
not limited to, information on the following: Applicable Federal Travel 
Regulation (FTR) provisions including employee's household goods 
transportation and weight allowance entitlement; extra pickup/delivery 
service; temporary storage-in-transit (SIT) authorized by the shipping 
agency; non-temporary storage (NTS) for the duration of the assignment; 
unauthorized items; assembly and disassembly of property; shipment of 
perishable items; firearms and hazardous materials exclusions; 
insurance coverage, options, and costs; reporting of concealed damages; 
employee rights and responsibilities; third-party servicing; packing, 
unpacking, crating, and uncrating; preparation and filing of claims; 
responsibility for name and address of origin or destination storage; 
delivery out of storage; services that will be paid by the shipping 
agency; services that will be the responsibility of and paid for by the 
employee even when the GBL Issuing Officer authorizes the service on 
the GBL for charge back to the employee; moving practices of household 
goods carriers; carrier's role in the relocation process; and the 
Government's role in a commuted rate system (Do-it-Yourself) move under 
the FTR including the limitation on reimbursement to the employee for 
such a move.

xx-104. Customer Assistance

    The broker or direct move management services provider, as 
applicable, must provide a 24-hour, toll-free, single point of 
contact(s) by name and telephone number for assistance in resolving any 
problems that occur during the move, including quality control 
problems, as well as help in filing a post delivery claim. The broker 
or provider also must furnish, at no additional cost to the Government, 
a pocket-sized pamphlet that lists relevant procedures and information 
useful to the relocating employee.

xx-105. Completion of GSA Form 3080

    The broker or direct move management services provider, as 
applicable, must furnish the relocating employee a GSA Form 3080, 
Household Goods Carrier Evaluation, for completion of the section 
entitled ``Relocating Employee's Response'' and instruct the employee 
to return the form to the shipping agency for completion of the 
section, ``GBL Issuing Officer's Response.'' Once the shipping agency 
completes its section, it must return the form to GSA, Traffic 
Management Branch, 6FBX, 1500 East Bannister Road, Kansas City, MO. 
64131.
    Within 30 days of delivery of the household goods to the new 
residence, the broker or direct move management services provider must 
contact the shipping agency or employee, as appropriate, to ensure the 
return of Form 3080 to GSA.

xx-106. Claim Preparation, Filing, and Settlement

    A. Organizational involvement. The broker or direct move management 
services provider must establish an independent claims section within 
its

[[Page 64227]]

own organization or contract with an independent firm to perform the 
responsibilities described in paragraph xx-106B, below. The term 
``independent claims section'' means a section which is independent of 
the broker's or direct move management services provider's primary 
claim function and which has personnel assigned specifically to handle 
Federal agency claims. These personnel may be assigned to perform other 
duties not related to Federal agency claims. The broker or direct move 
management services provider, not the Government, is responsible for 
any costs incurred in establishing an independent claims section within 
its organization or for contracting with an independent firm to handle 
GSA claims.
    B. Broker/direct move management services provider 
responsibilities. If requested by the relocating employee or the 
employing agency, the broker or direct move management services 
provider must:
    (1) Provide assistance in the preparation and filing of a claim 
immediately upon receiving information from the employee that loss or 
damage occurred during shipment of his/her household goods;
    (2) Inform the employee that if he/she discovers additional loss or 
damage at a later date it will provide additional assistance in 
preparing and filing additional claims as necessary; and
    (3) Counsel the employee in regard to the signing of any full and 
unconditional releases on any settlement or offer of settlement 
received before all claims resulting from the move have been resolved.

xx-107. Preparation and Maintenance of Government Bills of Lading 
(GBL'S)

    A. Optional use of service. Preparation and maintenance of GBL's as 
specified in paragraphs xx-106 B through G is optional with the 
shipping agency. If the shipping agency elects to exercise this option, 
it must complete a written memorandum of understanding (MOU) with the 
broker or direct move management services provider setting out the 
terms and conditions, including those required in paragraphs xx-106 B 
through G, applicable to GBL preparation and maintenance. The terms and 
conditions should specify instructions for completing each block of the 
GBL.
    B. GBL accountability/responsibility. The shipping agency 
ultimately is accountable/responsible for all GBL stock and must issue 
and obtain a signed receipt, as required by Federal Property Management 
Regulations 101-41.3024(2) and 101-41.308-1, for any GBL's it issues to 
the broker or direct move management services provider.
    C. Preparation of GBL forms. The broker or direct move management 
services provider must prepare a GBL (Standard Form 1103) or Government 
Personal Property Bill of Lading (SF 1203) (either hereinafter referred 
to as GBL) in accordance with its MOU with the shipping agency and 
instructions published in the GSA Federal Supply Service (FSS) Guide, 
``How to Prepare and Process U.S. Government Bills of Lading,'' 
National Stock Number, 7610-00-682-6740, FPMR 101-41.305-1. A separate 
GBL must be prepared for each authorized shipment of a privately owned 
vehicle(s) or unaccompanied air baggage (UAB). Since ultimate 
responsibility and accountability for GBL's remains with the shipping 
agency and its GBL Issuing Officer, the name and address of the issuing 
office and GBL Issuing Officer, not that of the preparer, must appear 
on the GBL. Distribution of the completed GBL must be in accordance 
with the above referenced FSS guide and FPMR 101-41.302-2. The broker 
or direct move management services provider must give the shipping 
agency issuing officer a legible memorandum copy of each GBL it has 
prepared and distributed before the pickup date of the shipment.
    D. Maintenance of GBL forms. The broker or direct move management 
services provider is accountable for all blank GBL's provided by the 
shipping agency and must:
    (1) Keep them in a locked container at all times;
    (2) Maintain a GBL register for all GBL's it prepares showing the 
date of issuance and the employee for whose shipment it was issued; and
    (3) Make the register available for review at any time upon request 
by the GBL Issuing Officer or his/her designee.
    E. Amendments to original GBL. If a GBL must be amended after 
distribution, the broker or move management services provider must 
complete a GBL Correction Notice (Standard Form 1200). Only the GBL 
Issuing Officer may sign the SF 1200 and must return the signed form to 
the broker or move management services provider for the same 
distribution as the original GBL.
    F. Lost GBL's. If the original copy of an issued GBL is lost, the 
broker or direct move management services provider must notify the GBL 
Issuing Officer and prepare a certification in accordance with FPMR 
101-41.307 for forwarding to the GBL Issuing Officer for signature. 
Only the GBL Issuing Officer may sign (certify) a true memorandum copy 
of an issued GBL for use instead of the original SF 1103 for billing 
purposes.
    G. Damaged GBL's. A GBL that is damaged in preparation, prepared 
for issuance but not used, or unusable for any other reason must be 
marked ``canceled'' on all copies and returned to the GBL Issuing 
Officer. The GBL Issuing Officer must sign a receipt for any canceled, 
damaged, or otherwise unusable GBL returned to him/her. The GBL Issuing 
Officer is responsible for disposing of any unused, obsolete, or 
canceled GBL's in accordance with General Records Schedule 9, Travel 
and Transportation Records, 36 CFR Chapter XII, Sec. 1228.22.

xx-108. Data Communications Capabilities

    The broker or direct move management services provider must be able 
to electronically transmit task orders and messages, and must provide 
on-line access to its database as follows:
    A. Accessibility. The GBL Issuing Officer or his/her designee and 
the GSA Program Management Office (PMO) must have on-line access to all 
database information pertaining to task orders and shipment records 
applying to all accounts established under the terms of this HTOS. The 
broker or direct move management services provider must establish 
sufficient safeguards to prevent unauthorized access to the database, 
and furnish clearly documented procedures for access and use of the 
database. Electronic access must be available through an asynchronous 
modem with a baud rate of at least 2400.
    B. Database elements. The database must contain, at a minimum, task 
order and shipment information sufficient to generate the reports 
specified in paragraph xx-113. Shipment information must be maintained 
in a separate directory with a separate record for each employee move. 
Shipment files for HTOS shipments must not be commingled with non-HTOS 
shipment files. Each shipment record must contain all information 
required for that particular shipment, including information relevant 
to any claim filed with the carrier, status of the claim, etc.(made 
available on a continuous computer terminal screen when necessary). 
Performance data reflecting the handling of the move must be 
independently collected and maintained in this file. The broker or 
direct move management services provider must be able to extract and 
consolidate data, such as carrier performance information, for any 
specific report that may be required.

[[Page 64228]]

    C. Database maintenance. The database must be updated at a minimum 
every 24 hours. The broker or direct move management services provider 
must maintain on-line access to database elements for each shipment for 
a period of one year from the date of pickup. For record retention 
requirements after one year, see 48 CFR 4.7.

xx-109. Identification of, and Authorization for, Special Services

    A. Identification of special services. The broker or direct move 
management services provider must identify all services that may be 
needed in connection with the shipment of a particular relocated 
employee's household goods, including but not limited to shuttle 
service, special crating, third party servicing, elevator charges, long 
carry, and or stair carries. The broker or direct move management 
services provider must provide this information to the GBL Issuing 
Officer and obtain any written waivers or authorizations that may be 
required under the HTOS.
    B. Authorization for special services. The broker or direct move 
management services provider must obtain written pre-authorization from 
the GBL Issuing Officer prior to authorizing special services on the 
GBL, such as shuttle service, telephone pre-move survey, SIT at origin, 
custom-built crating, third party servicing, hoisting and lifting, 
disassembly of waterbeds and German shrunks (large cabinets which 
require disassembly to move), pickup and delivery on Saturday, Sunday, 
or holidays, reweighs, etc. All written authorizations and waivers must 
be maintained in the shipment file. The broker or direct move 
management services provider must specify all requested services on the 
GBL, both those that are authorized and will be paid as an entitlement 
of the employee and those that are advanced and will be charged back to 
the employee. The employee must be counseled about charges for any 
service that will be advanced and charged back to the employee before 
the service is performed. A generic form may be developed for this 
purpose, and any service shown on the form that is not applicable to a 
particular shipment must be ``crossed out'' or marked ``none'' or ``not 
applicable'' prior to submitting the form to the GBL Issuing Officer 
for written authorization/approval.

xx-110. Origin and Destination On-Site Quality Control

    A. Optional use of this service. Origin and destination on-site 
quality control services as specified in this paragraph xx-110 are 
optional with the shipping agency. If the shipping agency elects to 
exercise this option, the actual cost of the service to be performed is 
negotiable between the broker or direct move management services 
provider and the shipping agency. The agreed upon price for the service 
to be performed must be in writing and retained by both parties. The 
written agreement shall be construed as a one-time only amendment to 
the broker's/direct move management services provider's rate filing and 
a copy of the agreement must be included in its voucher for payment.
    B. Origin services on-site quality control. If the shipping agency 
requests, quality control personnel must provide on-site inspection 
service at the origin residence on the packing and loading dates. Such 
service must include at a minimum verification of: Correct inventory 
coding; the use of proper packing, crating, and wrapping materials and 
techniques; equipment and personnel suitability; appropriate article 
servicing and disassembly; and appropriate protection for the residence 
and adjacent real property. The broker/direct move management services 
provider must make a pre-visit telephone call to confirm the 
availability of the transferee.
    C. Destination services on-site quality control. If the shipping 
agency requests, quality control personnel must provide on-site 
inspection service at the destination residence at the time of 
delivery. Such service must include at a minimum verification of: The 
inventory coding; satisfactory performance of the unpacking service; 
equipment and personnel suitability; appropriate article servicing and 
re-assembly; and appropriate protection for the residence and adjacent 
real property.
    D. Firms authorized to perform origin and destination on-site 
quality control.
    (1) Broker. A broker may engage another firm to perform these 
services, including but not limited to a household goods carrier or 
freight forwarder or representative, employee, or agent thereof.
    (2) Direct move management services provider. A direct move 
management services provider may engage another firm to perform these 
services, provided that such other firm must be a household goods 
carrier or freight forwarder or representative, employee, or agent 
thereof.

xx-111. Storage-In-Transit (SIT)

    A. Placement in SIT. When storage-in-transit (SIT) is authorized 
the shipment will be placed into SIT in accordance with all applicable 
provisions of this HTOS. The broker/direct move management services 
provider must carefully counsel the employee in regard to the duration 
of storage authorized. It must notify the employee of the actual 
location of the SIT, including the storage company's telephone number, 
within five calendar days of delivery of the shipment into SIT.
    B. Monitoring shipments in SIT. The broker or direct move 
management services provider must monitor shipments that have been 
placed in SIT and notify the employee and the shipping agency 
destination facility representative in writing, at least ten working 
days before the expiration of any authorized period of SIT, of the 
impending SIT expiration. Further, it must counsel the employee that 
upon expiration of the authorized SIT period, the Government no longer 
will be liable for storage charges, and request disposition of the 
household goods, in writing, from the shipping agency destination 
facility representative and the employee.
    C. Storage in excess of 180 days. In cases when an employee's 
household goods remain in temporary storage in excess of the maximum 
180-day SIT period, the broker or direct move management services 
provider must at the end of the 180-day period ascertain the condition 
of the property to protect both the Government's and the relocating 
employee's right to recovery for losses or damages for which the 
carrier is responsible. The broker or direct move management services 
provider is responsible for arranging delivery of the property from 
storage to the residence in accordance with the shipping agency 
destination facility representative's instructions. Payment of storage 
for any period in excess of the 180-day maximum is the employee's 
responsibility.

xx-112. Quality Assurance Plan

    If the shipping agency requests, the broker or direct move 
management services provider must provide the agency with a quality 
assurance plan and designate quality assurance personnel to assist in 
ensuring quality service is provided. xx-113. Management Reports.
    If the shipping agency requests, the broker or direct move 
management services provider must furnish on a timely basis the 
management reports specified in paragraphs xx-113 A through F, below. 
The format, content, and frequency of the reports will be established 
in accordance with the shipping agency's requirements. The

[[Page 64229]]

broker or direct move management services provider may be required to 
provide special or one-time reports to the shipping agency upon written 
approval of the GSA Program Management Office.
    A. Shipment summary report. A report presenting a summary of 
shipments including the total number of shipments, the number of 
shipments by agency organization, number of shipments by carrier 
including line-haul carrier, number of interstate shipments, number of 
intrastate shipments, number of international shipments, total line 
haul costs, and total accessorial service costs.
    B. Claims summary report. A report presenting a summary of claims 
including claims frequency, number of claims by agency organization, 
number of claims by carrier, number of interstate claims, number of 
intrastate claims, number of international claims, average number of 
days between the date of claim filing and the date of issuance of the 
initial settlement offer, average number of days between the date of 
receipt of the initial settlement offer and the date of final 
settlement, average amount claimed and settled interstate, average 
amount claimed and settled intrastate, and the average amount claimed 
and settled international. For each claim that is not settled within 30 
days (or 60 days when approved by the shipping agency's GBL Issuing 
Officer or responsible Transportation Officer) an explanation for the 
delay must be provided using the delay codes specified in section 9 of 
this HTOS.
    C. Counseling contact summary report. A monthly summary report of 
employee counseling contacts showing employee names, date of initial 
contact, and current status of the shipment including the date of the 
pre-move survey, packing date, shipment pickup date, and proposed 
delivery date into SIT and/or the residence.
    D. On-time services summary report. A monthly summary report 
listing employee names, each employee's scheduled pick up date, actual 
pick up date, scheduled delivery date into SIT and/or the residence, 
actual delivery date into SIT and/or the residence, scheduled date for 
delivery out of SIT, and the actual delivery date out of SIT. When 
scheduled and actual dates are not the same, an explanation must be 
provided.
    E. Billing accuracy summary report. A monthly summary report of 
billing accuracy showing the number of transportation bills submitted 
and the number returned for correction. An explanation of the 
correction must be provided.
    F. Special or one-time report. A specially requested report 
approved by the GSA Program Management Office and provided to the GBL 
Issuing Officer or the Responsible Transportation Officer.

xx-114. User Agency and Applicant Responsibilities-Memorandum of 
Understanding

    The applicant and each Federal agency desiring to use move 
management services pursuant to this HTOS shall, prior to the 
commencement of service, enter into a Memorandum of Understanding 
(MOU). The MOU shall include, but not be limited to, a description of 
services the agency requires, carrier selection criteria, service 
performance auditing instructions, non-temporary storage delivery 
instruction information, names of agency personnel who will have 
authority to order move management services, and management report 
requirements. Both parties must sign the MOU and send a copy for 
approval to the address contained in paragraph xx-202B of subsection C 
of this section. The agency reserves the right to specify the form, 
format, and minimum requirements of the MOU.

Subsection C--Participation

xx-200. General

    The provisions in section 2 of this HTOS do not apply to brokers or 
direct move management services providers. The provisions contained in 
this section apply instead.

xx-201. Participation

    A. Broker. Participation in the Move Management Services Program 
under CHAMP is open to any broker holding a household goods brokers 
license from the U.S. Department of Transportation (or its predecessor, 
the Interstate Commerce Commission (ICC)), the Federal Maritime 
Commission (FMC), or a state regulatory authority.
    B. Direct move management services provider. Participation in the 
Move Management Services Program under CHAMP is open to any direct move 
management services provider that is currently approved to participate 
in CHAMP and that has an approved assigned scope of operations.

xx-202. Application to Participate

    A. General. Except as provided in paragraphs xx-204 B and C of this 
subsection, and subject to the restrictions in paragraph xx-207 of this 
subsection, any broker or direct move management services provider 
desiring to participate in the program must request approval to 
participate (see section 2-2 of this HTOS for information on when to 
submit application for approval to participate).
    B. Request to participate. A request to participate must be sent on 
company letterhead to the following address: General Services 
Administration, Federal Supply Service Bureau, Traffic & Travel 
Services (6FBX), 1500 East Bannister Road, Kansas City, MO 64131-3088. 
(hereinafter referred to in this subsection C as Program Management 
Office (PMO))

xx-203. Application Requirements

    A broker or direct move management services provider that wishes to 
participate in the program must submit an application in its own name 
to be considered for approval to participate. A broker or direct move 
management services provider (hereinafter referred to in this 
subsection as ``applicant'' unless more specifically stated) may be 
subject to punishment by fine, imprisonment, or both (see U.S. Code, 
title 18, section 1001)if it: (a) Falsifies, conceals, or covers up by 
any trick, scheme, or device a material fact; (b) makes a false, 
fictitious, or fraudulent statement or representation; or (c) makes or 
uses a false writing or document knowing the same to contain any false, 
fictitious, or fraudulent statement or entry on any part of the 
application or on any document furnished pursuant to this HTOS. To be 
considered for approval, the applicant must meet the following 
requirements:
    A. Agreement to abide by this HTOS. The applicant must agree to 
abide by the terms and conditions of this HTOS, and any amendments 
thereto.
    B. Operating authority. The applicant must hold in its own name 
from an appropriate regulatory body(ies) all necessary operating 
authorities, permits, and business licenses required for the 
``brokering'' (applicable only to brokers) or ``furnishing'' 
(applicable only to direct move management services providers) of 
transportation of personal property. The applicant must provide a copy 
of each authority, permit, or business license to the PMO upon demand, 
or provide proof that it is exempt from such regulatory certification 
by operation of law or order of an appropriate regulatory body and 
state that in addition to tariff and legal requirements it agrees to 
abide by provisions of this HTOS
    C. Broker applicant's agents. A broker applicant by agreeing to 
abide by the terms and conditions of this HTOS certifies that it will 
use only those household goods carriers approved to participate in 
CHAMP to provide transportation services.

[[Page 64230]]

    D. Broker applicant's agent agreements. A broker applicant by 
agreeing to abide by the terms and conditions of this HTOS certifies 
that each agent it will use to provide transportation services is at 
the time of application, or will be at the time of use, party to a 
valid written agreement with the broker applicant. The agreement must, 
at a minimum, include the language contained in HTOS paragraph 
8.5.26.6.1 and .2 and specify the terms and conditions of the agent's 
representation of the broker applicant, the services the agent will 
provide, the terms and method of payment for services rendered, the 
quality control standards the broker applicant expects including the 
method of quality measurement, and the terms under which the agreement 
may be terminated.
    E. SCAC (Standard Provider Alpha Code) Designation/Taxpayer 
Identification Number. The applicant must have a valid SCAC issued by 
the National Motor Freight Association, Washington, DC and a valid 
Taxpayer Identification Number.
    F. Trading partner agreement. The applicant must complete and sign 
the Trading Partner Agreement (TPA) that accompanies the application 
and send it back in hard copy along with all other required 
documentation. If applying to handle both domestic and international 
shipments, the applicant need complete only one TPA. GSA will not 
process an applicant's request without the TPA.
    G. Broker applicant provision of performance bond. A broker 
applicant must maintain a performance bond in accordance with this 
HTOS. It must renew the bond on the approval anniversary date of each 
subsequent year it continues to participate in the move management 
services program. The bond must be in a minimum amount of $20,000 and 
executed by a surety included on the list contained in Department of 
Treasury Circular 570, ``Surety Companies Acceptable on Federal Bonds'' 
(for additional information, see the following Internet address: 
www.fms.treas.gov/c570.html).
    H. Experience. The applicant must maintain its operations in a 
manner consistent with standard industry practices and this HTOS and 
demonstrate that it will provide an acceptable level of service.
    I. Quality control program. The applicant must have a documented 
and published corporate quality control plan that ensures services it 
will provide equal or exceed the standards of service established under 
this HTOS. The published plan must fully explain all facets of the 
applicant's quality control system.
    J. Agent. The applicant by agreeing to abide by the terms and 
conditions of this HTOS certifies that each agent it will use has a 
documented and published corporate quality control plan that ensures 
services it will provide equal or exceed the standards of service 
established under this HTOS. The published plan must fully explain all 
facets of the agent's quality control system.
    K. Financial responsibility. The applicant must demonstrate that it 
is financially responsible and has the working capital and other 
financial, technical, and management resources to perform under this 
HTOS.

xx-204. Submission Requirements

    GSA's approval of a request to participate in the move management 
services program is contingent on the applicant demonstrating 
compliance with the provisions of paragraph xx-203 of this subsection 
through the furnishing of documentary evidence required in paragraphs 
xx-204 A through H of this subsection. GSA reserves the right to waive 
the approval requirements in paragraphs xx-204 E and F of this 
subsection if the applicant has been formally registered as compliant 
with the International Organization for Standardization Standard 9000 
or one of the standards within the 9000 series (referred to hereafter 
as ISO 9000) by an internationally recognized ISO 9000 registrar. 
Before GSA will consider waiving the approval requirements, the 
applicant must provide a certified true copy of its certificate of 
conformity with ISO 9000.
    A. HTOS certification. A signed copy of the applicant's HTOS 
certification sheet entitled ``Request to Participate and Agreement to 
Abide by the Terms and Conditions of the General Services 
Administration's Centralized Household Goods Traffic Management 
Program'' (see paragraph xx-203A of this subsection).
    B. SCAC designation/Taxpayer Identification Number. A letter from 
the National Motor Freight Association, Washington, DC showing that the 
applicant has been assigned a SCAC (see paragraph xx-203E of this 
subsection); statement of the applicant's Taxpayer Identification 
Number.
    C. Brokers license (applicable only to broker applicants). A copy 
of a valid brokers license issued by an appropriate regulatory body 
(see paragraph xx-201A of this subsection).
    D. Applicant information. Information about the applicant such as 
name, postal address, electronic mail address, telephone and facsimile 
numbers, corporate office, and operating authorities. The applicant 
must indicate whether it is under the financial or administrative 
control (as addressed in this subsection C) of any carrier, forwarder, 
or other provider of household goods services and state the name of the 
controlling carrier, forwarder, or other provider. Additionally, the 
applicant must provide a listing of any carrier(s), forwarder(s), and/
or other provider(s) of household goods services under its financial or 
administrative control.
    E. Quality control program. A copy of the applicant's published 
internal quality control program covering the functions of traffic 
management (carrier selection, employee counseling, routing, tracing, 
and billing), packing/packaging/ containerizing, employee training, 
supervision, and if appropriate, agent supervision including quality 
control goals and objectives showing measurable performance standards, 
measurement techniques, and plans of action based on the performance 
standards.
    F. Quality control interface with agents (applicable only to broker 
applicants). Information on how the broker applicant applies, and 
monitors the application of, its quality control program to its 
designated agents. In addition, the broker applicant must describe how 
its quality control program relates to and reinforces the quality 
control programs of its designated agents.
    G. Corporate account trends. Information concerning the applicant's 
corporate account activity during the preceding five calendar years.

xx-205. Application Evaluation

    GSA will evaluate an applicant's request for approval to 
participate in the move management services program according to the 
following criteria:
    A. ISO 9000 registration. GSA will review each submitted 
certification to determine its legitimacy and applicability and whether 
required periodic audits have been performed.
    B. HTOS certification. GSA will review the HTOS certification to 
determine whether the applicant has agreed to abide by the terms and 
conditions of the HTOS.
    C. SCAC designation/Taxpayer Identification Number. GSA will verify 
that the National Motor Freight Association, Washington, DC, has issued 
the applicant a SCAC and that the applicant has provided a Taxpayer 
Identification Number.

[[Page 64231]]

    D. Brokers license (applicable only to broker applicants). GSA will 
verify that the broker applicant's brokers license is valid.
    E. Quality control program. GSA will determine whether the 
applicant's internal quality control program has been formally 
published; contains quality control goals and objectives with 
measurable performance standards, measurement techniques, and plans of 
action based on the performance standards; and is sufficient to ensure 
that the applicant's operations, employees, and agents, if appropriate, 
are familiar with and will be held accountable for achievement of the 
program's goals and objectives. In evaluating a broker applicant's 
request, GSA also will determine whether the interface between the 
applicant's quality control program and the quality control programs of 
each of its designated agents is such that the programs' goals and 
objectives and performance standards are relatively consistent and will 
result in a unified approach to the delivery of quality service.
    F. Performance bond (applies only to broker applicants and only at 
time of rate filing unless otherwise superseded by specific criteria in 
the Request for Offers). Upon receipt of the broker applicant's 
performance bond from the surety, GSA will verify that the surety 
company executing the bond appears on the list contained in Department 
of Treasury Circular 570, ``Surety Companies Acceptable on Federal 
Bonds,'' and that the amount of the bond is at least $20,000. If the 
bond is determined to be unacceptable, approval of the broker 
applicant's rate filing will be subject to compliance with the GSA 
Request for Offers. xx-206. APPROVAL. GSA will approve an applicant's 
request for participation in the move management services program if it 
determines that the applicant possesses sufficient qualifications, 
experience, facilities, quality control processes, and financial 
capacity to satisfactorily perform under the HTOS.

xx-207. Approval Limitation

    A. Broker applicants. An approved broker applicant's scope of 
operations must be the complete coverage of the move management 
services program. A ``new broker'' is a broker applicant approved 
during a specific approval window. The designation ``new'' applies from 
October of the year in which GSA grants approval until October of the 
following calendar year (for example, an applicant approved in 1997 
will be considered ``new'' until October, 1998).
    B. Direct move management services provider applicant. An approved 
direct move management services provider applicant's scope of 
operations must be identical to that of the applicable scope of 
operations currently in place in CHAMP.

xx-207. Continued Participation

    A. General. Once an applicant has been approved to participate in 
the move management services program, continued participation is 
contingent upon: (1) The participant's showing a willingness and 
ability to meet the transportation requirements of the United States 
Government and to comply with all provisions of the HTOS, and (2) the 
participant's satisfactorily maintaining financial responsibility, 
working capital, and other financial, technical, and quality control 
processes and management resources to perform under the HTOS.
    B. Continuation Of ISO 9000 certification. If an applicant's 
approval is predicated in part on ISO 9000 certification and the 
certification lapses or is terminated by the certification registrar, 
the applicant participant's approval will become conditional. The 
approval will remain conditional until the participant successfully 
complies with all requirements waived due to its ISO 9000 
certification, provided that if the participant fails to meet 
evaluation standards, GSA will terminate its approval.
    C. Continuation of performance bond (applicable only to broker 
participants). If at any time a broker participant's performance bond 
is canceled and not replaced with an acceptable new bond, GSA will 
immediately terminate the broker's participation in the program.
    D. Assignment of rights. Except for assignment of payment of the 
broker's or direct move management provider's original bills to a bank 
for collection, GSA will immediately terminate a broker's or direct 
move management provider's approval if it exercises any right under a 
currently existing agreement or enters into an agreement with a 
party(ies) not subject to its control which in any way infringes, 
controverts, or otherwise subordinates or prevents it from unilaterally 
deciding whether it will or will not submit a claim or file suit 
against the Government or pay a claim made by the Government after 
Government audit of the original bill for services performed under this 
HTOS.
    E. Submission of false information. Willful submission of false 
information on any document furnished by an applicant or a 
participating broker or direct move management services provider 
pursuant to this HTOS is punishable by fines, imprisonment, or both 
(U.S. Code title 18, section 1001), and may result in denial or 
termination of approval to participate in the move management services 
program. Federal user agencies are responsible for selection of a 
broker or direct move management services provider which best serves 
its needs and final evaluation of the selected broker's or provider's 
performance. If it is later discovered that a broker or direct move 
management services provider was in Common Financial and Administrative 
Control (CFAC) and did not disclose that fact, GSA will terminate its 
approval.

Subsection D--Agreement to Abide

xx-300. Acceptance of These Terms and Conditions

    A broker or direct move management services provider desiring to 
participate in the move management services program established under 
this HTOS section xx must, for approval consideration, complete the 
following statement and return this entire document to the General 
Services Administration, Centralized Household Goods Traffic Management 
Program (6FBX), 1500 East Bannister Road, Kansas City, MO 64131:

Request to Participate and Agreement to Abide by the Terms and 
Conditions of the General Service Administration's Centralized 
Household Goods Traffic Management Program

    By signing below, I, a fully authorized representative of the 
[indicate one] (broker) or (direct move management services provider), 
represent that I have read and understand the terms and conditions 
contained herein and that I for and on behalf of the [indicate one] 
(broker) or (direct move management services provider) agree to all 
terms and conditions of the HTOS.

Applicant Name:
Signature and Date:
Printed Name:
Title:
Street Address:
City, State and Zip:
Telephone No.:
Fax No.:
E-mail Address:

    VG-13. Cancellation of this agreement.
    Except as otherwise provided in this HTOS, this agreement may be 
canceled by the broker or direct move management services provider, as 
applicable, or the General Services Administration upon such terms and 
conditions as are mutually acceptable to the parties.
    VG-14. Acceptance by the Government.

[[Page 64232]]

    Accepted by the General Services Administration:

[Typed name]

----------------------------------------------------------------------
Manager, GSA Centralized Household Goods Traffic Management Program

    Dated: November 26, 1997.
Janice Sandwen,
Director, Travel and Transportation Management Staff.
[FR Doc. 97-31779 Filed 12-3-97; 8:45 am]
BILLING CODE 6820-24-P