Source: https://www.federalregister.gov/documents/2016/09/22/2016-22609/federal-management-regulation-fmr-transportation-payment-and-audit
Timestamp: 2018-02-25 12:10:27
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Federal Register :: Federal Management Regulation (FMR); Transportation Payment and Audit
A Rule by the General Services Administration on 09/22/2016
81 FR 65296
65296-65304 (9 pages)
Docket 2015-0014
3090-AJ59
GSA-FMR-2015-0014
Federal Management Regulation; Transportation Payment and Audit; FMR Case 2015-102-2
C. Substantive Changes
https://www.federalregister.gov/d/2016-22609 https://www.federalregister.gov/d/2016-22609
For clarification of content, contact Mr. Ron Siegel, Office of Government-wide Policy, at 202-357-9540 or by email at ron.siegel@gsa.gov. For information pertaining to status or publication schedules, contact the Regulatory Secretariat Division (MVCB), 1800 F Street NW., Washington, DC 20405, 202-501-4755. Please cite FMR Case 2015-102-2.
Agencies are authorized to procure transportation services either through the Federal Acquisition Regulation (FAR) by utilizing a contract, or via 49 U.S.C. 10721 (for rail transportation), 49 U.S.C. 13712 (for surface transportation), and/or 49 U.S.C. 15504 (for pipeline transportation) by utilizing rate tenders. It is critical that agencies ensure that transportation services received are properly charged and that the payment made is correct.
Toward that end, the Travel and Transportation Reform Act of 1998 (Pub. L. 105-264) established agency statutory requirements for prepayment audits of Federal agency and DoD transportation expenses. The Act also established GSA's statutory authority for audit oversight to protect the interests of the Government.
This final rule clarifies and strengthens agency and DoD compliance with regulations for transportation prepayment audits and postpayment audits. In addition, this final rule updates definitions in 41 CFR part 102-117, Transportation Management, as a result of the amendments to 41 CFR 102-118.
This final rule is the outcome of the first of a two phase review of FMR part 102-118, Transportation Payment and Audit, conducted by GSA and the Governmentwide Transportation Policy Council (GTPC). The GTPC is composed of representatives from civilian agencies and DoD and provides GSA with guidance in the planning and development of uniform transportation policies and procedures.
The first phase review focused on FMR part 102-118 Subparts A (General), D (Prepayment Audits of Transportation Services), and E (Postpayment Transportation Audits). The second phase review will focus on FMR part 102-118 Subpart A (General), as well as Subparts B (Ordering and Paying for Transportation and Transportation Services), C (Use of Government Billing Documents), and F (Claims and Appeals Procedures).
In the proposed rule published at 80 FR 59094 in the Federal Register, on October 1, 2015, GSA provided the public a 60-day comment period which ended on November 30, 2015. GSA received comments from the National Motor Freight Traffic Association, Inc. (NMFTA), and Relocation Management Worldwide Incorporated (RMW). This final rule reflects the following changes made as a result of some of these comments.
Comment: The definition in the proposed rule for declared value in FMR 102-117.25 and 102-118.35 contains reference to declared value and released value. However, NMFTA indicates that the “terms `declared value' and `released value' are neither synonymous nor recognized by the transportation industry. A carrier establishes released value provisions with the intent of the shipper agreeing to a lesser value for the cargo shipped in return for a lower rate for transportation. Declared value assigns a value to the cargo in order to authenticate loss and damage liability limitations on the cargo that was shipped. Furthermore, it is inequitable to define declared value as a price that could be `more' than the actual value of the cargo. In commercial practice, a transportation service provider (TSP) will not pay a loss or damage claim in excess of the actual value of the cargo transported.”
Response: GSA agrees with the recommendation and consequently has modified the definition declared value that is added to 41 CFR 102-117.25 so that it does not reference released value; included a definition for released value in 41 CFR 102-117.25; and has removed the definition released value from 41 CFR 102-118.
Comment: With regards to the definition claim, NMFTA indicates that in the transportation industry, the term claim is generally used in the context of claims for the payment of overcharges or claims for loss or damage. NMFTA recommends that any other terms for demands for payment by the TSP to the Government or amounts the TSP believes an agency owes them should not be included in this definition and would be better defined separately.
Response: GSA does not accept this recommendation. The definition of claim presented in this final rule is modeled after the definition of claim or debt found in 31 U.S.C. 3701(b)(1).
Comment: The Government Transportation Request (GTR) is defined, in part, as a Government document used to procure common carrier interstate transportation services. NMFTA indicates that as far as interstate motor carrier transportation is concerned, the term common carrier is no longer defined in 49 U.S.C. 13102. Former common carriers are now referred to as motor carriers. NFMTA suggests using the description motor carrier or TSP which is used elsewhere in these regulations. NFMTA also suggests that since the Government can procure intrastate transportation with a GTR, it does not make sense to include the word “interstate” in the final GTR definition.
Response: The term common carrier is used to define Government Transportation Request (GTR) in the Federal Travel Regulation (FTR). In response to the comment, GSA has revised the definition of GTR to clarify that the document is used to acquire passenger transportation.
Comment: Standard Carrier Alpha Code (SCAC) is defined, in part, as the unique four-letter code used to identify American-based motor transportation companies assigned by NMFTA. NMFTA indicates that the SCAC definition should be a two-to-four letter identification code assigned to all Start Printed Page 65297modes of transportation companies worldwide by the NMFTA.
Response: GSA accepts this comment and has modified the definition of SCAC to a unique code, typically two to four characters, used to identify transportation companies.
Comment: NFMTA indicates that the Standard Carrier Alpha Code (SCAC) is a proper noun and should be capitalized.
Response: GSA agrees with this comment and has made the appropriate changes.
Comment: When an agency notifies a TSP of any adjustment to a TSP bill, the notice must reference the TSP's Standard Carrier Alpha Code (SCAC) or other agency identifier for the carrier, such as the Department of Defense Activity Address Code (DoDAAC) number. NMFTA suggests deleting the reference to the DoDAAC as the DoDAAC is not used to identify TSPs. NMFTA indicates that the Defense Logistics Agency defines a DoDAAC as “. . . a six-character, alpha-numeric code that uniquely identifies a unit, activity, or organization within the DoDAAD [Department of Defense Activity Address Directory]. A unit, activity, or organization may have more than one DoDAAC for different authority codes or purposes. Each activity that requisitions, contracts for, receives, has custody of, issues, or ships DoD assets, or funds/pays bills for materials and/or services is identified by a six-position alphanumeric DoDAAC.”
Response: GSA accepts this suggestion and has deleted the DoDAAC reference.
Comment: The rule indicates that “the prepayment audit cannot be conducted by the same firm providing transportation services for the agency, such as a move manager.” Relocation Management Worldwide, Incorporated (RMW) suggests that the term move manager is an incorrect example of a TSP and should be removed. RMW indicates that a TSP, being a carrier, could have a conflict of interest auditing their own files, but a move manager does not have to be a TSP.
Response: GSA agrees that the language may be confusing and has modified § 102-118.275(c) to explain that a move manager may not have any affiliation with or financial interest in the transportation company providing the transportation services for which the prepayment audit is being conducted.
Comment: RMW asks if the rule's intent is to eliminate a move manager from being a prepayment auditor.
Response: GSA has modified the rule to clarify the role of a move manager in the prepayment process. GSA's intent is to clarify transportation payment and audit requirements for all agencies including DoD.
Comment: The rule indicates that agencies may choose to use a Third-Party Payment System or charge card company that includes prepayment audit functions, such as Syncada and Payport Express. RMW asks if GSA is allowed to promote specific companies and promote their own specific products in the Code of Federal Regulations.
Response: GSA agrees that the reference to Syncada may constitute an endorsement of a private enterprise and has removed the reference from the final rule. However, PayPort Express is a GSA Center for Transportation Management payment solution that is compliant with the rules established by GSA Transportation Audits Division. Being a GSA product, the acknowledgement of PayPort Express, or subsequent GSA payment solution, does not constitute the endorsement of a private enterprise.
Comment: The rule lists what information must be included in an agency's notice to a TSP when an agency is adjusting the TSP's bill. RMW points out that the list of required information excludes the reason for the adjustment and asks if this important element can be added to the list.
Response: The final rule accepts and incorporates the comment.
Comment: The rule indicates that the Administrator of General Services (GSA) has a congressionally mandated responsibility under 31 U.S.C. 3726 to perform oversight on transportation bills. The GSA Transportation Audits Division accomplishes this oversight by conducting postpayment audits of all agencies' transportation bills. RMW suggests that GSA should confirm and identify that the audits are actually performed by contracted auditing companies and not by GSA Transportation Audits.
Response: GSA does not accept this recommendation. Information regarding the GSA Transportation Audits Division procedures, including reviewing transportation invoices in conjunction with audit contracting companies, is provided on the Division's Postpayment Audit homepage (www.gsa.gov/​portal/​content/​100056).
Comment: RMW requests that GSA identify what safeguards are in place to prevent contracted auditing companies from providing both the prepayment and postpayment audit of the same bill.
Response: GSA has determined that this topic is outside the intended scope of this rule. GSA Transportation Audits Division's Dispute Resolution Branch (http://www.gsa.gov/​portal/​content/​100753) provides oversight and quality control evaluation of GSA audit contractors and ensures integrity in all audit processes.
Comment: This rule indicates that the GSA Transportation Audits Division does not charge agencies a fee for conducting the transportation postpayment audit and the expenses for such audits are financed from overpayments collected from the TSP's bills previously paid by the agency and similar type of refunds. Since the GSA Transportation Audits Division or contracted auditing companies do not receive funding unless they find errors in TSP billings, RMW asks how this is not a conflict of interest?
Response: GSA has determined that this topic is outside the intended scope of this rule. The funding mechanism identified in this rule is established by statute, 31 U.S.C. 3726 Payment for transportation.
Comment: If the GSA Transportation Audits Division is overseeing the prepay audit to ensure it is being done properly, RMW asks who is overseeing the GSA Transportation Audits Division to determine if the prepay oversight and the postpayment audit are being done properly?
Response: While GSA has determined that this topic is outside the intended scope of this rule, the GSA Office of the Inspector General and the management of the Federal Acquisition Service (FAS) provide such oversight of the GSA Transportation Audits Division.
Revises the definitions for “Agency”, “Bill of lading” (BOL), “Government bill of lading” (GBL), “Transportation document” (TD), and “Transportation Service Provider” (TSP), removes the definition “Release/declared value”, and adds the definitions “Declared value” and “Released value” in FMR part 102-117; and revises the definitions “Agency”, “Bill of lading” (BOL), “Document reference number”, “Government bill of lading” (GBL), “Government transportation request”, Offset”, “Overcharge”, “Postpayment audit”, “Rate authority”, “Reparation”, “Standard Carrier Alpha Code” (SCAC), “Statement of difference”, “Supplemental bill”, “Transportation document (TD)”, and “Transportation Service provider” (TSP), removes the terms “Agency claim”, “Released value”, “Transportation service”, “Transportation service provider claim”, and “Virtual GBL (VGBL)”, and adds the terms “Claim” and Start Printed Page 65298“Transportation” in FMR part 102-118 to ensure consistency.
Strengthens agency requirements and responsibilities for transportation prepayment audits and transportation postpayment audit, submission requirements to the GSA Transportation Audits Division, and the required information on all transportation documentation.
Updates and clarifies GSA Transportation Audits Division roles and responsibilities.
Executive Orders (E.O.) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This is not a significant regulatory action, and therefore, will not be subject to review under Section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804.
These revisions are not substantive, and therefore, this rule would 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. The proposed rule is also exempt from the Administrative Procedure Act per 5 U.S.C. 553(a)(2), because it applies to agency management or personnel.
This rule is also exempt from Congressional review prescribed under 5 U.S.C. 801 since it relates to agency management or personnel.
For the reasons set forth in the preamble, GSA amends 41 CFR parts 102-117 and 102-118 as follows:
2. Amend § 102-117.25 by—
a. Revising the definitions “Agency” and “Bill of lading (BOL)”;
b. Adding, in alphabetical order, the definition “Declared value”;
c. Revising the definition “Government bill of lading (GBL)”;
d. Removing the definition “Release/declared value”;
e. Adding, in alphabetical order, the definition “Released value”; and
f. Revising the definitions “Transportation document (TD)”, and “Transportation service provider (TSP)”.
Agency means a department, agency, and independent establishment in the executive branch of the Government as defined in 5 U.S.C. 101 et seq., and a wholly-owned Government corporation as defined in 31 U.S.C. 9101(3).
Declared value means the actual value of cargo as declared by the agency for reimbursement purposes or to establish duties, taxes, or other customs fees. The declared value is the maximum amount that could be recovered by the agency in the event of loss or damage for the shipments of freight and household goods, unless the declared value exceeds the carrier's released value (see “Released value”). The statement of declared value must be shown on any applicable tariff, tender, contract, bill of lading, or other document covering the shipment.
Released value means an assigned value of the cargo for reimbursement purposes that is not necessarily the actual value of the cargo. Released value may be more or less than the actual value of the cargo; however, in the event of loss or damage to the shipment, if the released value exceeds the actual value, reimbursement would be the lesser of the two values. When the released value is agreed upon as the basis of reimbursement and the actual value exceeds the released value, the released value is the maximum amount that could be recovered by the agency in the event of loss or damage to the shipments of freight or household goods. When negotiating for rates and the released value is proposed to be less than the actual value of the cargo, the TSP should offer a rate lower than other rates for shipping cargo at full value. The statement of released value may be shown in any applicable tariff, tender, contract, transportation document or other documents covering the shipment.
Transportation document (TD) means any executed document for transportation service, such as a bill of lading, a tariff, a tender, a contract, a Government Transportation Request (GTR), invoices, paid invoices, any transportation bills, or other equivalent documents, including electronic documents.
3. The authority citation for 41 CFR part 102-118 is revised to read as follows:
4. Revise § 102-118.10 to read as follows:
A transportation audit is a thorough review and validation of transportation related documents and bills. The audit Start Printed Page 65299must examine the validity, propriety, and conformity of the charges or rates with tariffs, quotations, contracts, agreements, or tenders, as appropriate.
5. Amend § 102-118.15 by removing “or people and/or” and adding “, people or” in its place.
6. Revise § 102-118.20 to read as follows:
This part applies to all agencies (including the Department of Defense (DoD)) and TSPs defined in § 102-118.35, and wholly-owned Government corporations as defined in 31 U.S.C. 101, et seq. and 31 U.S.C. 9101(3). Your agency is required to incorporate this part into its internal regulations.
7. Revise §§ 102-118.25 and 102-118.30 to read as follows:
What must my agency provide to GSA regarding its transportation policies?
Are Government-controlled corporations bound by this part?
8. Amend § 102-118.35 by-
a. Revising the definition “Agency”;
b. Removing the definition “Agency claim”;
c. Revising the definition “Bill of lading”;
d. Adding, in alphabetical order, the definition “Claim”;
e. Revising the definitions “Document reference number”, “Government bill of lading (GBL)”, “Government contractor-issued charge card”, “Government Transportation Request (GTR)”, “Offset”, “Overcharge”, “Postpayment audit”, “Prepayment audit”, and “Rate authority”;
f. Removing the definition “Released value”;
g. Revising the definitions “Reparation”, “Standard carrier alpha code (SCAC)”, “Statement of difference”, and “Supplemental bill”;
h. Adding, in alphabetical order, the definition “Transportation”;
i. Revising the definition “Transportation document (TD)”;
j. Removing the definition “Transportation service”;
k. Revising the definition “Transportation service provider (TSP)”;
l. Removing the definitions “Transportation service provider claim” and “Virtual GBL (VGBL)”; and
m. Revising the “Note” at the end of the section. The revisions and additions read as follows:
Statement of difference means a statement issued by an agency or its designated audit contractor during a prepayment audit when they determine Start Printed Page 65300that 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.
15 U.S.C. 96, et seq., 49 U.S.C. 13102, et seq., and 41 CFR Chapter 302 Federal Travel Regulation defines additional transportation terms not listed in this section.
9. Revise Subpart D to read as follows:
Must my agency establish a transportation prepayment audit program, and how is it funded?
What must my agency consider when developing a transportation prepayment audit program?
Must all transportation payment records, whether they are electronic or paper, undergo a prepayment audit?
What must be included in my agency's transportation prepayment audit program?
Must my agency notify the TSP of any adjustment to the TSP bill?
Does my agency transportation prepayment audit program need to establish appeal procedures?
What information must be on all transportation payment records that have completed my agency's prepayment audit?
What does the GSA Transportation Audits Division consider when verifying an agency prepayment audit program?
How does my agency contact the GSA Transportation Audits Division?
What action should my agency take if the agency's transportation prepayment audits program changes?
Does establishing an agency Chief Financial Officer-approved transportation prepayment audit program change the responsibilities of the certifying officers?
Does a transportation prepayment audit waiver change any liabilities of the certifying officer?
What relief from liability is available for the certifying official under a transportation postpayment audit?
Do the requirements of a transportation prepayment audit change the disbursing official's liability for overpayment?
Where does relief from transportation prepayment audit liability for certifying, accountable, and disbursing officers reside in my agency?
What agency has the authority to grant an exemption from the transportation prepayment audit requirement?
How does my agency apply for an exemption from a transportation prepayment audit requirement?
How long will GSA take to respond to an exemption request from a transportation prepayment audit requirement?
Can my agency renew an exemption from the transportation prepayment audit requirements?
Are my agency's prepayment audited transportation documentation subject to periodic postpayment audit oversight from the GSA Transportation Audits Division?
Can GSA suspend my agency's transportation prepayment audit program?
(a) Your agency's transportation prepayment audit program must consider all of the methods that your agency uses to order and pay for passenger, household goods, and freight transportation to include Government contractor-issued charge cards (see § 102-118.35 for definition Government contractor-issued charge cards).
(b) Each method of ordering transportation and transportation services for passenger, household goods, and freight transportation may require a different kind of prepayment audit process. The manner in which your agency orders or procures transportation services determines how and by whom Start Printed Page 65301the bill for those services will be presented. Your agency should ensure that each TSP bill or employee travel voucher contains enough information for the prepayment audit to determine which contract or rate tender is used and that the type and quantity of any additional services are clearly delineated.
(f) Use of GSA Transportation Audits Division's Prepayment Audit Program template is recommended (contact Audit.Policy@gsa.gov for a copy of the template). If the template is not used, provide the same information listed on the template to GSA Transportation Audits Division.
(2) In compliance with the U.S. Government Accountability Office Using Statistical Sampling (GAO/PEMD-10.1.6), Rev. 1992, Chapter 7 Random Selection Procedures obtainable from http://www.gao.gov;​ or
What must be included in an agency's transportation prepayment audit program?
(1) GSA Transportation Audits Division can provide your agency a Prepayment Audit Program with a monthly reporting template upon request at Audit.Policy@gsa.gov (see § 102-118.35 for definition TD).
(k) An appeals process as part of the approved prepayment audit program for a TSP to appeal any reduction in the amount billed. Refer to § 102-118.295 for details regarding the appeals process.
(l) Accurate notices and agency procedures for notifying the TSPs with a detailed description of the reasons for any full or partial rejection of the stated charges on the invoice. Refer to § 102-118.290 for notice requirements; and
(m) A unique agency numbering system to handle commercial paper and practices (see § 102-118.55 for information on administrative procedures your agency must establish).
(10) Payment location number and agency organization name;Start Printed Page 65302
(a) If your agency is unable to resolve the disputed amount with the TSP, your agency must submit, within 30 calendar days, all relevant transportation documentation associated with the dispute, including a complete billing history and the appropriation or fund charged, to GSA Transportation Audits Division by email at Audit.Policy@gsa.gov, or by mail to: U.S. General Services Administration, 1800 F St. NW., 3rd Floor, Mail Hub 3400, Washington, DC 20405.
(b) Your agency can find added guidance in the “U.S. Government Freight Transportation Handbook.” This handbook is located at www.gsa.gov/​transaudits.
What action should my agency take if the agency's transportation prepayment audit program changes?
(a) If your agency's transportation prepayment audit program changes in any way to include changes in prepayment auditors, your agency must submit the CFO-approved revised transportation prepayment audit program to GSA Transportation Audits Division via email at Audit.Policy@gsa.gov, Subject line: Agency PPA-Revised.
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).Start Printed Page 65303
Your agency must submit a request for an exemption from the requirement to perform transportation prepayment audits by email to Audit.policy@gsa.gov, Subject Line: Prepayment Audit Exemption Request. The agency exemption request must explain in detail why the request is submitted based on cost effectiveness, public interest, or other factors the Administrator considers appropriate, such as transportation modes, dollar thresholds, adversely affecting the agency's mission, or is not feasible (31 U.S.C. 3726(a)(2)).
10. Revise Subpart E to read as follows:
What is a transportation postpayment audit?
Who conducts a transportation postpayment audit?
If agencies perform the mandatory transportation prepayment audit, will this eliminate the requirement for a transportation postpayment audit conducted by GSA?
Can the Administrator of General Services exempt the transportation postpayment audit requirement?
Is my agency allowed to perform a postpayment audit on our transportation documents?
Is my agency required to forward all transportation documents to the GSA Transportation Audits Division, and what information must be on these documents?
What is the process the GSA Transportation Audits Division employs to conduct a postpayment audit?
What are the transportation postpayment audit roles and responsibilities of the GSA Transportation Audits Division?
Does my agency pay for a transportation postpayment audit conducted by the GSA Transportation Audits Division?
How do I contact the GSA Transportation Audits Division?
No. Your agency may not perform a transportation postpayment audit unless granted an exemption and specifically Start Printed Page 65304directed to do so by the Administrator in lieu of a prepayment audit. Whether such an exemption is granted or not, your agency must forward all transportation documents (TD) to GSA for postpayment audit (see § 102-118.35 for definition TD).
Is my agency required to forward all transportation documents to GSA Transportation Audits Division, and what information must be on these documents?
(a) Yes, your agency must provide all TDs to GSA Transportation Audits Division (see § 102-118.35 for definition TD).
(c) Your agency can find additional guidance in the “U.S. Government Freight Transportation Handbook.” This handbook is located at www.gsa.gov/​transaudits.
[FR Doc. 2016-22609 Filed 9-21-16; 8:45 am]