Source: https://regulations.vlex.com/vid/federal-management-regulation-fmr-649429489
Timestamp: 2020-02-24 09:39:14
Document Index: 775252357

Matched Legal Cases: ['art 102', 'art 102', 'ART 102', 'art 102', 'ART 102', 'art 102']

Federal Management Regulation (FMR); Transportation Payment and Audit - September 22, 2016 - Regulations - VLEX 649429489
Pages 65296-65304
FR Doc No: 2016-22609
Change 2016-01; FMR Case 2015-102-2; Docket 2015-0014; Sequence 1
SUMMARY: GSA is amending the Federal Management Regulation (FMR), Transportation Payment and Audit, to clarify agency and Department of Defense (DoD) transportation payment and audit requirements. GSA is also amending relevant definitions. The FMR is written in plain language to provide agencies with updated regulatory material that is easy to read and understand.
DATES: Effective: September 22, 2016.
FOR FURTHER INFORMATION CONTACT: 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.
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: 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.
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
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modes of transportation companies worldwide by the NMFTA.
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.''
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 Sec. 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.
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).
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.
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
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``Transportation'' in FMR part 102-118 to ensure consistency.
Accounting, Claims, Freight, Government property management, Moving of household goods, Reporting and recordkeeping requirements, Transportation.
PART 102-117--TRANSPORTATION MANAGEMENT
The authority citation for 41 CFR part 102-117 continues to read as follows:
Amend Sec. 102-117.25 by--
Revising the definitions ``Agency'' and ``Bill of lading (BOL)'';
Adding, in alphabetical order, the definition ``Declared value'';
Revising the definition ``Government bill of lading (GBL)'';
Removing the definition ``Release/declared value'';
Adding, in alphabetical order, the definition ``Released value''; and
Revising the definitions ``Transportation document (TD)'', and ``Transportation service provider (TSP)''.
Sec. 102-117.25 What definitions apply to this part?
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.
PART 102-118--TRANSPORTATION PAYMENT AND AUDIT
The authority citation for 41 CFR part 102-118 is revised to read as follows:
Revise Sec. 102-118.10 to read as follows:
Sec. 102-118.10 What is a transportation audit?
A transportation audit is a thorough review and validation of transportation related documents and bills. The audit
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must examine the validity, propriety, and conformity of the charges or rates with tariffs, quotations, contracts, agreements, or tenders, as appropriate.
Sec. 102-118.15 Amended
Amend Sec. 102-118.15 by removing ``or people and/or'' and adding ``, people or'' in its place.
Revise Sec. 102-118.20 to read as follows:
Sec. 102-118.20 Who is subject to this part?
This part applies to all agencies (including the Department of Defense (DoD)) and TSPs defined in Sec. 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.
Revise Sec. Sec. 102-118.25 and 102-118.30 to read as follows:
Sec. 102-118.25 What must my agency provide to GSA regarding its transportation policies?
Sec. 102-118.30 Are Government-controlled corporations bound by this part?
Amend Sec. 102-118.35 by-
Revising the definition ``Agency'';
Removing the definition ``Agency claim'';
Revising the definition ``Bill of lading'';
Adding, in alphabetical order, the definition ``Claim'';
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'';
Removing the definition ``Released value'';
Revising the definitions ``Reparation'', ``Standard carrier alpha code (SCAC)'', ``Statement of difference'', and ``Supplemental bill'';
Adding, in alphabetical order, the definition ``Transportation'';
Revising the definition ``Transportation document (TD)'';
Removing the definition ``Transportation service'';
Revising the definition ``Transportation service provider (TSP)'';
Removing the definitions ``Transportation service provider claim'' and ``Virtual GBL (VGBL)''; and
Revising the ``Note'' at the end of the section. The revisions and additions read as follows:
Sec. 102-118.35 What definitions apply to this part?
Claim means--
Government Transportation Request (GTR) (Optional Form 1169)--means a Government document used to procure passenger transportation services from a TSP. The document obligates the Government to pay for transportation services provided and is used when a Government contractor issued charge card is not.
Statement of difference means a statement issued by an agency or its designated audit contractor during a prepayment audit when they determine
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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.
Note to Sec. 102-118.35: 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.
Subpart D--Prepayment Audit of Transportation Services
Sec. 102-118.265 What is a prepayment audit?
Sec. 102-118.270 Must my agency establish a transportation prepayment audit program, and how is it funded?
Sec. 102-118.275 What must my agency consider when developing a transportation prepayment audit program?
Sec. 102-118.280 Must all transportation payment records, whether they are electronic or paper, undergo a prepayment audit?
Sec. 102-118.285 What must be included in my agency's transportation prepayment audit program?
Sec. 102-118.290 Must my agency notify the TSP of any adjustment to the TSP bill?
Sec. 102-118.295 Does my agency transportation prepayment audit program need to establish appeal procedures?
Sec. 102-118.300 What must my agency do if the TSP disputes the findings and my agency cannot resolve the dispute?
Sec. 102-118.305 What information must be on all transportation payment records that have completed my agency's prepayment audit?
Sec. 102-118.310 What does the GSA Transportation Audits Division consider when verifying an agency prepayment audit program?
Sec. 102-118.315 How does my agency contact the GSA Transportation Audits Division?
Sec. 102-118.320 What action should my agency take if the agency's transportation prepayment audits program changes?
Sec. 102-118.325 Does establishing an agency Chief Financial Officer-approved transportation prepayment audit program change the responsibilities of the certifying officers?
Sec. 102-118.330 Does a transportation prepayment audit waiver change any liabilities of the certifying officer?
Sec. 102-118.335 What relief from liability is available for the certifying official under a transportation postpayment audit?
Sec. 102-118.340 Do the requirements of a transportation prepayment audit change the disbursing official's liability for overpayment?
Sec. 102-118.345 Where does relief from transportation prepayment audit liability for certifying, accountable, and disbursing officers reside in my agency?
Sec. 102-118.350 What agency has the authority to grant an exemption from the transportation prepayment audit requirement?
Sec. 102-118.355 How does my agency apply for an exemption from a transportation prepayment audit requirement?
Sec. 102-118.360 How long will GSA take to respond to an exemption request from a transportation prepayment audit requirement?
Sec. 102-118.365 Can my agency renew an exemption from the transportation prepayment audit requirements?
Sec. 102-118.370 Are my agency's prepayment audited transportation documentation subject to periodic postpayment audit oversight from the GSA Transportation Audits Division?
Sec. 102-118.375 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 Sec. 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
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the bill for those services will be presented. Your agency should ensure that each TSP bill or employee travel voucher contains enough information for the prepayment audit to determine which contract or rate tender is used and that the type and quantity of any additional services are clearly delineated.
(c) The prepayment audit cannot be conducted by the same firm providing the transportation services for the agency. If a move manager is being utilized, the move manager may not have any affiliation with or financial interest in the transportation company providing the transportation services for which the prepayment audit is being conducted. Contracts with charge card companies that provide prepayment audit services are a valid option. The agency can choose to--
Sec. 102-118.285 What must be included in an agency's transportation prepayment audit program?
The agency prepayment audit program must include--
(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 Sec. 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 Sec. 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 Sec. 102-
118.290 for notice requirements; and
(m) A unique agency numbering system to handle commercial paper and practices (see Sec. 102-118.55 for information on administrative procedures your agency must establish).
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(b) Your agency can find added guidance in the ``U.S. Government Freight Transportation Handbook.'' This handbook is located at www.gsa.gov/transaudits.
Sec. 102-118.320 What action should my agency take if the agency's transportation prepayment audit program changes?
Sec. 102-118.325 Does establishing an agency Chief Financial Officer-
approved transportation prepayment audit program change the responsibilities of the certifying officers?
The agency counsel relieves a certifying official from liability for transportation overpayments in cases where--
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(b) This suspension determination is based on identification of a systematic or frequent failure of the agency's transportation prepayment audit program to--
Subpart E--Postpayment Transportation Audits
Sec. 102-118.400 What is a transportation postpayment audit?
Sec. 102-118.405 Who conducts a transportation postpayment audit?
Sec. 102-118.410 If agencies perform the mandatory transportation prepayment audit, will this eliminate the requirement for a transportation postpayment audit conducted by GSA?
Sec. 102-118.415 Can the Administrator of General Services exempt the transportation postpayment audit requirement?
Sec. 102-118.420 Is my agency allowed to perform a postpayment audit on our transportation documents?
Sec. 102-118.425 Is my agency required to forward all transportation documents to the GSA Transportation Audits Division, and what information must be on these documents?
Sec. 102-118.430 What is the process the GSA Transportation Audits Division employs to conduct a postpayment audit?
Sec. 102-118.435 What are the transportation postpayment audit roles and responsibilities of the GSA Transportation Audits Division?
Sec. 102-118.440 Does my agency pay for a transportation postpayment audit conducted by the GSA Transportation Audits Division?
Sec. 102-118.445 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
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directed 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 Sec. 102-118.35 for definition TD).
Sec. 102-118.425 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 Sec. 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.
(a) The GSA Transportation Audits Division role is to perform the oversight responsibility of transportation prepayment and postpayment granted to the Administrator. The GSA Transportation Audits Division will--
FR Doc. 2016-22609 Filed 9-21-16; 8:45 am
Common carrier services: Spectrum aggregation limits; biennial regulatory review,