[Federal Register: April 26, 2000 (Volume 65, Number 81)]
[Rules and Regulations]
[Page 24567-24583]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26ap00-12]
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Part III
General Services Administration
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41 CFR Parts 101-41 and 102-118
Transportation Payment and Audit; Final Rule
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GENERAL SERVICES ADMINISTRATION
41 CFR Parts 101-41 and 102-118
[FPMR Amendment G-115]
RIN 3090-AH15
Transportation Payment and Audit
AGENCY: Office of Governmentwide Policy, GSA.
ACTION: Final rule.
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SUMMARY: The General Services Administration (GSA) is revising the
Federal Property Management Regulations (FPMR) by moving coverage on
transportation payment and audit into the Federal Management Regulation
(FMR). A cross-reference is added to the FPMR to direct readers to the
coverage in the FMR. The FMR coverage is written in plain language to
provide agencies with updated regulatory material that is easy to read
and understand.
DATES: Effective Date: This final rule is effective April 20, 2000.
Applicability Date: In order to protect the interests of the
Government, the Administrator of General Services grants a waiver to
the prepayment audit provisions for all agencies who do not have a
verified audit system by April 20, 2000. This exemption for agencies
will extend until October 1, 2000 or the issuance of an approved agency
transportation prepayment audit plan, whichever occurs first, to allow
agencies a reasonable time to incorporate these regulations into
transportation prepayment audit plans and to allow agencies to
coordinate the GSA's regulations with the proper fiscal systems.
FOR FURTHER INFORMATION CONTACT: Mr. Ed Davis, Program Analyst,
Transportation Management Policy Division, Office of Governmentwide
Policy, General Services Administration, at 202-208-7638, or E-mail at
ed.davis@gsa.gov.
SUPPLEMENTARY INFORMATION:
A. Background
In response to President Clinton's mandate to Federal agencies to
make communication with the public more understandable, GSA is revising
and clarifying the transportation management policies by:
(1) Writing them in plain language and making substantive changes;
and
(2) Allowing the use of commercial bills of lading and electronic
commerce.
This rewrite incorporates Public Law 105-264, section 3, which
amended 31 U.S.C. 3322, 31 U.S.C. 3528, and 31 U.S.C. 3726. The major
change required is the mandatory use of prepayment audits for
transportation billings.
The Federal Management Regulation (FMR) is in the question and
answer format. Question and answer format is an effective way to engage
the reader and to break the information into manageable pieces. The FMR
asks questions in the first person, as the user would. It then answers
the questions in the second and third person. The FMR addresses the
agency in the singular.
B. Substantive Changes
This final rule clarifies existing transportation payment and audit
requirements and makes substantive changes in this final rule.
We implement the mandatory use of prepayment audits, as required by
Public Law 105-264, section 3, which amended 31 U.S.C. 3322, 31 U.S.C.
3528, and 31 U.S.C. 3726. Under a prepayment audit, the agency will
keep more of its transportation dollars, by verifying transportation
billings to eliminate potential overpayments.
We encourage agencies to expand the use of charge cards, commercial
bills of lading, and electronic payment methods in place of the
Government forms (Government Bill Of Lading and Government
Transportation Request) used currently. The use of electronic bills of
lading and existing commercial forms are the preferred methods to
decrease the need for paperwork, retention of duplicate copies, and to
lessen stockpiles of archived paper files and storage space.
The appeals process for a claim must begin within an agency and the
first level of appeal must be handled at an appropriate level within
the agency. In exchange for keeping funds through the use of prepayment
audits, agencies will have responsibilities related to the setup and
function of their prepayment audit programs.
FMR part 118 affects any department or establishment of the Federal
Government defined by 5 U.S.C. 305, whose payment for transportation
services are subject to the transportation audit provisions of section
322 of the Transportation Act of 1940, as amended (31 U.S.C. 3726).
A proposed rule was published on February 22, 2000, at 65 FR 8818.
Comments were received from nine agencies and no members of the public.
All comments were considered in the formulation of the final rule and,
as a result, a number of changes were made to the proposed rule.
C. Executive Order 12866
GSA has determined that this final rule is not a significant
regulatory action for the purposes of Executive Order 12866 of
September 30, 1993.
D. Regulatory Flexibility Act
This final rule will not have a significant economic impact on a
substantial number of small entities within the meaning of the
Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the rule
only applies to internal agency management and will not have a
significant effect on the public.
E. Paperwork Reduction Act
The Paperwork Reduction Act does not apply because this final rule
does not impose recordkeeping or information collection requirements,
or the collection of information from offerors, contractors, or members
of the public which require the approval of the Office of Management
and Budget (OMB) under 44 U.S.C. 3501, et seq.
F. Small Business Regulatory Enforcement Fairness Act
This final rule is exempt from Congressional review under 5 U.S.C.
801 since it relates solely to agency management and personnel.
List of Subjects in 41 CFR Parts 101-41 and 102-118
Accounting, Claims, Government property management, Surplus
Government property, Reporting and recordkeeping requirements,
Transportation.
For the reasons set forth in the preamble, 41 CFR chapters 101 and
102 are amended as follows:
CHAPTER 101--[AMENDED]
1. Part 101-41 is revised to read as follows:
PART 101-41--TRANSPORTATION DOCUMENTATION AND AUDIT
Authority: 31 U.S.C. 3726; and 40 U.S.C. 486(c).
Sec. 101-41.000 Cross-reference to the Federal Management Regulation
(FMR) (41 CFR chapter 102, parts 102-1 through 102-220).
For transportation payment and audit policy, see FMR part 102-118
(41 CFR part 102-118).
CHAPTER 102--[AMENDED]
2. Part 102-118 is added to subchapter D to read as follows:
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PART 102-118--TRANSPORTATION PAYMENT AND AUDIT
Subpart A--General
Introduction
Sec.
102-118.5 What is the purpose of this part?
102-118.10 What is a transportation audit?
102-118.15 What is a transportation payment?
102-118.20 Who is subject to this part?
102-118.25 Does GSA still require my agency to submit its overall
transportation policies for approval?
102-118.30 Are Government corporations bound by this part?
Definitions
102-118.35 What definitions apply to this part?
Subpart B--Ordering and Paying for Transportation and Transportation
Services
102-118.40 How does my agency order transportation and
transportation services?
102-118.45 How does a transportation service provider (TSP) bill
my agency for transportation and transportation services?
102-118.50 How does my agency pay for transportation services?
102-118.55 What administrative procedures must my agency establish
for payment of freight, household goods, or other transportation
services?
102-118.60 To what extent must my agency use electronic commerce?
102-118.65 Can my agency receive electronic billing for payment of
transportation services?
102-118.70 Must my agency make all payments via electronic funds
transfer?
102-118.75 What if my agency or the TSP does not have an account
with a financial institution or approved payment agent?
102-118.80 Who is responsible for keeping my agency's electronic
commerce transportation billing records?
102-118.85 Can my agency use a Government contractor issued charge
card to pay for transportation services?
102-118.90 If my agency orders transportation and/or
transportation services with a Government contractor issued charge
card or charge account citation, is this subject to prepayment
audit?
102-118.95 What forms can my agency use to pay transportation
bills?
102-118.100 What must my agency ensure is on each SF 1113?
102-118.105 Where can I find the rules governing the use of a
Government Bill of Lading?
102-118.110 Where can I find the rules governing the use of a
Government Transportation Request?
102-118.115 Must my agency use a GBL?
102-118.120 Must my agency use a GTR?
102-118.125 What if my agency uses a TD other than a GBL?
102-118.130 Must my agency use a GBL for express, courier, or
small package shipments?
102-118.135 Where are the mandatory terms and conditions governing
the use of bills of lading?
102-118.140 What are the major mandatory terms and conditions
governing the use of GBLs and bills of lading?
102-118.145 Where are the mandatory terms and conditions governing
the use of passenger transportation documents?
102-118.150 What are the major mandatory terms and conditions
governing the use of passenger transportation documents?
102-118.155 How does my agency handle supplemental billings from
the TSP after payment of the original bill?
102-118.160 Who is liable if my agency makes an overpayment on a
transportation bill?
102-118.165 What must my agency do if it finds an error on a TSP
bill?
102-118.170 Will GSA continue to maintain a centralized numbering
system for Government transportation documents?
Subpart C--Use of Government Billing Documents
Terms and Conditions Governing Acceptance and Use of a Government Bill
of Lading (GBL) or Government Transportation Request (GTR) (Until Form
Retirement)
102-118.175 Must my agency prepare for the GBL retirement?
102-118.180 Must my agency prepare for the GTR retirement?
102-118.185 When buying freight transportation, must my agency
reference the applicable contract or tender on the bill of lading
(including GBLs)?
102-118.190 When buying passenger transportation, must my agency
reference the applicable contract?
102-118.195 What documents must a transportation service provider
(TSP) send to receive payment for a transportation billing?
102-118.200 Can a TSP demand advance payment for the
transportation charges submitted on a bill of lading (including
GBL)?
102-118.205 May my agency pay an agent functioning as a
warehouseman for the TSP providing service under the bill of lading?
102-118.210 May my agency use bills of lading other than the GBL
for a transportation shipment?
102-118.215 May my agency pay a TSP any extra fees to pay for the
preparation and use of the GBL or GTR?
102-118.220 If a transportation debt is owed to my agency by a TSP
because of loss or damage to property, does my agency report it to
GSA?
102-118.225 What constitutes final receipt of shipment?
102-118.230 What if my agency creates or eliminates a field office
approved to prepare transportation documents?
Agency Responsibilities When Using Government Bills of Lading (GBLs) or
Government Transportation Requests (GTRs)
102-118.235 Must my agency keep physical control and
accountability of the GBL and GTR forms or GBL and GTR numbers?
102-118.240 How does my agency get GBL and GTR forms?
102-118.245 How does my agency get an assigned set of GBL or GTR
numbers?
102-118.250 Who is accountable for the issuance and use of GBL and
GTR forms?
102-118.255 Are GBL and GTR forms numbered and used sequentially?
Quotations, Tenders or Contracts
102-118.260 Must my agency send all quotations, tenders, or
contracts with a TSP to GSA?
Subpart D--Prepayment Audits of Transportation Services
Agency Requirements for Prepayment Audits
102-118.265 What is a prepayment audit?
102-118.270 Must my agency establish a prepayment audit program?
102-118.275 What must my agency consider when designing and
implementing a prepayment audit program?
102-118.280 What advantages does the prepayment audit offer my
agency?
102-118.285 What options for performing a prepayment audit does my
agency have?
102-118.290 Must every electronic and paper transportation bill
undergo a prepayment audit?
102-118.295 What are the limited exceptions to every bill
undergoing a prepayment audit?
102-118.300 How does my agency fund its prepayment audit program?
102-118.305 Must my agency notify the TSP of any adjustment to the
TSP's bill?
102-118.310 Must my agency prepayment audit program establish
appeal procedures whereby a TSP may appeal any reduction in the
amount billed?
102-118.315 What must my agency do if the TSP disputes the
findings and my agency cannot resolve the dispute?
102-118.320 What information must be on transportation bills which
have completed my agency's prepayment audit?
Maintaining an Approved Program
102-118.325 Must I get approval for my agency's prepayment audit
program?
102-118.330 What are the elements of an acceptable prepayment
audit program?
102-118.335 What does the GSA Audit Division consider when
verifying an agency prepayment audit program?
102-118.340 How does my agency contact the GSA Audit Division?
102-118.345 If my agency chooses to change an approved prepayment
audit program, does the program need to be re-approved?
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Liability for Certifying and Disbursing Officers
102-118.350 Does establishing a prepayment audit system or program
change the responsibilities of the certifying officers?
102-118.355 Does a prepayment audit waiver, change any liabilities
of the certifying officer?
102-118.360 What relief from liability is available for the
certifying official under a postpayment audit?
102-118.365 Do the requirements of a prepayment audit change the
disbursing official's liability for overpayment?
102-118.370 Where does relief from prepayment audit liability for
certifying, accountable, and disbursing officers reside in my
agency?
Waivers From Mandatory Prepayment Audit
102-118.375 Who has the authority to grant a waiver of the
prepayment audit requirement?
102-118.380 How does my agency apply for a waiver from the
prepayment audit requirement?
102-118.385 What must a waiver request include?
102-118.390 On what basis does GSA grant a waiver to the
prepayment audit requirement?
102-118.395 How long will GSA take to respond to a waiver request?
102-118.400 Must my agency renew a waiver of the prepayment audit
requirements?
102-118.405 Are my agency's prepayment audited transportation
bills subject to periodic postpayment audit oversight from the GSA
Audit Division?
Suspension of Agency Prepayment Audit Programs
102-118.410 Can GSA suspend my agency's prepayment audit program?
Subpart E--Postpayment Transportation Audits
102-118.415 Will the widespread mandatory use of prepayment audits
eliminate postpayment audits?
102-118.420 Can the Administrator of General Services waive the
postpayment auditing provisions of this subpart?
102-118.425 Is my agency allowed to perform a postpayment audit on
our transportation bills?
102-118.430 What information must be on my agency's transportation
bills submitted for a postpayment audit?
102-118.435 What procedures does GSA use to perform a postpayment
audit?
102-118.440 What are the postpayment audit responsibilities and
roles of the GSA Audit Division?
102-118.445 Must my agency pay for a postpayment audit when using
the GSA Audit Division?
Subpart F--Claims and Appeal Procedures
General Agency Information for All Claims
102-118.450 Can a TSP file a transportation claim against my
agency?
102-118.445 What is the time limit for a TSP to file a
transportation claim against my agency?
102-118.460 What is the time limit for my agency to file a court
claim with a TSP for freight charges, reparations, and loss or
damage to the property?
102-118.465 Must my agency pay interest on a disputed amount
claimed by a TSP?
102-118.470 Are there statutory time limits for a TSP on filing an
administrative claim with the GSA Audit Division?
102-118.475 Does interest apply after certification of payment of
claims?
102-118.480 How does my agency settle disputes with a TSP?
102-118.485 Is there a time limit for my agency to issue a
decision on disputed claims?
102-118.490 What if my agency fails to settle a dispute within 30
days?
102-118.495 May my agency appeal a decision by the General
Services Board of Contract Appeals (GSBCA)?
102-118.500 How does my agency handle a voluntary refund submitted
by a TSP?
102-118.505 Must my agency send a voluntary refund to the
Treasurer of the United States?
102-118.510 Can my agency revise or alter a GSA Form 7931,
Certificate of Settlement?
102-118.515 Does my agency have any recourse not to pay a
Certificate of Settlement?
102-118.520 Who is responsible for determining the standards for
collection, compromise, termination, or suspension of collection
action on any outstanding debts to my agency?
102-118.525 What are my agency's responsibilities for verifying
the correct amount of transportation charges?
102-118.530 Will GSA instruct my agency's disbursing offices to
offset unpaid TSP billings?
102-118.535 Are there principles governing my agency's TSP debt
collection procedures?
102-118.540 Who has the authority to audit, settle accounts, and/
or start collection action for all transportation services provided
for my agency?
Transportation Service Provider (TSP) Filing Requirements
102-118.545 What information must a TSP claim include?
102-118.550 How does a TSP file an administrative claim using EDI
or other electronic means?
102-118.555 Can a TSP file a supplemental administrative claim?
102-118.560 What is the required format that a TSP must use to
file an administrative claim?
102-118.565 What documentation is required when filing an
administrative claim?
Transportation Service Provider (TSP) and Agency Appeal Procedures for
Prepayment Audits
102-118.570 If my agency denies the TSP's challenge to the
Statement of Difference, may the TSP appeal?
102-118.575 If a TSP disagrees with the decision of my agency, can
the TSP appeal?
102-118.580 May a TSP appeal a prepayment audit decision of the
GSA Audit Division?
102-118.585 May a TSP appeal a prepayment audit decision of the
GSBCA?
102-118 .590 May my agency appeal a prepayment audit decision of
the GSA Audit Division?
102-118.595 May my agency appeal a prepayment audit decision by
the GSBCA?
Transportation Service Provider (TSP) and Agency Appeal Procedures for
Postpayment Audits
102-118.600 When a TSP disagrees with a Notice of Overcharge
resulting from a postpayment audit, what are the appeal procedures?
102-118.605 What if a TSP disagrees with the Notice of
Indebtedness?
102-118.610 Is a TSP notified when GSA allows a claim?
102-118.615 Will GSA notify a TSP if they internally offset a
payment?
102-118.620 How will a TSP know if the GSA Audit Division
disallows a claim?
102-118.625 Can a TSP request a reconsideration of a settlement
action by the GSA Audit Division?
102-118.630 How must a TSP refund amounts due to GSA?
102-118.635 Can the Government charge interest on an amount due
from a TSP?
102-118.640 If a TSP fails to pay or to appeal an overcharge, what
actions will GSA pursue to collect the debt?
102-118.645 Can a TSP file an administrative claim on collection
actions?
102-118.650 Can a TSP request a review of a settlement action by
the Administrator of General Services?
102-118.655 Are there time limits on a TSP request for an
administrative review by the GSBCA?
102-118.660 May a TSP appeal a postpayment audit decision of the
GSBCA?
102-118.665 May my agency appeal a postpayment audit decision by
the GSBCA?
Transportation Service Provider (TSP) Non-Payment of a Claim
102-118.670 If a TSP cannot immediately pay a debt, can they make
other arrangements for payment?
102-118.675 What recourse does my agency have if a TSP does not
pay a transportation debt?
Authority: 31 U.S.C. 3726; and 40 U.S.C. 481, et seq.
Subpart A--General
Introduction
Sec. 102-118.5 What is the purpose of this part?
The purpose of this part is to interpret statutes and other
policies that assure
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that payment and payment mechanisms for agency transportation services
are uniform and appropriate. This part communicates the policies
clearly to agencies and transportation service providers (TSPs). (See
Sec. 102-118.35 for the definition of TSP.)
Sec. 102-118.10 What is a transportation audit?
A transportation audit is a thorough review and validation of
transportation related bills. The audit must examine the validity,
propriety, and conformity of the charges with tariffs, quotations,
agreements, or tenders, as appropriate. Each agency must ensure that
its internal transportation audit procedures prevent duplicate payments
and only allow payment for authorized services, and that the TSP's bill
is complete with required documentation.
Sec. 102-118.15 What is a transportation payment?
A transportation payment is a payment made by an agency to a TSP
for the movement of goods or people and/or transportation related
services.
Sec. 102-118.20 Who is subject to this part?
All agencies and TSPs defined in Sec. 102-118.35 are subject to
this part. Your agency is required to incorporate this part into its
internal regulations.
Sec. 102-118.25 Does GSA still require my agency to submit its overall
transportation policies for approval?
GSA no longer requires your agency to submit its overall
transportation policies for approval. However, as noted in Sec. 102-
118.325, agencies must submit their prepayment audit plans for
approval. In addition, GSA may from time to time request to examine
your agency's transportation policies to verify the correct performance
of the prepayment audit of your agency's transportation bills.
Sec. 102-118.30 Are Government corporations bound by this part?
No, Government corporations are not bound by this part. However,
they may choose to use it if they wish.
Definitions
Sec. 102-118.35 What definitions apply to this part?
The following definitions apply to this part:
Agency means Executive agency, but does not include:
(1) A Government Controlled Corporation;
(2) The Tennessee Valley Authority;
(3) The Virgin Islands Corporation;
(4) The Atomic Energy Commission;
(5) The Central Intelligence Agency;
(6) The Panama Canal Commission; and
(7) The National Security Agency, Department of Defense.
Note to the definition of Agency: All agencies' payments for
transportation services are subject to the transportation audit
provisions of section 322 of the Transportation Act of 1940, as
amended (31 U.S.C. 3726).
Agency claim means any demand by an agency upon a TSP for the
payment of overcharges, ordinary debts, fines, penalties,
administrative fees, special charges, and interest.
Bill of lading, sometimes referred to as a commercial bill of
lading (but includes GBLs), is the document used as a receipt of goods,
and documentary evidence of title. It is also a contract of carriage
when movement is under 49 U.S.C. 10721 and 49 U.S.C. 13712.
Document reference number means the unique number on a bill of
lading, Government Bill of Lading, Government Transportation Request,
or transportation ticket, used to track the movement of shipments and
individuals.
EDI signature means a discrete authentication code which serves in
place of a paper signature and binds parties to the terms and
conditions of a contract in electronic communication.
Electronic commerce means electronic techniques for performing
business transactions (ordering, billing, and paying for goods and
services), including electronic mail or messaging, Internet technology,
electronic bulletin boards, charge cards, electronic funds transfers,
and electronic data interchange.
Electronic data interchange means electronic techniques for
carrying out transportation transactions using electronic transmissions
of the information between computers instead of paper documents. These
electronic transmissions must use established and published formats and
codes as authorized by the applicable Federal Information Processing
Standards.
Electronic funds transfer means any transfer of funds, other than
transactions initiated by cash, check, or similar paper instrument,
that is initiated through an electronic terminal, telephone, computer,
or magnetic tape, for the purpose of ordering, instructing, or
authorizing a financial institution to debit or credit an account. The
term includes Automated Clearinghouse transfers, Fed Wire transfers,
and transfers made at automatic teller machines and point of sale
terminals.
Government Bill of Lading (GBL) means Optional Forms 1103 and 1203,
the transportation documents issued by GSA and used as a receipt of
goods, evidence of title, and generally a contract of carriage.
Government contractor-issued charge card means both an individually
billed travel card, which the individual is required to pay, and a
centrally billed account for paying travel expenses, which the agency
is required to pay.
Government Transportation Request (GTR) means Optional Form 1169,
the Government document used to buy transportation services. The
document normally obligates the Government to pay for the
transportation services provided.
Offset means agency use of money owed by the agency to a
transportation service provider (TSP) to cover a previous debt incurred
to the agency by the TSP.
Ordinary debt means an amount that a TSP owes an agency other than
for the repayment of an overcharge. Ordinary debts include, but are not
limited to, payments for transportation services ordered and not
provided (including unused transportation tickets), duplicate payments,
and amounts for which a TSP is liable because of loss and/or damage to
property it transported.
Overcharge means those charges for transportation and travel
services that exceed those applicable under the contract for carriage.
This also includes charges more than those applicable under rates,
fares and charges established pursuant to section 13712 and 10721 of
the Revised Interstate Commerce Act, as amended (49 U.S.C. 13712 and
10721), or other equivalent contract, arrangement or exemption from
regulation.
Postpayment audit means an audit of transportation billing
documents after payment to decide their validity, propriety, and
conformity with tariffs, quotations, agreements, or tenders. This
process may also include subsequent adjustments and collections actions
taken against a TSP by the Government.
Prepayment audit means an audit of transportation billing documents
before payment to determine their validity, propriety, and conformity
with tariffs, quotations, agreements, or tenders.
Privately Owned Personal Property Government Bill of Lading,
Optional Form 1203, means the agency transportation document used as a
receipt of goods, evidence of title, and generally a contract of
carriage. It is only available for the transportation of household
goods. Use of this form is mandatory for Department of Defense, but
optional for other agencies.
Rate authority means the document that establishes the legal
charges for a
[[Page 24572]]
transportation shipment. Charges included in a rate authority are those
rates, fares, and charges for transportation and related services
contained in tariffs, tenders, and other equivalent documents.
Released value is stated in dollars and is considered the assigned
value of the cargo for reimbursement purposes, not necessarily the
actual value of the cargo. Released value may be more or less than the
actual value of the cargo. The released value is the maximum amount
that could be recovered by the agency in the event of loss or damage
for the shipments of freight and household goods. In return, when
negotiating for rates and the released value is proposed to be less
than the actual value of the cargo, the TSP should offer a rate lower
than other rates for shipping cargo at full value. The statement of
released value may be shown on any applicable tariff, tender, contract,
transportation document or other documents covering the shipment.
Reparation means the payment involving a TSP to or from an agency
of an improper transportation billing as determined by a postpayment
audit. Improper routing, overcharges, or duplicate payments may cause
such improper billing. This is different from payments to settle a
claim for loss and damage to items shipped under those rates.
Standard carrier alpha code (SCAC) means an unique four-letter code
assigned to each TSP by the National Motor Freight Traffic Association,
Inc.
Statement of difference means a statement issued by an agency or
its designated audit contractor during a prepayment audit when they
determine that a TSP has billed the agency for more than the proper
amount for the services. This statement tells the TSP on the invoice,
the amount allowed and the basis for the proper charges. The statement
also cites the applicable rate references and other data relied on for
support. The agency issues a separate statement of difference for each
transportation transaction.
Statement of difference rebuttal means a document used by the
agency to respond to a TSP's claim about an improper reduction made
against the TSP's original bill by the paying agency.
Supplemental bill means a bill for services that the TSP submits to
the agency for additional payment after reimbursement for the original
bill. The need to submit a supplemental bill may occur due to an
incorrect first bill or due to charges which were not included on the
original bill.
Taxpayer identification number (TIN) means the number required by
the Internal Revenue Service to be used by the TSP in reporting income
tax or other returns. For a TSP, the TIN is an employer identification
number.
Transportation document (TD) means any executed agreement for
transportation service, such as a bill of lading (including a
Government Bill of Lading), a Government Transportation Request, or
transportation ticket.
Transportation service means service involved in the physical
movement (from one location to another) of products, people, household
goods, and any other objects by a TSP for an agency as well as
activities directly relating to or supporting that movement. Examples
of this are storage, crating, or connecting appliances.
Transportation service provider (TSP) means any party, person,
agent, or carrier that provides freight or passenger transportation and
related services to an agency. For a freight shipment this would
include packers, truckers, and storers. For passenger transportation
this would include airlines, travel agents and travel management
centers.
Transportation service provider claim means any demand by the TSP
for amounts not included in the original bill that the TSP believes an
agency owes them. This includes amounts deducted or offset by an
agency; amounts previously refunded by the TSP, which they now believe
they are owed; and any subsequent bills from the TSP resulting from a
transaction that was pre- or postpayment audited by the GSA Audit
Division.
Virtual GBL (VGBL) means the use of a unique GBL number on a
commercial document, which binds the TSP to the terms and conditions of
a GBL.
Note to Sec. 102-118.35: 49 U.S.C. 13102, et seq., defines
additional transportation terms not listed in this section.
Subpart B--Ordering and Paying for Transportation and
Transportation Services
Sec. 102-118.40 How does my agency order transportation and
transportation services?
Your agency orders:
(a) Transportation of freight and household goods and related
transportation services (e.g., packing, storage) with a charge card,
bill of lading, purchase order (or electronic equivalent), or for
domestic shipments until September 30, 2001, a Government Bill of
Lading (GBL). GBLs will continue to be available after that date, if
needed, for international shipments (including domestic overseas
shipments).
(b) Transportation of people through the purchase of transportation
tickets with a Government issued charge card (or centrally billed
travel account citation), Government issued individual travel charge
card, personal charge card, cash (in accordance with Department of the
Treasury regulations), or in limited prescribed situations, a
Government Transportation Request (GTR). See the ``U.S. Government
Passenger Transportation--Handbook,'' obtainable from:
General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav
Sec. 102-118.45 How does a transportation service provider (TSP) bill
my agency for transportation and transportation services?
The manner in which your agency orders transportation and
transportation services determines the manner in which a TSP bills for
service. This is shown in the following table:
Transportation Service Provider Billing
------------------------------------------------------------------------
(a) Ordering method (b) Billing method
------------------------------------------------------------------------
(1)(i) Government issued agency charge (1) Bill from charge card
card,. company (may be electronic).
(ii) Centrally billed travel account
citation.
------------------------------------------------------------------------
(2)(i) Purchase order,................. (2) Bill from TSP (may be
electronic).
(ii) Bill of lading,
(iii) Government Bill of Lading,
(iv) Government Transportation Request.
------------------------------------------------------------------------
(3)(i) Contractor issued individual (3) Voucher from employee (may
travel charge card. be electronic).
[[Page 24573]]
(ii) Personal charge card,
(iii) Personal cash.
------------------------------------------------------------------------
Sec. 102-118.50 How does my agency pay for transportation services?
Your agency may pay for transportation services in three ways:
(a) Electronic funds transfer (EFT) (31 U.S.C. 3332, et seq.). Your
agency is required by statute to make all payments by EFT unless your
agency receives a waiver from the Department of the Treasury.
(b) Check. For those situations where EFT is not possible and the
Department of the Treasury has issued a waiver, your agency may make
payments by check.
(c) Cash. In very unusual circumstances and as a last option, your
agency payments may be made in cash in accordance with Department of
the Treasury regulations (31 CFR part 208).
Sec. 102-118.55 What administrative procedures must my agency
establish for payment of freight, household goods, or other
transportation services?
Your agency must establish administrative procedures which assure
that the following conditions are met:
(a) The negotiated price is fair and reasonable;
(b) A document of agreement signifying acceptance of the
arrangements with terms and conditions is filed with the participating
agency by the TSP;
(c) The terms and conditions are included in all transportation
agreements and referenced on all transportation documents (TDs);
(d) Bills are only paid to the TSP providing service under the bill
of lading to your agency and may not be waived;
(e) All fees paid are accounted for in the aggregate delivery
costs;
(f) All payments are subject to applicable statutory limitations;
(g) Procedures (such as an unique numbering system) are established
to prevent and detect duplicate payments, properly account for
expenditures and discrepancy notices;
(h) All transactions are verified with any indebtedness list. On
charge card transactions, your agency must consult any indebtedness
list if the charge card contract provisions allow for it; and
(i) Procedures are established to process any unused tickets.
Sec. 102-118.60 To what extent must my agency use electronic commerce?
Your agency should use electronic commerce (i.e., electronic
methods for ordering, receiving bills, and paying for transportation
and transportation services) to the maximum extent possible.
Sec. 102-118.65 Can my agency receive electronic billing for payment
of transportation services?
Yes, when mutually agreeable to the agency and the GSA Audit
Division, your agency is encouraged to use electronic billing for the
procurement and billing of transportation services.
Sec. 102-118.70 Must my agency make all payments via electronic funds
transfer?
Yes, under 31 U.S.C. 3332, et seq., your agency must make all
payments for goods and services via EFT (this includes goods and
services ordered using charge cards).
Sec. 102-118.75 What if my agency or the TSP does not have an account
with a financial institution or approved payment agent?
Under 31 U.S.C. 3332, et seq., your agency must obtain an account
with a financial institution or approved payment agent in order to meet
the statutory requirements to make all Federal payments via EFT unless
your agency receives a waiver from the Department of the Treasury. To
obtain a waiver, your agency must contact:
The Commissioner
Financial Management Service
Department of the Treasury
401 Fourteenth Street, SW.
Washington, DC 20227
http://www.fms.treas.gov/
Sec. 102-118.80 Who is responsible for keeping my agency's electronic
commerce transportation billing records?
Your agency's internal financial regulations will identify
responsibility for recordkeeping. In addition, the GSA Audit Division
keeps a central repository of electronic transportation billing records
for legal and auditing purposes. Therefore, your agency must forward
all relevant electronic transportation billing documents to:
General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav
Sec. 102-118.85 Can my agency use a Government contractor issued
charge card to pay for transportation services?
Yes, your agency may use a Government contractor issued charge card
to purchase transportation services if permitted under the charge card
contract or task order. In these circumstances your agency will receive
a bill for these services from the charge card company.
Sec. 102-118.90 If my agency orders transportation and/or
transportation services with a Government contractor issued charge card
or charge account citation, is this subject to prepayment audit?
Generally, no transportation or transportation services ordered
with a Government contractor issued charge card or charge account
citation can be prepayment audited because the bank or charge card
contractor pays the TSP directly, before your agency receives a bill
that can be audited from the charge card company. However, if your
agency contracts with the charge card or charge account provider to
provide for a prepayment audit, then, as long as your agency is not
liable for paying the bank for improper charges (as determined by the
prepayment audit verification process), a prepayment audit can be used.
As with all prepayment audit programs, the charge card prepayment audit
must be approved by the GSA Audit Division prior to implementation. If
the charge card contract does not provide for a prepayment audit, your
agency must submit the transportation line items on the charge card to
the GSA Audit Division for a postpayment audit.
Sec. 102-118.95 What forms can my agency use to pay transportation
bills?
Your agency must use commercial payment practices and forms to the
maximum extent possible; however, when viewed necessary by your agency,
your agency may use the following Government forms to pay
transportation bills:
(a) Standard Form (SF) 1113, Public Voucher for Transportation
Charges, and SF 1113-A, Memorandum Copy;
[[Page 24574]]
(b) Optional Form (OF) 1103, Government Bill of Lading and OF 1103A
Memorandum Copy (used for movement of things, both privately owned and
Government property for official uses);
(c) OF 1169, Government Transportation Request (used to pay for
tickets to move people); and
(d) OF 1203, Privately Owned Personal Property Government Bill of
Lading, and OF 1203A, Memorandum Copy (used by the Department of
Defense to move private property for official transfers).
Note to Sec. 102-118.95: By September 30, 2001, your agency may
no longer use the GBLs (OF 1103 and OF 1203) for domestic shipments.
After September 30, 2000, your agency should minimize the use of
GTRs (OF 1169).
Sec. 102-118.100 What must my agency ensure is on each SF 1113?
Your agency must ensure during its prepayment audit of a TSP bill
that the TSP filled out the Public Vouchers, SF 1113, completely
including the taxpayer identification number (TIN), and standard
carrier alpha code (SCAC). An SF 1113 must accompany all billings.
Sec. 102-118.105 Where can I find the rules governing the use of a
Government Bill of Lading?
The ``U.S. Government Freight Transportation--Handbook'' contains
information on how to prepare this GBL form. To get a copy of this
handbook, you may write to:
General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav
Sec. 102-118.110 Where can I find the rules governing the use of a
Government Transportation Request?
The ``U.S. Government Passenger Transportation--Handbook'' contains
information on how to prepare this GTR form. To get a copy of this
handbook, you may write to:
General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav
Sec. 102-118.115 Must my agency use a GBL?
No, your agency is not required to use a GBL and must use
commercial payment practices to the maximum extent possible. Effective
September 30, 2001, your agency must phase out the use of the Optional
Forms 1103 and 1203 for domestic shipments. After this date, your
agency may use the GBL solely for international shipments.
Sec. 102-118.120 Must my agency use a GTR?
No, your agency is not required to use a GTR. Your agency must
adopt commercial practices and eliminate GTR use to the maximum extent
possible.
Sec. 102-118.125 What if my agency uses a TD other than a GBL?
If your agency uses any other TD for shipping under its account,
the requisite and the named safeguards must be in place (i.e., terms
and conditions found herein and in the ``U.S. Government Freight
Transportation--Handbook,'' appropriate numbering, etc.).
Sec. 102-118.130 Must my agency use a GBL for express, courier, or
small package shipments?
No, however, in using commercial forms all shipments must be
subject to the terms and conditions set forth for use of a bill of
lading for the Government. Any other non-conflicting applicable
contracts or agreements between the TSP and an agency involving buying
transportation services for Government traffic remain binding. This
purchase does not require a SF 1113. When you are using GSA's schedule
for small package express delivery, the terms and conditions of that
contract are binding.
102-118.135 Where are the mandatory terms and conditions governing the
use of bills of lading?
The mandatory terms and conditions governing the use of bills of
lading are contained in this part and the ``U.S. Government Freight
Transportation Handbook.''
102-118.140 What are the major mandatory terms and conditions
governing the use of GBLs and bills of lading?
The mandatory terms and conditions governing the use of GBLs and
bills of lading are:
(a) Unless otherwise permitted by statute, the TSP must not demand
prepayment or collect charges from the consignee. The TSP, providing
service under the bill of lading, must present the original, properly
certified GBL or bill of lading attached to an SF 1113, Public Voucher
for Transportation Charges, to the paying office for payment;
(b) The shipment must be made at the restricted or limited
valuation specified in the tariff or classification or limited
contract, arrangement or exemption at or under which the lowest rate is
available, unless indicated on the GBL or bill of lading. (This is
commonly referred to as an alternation of rates);
(c) Receipt for the shipment is subject to the consignee's
annotation of loss, damage, or shrinkage on the delivering TSP's
documents and the consignee's copy of the same documents. If loss or
damage is discovered after delivery or receipt of the shipment, the
consignee must promptly notify the nearest office of the last
delivering TSP and extend to the TSP the privilege of examining the
shipment;
(d) The rules and conditions governing commercial shipments for the
time period within which notice must be given to the TSP, or a claim
must be filed, or suit must be instituted, shall not apply if the
shipment is lost, damaged or undergoes shrinkage in transit. Only with
the written concurrence of the Government official responsible for
making the shipment is the deletion of this item considered to valid;
(e) Interest shall accrue from the voucher payment date on the
overcharges made and shall be paid at the same rate in effect on that
date as published by the Secretary of the Treasury pursuant to the Debt
Collection Act of 1982 31 U.S.C. 3717); and
(f) Additional mandatory terms and conditions are in this part and
the ``U.S. Government Freight Transportation--Handbook.''
102-118.145 Where are the mandatory terms and conditions governing the
use of passenger transportation documents?
The mandatory terms and conditions governing the use of passenger
transportation documents are contained in this part and the ``U.S.
Government Passenger Transportation--Handbook.''
102-118.150 What are the major mandatory terms and conditions
governing the use of passenger transportation documents?
The mandatory terms and conditions governing the use of passenger
transportation documents are:
(a) Government travel must be via the lowest cost available, that
meets travel requirements; e.g., Government contract, fare, through,
excursion, or reduced one way or round trip fare. This should be done
by entering the term ``lowest coach'' on the Government travel document
if the specific fare basis is not known;
(b) The U.S. Government is not responsible for charges exceeding
those applicable to the type, class, or character authorized in
transportation documents;
[[Page 24575]]
(c) The U.S. Government contractor-issued charge card must be used
to the maximum extent possible to procure passenger transportation
tickets. GTRs must be used minimally;
(d) Government passenger transportation documents must be in
accordance with Federal Travel Regulation Chapters 300 and 301 (41 CFR
chapters 300 and 301), and the ``U.S. Government Passenger
Transportation--Handbook'';
(e) Interest shall accrue from the voucher payment date on
overcharges made hereunder and shall be paid at the same rate in effect
on that date as published by the Secretary of the Treasury pursuant to
the Debt Collection Act of 1982;
(f) The TSP must insert on the TD any known dates on which travel
commenced;
(g) The issuing official or traveler, by signature, certifies that
the requested transportation is for official business;
(h) The TSP must not honor any request containing erasures or
alterations unless the TD contains the authentic, valid initials of the
issuing official; and
(i) Additional mandatory terms and conditions are in this part and
the ``U. S. Government Passenger Transportation--Handbook.''
Sec. 102-118.155 How does my agency handle supplemental billings from
the TSP after payment of the original bill?
Your agency must process, review, and verify supplemental billings
using the same procedures as on an original billing. If the TSP
disputes the findings, your agency must attempt to resolve the disputed
amount.
Sec. 102-118.160 Who is liable if my agency makes an overpayment on a
transportation bill?
If the agency conducts prepayment audits of its transportation
bills, agency transportation certifying and disbursing officers are
liable for any overpayments made. If GSA has granted a waiver to the
prepayment audit requirement and the agency performs a postpayment
audit (31 U.S.C. 3528 and 31 U.S.C. 3322) neither the certifying nor
disbursing officers are liable for the reasons listed in these two
cited statutes.
Sec. 102-118.165 What must my agency do if it finds an error on a TSP
bill?
Your agency must advise the TSP via statement of difference of any
adjustment that you make either electronically or in writing within 7
days of receipt of the bill, as required by the Prompt Payment Act (31
U.S.C. 3901, et seq.). This notice must include the TSP's taxpayer
identification number, standard carrier alpha code, bill number and
document reference number, agency name, amount requested by the TSP,
amount paid, payment voucher number, complete tender or tariff
authority, the applicable rate authority and the complete fiscal
authority including the appropriation.
Sec. 102-118.170 Will GSA continue to maintain a centralized numbering
system for Government transportation documents?
Yes, GSA will maintain a numbering system for GBLs and GTRs. For
commercial TDs, each agency must create a unique numbering system to
account for and prevent duplicate numbers. The GSA Audit Division must
approve this system. Write to:
General Services Administration
Federal supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav
Subpart C--Use of Government Billing Documents
Terms and Conditions Governing Acceptance and Use of a Government
Bill of Lading (GBL) or Government Transportation Request (GTR)
(Until Form Retirement)
Sec. 102-118.175 Must my agency prepare for the GBL retirement?
Yes, your agency must prepare for the GBL retirement. Effective
September 30, 2001, your agency must phase out the use of the SF 1103,
Government Bill of Lading, GBL, and SF 1203, Privately Owned Personal
Property Government Bill of Lading (PPGBLs), for domestic shipments.
After September 30, 2001, your agency may use the GBL or PPGBL solely
for international shipments (including domestic overseas shipments).
Sec. 102-118.180 Must my agency prepare for the GTR retirement?
Yes, your agency must use the GTR only in situations that do not
lend themselves to the use of commercial payment methods.
Sec. 102-118.185 When buying freight transportation, must my agency
reference the applicable contract or tender on the bill of lading
(including a GBL)?
Yes, your agency must reference the applicable contract or tender
when buying transportation on a bill of lading (including GBLs).
However, the referenced information on a GBL or bill of lading does not
limit an audit of charges.
Sec. 102-118.190 When buying passenger transportation must my agency
reference the applicable contract?
Yes, when buying passenger transportation, your agency must
reference the applicable contract on a GTR or passenger transportation
document (e.g., ticket).
Sec. 102-118.195 What documents must a transportation service provider
(TSP) send to receive payment for a transportation billing?
For shipments bought on a TD, the TSP must submit an original
properly certified GBL, PPGBL, or bill of lading attached to an SF
1113, Public Voucher for Transportation Charges. The TSP must submit
this package and all supporting documents to the agency paying office.
Sec. 102-118.200 Can a TSP demand advance payment for the
transportation charges submitted on a bill of lading (including GBL)?
No, a TSP cannot demand advance payment for transportation charges
submitted on a bill of lading (including GBL), unless authorized by
law.
Sec. 102-118.205 May my agency pay an agent functioning as a
warehouseman for the TSP providing service under the bill of lading?
No, your agency may only pay the TSP with whom it has a contract.
The bill of lading will list the TSP with whom the Government has a
contract.
Sec. 102-118.210 May my agency use bills of lading other than the GBL
for a transportation shipment?
Yes, as long as the mandatory terms and conditions contained in
this part (as also stated on a GBL) apply. The TSP must agree in
writing to the mandatory terms and conditions (also found in the ``U.S.
Government Freight Transportation Handbook'') contained in this part.
Sec. 102-118.215 May my agency pay a TSP any extra fees to pay for the
preparation and use of the GBL or GTR?
No, your agency must not pay any additional charges for the
preparation and use of the GBL or GTR. Your agency may not pay a TSP a
higher rate than comparable under commercial procedures for
transportation bought on a GBL or GTR.
Sec. 102-118.220 If a transportation debt is owed to my agency by a
TSP because of loss or damage to property, does my agency report it to
GSA?
No, if your agency has administratively determined that a TSP owes
a debt resulting from loss or damage, follow your agency regulations.
[[Page 24576]]
Sec. 102-118.225 What constitutes final receipt of shipment?
Final receipt of the shipment occurs when the consignee or a TSP
acting on behalf of the consignee with the agency's permission, fully
signs and dates both the delivering TSP's documents and the consignee's
copy of the same documents indicating delivery and/or explaining any
delay, loss, damage, or shrinkage of shipment.
Sec. 102-118.230 What if my agency creates or eliminates a field
office approved to prepare transportation documents?
Your agency must tell the GSA Audit Division whenever it approves a
new or existing agency field office to prepare transportation documents
or when an agency field office is no longer authorized to do so. This
notice must show the name, field office location of the bureau or
office, and the date on which your agency granted or canceled its
authority to schedule payments for transportation service.
Agency Responsibilities When Using Government Bills of Lading
(GBLs) or Government Transportation Requests (GTRs)
Sec. 102-118.235 Must my agency keep physical control and
accountability of the GBL and GTR forms or GBL and GTR numbers?
Yes, your agency is responsible for the physical control and
accountability of the GBL and GTR stock and must have procedures in
place and available for inspection by GSA. Your agency must consider
these Government transportation documents to be the same as money.
Sec. 102-118.240 How does my agency get GBL and GTR forms?
Your agency can get GBL and GTR forms, in either blank or
prenumbered formats, from:
General Services Administration
Federal Supply Service
General Products Commodity Center (7FXM-WS)
819 Taylor Street, Room 6A24
Fort Worth, TX 76102
Sec. 102-118.245 How does my agency get an assigned set of GBL or GTR
numbers?
If your agency does not use prenumbered GBL and GTR forms, you may
get an assigned set of numbers from:
General Services Administration
Federal Supply Service
General Products Commodity Center (7FXM-WS)
819 Taylor Street, Room 6A24
Fort Worth, TX 76102
Sec. 102-118.250 Who is accountable for the issuance and use of GBL
and GTR forms?
Agencies and employees are responsible for the issuance and use of
GBL and GTR forms and are accountable for their disposition.
Sec. 102-118.255 Are GBL and GTR forms numbered and used sequentially?
Yes, GBL and GTR forms are always sequentially numbered when
printed and/or used. No other numbering of the forms, including
additions or changes to the prefixes or additions of suffixes, is
permitted.
Quotations, Tenders or Contracts
Sec. 102-118.260 Must my agency send all quotations, tenders, or
contracts with a TSP to GSA?
(a) Yes, your agency must send two copies of each quotation,
tender, or contract of special rates, fares, charges, or concessions
with TSPs including those authorized by 49 U.S.C. 10721 and 13712, upon
execution to:
General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav
(b) When this information is in an electronic format approved by
the GSA Audit Division, your agency will transfer the information
electronically.
Subpart D--Prepayment Audits of Transportation Services
Agency Requirements for Prepayment Audits
Sec. 102-118.265 What is a prepayment audit?
A prepayment audit is a review of a transportation service provider
(TSP) bill that occurs prior to your agency making payment to a TSP.
This review compares the charges on the bill against the charge
permitted under the contract, rate tender, or other agreement under
which the TSP provided the transportation and/or transportation related
services.
Sec. 102-118.270 Must my agency establish a prepayment audit program?
(a) Yes, under 31 U.S.C. 3726, your agency is required to establish
a prepayment audit program. Your agency must send a preliminary copy of
your prepayment audit program to:
General Services Administration
Office of Transportation and Personal Property (MT)
1800 F Street, NW.
Washington, DC 20405
http://policyworks.gov/org/main/MT
(b) The final plan must be approved and in place by April 20, 2000.
Sec. 102-118.275 What must my agency consider when designing and
implementing a prepayment audit program?
As shown in Sec. 102-118.45, the manner in which your agency orders
transportation services determines how and by whom the bill for those
services will be presented. Your agency's prepayment audit program must
consider all of the methods that you use to order and pay for
transportation services. With each method of ordering transportation
services, your agency should ensure that each TSP bill or employee
travel voucher contains enough information for the prepayment audit to
determine which contract or rate tender is used and that the type and
quantity of any additional services are clearly delineated. Each method
of ordering transportation and transportation services may require a
different kind of prepayment audit.
Sec. 102-118.280 What advantages does the prepayment audit offer my
agency?
Prepayment auditing will allow your agency to detect and eliminate
billing errors before payment and will eliminate the time and cost of
recovering agency overpayments.
Sec. 102-118.285 What options for performing a prepayment audit does
my agency have?
Your agency may perform a prepayment audit by:
(a) Creating an internal prepayment audit program;
(b) Contracting directly with a prepayment audit service provider;
or
(c) Using the services of a prepayment audit contractor under GSA's
multiple award schedule covering audit and financial management
services.
Note to Sec. 102-118.285: Either of the choices in paragraph
(a), (b) or (c) of this section might include contracts with charge
card companies that provide prepayment audit services.
Sec. 102-118.290 Must every electronic and paper transportation bill
undergo a prepayment audit?
Yes, all transportation bills and payments must undergo a
prepayment audit unless your agency's prepayment audit program uses a
statistical sampling technique of the bills or the Administrator of
General Services grants a specific waiver from the prepayment audit
requirement. If your agency chooses to use statistical sampling, all
bills must be at or below the Comptroller General specified limit of
$2,500.00 (31 U.S.C. 3521(b) and General Accounting Office Policy and
[[Page 24577]]
Procedures Manual Chapter 7, obtainable from:
U.S. General Accounting Office
P.O. Box 6015
Gaithersburg, MD 20884-6015
http://www.gao.gov
Sec. 102-118.295 What are the limited exceptions to every bill
undergoing a prepayment audit?
The limited exceptions to bills undergoing a prepayment audit are
those bills subject to a waiver from GSA (which may include bills
determined to be below your agency's threshold). The waiver to
prepayment audit requirements may be for bills, mode or modes of
transportation or for an agency or subagency.
Sec. 102-118.300 How does my agency fund its prepayment audit program?
Your agency must pay for the prepayment audit from those funds
appropriated for transportation services.
Sec. 102-118.305 Must my agency notify the TSP of any adjustment to
the TSP's bill?
Yes, your agency must notify the TSP of any adjustment to the TSP's
bill either electronically or in writing within 7 days of receipt of
the bill. This notice must refer to the TSP's bill number, agency name,
taxpayer identification number, standard carrier alpha code, document
reference number, amount billed, amount paid, payment voucher number,
complete tender or tariff authority, including item or section number.
Sec. 102-118.310 Must my agency prepayment audit program establish
appeal procedures whereby a TSP may appeal any reduction in the amount
billed?
Yes, your agency must establish an appeal process that directs TSP
appeals to an agency official who is able to provide adequate
consideration and review of the circumstances of the claim. Your agency
must complete the review of the appeal within 30 days.
Sec. 102-118.315 What must my agency do if the TSP disputes the
findings and my agency cannot resolve the dispute?
(a) If your agency is unable to resolve the disputed amount with
the TSP, your agency should forward all relevant documents including a
complete billing history, and the appropriation or fund charged, to:
General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav
(b) The GSA Audit Division will review the appeal of an agency's
final, full or partial denial of a claim and issue a decision. A TSP
must submit claims within 3 years under the guidelines established in
Sec. 102-118.460.
Sec. 102-118.320 What information must be on transportation bills that
have completed my agency's prepayment audit?
(a) The following information must be annotated on all
transportation bills that have completed a prepayment audit:
(1) The date received from a TSP;
(2) A TSP's bill number;
(3) Your agency name;
(4) A Document Reference Number (DRN);
(5) The amount billed;
(6) The amount paid;
(7) The payment voucher number;
(8) Complete tender or tariff authority, including item or section
number;
(9) The TSP's taxpayer identification number (TIN);
(10) The TSP's standard carrier alpha code (SCAC);
(11) The auditor's authorization code or initials; and
(12) A copy of any statement of difference sent to the TSP.
(b) Your agency can find added guidance in the ``U.S. Government
Freight Transportation--Handbook,'' obtainable from:
General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav
Maintaining an Approved Program
Sec. 102-118.325 Must I get approval for my agency's prepayment audit
program?
Yes, your agency must get approval for your prepayment audit
program. The highest level budget or financial official of each agency,
such as the Chief Financial Officer, initially approves your agency's
prepayment audit program. After internal agency approval, your agency
submits the plan in writing to the GSA Audit Division for final
approval.
Sec. 102-118.330 What are the elements of an acceptable prepayment
audit program?
An acceptable prepayment audit program must:
(a) Verify all transportation bills against filed rates and charges
before payment;
(b) Comply with the Prompt Payment Act (31 U.S.C. 3901, et seq.);
(c) Allow for your agency to establish minimum dollar thresholds
for transportation bills subject to audit;
(d) Require your agency's paying office to offset debts from
amounts owed to the TSP within the 3 years as per 31 U.S.C. 3726(b);
(e) Be approved by the GSA Audit Division. After the initial
approval, the agency may be subject to periodic program review and
reapproval;
(f) Complete accurate audits of transportation bills and notify the
TSP of any adjustment within 7 calendar days of receipt;
(g) Create accurate notices to the TSPs that describe in detail the
reasons for any full or partial rejection of the stated charges on the
invoice. An accurate notice must include the TSP's invoice number, the
billed amount, TIN, standard carrier alpha code, the charges calculated
by the agency, and the specific reasons including applicable rate
authority for the rejection;
(h) Forward documentation monthly to the GSA Audit Division, which
will store paid transportation bills under the General Records Schedule
9, Travel and Transportation (36 CFR Chapter XII, 1228.22) which
requires keeping records for 3 years. GSA will arrange for storage of
any document requiring special handling (e.g., bankruptcy, court case,
etc.). These bills will be retained pursuant to 44 U.S.C. 3309 until
claims have been settled;
(i) Establish procedures in which transportation bills not subject
to prepayment audit (i.e., bills for unused tickets and charge card
billings) are handled separately and forwarded to the GSA Audit
Division; and
(j) Implement a unique agency numbering system to handle commercial
paper and practices (see Sec. 102-118.55).
Sec. 102-118.335 What does the GSA Audit Division consider when
verifying an agency prepayment audit program?
The GSA Audit Division bases verification of agency prepayment
audit programs on objective cost-savings, paperwork reductions, current
audit standards and other positive improvements, as well as adherence
to the guidelines listed in this part.
Sec. 102-118.340 How does my agency contact the GSA Audit Division?
Your agency may contact the GSA Audit Division by writing to:
General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav
Sec. 102-118.345 If my agency chooses to change an approved prepayment
audit program, does the program need to be reapproved?
Yes, you must receive approval of any changes in your agency's
prepayment
[[Page 24578]]
audit program from the GSA Audit Division.
Liability for Certifying and Disbursing Officers
Sec. 102-118.350 Does establishing a prepayment audit system or
program change the responsibilities of the certifying officers?
Yes, in a prepayment audit environment, an official certifying a
transportation voucher is held liable for verifying transportation
rates, freight classifications, and other information provided on a
transportation billing instrument or transportation request undergoing
a prepayment audit (31 U.S.C. 3528).
Sec. 102-118.355 Does a prepayment audit waiver change any liabilities
of the certifying officer?
Yes, a certifying official is not personally liable for verifying
transportation rates, freight classifications, or other information
provided on a GBL or passenger transportation request when the
Administrator of General Services or designee waives the prepayment
audit requirement and your agency uses postpayment audits.
Sec. 102-118.360 What relief from liability is available for the
certifying official under a postpayment audit?
The agency counsel relieves a certifying official from liability
for overpayments in cases where postpayment is the approved method of
auditing and:
(a) The overpayment occurred solely because the administrative
review before payment did not verify transportation rates; and
(b) The overpayment was the result of using improper transportation
rates or freight classifications or the failure to deduct the correct
amount under a land grant law or agreement.
Sec. 102-118.365 Do the requirements of a prepayment audit change the
disbursing official's liability for overpayment?
Yes, the disbursing official has a liability for overpayments on
all transportation bills subject to prepayment audit (31 U.S.C. 3322).
Sec. 102-118.370 Where does relief from prepayment audit liability for
certifying, accountable, and disbursing officers reside in my agency?
Your agency's counsel has the authority to relieve liability and
give advance opinions on liability issues to certifying, accountable,
and disbursing officers (31 U.S.C. 3527).
Waivers from Mandatory Prepayment Audit
Sec. 102-118.375 Who has the authority to grant a waiver of the
prepayment audit requirement?
Only the Administrator of General Services or designee has the
authority to grant waivers from the prepayment audit requirement.
Sec. 102-118.380 How does my agency apply for a waiver from a
prepayment audit of requirement?
Your agency must submit a request for a waiver from the requirement
to perform a prepayment in writing to:
General Services Administration
Office of Transportation and Personal Property (MT)
1800 F Street, NW.
Washington, DC 20405
http://policyworks.gov/org/main/MT
Sec. 102-118.385 What must a waiver request include?
A waiver request must explain in detail how the use of a prepayment
audit increases costs over a postpayment audit, decreases efficiency,
involves a relevant public interest, adversely affects the agency's
mission, or is not feasible for the agency. A waiver request must
identify the mode or modes of transportation, agency or subagency to
which the waiver would apply.
Sec. 102-118.390 On what basis does GSA grant a waiver to the
prepayment audit requirement?
GSA issues waivers to the prepayment audit requirement based on:
(a) Cost-effectiveness;
(b) Government efficiency;
(c) Public interest; or
(d) Other factors the Administrator of General Services considers
appropriate.
Sec. 102-118.395 How long will GSA take to respond to a waiver
request?
GSA will respond to a written waiver request within 30 days from
the receipt of the request.
Sec. 102-118.400 Must my agency renew a waiver of the prepayment audit
requirements?
Yes, your agency waiver to the prepayment audit requirement will
not exceed 2 years. Your agency must reapply to ensure the
circumstances at the time of approval still apply.
Sec. 102-118.405 Are my agency's prepayment audited transportation
bills subject to periodic postpayment audit oversight from the GSA
Audit Division?
Yes, two years or more after starting prepayment audits, the GSA
Audit Division (depending on its evaluation of the results) may subject
your agency's prepayment audited transportation bills to periodic
postpayment audit oversight rather than blanket postpayment audits. The
GSA Audit Division will then prepare a report analyzing the success of
your agency's prepayment audit program. This report will be on file at
GSA and available for your review.
Suspension of Agency Prepayment Audit Programs
Sec. 102-118.410 Can GSA suspend my agency's prepayment audit program?
(a) Yes, the Director of the GSA Audit Division may suspend your
agency's prepayment audit program based on his or her determination of
a systematic or frequent failure of the program to:
(1) Conduct an accurate prepayment audit of your agency's
transportation bills;
(2) Abide by the terms of the Prompt Payment Act;
(3) Adjudicate TSP claims disputing prepayment audit positions of
the agency regularly within 30 days of receipt;
(4) Follow Comptroller General decisions, GSA Board of Contract
Appeals decisions, the Federal Management Regulation and GSA
instructions or precedents about substantive and procedure matters;
and/or
(5) Provide information and data or to cooperate with on-site
inspections necessary to conduct a quality assurance review.
(b) A systematic or a multitude of individual failures will result
in suspension. A suspension of an agency's prepayment audit program may
be in whole or in part for failure to conduct proper prepayment audits.
Subpart E--Postpayment Transportation Audits
Sec. 102-118.415 Will the widespread mandatory use of prepayment
audits eliminate postpayment audits?
No, the mandatory use of prepayment audits will not eliminate
postpayment audits because:
(a) Postpayment audits will continue for those areas which do not
lend themselves to the prepayment audit; and
(b) The GSA Audit Division will continue to review and survey the
progress of the prepayment audit by performing a postpayment audit on
the bills. The GSA Audit Division has a Congressionally mandated
responsibility under 31 U.S.C. 3726 to perform oversight on
transportation bill payments. During the early startup period for
prepayment audits, transportation bills are subject to a
[[Page 24579]]
possible postpayment audit to discover the effectiveness of the
prepayment audit process.
Sec. 102-118.420 Can the Administrator of General Services waive the
postpayment auditing provisions of this subpart?
Yes, in certain circumstances, the Administrator of General
Services or designee may waive the postpayment audit oversight
requirements of this subpart on a case by case basis.
Sec. 102-118.425 Is my agency allowed to perform a postpayment audit
on our transportation bills?
No, your agency must forward all transportation bills to GSA for a
postpayment audit regardless of any waiver allowing for postpayment
audit.
Sec. 102-118.430 What information must be on my agency's
transportation bills submitted for a postpayment audit?
Your agency must annotate all of its transportation bills submitted
for postpayment audit with:
(a) The date received from a TSP;
(b) A TSP's bill number;
(c) Your agency name;
(d) A Document Reference Number;
(e) The amount requested;
(f) The amount paid;
(g) The payment voucher number;
(h) Complete tender or tariff authority, including contract price
(if purchased under the Federal Acquisition Regulation), item or
section number;
(i) The TSP's taxpayer identification number; and
(j) The TSP's standard carrier alpha code (SCAC).
Sec. 102-118.435 What procedures does GSA use to perform a postpayment
audit?
When GSA performs a postpayment audit, the GSA Audit Division has
the delegated authority to implement the following procedures:
(a) Audit selected TSP bills after payment;
(b) Audit selected TSP bills before payment as needed to protect
the Government's interest (i.e., bankruptcy, fraud);
(c) Examine, settle, and adjust accounts involving payment for
transportation and related services for the account of agencies;
(d) Adjudicate and settle transportation claims by and against
agencies;
(e) Offset an overcharge by any TSP from an amount subsequently
found to be due that TSP;
(f) Issue a Notice of Overcharge stating that a TSP owes a debt to
the agency. This notice states the amount paid, the basis for the
proper charge for the document reference number, and cites applicable
tariff or tender along with other data relied on to support the
overcharge. A separate Notice of Overcharge is prepared and mailed for
each bill; and
(g) Issue a GSA Notice of Indebtedness when a TSP owes an ordinary
debt to an agency. This notice states the basis for the debt, the TSP's
rights, interest, penalty, and other results of nonpayment. The debt is
due immediately and subject to interest charges, penalties, and
administrative cost under 31 U.S.C. 3717.
Sec. 102-118.440 What are the postpayment audit responsibilities and
roles of the GSA Audit Division?
When the GSA Audit Division performs a postpayment audit for your
agency, GSA will:
(a) Examine and analyze payments to discover their validity,
relevance and conformity with tariffs, quotations, contracts,
agreements or tenders and make adjustments to protect the interest of
an agency;
(b) Examine, adjudicate, and settle transportation claims by and
against the agency;
(c) Collect from TSPs by refund, setoff, offset or other means, the
amounts determined to be due the agency;
(d) Adjust, terminate or suspend debts due on TSP overcharges;
(e) Prepare reports to the Attorney General of the United States
with recommendations about the legal and technical bases available for
use in prosecuting or defending suits by or against an agency and
provide technical, fiscal, and factual data from relevant records;
(f) Provide transportation specialists and lawyers to serve as
expert witnesses, assist in pretrial conferences, draft pleadings,
orders, and briefs, and participate as requested in connection with
transportation suits by or against an agency;
(g) Review agency policies, programs, and procedures to determine
their adequacy and effectiveness in the audit of freight or passenger
transportation payments, and review related fiscal and transportation
practices;
(h) Furnish information on rates, fares, routes, and related
technical data upon request;
(i) Tell an agency of irregular shipping routing practices,
inadequate commodity descriptions, excessive transportation cost
authorizations, and unsound principles employed in traffic and
transportation management; and
(j) Confer with individual TSPs or related groups and associations
presenting specific modes of transportation to resolve mutual problems
concerning technical and accounting matters and acquainting them with
agency requirements.
Sec. 102-118.445 Must my agency pay for a postpayment audit when using
the GSA Audit Division?
No, the expenses of postpayment audit contract administration and
audit-related functions are financed from overpayments collected from
the TSP's bills previously paid by the agency and similar type of
refunds.
Subpart F--Claims and Appeal Procedures
General Agency Information for All Claims
Sec. 102-118.450 Can a TSP file a transportation claim against my
agency?
Yes, a TSP may file a transportation claim against your agency
under 31 U.S.C. 3726 for:
(a) Amounts owed but not included in the original billing;
(b) Amounts deducted or set off by an agency that are disputed by
the TSP;
(c) Requests by a TSP for amounts previously refunded in error by
that TSP; and/or
(d) Unpaid original bills requiring direct settlement by GSA,
including those subject to doubt about the suitability of payment
(mainly bankruptcy or fraud).
Sec. 102-118.455 What is the time limit for a TSP to file a
transportation claim against my agency?
The time limits on a TSP transportation claim against the
Government differ by mode as shown in the following table:
Time Limits on Actions Taken by TSP
------------------------------------------------------------------------
Mode Freight charges Statute
------------------------------------------------------------------------
(a) Air Domestic.............. 6 years.......... 28 U.S.C. 2401, 2501.
[[Page 24580]]
------------------------------------------------------------------------
(b) Air International......... 6 years.......... 28 U.S.C. 2401, 2501.
------------------------------------------------------------------------
(c) Freight Forwarders 3 years.......... 49 U.S.C. 14705(f).
(subject to the IC Act).
------------------------------------------------------------------------
(d) Motor..................... 3 years.......... 49 U.S.C. 14705(f).
------------------------------------------------------------------------
(e) Rail...................... 3 years.......... 49 U.S.C. 14705(f).
------------------------------------------------------------------------
(f) Water (subject to the IC 3 years.......... 49 U.S.C. 14705(f).
Act).
------------------------------------------------------------------------
(g) Water (not subject to the 2 years.......... 46 U.S.C. 745.
IC Act).
------------------------------------------------------------------------
(h) TSPs exempt from 6 years.......... 28 U.S.C. 2401, 2501.
regulation.
------------------------------------------------------------------------
Sec. 102-118.460 What is the time limit for my agency to file a court
claim with a TSP for freight charges, reparations, and loss or damage
to the property?
Statutory time limits vary depending on the mode and the service
involved and may involve freight charges. The following tables list the
time limits:
(A) Time Limits on Actions Taken by the Federal Government Against TSPs
----------------------------------------------------------------------------------------------------------------
Mode Freight charges Reparations Loss and damage
----------------------------------------------------------------------------------------------------------------
(1) Rail............................. 3 years................ 3 years................ 6 years.
49 U.S.C. 11705........ 49 U.S.C. 11705........ 28 U.S.C. 2415.
----------------------------------------------------------------------------------------------------------------
(2) Motor............................ 3 years................ 3 years................ 6 years.
49 U.S.C............... 49 U.S.C............... 28 U.S.C. 2415.
14705(f)............... 14705(f)...............
----------------------------------------------------------------------------------------------------------------
(3) Freight Forwarders subject to the 3 years................ 3 years................ 6 years.
IC Act. 49 U.S.C............... 49 U.S.C............... 28 U.S.C. 2415.
14705(f)............... 14705(f)...............
----------------------------------------------------------------------------------------------------------------
(4) Water (subject to the IC Act).... 3 years................ 3 years................ 6 years.
49 U.S.C............... 49 U.S.C............... 28 U.S.C. 2415.
14705(f)............... 14705(f)...............
----------------------------------------------------------------------------------------------------------------
(5) Water (not subject to the IC Act) 6 years 28 U.S.C. 2415. 2 years 46 U.S.C. 821.. 1 year.
46 U.S.C.
1303(6) (if subject to
Carriage of Goods by
Sear Act, 46 U.S.C.
1300-1315).
----------------------------------------------------------------------------------------------------------------
(6) Domestic Air..................... 6 years................ ....................... 6 years.
28 U.S.C. 2415......... 28 U.S.C. 2415.
----------------------------------------------------------------------------------------------------------------
(7) International Air................ 6 years................ ....................... 2 years.
28 U.S.C. 2415......... 49 U.S.C. 40105.
----------------------------------------------------------------------------------------------------------------
(B) Time Limits on Actions Taken by the Federal Government Against TSPs Exempt From Regulation
----------------------------------------------------------------------------------------------------------------
Mode Freight Reparations Loss and damage
----------------------------------------------------------------------------------------------------------------
(1) All.............................. 6 years................ ....................... 6 years.
28 U.S.C. 2415......... 28 U.S.C. 2415.
----------------------------------------------------------------------------------------------------------------
[[Page 24581]]
Sec. 102-118.465 Must my agency pay interest on a disputed amount
claimed by a TSP?
No, interest penalties under the Prompt Payment Act, (31 U.S.C.
3901, et seq.), are not required when payment is delayed because of a
dispute between an agency and a TSP.
Sec. 102-118.470 Are there statutory time limits for a TSP on filing
an administrative claim with the GSA Audit Division?
Yes, an administrative claim must be received by the GSA Audit
Division or its designee (the agency where the claim arose) within 3
years beginning the day after the latest of the following dates (except
in time of war):
(a) Accrual of the cause of action;
(b) Payment of charges for the transportation involved;
(c) Subsequent refund for overpayment of those charges; or
(d) Deductions made to a TSP claim by the Government under 31
U.S.C. 3726.
Sec. 102-118.475 Does interest apply after certification of payment of
claims?
Yes, interest under the Prompt Payment Act (31 U.S.C. 3901, et
seq.) begins 30 days after certification for payment by GSA.
Sec. 102-118.480 How does my agency settle disputes with a TSP?
As a part of the prepayment audit program, your agency must have a
plan to resolve disputes with a TSP. This program must allow a TSP to
appeal payment decisions made by your agency.
Sec. 102-118.485 Is there a time limit for my agency to issue a
decision on disputed claims?
Yes, your agency must issue a ruling on a disputed claim within 30
days of receipt of the claim.
Sec. 102-118.490 What if my agency fails to settle a dispute within 30
days?
(a) If your agency fails to settle a dispute within 30 days, the
TSP may appeal to:
General Services Administration
Federal Supply Service
Audit Division (FBA)
Code: CC 1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav
(b) If the TSP disagrees with the administrative settlement by the
Audit Division, the TSP may appeal to the General Services Board of
Contract Appeals.
Sec. 102-118.495 May my agency appeal a decision by the General
Services Board of Contract Appeals (GSBCA)?
No, your agency may not appeal a decision made by the GSBCA.
Sec. 102-118.500 How does my agency handle a volunary refund submitted
by a TSP?
(a) An agency must report all voluntary refunds to the GSA Audit
Division (so that no Notice of Overcharge or financial offset occurs),
unless other arrangements are made (e.g., charge card refunds, etc.).
These reports must be addressed to:
General Services Administration
Federal Supply Service
Audit Division (FBA)
Code: CC
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav
(b) Once a Notice of Overcharge is issued by the GSA Audit
Division, then any refund is no longer considered voluntary and the
agency must forward the refund to the GSA Audit Division.
Sec. 102-118.505 Must my agency send a voluntary refund to the
Treasurer of the United States?
No, your agency may keep and use voluntary refunds submitted by a
TSP, if the refund was made prior to a Notice of Overcharge issued by
the GSA Audit Division.
Sec. 102-118.510 Can my agency revise or alter a GSA Form 7931,
Certificate of Settlement?
Generally, no, an agency must not revise or alter amounts on a GSA
Form 7931. The only change an agency can make to a GSA Form 7931 is to
change the agency financial data to a correct cite. Any GSA Form 7931
that cannot be paid (e.g., an amount previously paid), must be
immediately returned to the GSA Audit Division with an explanation.
Sec. 102-118.515 Does my agency have any recourse not to pay a
Certificate of Settlement?
No, a Certificate of Settlement is the final administrative action.
Sec. 102-118.520 Who is responsible for determining the standards for
collection, compromise, termination, or suspension of collection action
on any outstanding debts to my agency?
Under the Federal Claims Collection Act of 1966, as amended (31
U.S.C. 3711, et seq.), the Comptroller General and the Attorney General
have joint responsibility for issuing standards for your agency.
Sec. 102-118.525 What are my agency's responsibilities for verifying
the correct amount of transportation charges?
Your agency's employees are responsible for diligently verifying
the correct amount of transportation charges prior to payment (31
U.S.C. 3527).
Sec. 102-118.530 Will GSA instruct my agency's disbursing offices to
offset unpaid TSP billings?
Yes, GSA will instruct one or more of your agency's disbursing
offices to deduct the amount due from an unpaid TSP's bill. A 3-year
limitation applies on the deduction of overcharges from amounts due a
TSP (31 U.S.C. 3726) and a 10-year limitation applies on the deduction
of ordinary debts (31 U.S.C. 3716).
Sec. 102-118.535 Are there principles governing my agency's TSP debt
collection procedures?
Yes, the principles governing your agency collection procedures for
reporting debts to the General Accounting Office (GAO) or the
Department of Justice are found in 4 CFR parts 101 through 105 and in
the GAO Policy and Procedures Manual for Guidance of Federal Agencies.
The manual may be obtained by writing:
Superintendent of Documents
Government Printing Office
Washington, DC 20402
http://www.access.gpo.gov/
Sec. 102-118.540 Who has the authority to audit, settle accounts, and/
or start collection action for all transportation services provided for
my agency?
The Director of the GSA Audit Division has the authority and
responsibility to audit and settle all transportation related accounts
(31 U.S.C. 3726). The reason for this is that he or she has access to
Governmentwide data on a TSP's payments and billings with the
Government. Your agency has the responsibility to correctly pay
individual transportation claims.
Transportation Service Provider (TSP) Filing Requirements
Sec. 102-118.545 What information must a TSP claim include?
Transportation service provider (TSP) claims received by GSA or its
designee must include one of the following:
(a) The signature of an individual or party legally entitled to
receive payment for services on behalf of the TSP;
(b) The signature of the TSP's agent or attorney accompanied by a
duly executed power of attorney or other documentary evidence of the
agent's or attorney's right to act for the TSP; or
(c) An electronic signature, when mutually agreed upon.
[[Page 24582]]
Sec. 102-118.550 How does a TSP file an administrative claim using EDI
or other electronic means?
The medium and precise format of data for an administrative claim
filed electronically must be approved in advance by the GSA Audit
Division. GSA will use an authenticating EDI signature to certify
receipt of the claim. The data on the claim must contain proof of the
delivery of goods, and an itemized bill reflecting the services
provided, with the lowest charges available for service. The TSP must
be able to locate, identify, and reproduce the records in readable form
without loss of clarity.
Sec. 102-118.555 Can a TSP file a supplemental administrative claim?
Yes, a TSP may file a supplemental administrative claim. Each
supplemental claim must cover charges relating to one paid
transportation document.
Sec. 102-118.560 What is the required format that a TSP must use to
file an administrative claim?
A TSP must bill for charges claimed on a SF 1113, Public Voucher
for Transportation Charges, in the manner prescribed in the ``U.S.
Government Freight Transportation--Handbook'' or the ``U.S. Government
Passenger Transportation--Handbook.'' To get a copy of these handbooks,
you may write to:
General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav
Sec. 102-118.565 What documentation is required when filing an
administrative claim?
An administrative claim must be accompanied by the transportation
document, payment record, reports and information available to GSA and/
or to the agency involved and the written and documentary records
submitted by the TSP. Oral presentations supplementing the written
record are not acceptable.
Transportation Service Provider (TSP) and Agency Appeal Procedures
for Prepayment Audits
Sec. 102-118.570 If my agency denies the TSP's challenge to the
statement of difference, may the TSP appeal?
Yes, the TSP may appeal if your agency denies its challenge to the
statement of difference. However, the appeal must be handled at a
higher level in your agency.
Sec. 102-118.575 If a TSP disagrees with the decision of my agency,
can the TSP appeal?
Yes, the TSP may file a claim with the GSA Audit Division, which
will review the TSP's appeal of your agency's final full or partial
denial of a claim. The TSP may also appeal to the GSA Audit Division if
your agency has not responded to a challenge within 30 days.
Sec. 102-118.580 May a TSP appeal a prepayment audit decision of the
GSA Audit Division?
(a) Yes, the TSP may appeal to the GSA's Board of Contract Appeals
(GSBCA), under guidelines established in this subpart, or file a claim
with the United States Court of Federal Claims. The TSP's request for
review must be received by the GSBCA in writing within 6 months (not
including time of war) from the date the settlement action was taken or
within the periods of limitation specified in 31 U.S.C. 3726, as
amended, whichever is later. The TSP must address requests to:
GSA Board of Contract Appeals
1800 F Street, NW.
Room 7022
Washington, DC 20405
(b) The GSBCA will accept legible submissions via facsimile (FAX)
on (202) 501-0664.
Sec. 102-118.585 May a TSP appeal a prepayment audit decision of the
GSBCA?
No, a ruling by the GSBCA is the final administrative remedy
available and the TSP has no statutory right of appeal. This subpart
governs administrative actions only and does not affect any of the
TSP's rights. A TSP may still pursue a legal remedy through the courts.
Sec. 102-118.590 May my agency appeal a prepayment audit decision of
the GSA Audit Division?
No, your agency may not appeal. A GSA Audit Division decision is
administratively final for your agency.
Sec. 102-118.595 May my agency appeal a prepayment audit decision by
the GSBCA?
No, your agency may not appeal a prepayment audit decision. Your
agency must follow the ruling of the GSBCA.
Transportation Service Provider (TSP) and Agency Appeal Procedures
for Postpayment Audits
Sec. 102-118.600 When a TSP disagrees with a Notice of Overcharge
resulting from a postpayment audit, what are the appeal procedures?
A TSP who disagrees with the Notice of Overcharge may submit a
written request for reconsideration to the GSA Audit Division at:
General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav
Sec. 102-118.605 What if a TSP disagrees with the Notice of
Indebtedness?
If a TSP disagrees with an ordinary debt, as shown on a Notice of
Indebtedness, it may:
(a) Inspect and copy the agency's records related to the claim;
(b) Seek administrative review by the GSA Audit Division of the
claim decision; and/or
(c) Enter a written agreement for the payment of the claims.
Sec. 102-118.610 Is a TSP notified when GSA allows a claim?
Yes, the GSA Audit Division will acknowledge each payable claim
using GSA Form 7931, Certificate of Settlement. The certificate will
give a complete explanation of any amount that is disallowed. GSA will
forward the certificate to the agency whose funds are to be charged for
processing and payment.
Sec. 102-118.615 Will GSA notify a TSP if they internally offset a
payment?
Yes, the GSA Audit Division will inform the TSP if they internally
offset a payment.
Sec. 102-118.620 How will a TSP know if the GSA Audit Division
disallows a claim?
The GSA Audit Division will furnish a GSA Form 7932, Settlement
Certificate, to the TSP explaining the disallowance.
Sec. 102-118.625 Can a TSP request a reconsideration of a settlement
action by the GSA Audit Division?
Yes, a TSP desiring a reconsideration of a settlement action may
request a review by the Administrator of General Services.
Sec. 102-118.630 How must a TSP refund amounts due to GSA?
(a) TSPs must promptly refund amounts due to GSA, preferably by
EFT. If an EFT is not used, checks must be made payable to ``General
Services Administration'', including the document reference number, TSP
name, bill number(s), taxpayer identification number and standard
carrier alpha code, then mailed to:
General Services Administration
P.O. Box 93746
Chicago, IL 60673
(b) If an EFT address is needed, please contact the GSA Audit
Division at:
General Services Administration
[[Page 24583]]
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav
Note to Sec. 102-118.630: Amounts collected by GSA are returned
to the Treasurer of the United States (31 U.S.C. 3726).
Sec. 102-118.635 Can the Government charge interest on an amount due
from a TSP?
Yes, the Government can charge interest on an amount due from a
TSP. This procedure is provided for under the Debt Collection Act (31
U.S.C. 3717), the Federal Claims Collection Standards (4 CFR parts 101
through 105), and 41 CFR part 105-55.
Sec. 102-118.640 If a TSP fails to pay or to appeal an overcharge,
what actions will GSA pursue to collect the debt?
GSA will pursue debt collection through one of the following
methods:
(a) When an indebted TSP files a claim, GSA will apply all or any
portion of the amount it determines to be due the TSP, to the
outstanding balance owed by the TSP, under the Federal Claims
Collection Standards (4 CFR parts 101 through 105) and 41 CFR part 105-
55;
(b) When the action outlined in paragraph (a) of this section
cannot be taken by GSA, GSA will instruct one or more Government
disbursing offices to deduct the amount due to the agency from an
unpaid TSP's bill. A 3-year limitation applies on the deduction of
overcharges from amounts due a TSP (31 U.S.C. 3726) and a 10-year
limitation applies on the deduction of ordinary debt (31 U.S.C. 3716);
(c) When collection cannot be accomplished through either of the
procedures in paragraph (a) or (b) of this section, GSA normally sends
two additional demand letters to the indebted TSP requesting payment of
the amount due within a specified time. Lacking a satisfactory
response, GSA may place a complete stop order against amounts otherwise
payable to the indebted TSP by adding the name of that TSP to the
Department of the Army ``List of Contractors Indebted to the United
States''; and/or
(d) When collection actions, as stated in paragraphs (a) through
(c) of this section are unsuccessful, GSA may report the debt to the
Department of Justice for collection, litigation, and related
proceedings, as prescribed in 4 CFR parts 101 through 105.
Sec. 102-118.645 Can a TSP file an administrative claim on collection
actions?
Yes, a TSP may file an administrative claim involving collection
actions resulting from the transportation audit performed by the GSA
directly with the GSA Audit Division. Any claims submitted to GSA will
be considered ``disputed claims'' under section 4(b) of the Prompt
Payment Act (31 U.S.C. 3901, et seq.). The TSP must file all other
transportation claims with the agency out of whose activities they
arose. If this is not feasible (e.g., where the responsible agency
cannot be determined or is no longer in existence) claims may be sent
to the GSA Audit Division for forwarding to the responsible agency or
for direct settlement by the GSA Audit Division. Claims for GSA
processing must be addressed to:
General Services Administration
Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav
Sec. 102-118.650 Can a TSP request a review of a settlement action by
the Administrator of General Services?
Yes, a TSP desiring a review of a settlement action taken by the
Administrator of General Services may request a review by the GSA Board
of Contract Appeals (GSBCA) or file a claim with the United States
Court of Federal Claims (28 U.S.C. 1491).
Sec. 102-118.655 Are there time limits on a TSP request for an
administrative review by the GSBCA?
(a) Yes, the GSBCA must receive a request for review from the TSP
within six months (not including time of war) from the date the
settlement action was taken or within the periods of limitation
specified in 31 U.S.C. 3726, as amended, whichever is later. The
request must be addressed to:
GSA Board of Contract Appeals
1800 F Street, NW.
Room 7022
Washington, DC 20405
(b) The GSBCA will accept legible submissions via facsimile (FAX)
on (202) 501-0664.
Sec. 102-118.660 May a TSP appeal a postpayment audit decision of the
GSBCA?
No, a ruling by the GSBCA is the final administrative remedy and
the TSP has no statutory right of appeal. This subpart governs
administrative actions only and does not affect any rights of the TSPs.
A TSP may still pursue a legal remedy through the courts.
Sec. 102-118.665 May my agency appeal a postpayment audit decision by
the GSBCA?
No, your agency may not appeal a postpayment audit decision and
must follow the ruling of the GSBCA.
Transportation Service Provider (TSP) Non-Payment of a Claim
Sec. 102-118.670 If a TSP cannot immediately pay a debt, can they make
other arrangements for payment?
Yes, if a TSP is unable to pay the debt promptly, the Director of
the GSA Audit Division has the discretion to enter into alternative
arrangements for payment.
Sec. 102-118.675 What recourse does my agency have if a TSP does not
pay a transportation debt?
If a TSP does not pay a transportation debt, GSA may refer
delinquent debts to consumer reporting agencies and Federal agencies
including the Department of the Treasury and Department of Justice.
Dated: April 20, 2000.
David J. Barram,
Administrator of General Services.
[FR Doc. 00-10271 Filed 4-21-00; 12:47 pm]
BILLING CODE 3820-24-U