[Federal Register Volume 60, Number 66 (Thursday, April 6, 1995)]
[Notices]
[Pages 17618-17619]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-8441]




[[Page 17617]]

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Part III





Department of Defense





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Department of the Army



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Problems in Tender Filing: New Policy; Notice

  Federal Register / Vol. 60, No. 66 / Thursday, April 6, 1995 / 
Notices   
[[Page 17618]] 

DEPARTMENT OF DEFENSE

Department of the Army


Problems in Tender Filing--New Policy

AGENCY: Military Traffic Management Command, DOD.

ACTION: Notice of New Policy.

-----------------------------------------------------------------------

SUMMARY: MTMC is establishing a policy governing carrier's 
responsibility for tender filings. This policy gives MTMC authority to 
reject and correct mistakes in rate tender filings, and provides 
carriers with rate filing procedures for correcting mistakes in rate. 
This policy was published 59 FR 55460, 7 November 1994, for comments by 
December 15, 1994. No comments were received.

DATES: The new policy will be effective May 15, 1995, in all new MTMC 
Non-Guaranteed Traffic (GT) solicitations and all new GT solicitations 
advertised in the Commerce Business Daily.

ADDRESSES: Headquarters, Military Traffic Management Command, ATTN: 
MTOP-T-ND, Room 621, 5611 Columbia Pike, Falls Church, VA 22041-5050.

FOR FURTHER INFORMATION CONTACT:
Ms. Barbara McGinnis, MTOP-T-ND, (703) 756-1103.

SUPPLEMENTARY INFORMATION: The policy will be included as an enclosure 
to all future MTMC Guaranteed and Non GT freight solicitations after 
May 15, 1995.

Problems in Tender Filings

    1. Authority. As indicated in the solicitation, the Assistant 
Deputy Chief of Staff for Operations-Transportation Services retains 
the authority to reject and correct mistakes in rate tender filings.
    2. Procedures for Filing Tenders.
    a. General.
    (1) Carriers are solely responsible to ensure tender submissions 
are legible and typed. Handwritten or illegibly typed submissions or 
submissions having typed strikeovers will be returned as being 
nonresponsive.
    (2) If a rate(s), if applicable, is omitted, the tender submission 
will be returned as being nonresponsive.
    (3) If a minimum charge(s), if applicable, is omitted, the tender 
submission will be returned as being nonresponsive. If a carrier does 
not want to make a minimum charge, if applicable, that carrier must 
insert a ``0''. Tender submission will be returned as being 
nonresponsive for failure of carrier to insert a ``0''.
    (4) Tenders containing material alterations shall be rejected as 
nonresponsive and shall be returned to the carrier.
    b. Carrier Responsibility for Tender Filings. Carriers are solely 
responsible for the proper preparation, accuracy, and timely submission 
of their tenders. Carriers are responsible for establishing quality 
control procedures that will include review of tenders prior to their 
submission to Headquarters, Military Traffic Management Command. 
Tenders found to contain errors such as typographical may be granted 
relief based on justification in support of alleged errors.
    c. Administrative Errors. Administrative errors which can be 
corrected include, but are not limited to, mistakes in the following:
    (1) Carrier street address and Standard Carrier Alpha Code.
    (2) Carrier telephone number.
    (3) Mode, if applicable.
    (4) Tender number or series.
    (5) Interstate Commerce Commission, and/or intrastate operating 
authority certificate number.
    (6) Typed name of company official authorized to submit rates, 
address, and telephone number. Tender submission will be returned as 
being nonresponsive for failure of a carrier to sign its tender.
    (7) Tender and rate sheet not corresponding that can be evaluated 
on an equal basis with other carriers. If a rate sheet varies the 
material terms (e.g., change in rate qualifier, mileage groups, or 
minimum weights) of the solicitation so that the rates cannot be 
evaluated on an equal basis with other carriers, the tender submission 
will be returned as being nonresponsive.
    (8) Failure to submit the required number of original signature 
copies of the rate tender.
    (9) Failure of the carrier to submit a properly signed and executed 
Certificate of Independent Pricing with tender submission.
    3. Mistakes in Rate Filing Procedures (MIRF).
    a. General.
    (1) Carriers discovering a mistake(s) before bid closing time can 
correct such mistake(s) by submission of a new tender prior to closing. 
The last tender received before closing governs. Identification of a 
rate error(s) in a bid submission after opening may be initiated by 
either HQMTMC or in writing by the carrier. After opening, carriers may 
either withdraw or seek to correct rate error(s).
    (2) Correction is allowed for clerical error(s) where the intended 
rate is obvious from the bid submission itself, as in the case of 
misplaced decimal.
    (3) Correction is allowed in other cases (except in the case of a 
downward correction which would displace a low bidder) only if the 
carrier proves the mistake and the rate actually intended by providing 
HQMTMC (MTOP-T-N) clear and convincing written evidence. If the 
evidence supports the existence of the mistake, but not the rate 
actually intended, the carrier will be permitted to withdraw its tender 
(or MTMC will reject it). Carriers must submit evidence to arrive 
HQMTMC (MTOP-T-N) within a reasonable time after notification by MTMC 
of a suspected mistake.
    (4) Where a downward correction would displace a low bidder, it is 
permitted only if the mistake and the intended rate can be determined 
from the solicitation and the tender itself.
    b. Evidence. The following evidence must, at a minimum, be 
submitted by the carrier when the carrier seeks to correct a mistake in 
rate other than a clerical error(s):
    (1) Original source documents pertinent to the error, including, 
but not limited to, working papers, spread sheets, transcription 
sheets, adding machine tapes, tariffs, cost data sheets, memorandum for 
records, written procedural guidance in determining rate levels, 
internal rate printouts, and other such papers which will provide a 
clear audit trail for tracing the mistake.
    (2) Other documents deemed by the carrier to be relevant to error 
validation can also be used as evidence.
    (3) To protect their interests, carriers are encouraged to retain 
original source data until it is certain that no further use for it 
exists.
    4. Rate Errors. Rate regression mistakes may be considered for 
relief under the MIRF procedure. Correction of rate regression mistakes 
cannot affect other rates already in normal regression. Two examples of 
correctable rate regression mistakes are shown below:
[[Page 17619]]

    Example 1:

----------------------------------------------------------------------------------------------------------------
                                                                         Minimum weights                        
                    Mileage                     ----------------------------------------------------------------
                                                    1,000        2,000        5,000        10,000       20,000  
----------------------------------------------------------------------------------------------------------------
100 or less....................................        $9.60        $4.80        $1.92        $1.20         $.90
101 to 200.....................................         9.60         4.80         1.92         1.20          .90
201 to 300.....................................        14.30         7.15         2.86         3.00         1.50
                                                                                       -------------            
301 to 400.....................................        21.90        10.95         4.38         3.09         1.55
----------------------------------------------------------------------------------------------------------------

    The error in the above example is the underlined rate which is not 
in proper rate regression for the higher minimum weight. It can be 
corrected without affecting the regression for the mileage groups. If 
the carrier intended a different rate, the carrier may seek correction 
under the MIRF procedure, provided that the intended rate itself falls 
within normal regression.
    Example 2:

----------------------------------------------------------------------------------------------------------------
                                                                         Minimum weights                        
                    Mileage                     ----------------------------------------------------------------
                                                     200          500         1,000        2,000        5,000   
----------------------------------------------------------------------------------------------------------------
400 or less....................................         $400         $160         $100          $30          $24
401 to 500.....................................          400          160          100           30           24
501 to 600.....................................            4          160          100           30           24
                                                -------------                                                   
601 to 700.....................................          400          160          100           30           24
----------------------------------------------------------------------------------------------------------------

    The error in the above example is the underlined rate which is not 
in proper rate regression for lower distance. It can be corrected 
without affecting the regression for the minimum weight groups.
Kenneth L. Denton,
Army Federal Register Liaison Officer.
[FR Doc. 95-8441 Filed 4-5-95; 8:45 am]
BILLING CODE 3719-08-M