[Federal Register Volume 60, Number 153 (Wednesday, August 9, 1995)]
[Notices]
[Page 40572]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19565]



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DEPARTMENT OF DEFENSE

Military Traffic Management Command Option To Extend Guaranteed 
Traffic

AGENCY: Military Traffic Management Command, DOD.

ACTION: Notice (Request for carrier industry comments).

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SUMMARY: This notice establishes the procedures the Government will 
follow to exercise its option to extend the term of a Guaranteed 
Traffic award.
    1. The Government may extend the term of awarded Guaranteed Traffic 
(GT) by written notice to the carrier. Notice of this intent will be 
sent to the carrier(s) 60 days prior to the original expiration date. 
The preliminary notice does not commit the Government to an extension.
    a. If the Government exercises this option, the extended GT shall 
be considered to allow up to three 1-year extensions. All extensions 
will be in increments up to one year, not to exceed a total of 3 years.
    b. The total duration of the GT, including the exercise of any 
option under this item, shall not exceed 5 years.
    2. Rates shall be subject to adjustment in accordance with the 
following price adjustment procedures:
    a. Increases or decreases in tendered rates shall be automatically 
made by the MTMC in accordance with the Producer Price Index published 
by the U.S. Department of Labor. Factors considered will be the 
Producer Price Index for General Freight, Truckload (PPI-GFTL), and 
Less than Truckload (PPI-GFLTL). Adjustments may be made for years 3, 
4, and 5 of the GT award. No adjustments will be made when the percent 
of change is less than one percent.
    b. For example, on a two-year GT award, the basic index will be 
that indicated for the month of the original effective date of the 
tender and at the end of the 21st month (3 months prior to expiration). 
Subsequent extension options will be based on the index for each of the 
succeeding 12 months. The net change will be developed by subtracting 
the latest index from the index in effect at the time of the original 
award or previous extension. The difference will be divided by the base 
index at the time of the award/previous extension for the increase 
authorized.

For example: October 1992=104.9
    June 1994=110.1 (21 months)
    Net Change=5.2
Price adjustment:
    Net change/Base Index=5.2/104.9=4.9
    This results in a 4.9% increase.

    3. The Government will provide the carrier written notification of 
the price adjustment at least 45 days prior to the effective date 
thereof.

FOR FURTHER INFORMATION CONTACT:
Mr. Franklin Lamm, Military Traffic Management Command, ATTN: MTOP-T-
ND, 5611 Columbia Pike, Falls Church, VA 22041-5050; or telephone (703) 
681-6103.

SUPPLEMENTARY INFORMATION: Carrier comments or suggestions on these 
procedures will be considered if received at Headquarters, MTMC, MTOP-
T-ND by September 7, 1995.
Gregory D. Showalter,
Army Federal Register Liaison Officer.
[FR Doc. 95-19565 Filed 8-8-95; 8:45 am]
BILLING CODE 3710-08-M