[Federal Register Volume 65, Number 35 (Tuesday, February 22, 2000)]
[Proposed Rules]
[Pages 8818-8831]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-3922]



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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; Proposed Rule

  Federal Register / Vol. 65, No. 35 / Tuesday, February 22, 2000 / 
Proposed Rules  

[[Page 8818]]


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GENERAL SERVICES ADMINISTRATION

41 CFR Parts 101-41 and 102-118

[FPMR Amendment G-]
RIN 3090-AH15


Transportation Payment and Audit

AGENCY: Office of Governmentwide Policy, GSA.

ACTION: Proposed 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: Comments must be received by March 23, 2000 to be considered in 
development of the final rule.

ADDRESSES: Send written comments to Ms. Sharon Kiser, Regulatory 
Secretariat (MVR), Office of Governmentwide Policy, General Services 
Administration, 1800 F Street, NW, Washington, DC 20405. E-mail 
comments to [email protected].

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 
[email protected].

SUPPLEMENTARY INFORMATION:

A. Background

    In response to President Clinton's mandate to Federal agencies to 
make communication with the public more understandable, GSA proposes to 
revise and clarify 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. Proposed Substantive Changes

    The General Services Administration proposes to clarify existing 
transportation payment and audit requirements and make substantive 
changes.
    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 propose to 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 General 
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.
    We propose that the appeals process for a claim should begin within 
an agency and that the first level of appeal 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). 
Also included are Federal entities such as mixed ownership and wholly 
owned corporations, if they request coverage under this part.

C. Executive Order 12866

    GSA has determined that this proposed rule is not a significant 
regulatory action for the purposes of Executive Order 12866 of 
September 30, 1993.

D. Regulatory Flexibility Act

    The Associate Administrator for Governmentwide Policy hereby 
certifies that this proposed 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 affect on the public. An Initial Regulatory Flexibility 
Analysis has, therefore, not been performed. Comments invited from 
small entities concerning the affected FMR subparts will be considered 
in accordance with 5 U.S.C. 601. Interested parties must submit such 
comments separately and should cite 5 U.S.C. 601, et seq.

E. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this proposed 
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 proposed 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, GSA proposes to amend 41 
CFR chapters 101 and 102 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 118 (41 
CFR part 102-118).

CHAPTER 102--[AMENDED]

    2. Part 102-118 is added to subchapter D to read as follows:

[[Page 8819]]

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 require my agency to submit its 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   Can my agency use electronic billing for payment of 
transportation services?
102-118.65   To what extent must my agency use electronic commerce?
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 charge card to pay for 
transportation services?
102-118.90   If my agency orders transportation and/or 
transportation services with a contractor issued charge card or 
charge account citation, is this subject to prepayment audit?
102-118.95   What standard 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   How does my agency handle supplemental billings after 
payment of the original bill?
102-118.140   Who is liable for overpayment made on a transportation 
bill?
102-118.145   What must my agency do if the TSP makes an error on a 
bill?
102-118.150   Will GSA continue to maintain a centralized numbering 
system for transportation documents (TDs)?
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)

102-118.155   Must my agency prepare for the GBL retirement?
102-118.160   Must my agency prepare for the GTR retirement?
102-118.165   Where are the mandatory terms and conditions governing 
the use of a GBL?
102-118.170   Where are the mandatory terms and conditions governing 
the use of a GTR?
102-118.175   When buying transportation on a GBL, must my agency 
reference the applicable contract or tender?
102-118.180   When buying transportation on a GTR, must my agency 
reference the applicable contract?
102-118.185   What documents must a transportation service provider 
(TSP) send to receive payment for a transportation billing?
102-118.190   Can a TSP demand advance payment for the 
transportation charges submitted on a GBL?
102-118.195   May my agency pay an agent functioning as a 
warehouseman for a principal TSP?
102-118.200   May my agency use bills of lading other than the GBL 
for a transportation shipment?
102-118.205   May my agency pay a TSP any added monies to pay for 
the preparation and use of the GBL or GTR?
102-118.210   If a transportation debt is owed because of loss or 
damage to property, does my agency report it to GSA?
102-118.215   What constitutes final receipt of shipment?
102-118.220   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)

102-118.225   Must my agency keep physical control and 
accountability of the GBL and GTR forms or GBL and GTR numbers?
102-118.230   How does my agency get GBL and GTR forms?
102-118.235   How does my agency get an assigned set of GBL or GTR 
numbers?
102-118.240   Who is accountable for the issuance and use of GBL and 
GTR forms?
102-118.245   Are GBL and GTR forms sequential?

Quotations, Tenders or Contracts

102-118.250   Must my agency send a quotation, tender, or contract 
with a TSP to GSA?
Subpart D--Prepayment Audits of Transportation Services

Agency Requirements for Prepayment Audits

102-118.255   What is a prepayment audit?
102-118.260   Must my agency establish a prepayment audit program?
102-118.265   What must my agency consider when designing and 
implementing a prepayment audit program?
102-118.270   What advantages does the prepayment audit offer my 
agency?
102-118.275   What options for performing a prepayment audit does my 
agency have?
102-118.280   Must every electronic and paper transportation bill 
undergo a prepayment audit?
102-118.285   What are the limited exceptions to every bill 
undergoing a prepayment audit?
102-118.290   How does my agency fund its prepayment audit program?
102-118.295   Must my agency advise the TSP of any adjustment to the 
TSP's bill?
102-118.300   Must my agency prepayment audit program establish 
appeal procedures whereby a TSP may appeal any reduction in the 
amount billed?
102-118.305   What must my agency do if the TSP disputes the 
findings and my agency cannot resolve the dispute?
102-118.310   What information must be on my agency's transportation 
bills on completion of a prepayment audit?

Maintaining an Approved Program

102-118.315   How do I get approval for my agency's prepayment audit 
program?
102-118.320   What are the elements of an acceptable prepayment 
audit program?
102-118.325   What does the GSA Audit Division consider when 
verifying an agency prepayment audit program?
102-118.330   How does my agency contact the GSA Audit Division?
102-118.335   If my agency chooses to change a verified prepayment 
audit program, does the program need to be re-verified?

Liability for Certifying and Disbursing Officers

102-118.340   Does establishing a prepayment audit system or program 
change the responsibilities of the certifying officers?
102-118.345   With a prepayment audit waiver, what liability does 
the certifying officer have?
102-118.350   What relief from liability is available for the 
certifying official under a postpayment audit?
102-118.355   Do the requirements of a prepayment audit change the 
disbursing official's liability for overpayment?
102-118.360   Where does relief from prepayment audit liability for 
certifying, accountable, and disbursing officers reside in my 
agency?

[[Page 8820]]

Waivers From Mandatory Prepayment Audit

102-118.365   Who has the authority to grant a waiver of the 
prepayment audit requirement?
102-118.370   How does my agency apply for a waiver from the 
requirement to perform a prepayment audit of transportation bills?
102-118.375   What must a waiver request include?
102-118.380   On what basis does GSA grant a waiver to the 
prepayment audit requirement?
102-118.385   How long will GSA take to respond to a waiver request?
102-118.390   Must my agency renew its waiver to prepayment audits?
102-118.395   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

102-118.400   Can GSA suspend my agency's prepayment audit program?
Subpart E--Postpayment Transportation Audits
102-118.405   Will the widespread mandatory use of prepayment audits 
eliminate postpayment audits?
102-118.410   Can the Administrator of General Services waive the 
postpayment auditing provisions of this subpart?
102-118.415   When is my agency allowed to use a postpayment audit 
on our transportation bills?
102-118.420   What information must be on my agency's transportation 
bills?
102-118.425   What are the procedures used to perform a postpayment 
audit?
102-118.430   What are the postpayment audit responsibilities and 
roles of the GSA Audit Division?
102-118.435   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

102-118.440   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?
102-118.450   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?
102-118.455   Must my agency pay interest on a disputed amount 
claimed by a TSP?
102-118.460   Are there statutory time limits on filing an 
administrative claim with the GSA Audit Division?
102-118.465   Does interest apply after certification of payment of 
claims?
102-118.470   How does my agency settle disputes with a TSP?
102-118.475   Is there a time limit for my agency to issue a 
decision on disputed claims?
102-118.480   What if my agency fails to settle a dispute within 30 
days?
102-118.485   May my agency appeal a decision by the General 
Services Board of Contract Appeals (GSBCA)?
102-118.490   What if a TSP submits a voluntary refund to my agency?
102-118.495   Must my agency send a voluntary refund to the 
Treasurer of the United States?
102-118.500   Can my agency revise or alter a GSA Form 7931, 
Certificate of Settlement?
102-118.505   Does my agency have any recourse not to pay a 
Certificate of Settlement?
102-118.510   Who is responsible for determining the standards for 
collection, compromise, termination, or suspension of collection 
action on any outstanding debts to my agency?
102-118.515   What are my agency's responsibilities for verifying 
the correct amount of transportation charges?
102-118.520   Will GSA instruct my agency's disbursing offices to 
offset unpaid TSP billings?
102-118.525   Are there principles governing my agency's collection 
procedures?
102-118.530   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

102-118.535   What are the filing requirements for a TSP?
102-118.540   How does a TSP file an administrative claim using EDI 
or other electronic means?
102-118.545   Can a TSP file a supplemental administrative claim?
102-118.550   What is the required format that a TSP must use to 
file an administrative claim?
102-118.555   What documentation is required when filing an 
administrative claim?

Transportation Service Provider (TSP) Appeal Procedures for Prepayment 
Audits

102-118.560   If my agency denies the challenge to the statement of 
difference, may the TSP appeal?
102-118.565   If a TSP disagrees with the decision of my agency, can 
the TSP appeal?
102-118.570   If a TSP disagrees with a prepayment audit decision of 
the GSA Audit Division, can they appeal?
102-118.575   If a TSP disagrees with a prepayment audit decision of 
the GSBCA, can they appeal?
102-118 .580   If my agency disagrees with a prepayment or 
postpayment audit decision of the GSA Audit Division can they 
appeal?
102-118.585   May my agency appeal a prepayment audit decision by 
the GSBCA?

Transportation Service Provider (TSP) Appeal Procedures for Postpayment 
Audits

102-118.590   When a TSP disagrees with a Notice of Overcharge 
resulting from a postpayment audit, what are the appeal procedures?
102-118.595   What if a TSP disagrees with the Notice of 
Indebtedness?
102-118.600   Is a TSP notified when GSA allows a claim?
102-118.605   Will GSA notify a TSP if they internally offset a 
payment?
102-118.610   How will a TSP know if the GSA Audit Division 
disallows a claim?
102-118.615   Can a TSP request a reconsideration of a settlement 
action by the GSA Audit Division?
102-118.620   How must a TSP refund amounts due to GSA?
102-118.625   Can the Government charge interest on an amount due 
from a TSP?
102-118.630   If a TSP fails to pay or appeal an overcharge, what 
actions does GSA pursue to ensure debt collection?
102-118.635   Can a TSP file an administrative claim on collection 
actions?
102-118.640   Can a TSP request a review of a settlement action by 
the Administrator of General Services?
102-118.645   Are there time limits on a request for an 
administrative review by the GSBCA?
102-118.650   If a TSP disagrees with a postpayment audit decision 
of the GSBCA, can they appeal?
102-118.655   May my agency appeal a postpayment audit decision by 
the GSBCA?

Transportation Service Provider (TSP) Non-Payment of a Claim

102-118.660   If a TSP cannot immediately pay a debt, can they make 
other arrangements for payment?
102-118.665   What 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 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. Each agency must ensure that its internal 
procedures prevent duplicate payments, only allow payment for 
authorized services, and the TSP's bill is complete with required 
documentation.

[[Page 8821]]

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 require my agency to submit its 
transportation policies for approval?

    GSA does not require your agency to submit its transportation 
policies for approval. However, 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 any department or establishment of the Federal 
Government defined by 5 U.S.C. 305, whose 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). 
Also included are Federal entities such as mixed ownership and wholly 
owned corporations, if they request coverage by this part, and GSA 
permits such coverage.
    Agency claim means any demand by an agency upon a TSP for the 
payment of overcharges, ordinary debts, fines, penalties, 
administrative fees, special charges, interest or unpaid original 
bills.
    Bill of lading, sometimes referred to as a commercial bill of 
lading, is the document used as a receipt of goods, and documentary 
evidence of title. It is also a contract of carriage except when 
movement is under any authority other than 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 ticket, used to track the movement of shipments and individuals.
    EDI signature means a discrete authentication code intended to 
serve in place of a paper signature and to bind parties to the terms 
and conditions of a contract.
    Electronic commerce means electronic techniques for performing 
business transactions (ordering 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 instead of a paper document.
    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, 
transfers made at automatic teller machines and point of sale 
terminals. This includes charge card transactions (31 U.S.C. 332(i)).
    Government Bill of Lading (GBL) means Standard Forms 1103 and 1203, 
the transportation documents used as a receipt of goods, evidence of 
title, and generally a contract of carriage.
    Government contractor-issued charge card means an individually 
billed travel card, which the individual is required to pay, or a 
centrally billed account for paying travel expenses, which the agency 
is required to pay.
    Government transportation request means Standard 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 administratively determined transportation debt 
other than an overcharge. Ordinary debts include, but are not limited 
to, payments for transportation services ordered and not provided, 
duplicate payments, unused tickets, and those involving loss and/or 
damage to property transported by a TSP.
    Overcharges means those charges for transportation services more 
than those applicable under contract for carriage. 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, 
Standard 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 transportation shipment. Charges included in a rate 
authority might be those for transportation services allowed under 
rates, fares, and charges contained in tariffs, tenders, and other 
equivalent arrangements.
    Released value is stated in dollars and is less than that of the 
cargo. The amount stated would be the maximum amount that could be 
recovered by the shipper in the event of loss or damage. In return, the 
transportation service provider 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, or document covering the 
shipment.
    Reparation means the payment involving a TSP to or from an agency 
of an improper transportation billing. 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 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

[[Page 8822]]

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 accessorial charges such as storage in 
transit.
    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, a Government Bill of 
Lading, a Government Transportation Request, or transportation ticket.
    Transportation service means service involving the physical 
movement (from one location to another) of products, people, household 
goods, and any other objects by a TSP for an agency. Examples of this 
are storage, crating, or connecting appliances.
    Transportation service provider (TSP) means any party, person, 
agent, or carrier that undertakes by contract or rate agreement to 
provide transportation and related services to an agency.
    Transportation service provider claim means any demand by the TSP 
for amounts not included in the original bill that they believe 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 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, if needed, for 
international shipments.
    (b) Transportation of people and the purchase of tickets with a 
Government issued charge card (or centrally billed travel account 
citation), Government issued individual travel charge card, personal 
charge card, or in prescribed situations, a Government Transportation 
Request. 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/ota.


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) Government issued agency charge card,    (1) Bill from charge card
 (2) Centrally billed travel account          company (may be
 citation.                                    electronic).
(3) Purchase order, (4) Bill of lading, (5)  (2) Bill from TSP (may be
 Government Bill of Lading, (6) Government    electronic).
 Transportation Request.
(7) Contractor issued individual travel      (3) Voucher from employee
 charge card, (8) Personal charge card, (9)   (may be electronic).
 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.). This 
method requires your agency to make all payments by electronic means 
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.


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 clearly 
defining program controls including, at a minimum, the following 
criteria:
    (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 must be included in all transportation 
agreements and referenced on all transportation documents (TDs);
    (d) Billing must be paid to the origin TSP and may not be waived;
    (e) All fees paid must be accounted for in the aggregate delivery 
costs;
    (f) All payments are subject to applicable statutory limitations;
    (g) Procedures are established to prevent and detect duplicate 
payments, properly account for expenditures and discrepancy notices;
    (h) All charge card transactions are verified with any indebtedness 
lists; and
    (i) Procedures are established to process any unused tickets.


Sec. 102-118.60  Can my agency use 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 commerce for the

[[Page 8823]]

procurement and billing of transportation services.


Sec. 102-118.65  To what extent must my agency use electronic commerce?

    Your agency must use electronic commerce (i.e., electronic methods 
for ordering and paying for transportation and transportation services) 
to the maximum extent possible.


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 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 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?

    The GSA Audit Division keeps a central repository of electronic 
transportation billing records for legal and auditing purposes. 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/ota.


Sec. 102-118.85  Can my agency use a charge card to pay for 
transportation services?

    Yes, your agency should use a charge card for an appropriate 
purchase of transportation services.


Sec. 102-118.90  If my agency orders transportation and/or 
transportation services with a 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. 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, this must be approved by the GSA Audit 
Division prior to implementation. In the event of no prepayment audit, 
your agency must submit the transportation bills to the GSA Audit 
Division for a postpayment audit.


Sec. 102-118.95  What standard forms can my agency use to pay 
transportation bills?

    Your agency must use commercial payment practices to the maximum 
extent possible; however, when viewed necessary by your agency, the 
standard forms that your agency may use to pay transportation bills 
are:
    (a) Standard Form (SF) 1113, Public Voucher for Transportation 
Charges, and SF 1113-A, Memorandum Copy;
    (b) SF 1103, Government Bill of Lading (used for movement of 
things, both privately owned and Government property for official 
uses);
    (c) SF 1169, Government Transportation Request (used to move 
people); and
    (d) SF 1203, Personal Property Government Bill of Lading, and SF 
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 SF 1103 and SF 1203 for domestic shipments. After 
September 30, 2000, your agency should minimize the use of SF 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 taxpayer identification number (TIN), and standard carrier 
alpha code is entered on each SF 1113 filed. An SF 1113 must accompany 
all TSP billings.


Sec. 102-118.105  Where can I find the rules governing the use of a 
Government Bill of Lading?

    The ``How to Prepare Bills of Lading'' handbook contains 
information on how to prepare this 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/ota.


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 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/ota.


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 SFs 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 of the GBL 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 the use in the bill 
of lading. Any other applicable contracts or agreements between the TSP 
and an agency involving buying transportation services for Government 
traffic remain binding. This purchase does not require an SF 1113. When 
you are using GSA's schedule for small package express delivery, the 
terms and conditions of that contract are binding.


Sec. 102-118.135  How does my agency handle supplemental billings 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. 102-118.140  Who is liable for overpayment made on a 
transportation bill?

    Agency transportation certifying and disbursing officers are liable 
for overpayments made on a transportation bill unless GSA grants a 
waiver to the prepayment audit requirement and performs a postpayment 
audit (31 U.S.C. 3528 and 31 U.S.C. 3322).

[[Page 8824]]

Sec. 102-118.145  What must my agency do if the TSP makes an error on a 
bill?

    Your agency must advise the TSP via statement of difference of any 
adjustment 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 refer to the TSP's taxpayer identification 
number, standard carrier alpha code, bill number and document reference 
number, agency name, amount requested, amount paid, payment voucher 
number, complete tender or tariff authority, the applicable rate 
authority and the complete fiscal authority including the 
appropriation.


Sec. 102-118.150  Will GSA continue to maintain a centralized numbering 
system for transportation documents (TDs)?

    Yes, GSA will maintain a numbering system for GBLs and GTRs. For 
all other TDs, each agency must create a unique numbering system to 
account for and prevent duplicate numbers. The Office of Governmentwide 
Policy (MT) must approve this system. Write to: General Services 
Administration, Office of Governmentwide Policy (MT), 1800 F Street, 
NW, Washington, DC 20405.

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. 102-118.155  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 
and SF 1203, Privately Owned Personal Property Government Bills of 
Lading (PPGBLs), for domestic shipments. After this date, your agency 
may use the GBL or PPGBL solely for international shipments.


Sec. 102-118.160  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. 102-118.165  Where are the mandatory terms and conditions 
governing the use of a GBL?

    The mandatory terms and conditions governing the use of a GBL are 
contained in this part, on the back of SF 1103 and SF 1203, and the 
``How to Prepare Bills of Lading'' handbook.


Sec. 102-118.170  Where are the mandatory terms and conditions 
governing the use of a GTR?

    The mandatory terms and conditions governing the use of a GTR are 
contained in this part, on the back of SF 1169, and the ``U.S. 
Passenger Transportation'' handbook.


Sec. 102-118.175  When buying transportation on a GBL, must my agency 
reference the applicable contract or tender?

    Yes, your agency must reference the applicable contract or tender 
when buying transportation on a GBL. However, the referenced 
information on a GBL does not limit an audit of charges.


Sec. 102-118.180  When buying transportation on a GTR, must my agency 
reference the applicable contract?

    Yes, when buying transportation, your agency must reference the 
applicable contract on a GTR.


Sec. 102-118.185  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 a properly 
certified GBL or PPGBL. The TSP must attach a properly certified GBL or 
PPGBL to a SF 1113, Public Voucher for Transportation Charges. The TSP 
must submit this package and all supporting documents to the paying 
office, marked in Block 13 of the GBL, or Block 21 of the PPGBL.


Sec. 102-118.190  Can a TSP demand advance payment for the 
transportation charges submitted on a GBL?

    No, a TSP cannot demand advance payment for transportation charges 
submitted on a GBL.


Sec. 102-118.195  May my agency pay an agent functioning as a 
warehouseman for a principal TSP?

    No, your agency may only pay the TSP with whom it has a contract. 
On a GBL shipment, Block 1 of the SF 1103 or Block 1 of the SF 1203, 
lists the TSP with whom the Government has a contract.


Sec. 102-118.200  May my agency use bills of lading other than the GBL 
for a transportation shipment?

    Yes, as long as the same terms and conditions stated on a GBL 
apply. The TSP must agree in writing to the Bill of Lading Handbook 
terms and conditions. Only an agency can convert a GBL to a commercial 
bill of lading or vice versa.


Sec. 102-118.205  May my agency pay a TSP any added monies to pay for 
the preparation and use of the GBL or GTR?

    No. Your agency may not pay a TSP a higher rate than comparable 
under commercial procedures for transportation bought on a GBL or GTR.


Sec. 102-118.210  If a transportation debt is owed because of loss or 
damage to property, does my agency report it to GSA?

    No, if your agency has administratively determined that a debt is 
owed, resulting from loss or damage, follow your agency regulations.


Sec. 102-118.215  What constitutes final receipt of shipment?

    Final receipt of the shipment occurs when the consignee or TSP 
acting on behalf of the consignee fully signs and dates the delivering 
TSP's documents and the consignee's copy of the same document 
indicating delivery and/or explaining any delay, loss, damage, or 
shrinkage of shipment.


Sec. 102-118.220  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. 102-118.225  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 
them to be the same as money.


Sec. 102-118.230  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. 102-118.235  How does my agency get an assigned set of GBL or GTR 
numbers?

    If your agency does not use preprinted 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

[[Page 8825]]

Taylor Street, Room 6A24, Fort Worth, TX 76102.


Sec. 102-118.240  Who is accountable for the issuance and use of GBL 
and GTR forms?

    Agencies and agency employees are responsible for the issuance and 
use of GBL and GTR forms and they are accountable for their 
disposition.


Sec. 102-118.245  Are GBL and GTR forms sequential?

    Yes, GBL and GTR forms generally are serially numbered when 
printed. No other numbering of the forms, including additions or 
changes to the prefixes or additions of suffixes, is permitted.

Quotations, Tenders or Contracts


Sec. 102-118.250  Must my agency send a quotation, tender, or contract 
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. 13712 and 10721, upon 
execution to: General Services Administration, Federal Supply Service, 
Audit Division (FBA), 1800 F Street, NW, Washington, DC 20405 http://pub.fss.gsa.gov/ota.
    (b) Exceptions are when this information is in an electronic format 
and your agency and the GSA Audit Division made a previous arrangement 
to transfer the information electronically.

Subpart D--Prepayment Audits of Transportation Services Agency 
Requirements for Prepayment Audits


Sec. 102-118.255  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. 102-118.260  Must my agency establish a prepayment audit program?

    (a) Yes, 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. 102-118.265  What must my agency consider when designing and 
implementing a prepayment audit program?

    The method of ordering transportation and transportation service is 
the determining factor in designing a prepayment audit program. Your 
agency must consider all of the methods that you use to order and pay 
for transportation and transportation services. With each method of 
ordering transportation and transportation services, your agency should 
ensure that each TSP bill contains enough information for the 
prepayment audit to determine which contract or rate tender is used and 
that the type and quantity of additional services are clearly 
delineated. Each method of ordering transportation and transportation 
services may require a different kind of prepayment audit.


Sec. 102-118.270  What advantages does the prepayment audit offer my 
agency?

    Prepayment auditing will allow your agency to detect billing errors 
before payment and will eliminate the need to recover erroneous 
payments.


Sec. 102-118.275  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 with a vendor for a prepayment audit; or
    (c) Using the services of a contractor under GSA's multiple award 
schedule covering audit and financial management services.


Sec. 102-118.280  Must every electronic and paper transportation bill 
undergo a prepayment audit?

    All transportation bills and payments must undergo a prepayment 
audit unless the Administrator of General Services grants a specific 
waiver or your agency's prepayment audit program uses a statistically 
significant sampling of every bill to represent the whole.


Sec. 102-118.285  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).


Sec. 102-118.290  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. 102-118.295  Must my agency advise the TSP of any adjustment to 
the TSP's bill?

    Yes, your agency must advise the TSP of any adjustment to the 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, 
travel identification number, standard carrier alpha code, document 
reference number, amount requested, amount paid, payment voucher 
number, complete tender or tariff authority, including item or section 
number.


Sec. 102-118.300  Must my agency prepayment audit program establish 
appeal procedures whereby a TSP may appeal any reduction in the amount 
billed?

    Yes, your agency must delegate the appeal process to an agency 
official at a high enough administrative level for adequate 
consideration and review of the circumstances of the claim. Your agency 
must complete the review of the appeal within 30 days.


Sec. 102-118.305  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, 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/ota.
    (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 by following the guidelines 
established in Sec. 102-118.460.


Sec. 102-118.310  What information must be on my agency's 
transportation bills on completion of a prepayment audit?

    (a) Your agency must annotate all of its transportation bills 
submitted for prepayment audit with:
    (1) The date received from a TSP;
    (2) A TSP's bill number;
    (3) Your agency name;
    (4) A Document Reference Number;
    (5) The amount requested;
    (6) The amount paid;
    (7) The payment voucher number;
    (8) Complete tender or tariff authority, including item or section 
number;
    (9) The taxpayer identification number;
    (10) The standard carrier alpha code;
    (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 handbook ``How to

[[Page 8826]]

Prepare and Process Bills of Lading'', obtainable from: General 
Services Administration, Federal Supply Service, Audit Division (FBA), 
1800 F Street, NW, Washington, DC 20405 http://pub.fss.gsa.gov/ota.

Maintaining an Approved Program


Sec. 102-118.315  How do I get approval for my agency's 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 verification.


Sec. 102-118.320  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) Apply to cost reimbursable contractors. Your agency's 
prepayment audit program must include the transportation bills from a 
cost reimbursable contractor when the agency will assume those charges 
on bills;
    (d) Allow for your agency to establish minimum financial thresholds 
for auditing transportation bills;
    (e) 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);
    (f) Arrange for the GSA Audit Division to verify the prepayment 
audit program. After this first verification, the agency may be subject 
to recurring annual program verification;
    (g) Complete accurate audits of transportation bills and notify the 
TSP of any adjustment within 7 calendar days of receipt;
    (h) 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;
    (i) 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; and
    (j) Establish procedures in which transportation bills not subject 
to prepayment audit (i.e. unused tickets and charge cards) are 
forwarded to the GSA Audit Division.


Sec. 102-118.325  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. 102-118.330  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/ota.


Sec. 102-118.335  If my agency chooses to change a verified prepayment 
audit program, does the program need to be re-verified?

    Yes, you must coordinate any changes in your agency's prepayment 
audit program with the GSA Audit Division.

Liability for Certifying and Disbursing Officers


Sec. 102-118.340  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. 102-118.345  With a prepayment audit waiver, what liability does 
the certifying officer have?

    A certifying official is not 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 rules. This waiver of 
responsibility only applies to GBLs and GTRs (31 U.S.C. 3528).


Sec. 102-118.350  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 
audit process 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. 102-118.355  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. 102-118.360  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. 102-118.365  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. 102-118.370  How does my agency apply for a waiver from the 
requirement to perform a prepayment audit of transportation bills?

    Your agency must submit a request for a waiver from the requirement 
to perform a prepayment audit 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. 102-118.375  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.

[[Page 8827]]

Sec. 102-118.380  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. 102-118.385  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 a waiver request.


Sec. 102-118.390  Must my agency renew its waiver to prepayment audits?

    Yes, your agency waiver to the prepayment audit process will not 
exceed 2 years. Your agency must reapply to ensure the circumstances at 
the time of approval still apply.


Sec. 102-118.395  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 (depending 
on results), the GSA Audit Division 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 is on file and available 
for your review.

Suspension of Agency Prepayment Audit Programs


Sec. 102-118.400  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:
    (1) Failure to conduct an accurate prepayment audit of your 
agency's transportation bills;
    (2) A pattern of failure to abide by the terms of the Prompt 
Payment Act;
    (3) Failure to adjudicate TSP claims disputing prepayment audit 
positions of the agency regularly within 30 days of receipt;
    (4) Failure of the agency to 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) Failure to 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 may be in whole or in part for failure to 
conduct proper prepayment audits.

Subpart E--Postpayment Transportation Audits


Sec. 102-118.405  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 payment. During the early startup period for 
prepayment audits, transportation bills are subject to a possible 
postpayment audit to discover the effectiveness of the prepayment audit 
process.


Sec. 102-118.410  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. 102-118.415  When is my agency allowed to use a postpayment audit 
on our transportation bills?

    Your agency may only use a postpayment audit when the Administrator 
of General Services has approved a waiver to the prepayment audit 
requirement.


Sec. 102-118.420  What information must be on my agency's 
transportation bills?

    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 taxpayer identification number; and
    (j) The standard carrier alpha code.


Sec. 102-118.425  What are the procedures used to perform a postpayment 
audit?

    When GSA performs a postpayment audit, the Administrator of General 
Services or his designee has the 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 DRN, and cites applicable tariff or tender 
references with other data relied on to support the overcharge. A 
separate Notice of Overcharge is prepared and mailed for each 
transaction; and
    (g) Issue a GSA Notice of Indebtedness when an ordinary debt is due 
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 (31 U.S.C. 3717).


Sec. 102-118.430  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,

[[Page 8828]]

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. 102-118.435  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 
TSP's bills paid by the agency and other similar type of refunds.

Subpart F--Claims and Appeal Procedures

General Agency Information for All Claims


Sec. 102-118.440  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. 102-118.445  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 appear in the following table:

                                       Time Limits on Actions Taken by TSP
----------------------------------------------------------------------------------------------------------------
                                              Freight
                   Mode                       charges                            Statute
                                              (years)
----------------------------------------------------------------------------------------------------------------
(a) Air Domestic..........................            6  28 U.S.C. 2401, 2501.
(b) Air International.....................            6  28 U.S.C. 2401, 2501.
(c) Freight Forwarders (subject to the IC             3  49 U.S.C. 14705(f).
 Act).
(d) Motor.................................            3  49 U.S.C. 14705(f).
(e) Rail..................................            3  49 U.S.C. 14705(f).
(f) Water (subject to the IC Act).........            3  49 U.S.C. 14705(f).
(g) Water (not subject to the IC Act).....            2  46 U.S.C. 745.
(h) TSPs exempt from regulation...........            6  28 U.S.C. 2401, 2501.
----------------------------------------------------------------------------------------------------------------

Sec. 102-118.450  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; 49 U.S.C.       3 years; 49 U.S.C.       6 years; 28 U.S.C.
                                        11705.                   11705.                   2415.
(2) Motor............................  3 years; 49 U.S.C.,      3 years; 49 U.S.C.,      6 years; 28 U.S.C.
                                        14705(f).                14705(f).                2415.
(3) Freight Forwarders subject to the  3 years; 49 U.S.C.,      3 years; 49 U.S.C.,      6 years; 28 U.S.C.
 IC Act.                                14705(f).                14705(f).                2415.
(4) Water (subject to the IC Act)....  3 years; 49 U.S.C.,      3 years; 49 U.S.C.,      6 years; 28 U.S.C.
                                        14705(f).                14705(f).                2415.
(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; 28 U.S.C. 2415  .......................  6 years; 28 U.S.C.
                                                                                          2415.
(7) International Air................  6 years; 28 U.S.C. 2415  .......................  2 years; 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; 28 U.S.C. 2415  .......................  6 years; 28 U.S.C.
                                                                                          2415.
----------------------------------------------------------------------------------------------------------------


[[Page 8829]]

Sec. 102-118.455  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. 102-118.460  Are there statutory time limits 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. 102-118.465  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. 102-118.470  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.


Sec. 102-118.475  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. 102-118.480  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/ota.
    (b) If the TSP disagrees with the administrative settlement by the 
Audit Division, the TSP may appeal to the General Services Contract 
Board of Appeals.


Sec. 102-118.485  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. 102-118.490  What if a TSP submits a voluntary refund to my 
agency?

    (a) An agency must report a voluntary refund 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/ota.
    (b) Once a Notice of Overcharge is issued, then any refund is no 
longer considered voluntary and the agency must forward the refund to 
the GSA Audit Division.


Sec. 102.118.495  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. 102-118.500  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, Certificate of Settlement. 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. 102-118.505  Does my agency have any recourse not to pay a 
Certificate of Settlement?

    No, a Certificate of Settlement is the final administrative action.


Sec. 102-118.510  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. 102-118.515  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. 102-118.520  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 debt (31 U.S.C. 3716).


Sec. 102-118.525  Are there principles governing my agency's 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. 102-118.530  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. 102-118.535  What are the filing requirements for a TSP?

    Transportation service provider 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;
    (b) The signature of the claimant'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 claimant; or
    (c) An electronic signature, when mutually agreed upon.


Sec. 102-118.540  How does a TSP file an administrative claim using EDI 
or other electronic means?

    The medium and precise format of transmitting data for filing an 
administrative claim must be approved in advance by the GSA Audit 
Division. GSA will use an authenticating EDI signature to certify 
receipt, 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

[[Page 8830]]

reproduce the records in readable form without loss of clarity.


Sec. 102-118.545  Can a TSP file a supplemental administrative claim?

    Yes, a TSP may file a supplemental administrative claim. Each 
supplemental bill must cover charges relating to one paid 
transportation document.


Sec. 102-118.550  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 ``How to 
Prepare Bills of Lading'' 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/ota.


Sec. 102-118.555  What documentation is required when filing an 
administrative claim?

    An administrative claim is settled using the information contained 
in 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) Appeal Procedures for 
Prepayment Audits


Sec. 102-118.560  If my agency denies the challenge to the statement of 
difference, may the TSP appeal?

    Yes, the TSP may appeal if your agency denies the challenge to the 
statement of difference. However, the appeal must be handled at a 
higher level in your agency.


Sec. 102-118.565  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 appeal of your agency's final full or partial denial of 
a claim. The TSP may also appeal if your agency has not responded to a 
challenge within 30 days.


Sec. 102-118.570  If a TSP disagrees with a prepayment audit decision 
of the GSA Audit Division can they appeal?

    (a) Yes, the TSP may appeal to the GSA's Board of Contract Appeals 
(GSBCA), by following guidelines established in this subpart or file a 
claim with the United States Court of Federal Claims. A request for 
review by the GSBCA must be received 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. 102-118.575  If a TSP disagrees with a prepayment audit decision 
of the GSBCA, can they appeal?

    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 a TSP may 
have to pursue a legal remedy.


Sec. 102-118.580  If my agency disagrees with a prepayment or 
postpayment audit decision of the GSA Audit Division can they appeal?

    No, your agency may not appeal. A GSA Audit Division decision is 
administratively final for your agency.


Sec. 102-118.585  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) Appeal Procedures for 
Postpayment Audits


Sec. 102-118.590  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: General Services 
Administration, Federal Supply Service, Audit Division (FBA), 1800 F 
Street, NW, Washington, DC 20405 http://pub.fss.gsa.gov/ota.


Sec. 102-118.595  What if a TSP disagrees with the Notice of 
Indebtedness?

    If a TSP disagrees with an ordinary debt, which is the subject of a 
Notice of Indebtedness, it may:
    (a) Inspect and copy the agency's records related to the claim;
    (b) Seek administrative review by GSA of the claim decision; and/or
    (c) Enter a written agreement for the payment of the claims.


Sec. 102-118.600  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. 102-118.605  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. 102-118.610  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. 102-118.615  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. 102-118.620  How must a TSP refund amounts due to GSA?

    (a) TSPs must promptly refund amounts due to GSA. 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, Federal Supply Service, 
Audit Division (FBA), 1800 F Street, NW, Washington, DC 20405, http://pub.fss.gsa.gov/ota.

    Note to Sec. 102-118.620: Amounts collected by GSA are returned 
to the Treasurer of the United States (31 U.S.C. 3726).

Sec. 102-118.625  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. 102-118.630  If a TSP fails to pay or appeal an overcharge, what 
actions does GSA pursue to ensure debt collection?

    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

[[Page 8831]]

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. 102-118.635  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/ota.


Sec. 102-118.640  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. 102-118.645  Are there time limits on a request for an 
administrative review by the GSBCA?

    (a) Yes, the GSBCA must receive a request for review 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. 102-118.650  If a TSP disagrees with a postpayment audit decision 
of the GSBCA, can they appeal?

    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 a TSP may 
have to pursue a legal remedy.


Sec. 102-118.655  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. 102-118.660  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. 102-118.665  What 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: February 14, 2000.
G. Martin Wagner,
Associate Administrator for Governmentwide Policy.
[FR Doc. 00-3922 Filed 2-18-00; 8:45 am]
BILLING CODE 6820-BR-P