[Federal Register Volume 65, Number 81 (Wednesday, April 26, 2000)]
[Rules and Regulations]
[Pages 24568-24583]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-10271]



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Part III





General Services Administration





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41 CFR Parts 101-41 and 102-118



Transportation Payment and Audit; Final Rule

  Federal Register / Vol. 65, No. 81 / Wednesday, April 26, 2000 / 
Rules and Regulations  

[[Page 24568]]


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GENERAL SERVICES ADMINISTRATION

41 CFR Parts 101-41 and 102-118

[FPMR Amendment G-115]
RIN 3090-AH15


Transportation Payment and Audit

AGENCY: Office of Governmentwide Policy, GSA.

ACTION: Final rule.

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SUMMARY: The General Services Administration (GSA) is revising the 
Federal Property Management Regulations (FPMR) by moving coverage on 
transportation payment and audit into the Federal Management Regulation 
(FMR). A cross-reference is added to the FPMR to direct readers to the 
coverage in the FMR. The FMR coverage is written in plain language to 
provide agencies with updated regulatory material that is easy to read 
and understand.

DATES: Effective Date: This final rule is effective April 20, 2000.
    Applicability Date: In order to protect the interests of the 
Government, the Administrator of General Services grants a waiver to 
the prepayment audit provisions for all agencies who do not have a 
verified audit system by April 20, 2000. This exemption for agencies 
will extend until October 1, 2000 or the issuance of an approved agency 
transportation prepayment audit plan, whichever occurs first, to allow 
agencies a reasonable time to incorporate these regulations into 
transportation prepayment audit plans and to allow agencies to 
coordinate the GSA's regulations with the proper fiscal systems.

FOR FURTHER INFORMATION CONTACT: Mr. Ed Davis, Program Analyst, 
Transportation Management Policy Division, Office of Governmentwide 
Policy, General Services Administration, at 202-208-7638, or E-mail at 
[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 is revising 
and clarifying the transportation management policies by:
    (1) Writing them in plain language and making substantive changes; 
and
    (2) Allowing the use of commercial bills of lading and electronic 
commerce.
    This rewrite incorporates Public Law 105-264, section 3, which 
amended 31 U.S.C. 3322, 31 U.S.C. 3528, and 31 U.S.C. 3726. The major 
change required is the mandatory use of prepayment audits for 
transportation billings.
    The Federal Management Regulation (FMR) is in the question and 
answer format. Question and answer format is an effective way to engage 
the reader and to break the information into manageable pieces. The FMR 
asks questions in the first person, as the user would. It then answers 
the questions in the second and third person. The FMR addresses the 
agency in the singular.

B. Substantive Changes

    This final rule clarifies existing transportation payment and audit 
requirements and makes substantive changes in this final rule.
    We implement the mandatory use of prepayment audits, as required by 
Public Law 105-264, section 3, which amended 31 U.S.C. 3322, 31 U.S.C. 
3528, and 31 U.S.C. 3726. Under a prepayment audit, the agency will 
keep more of its transportation dollars, by verifying transportation 
billings to eliminate potential overpayments.
    We encourage agencies to expand the use of charge cards, commercial 
bills of lading, and electronic payment methods in place of the 
Government forms (Government Bill Of Lading and Government 
Transportation Request) used currently. The use of electronic bills of 
lading and existing commercial forms are the preferred methods to 
decrease the need for paperwork, retention of duplicate copies, and to 
lessen stockpiles of archived paper files and storage space.
    The appeals process for a claim must begin within an agency and the 
first level of appeal must be handled at an appropriate level within 
the agency. In exchange for keeping funds through the use of prepayment 
audits, agencies will have responsibilities related to the setup and 
function of their prepayment audit programs.
    FMR part 118 affects any department or establishment of the Federal 
Government defined by 5 U.S.C. 305, whose payment for transportation 
services are subject to the transportation audit provisions of section 
322 of the Transportation Act of 1940, as amended (31 U.S.C. 3726).
    A proposed rule was published on February 22, 2000, at 65 FR 8818. 
Comments were received from nine agencies and no members of the public. 
All comments were considered in the formulation of the final rule and, 
as a result, a number of changes were made to the proposed rule.

C. Executive Order 12866

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

D. Regulatory Flexibility Act

    This final rule will not have a significant economic impact on a 
substantial number of small entities within the meaning of the 
Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the rule 
only applies to internal agency management and will not have a 
significant effect on the public.

E. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because this final rule 
does not impose recordkeeping or information collection requirements, 
or the collection of information from offerors, contractors, or members 
of the public which require the approval of the Office of Management 
and Budget (OMB) under 44 U.S.C. 3501, et seq.

F. Small Business Regulatory Enforcement Fairness Act

    This final rule is exempt from Congressional review under 5 U.S.C. 
801 since it relates solely to agency management and personnel.

List of Subjects in 41 CFR Parts 101-41 and 102-118

    Accounting, Claims, Government property management, Surplus 
Government property, Reporting and recordkeeping requirements, 
Transportation.

    For the reasons set forth in the preamble, 41 CFR chapters 101 and 
102 are amended as follows:

CHAPTER 101--[AMENDED]

    1. Part 101-41 is revised to read as follows:

PART 101-41--TRANSPORTATION DOCUMENTATION AND AUDIT

    Authority: 31 U.S.C. 3726; and 40 U.S.C. 486(c).


Sec. 101-41.000  Cross-reference to the Federal Management Regulation 
(FMR) (41 CFR chapter 102, parts 102-1 through 102-220).

    For transportation payment and audit policy, see FMR part 102-118 
(41 CFR part 102-118).

CHAPTER 102--[AMENDED]

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

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PART 102-118--TRANSPORTATION PAYMENT AND AUDIT

Subpart A--General

Introduction

Sec.
102-118.5  What is the purpose of this part?
102-118.10   What is a transportation audit?
102-118.15   What is a transportation payment?
102-118.20   Who is subject to this part?
102-118.25   Does GSA still require my agency to submit its overall 
transportation policies for approval?
102-118.30   Are Government corporations bound by this part?

Definitions

102-118.35   What definitions apply to this part?
Subpart B--Ordering and Paying for Transportation and Transportation 
Services
102-118.40   How does my agency order transportation and 
transportation services?
102-118.45   How does a transportation service provider (TSP) bill 
my agency for transportation and transportation services?
102-118.50   How does my agency pay for transportation services?
102-118.55   What administrative procedures must my agency establish 
for payment of freight, household goods, or other transportation 
services?
102-118.60   To what extent must my agency use electronic commerce?
102-118.65   Can my agency receive electronic billing for payment of 
transportation services?
102-118.70   Must my agency make all payments via electronic funds 
transfer?
102-118.75   What if my agency or the TSP does not have an account 
with a financial institution or approved payment agent?
102-118.80   Who is responsible for keeping my agency's electronic 
commerce transportation billing records?
102-118.85   Can my agency use a Government contractor issued charge 
card to pay for transportation services?
102-118.90   If my agency orders transportation and/or 
transportation services with a Government contractor issued charge 
card or charge account citation, is this subject to prepayment 
audit?
102-118.95   What forms can my agency use to pay transportation 
bills?
102-118.100   What must my agency ensure is on each SF 1113?
102-118.105   Where can I find the rules governing the use of a 
Government Bill of Lading?
102-118.110   Where can I find the rules governing the use of a 
Government Transportation Request?
102-118.115   Must my agency use a GBL?
102-118.120   Must my agency use a GTR?
102-118.125   What if my agency uses a TD other than a GBL?
102-118.130   Must my agency use a GBL for express, courier, or 
small package shipments?
102-118.135   Where are the mandatory terms and conditions governing 
the use of bills of lading?
102-118.140   What are the major mandatory terms and conditions 
governing the use of GBLs and bills of lading?
102-118.145   Where are the mandatory terms and conditions governing 
the use of passenger transportation documents?
102-118.150   What are the major mandatory terms and conditions 
governing the use of passenger transportation documents?
102-118.155   How does my agency handle supplemental billings from 
the TSP after payment of the original bill?
102-118.160   Who is liable if my agency makes an overpayment on a 
transportation bill?
102-118.165   What must my agency do if it finds an error on a TSP 
bill?
102-118.170   Will GSA continue to maintain a centralized numbering 
system for Government transportation documents?
Subpart C--Use of Government Billing Documents

Terms and Conditions Governing Acceptance and Use of a Government Bill 
of Lading (GBL) or Government Transportation Request (GTR) (Until Form 
Retirement)

102-118.175   Must my agency prepare for the GBL retirement?
102-118.180   Must my agency prepare for the GTR retirement?
102-118.185   When buying freight transportation, must my agency 
reference the applicable contract or tender on the bill of lading 
(including GBLs)?
102-118.190   When buying passenger transportation, must my agency 
reference the applicable contract?
102-118.195   What documents must a transportation service provider 
(TSP) send to receive payment for a transportation billing?
102-118.200   Can a TSP demand advance payment for the 
transportation charges submitted on a bill of lading (including 
GBL)?
102-118.205   May my agency pay an agent functioning as a 
warehouseman for the TSP providing service under the bill of lading?
102-118.210   May my agency use bills of lading other than the GBL 
for a transportation shipment?
102-118.215   May my agency pay a TSP any extra fees to pay for the 
preparation and use of the GBL or GTR?
102-118.220   If a transportation debt is owed to my agency by a TSP 
because of loss or damage to property, does my agency report it to 
GSA?
102-118.225   What constitutes final receipt of shipment?
102-118.230   What if my agency creates or eliminates a field office 
approved to prepare transportation documents?

Agency Responsibilities When Using Government Bills of Lading (GBLs) or 
Government Transportation Requests (GTRs)

102-118.235   Must my agency keep physical control and 
accountability of the GBL and GTR forms or GBL and GTR numbers?
102-118.240   How does my agency get GBL and GTR forms?
102-118.245   How does my agency get an assigned set of GBL or GTR 
numbers?
102-118.250   Who is accountable for the issuance and use of GBL and 
GTR forms?
102-118.255   Are GBL and GTR forms numbered and used sequentially?

Quotations, Tenders or Contracts

102-118.260   Must my agency send all quotations, tenders, or 
contracts with a TSP to GSA?
Subpart D--Prepayment Audits of Transportation Services

Agency Requirements for Prepayment Audits

102-118.265   What is a prepayment audit?
102-118.270   Must my agency establish a prepayment audit program?
102-118.275   What must my agency consider when designing and 
implementing a prepayment audit program?
102-118.280   What advantages does the prepayment audit offer my 
agency?
102-118.285   What options for performing a prepayment audit does my 
agency have?
102-118.290   Must every electronic and paper transportation bill 
undergo a prepayment audit?
102-118.295   What are the limited exceptions to every bill 
undergoing a prepayment audit?
102-118.300   How does my agency fund its prepayment audit program?
102-118.305   Must my agency notify the TSP of any adjustment to the 
TSP's bill?
102-118.310   Must my agency prepayment audit program establish 
appeal procedures whereby a TSP may appeal any reduction in the 
amount billed?
102-118.315   What must my agency do if the TSP disputes the 
findings and my agency cannot resolve the dispute?
102-118.320   What information must be on transportation bills which 
have completed my agency's prepayment audit?

Maintaining an Approved Program

102-118.325   Must I get approval for my agency's prepayment audit 
program?
102-118.330   What are the elements of an acceptable prepayment 
audit program?
102-118.335   What does the GSA Audit Division consider when 
verifying an agency prepayment audit program?
102-118.340   How does my agency contact the GSA Audit Division?
102-118.345   If my agency chooses to change an approved prepayment 
audit program, does the program need to be re-approved?

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Liability for Certifying and Disbursing Officers

102-118.350   Does establishing a prepayment audit system or program 
change the responsibilities of the certifying officers?
102-118.355   Does a prepayment audit waiver, change any liabilities 
of the certifying officer?
102-118.360   What relief from liability is available for the 
certifying official under a postpayment audit?
102-118.365   Do the requirements of a prepayment audit change the 
disbursing official's liability for overpayment?
102-118.370   Where does relief from prepayment audit liability for 
certifying, accountable, and disbursing officers reside in my 
agency?

Waivers From Mandatory Prepayment Audit

102-118.375   Who has the authority to grant a waiver of the 
prepayment audit requirement?
102-118.380   How does my agency apply for a waiver from the 
prepayment audit requirement?
102-118.385   What must a waiver request include?
102-118.390   On what basis does GSA grant a waiver to the 
prepayment audit requirement?
102-118.395   How long will GSA take to respond to a waiver request?
102-118.400   Must my agency renew a waiver of the prepayment audit 
requirements?
102-118.405   Are my agency's prepayment audited transportation 
bills subject to periodic postpayment audit oversight from the GSA 
Audit Division?

Suspension of Agency Prepayment Audit Programs

102-118.410   Can GSA suspend my agency's prepayment audit program?
Subpart E--Postpayment Transportation Audits
102-118.415   Will the widespread mandatory use of prepayment audits 
eliminate postpayment audits?
102-118.420   Can the Administrator of General Services waive the 
postpayment auditing provisions of this subpart?
102-118.425   Is my agency allowed to perform a postpayment audit on 
our transportation bills?
102-118.430   What information must be on my agency's transportation 
bills submitted for a postpayment audit?
102-118.435   What procedures does GSA use to perform a postpayment 
audit?
102-118.440   What are the postpayment audit responsibilities and 
roles of the GSA Audit Division?
102-118.445   Must my agency pay for a postpayment audit when using 
the GSA Audit Division?
Subpart F--Claims and Appeal Procedures

General Agency Information for All Claims

102-118.450   Can a TSP file a transportation claim against my 
agency?
102-118.445   What is the time limit for a TSP to file a 
transportation claim against my agency?
102-118.460   What is the time limit for my agency to file a court 
claim with a TSP for freight charges, reparations, and loss or 
damage to the property?
102-118.465   Must my agency pay interest on a disputed amount 
claimed by a TSP?
102-118.470   Are there statutory time limits for a TSP on filing an 
administrative claim with the GSA Audit Division?
102-118.475   Does interest apply after certification of payment of 
claims?
102-118.480   How does my agency settle disputes with a TSP?
102-118.485   Is there a time limit for my agency to issue a 
decision on disputed claims?
102-118.490   What if my agency fails to settle a dispute within 30 
days?
102-118.495   May my agency appeal a decision by the General 
Services Board of Contract Appeals (GSBCA)?
102-118.500   How does my agency handle a voluntary refund submitted 
by a TSP?
102-118.505   Must my agency send a voluntary refund to the 
Treasurer of the United States?
102-118.510   Can my agency revise or alter a GSA Form 7931, 
Certificate of Settlement?
102-118.515   Does my agency have any recourse not to pay a 
Certificate of Settlement?
102-118.520   Who is responsible for determining the standards for 
collection, compromise, termination, or suspension of collection 
action on any outstanding debts to my agency?
102-118.525   What are my agency's responsibilities for verifying 
the correct amount of transportation charges?
102-118.530   Will GSA instruct my agency's disbursing offices to 
offset unpaid TSP billings?
102-118.535   Are there principles governing my agency's TSP debt 
collection procedures?
102-118.540   Who has the authority to audit, settle accounts, and/
or start collection action for all transportation services provided 
for my agency?

Transportation Service Provider (TSP) Filing Requirements

102-118.545   What information must a TSP claim include?
102-118.550   How does a TSP file an administrative claim using EDI 
or other electronic means?
102-118.555   Can a TSP file a supplemental administrative claim?
102-118.560   What is the required format that a TSP must use to 
file an administrative claim?
102-118.565   What documentation is required when filing an 
administrative claim?

Transportation Service Provider (TSP) and Agency Appeal Procedures for 
Prepayment Audits

102-118.570   If my agency denies the TSP's challenge to the 
Statement of Difference, may the TSP appeal?
102-118.575   If a TSP disagrees with the decision of my agency, can 
the TSP appeal?
102-118.580   May a TSP appeal a prepayment audit decision of the 
GSA Audit Division?
102-118.585   May a TSP appeal a prepayment audit decision of the 
GSBCA?
102-118 .590   May my agency appeal a prepayment audit decision of 
the GSA Audit Division?
102-118.595   May my agency appeal a prepayment audit decision by 
the GSBCA?

Transportation Service Provider (TSP) and Agency Appeal Procedures for 
Postpayment Audits

102-118.600   When a TSP disagrees with a Notice of Overcharge 
resulting from a postpayment audit, what are the appeal procedures?
102-118.605   What if a TSP disagrees with the Notice of 
Indebtedness?
102-118.610   Is a TSP notified when GSA allows a claim?
102-118.615   Will GSA notify a TSP if they internally offset a 
payment?
102-118.620   How will a TSP know if the GSA Audit Division 
disallows a claim?
102-118.625   Can a TSP request a reconsideration of a settlement 
action by the GSA Audit Division?
102-118.630   How must a TSP refund amounts due to GSA?
102-118.635   Can the Government charge interest on an amount due 
from a TSP?
102-118.640   If a TSP fails to pay or to appeal an overcharge, what 
actions will GSA pursue to collect the debt?
102-118.645   Can a TSP file an administrative claim on collection 
actions?
102-118.650   Can a TSP request a review of a settlement action by 
the Administrator of General Services?
102-118.655   Are there time limits on a TSP request for an 
administrative review by the GSBCA?
102-118.660   May a TSP appeal a postpayment audit decision of the 
GSBCA?
102-118.665   May my agency appeal a postpayment audit decision by 
the GSBCA?

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

102-118.670   If a TSP cannot immediately pay a debt, can they make 
other arrangements for payment?
102-118.675   What recourse does my agency have if a TSP does not 
pay a transportation debt?

    Authority: 31 U.S.C. 3726; and 40 U.S.C. 481, et seq.

Subpart A--General

Introduction


Sec. 102-118.5  What is the purpose of this part?

    The purpose of this part is to interpret statutes and other 
policies that assure

[[Page 24571]]

that payment and payment mechanisms for agency transportation services 
are uniform and appropriate. This part communicates the policies 
clearly to agencies and transportation service providers (TSPs). (See 
Sec. 102-118.35 for the definition of TSP.)


Sec. 102-118.10  What is a transportation audit?

    A transportation audit is a thorough review and validation of 
transportation related bills. The audit must examine the validity, 
propriety, and conformity of the charges with tariffs, quotations, 
agreements, or tenders, as appropriate. Each agency must ensure that 
its internal transportation audit procedures prevent duplicate payments 
and only allow payment for authorized services, and that the TSP's bill 
is complete with required documentation.


Sec. 102-118.15  What is a transportation payment?

    A transportation payment is a payment made by an agency to a TSP 
for the movement of goods or people and/or transportation related 
services.


Sec. 102-118.20  Who is subject to this part?

    All agencies and TSPs defined in Sec. 102-118.35 are subject to 
this part. Your agency is required to incorporate this part into its 
internal regulations.


Sec. 102-118.25  Does GSA still require my agency to submit its overall 
transportation policies for approval?

    GSA no longer requires your agency to submit its overall 
transportation policies for approval. However, as noted in Sec. 102-
118.325, agencies must submit their prepayment audit plans for 
approval. In addition, GSA may from time to time request to examine 
your agency's transportation policies to verify the correct performance 
of the prepayment audit of your agency's transportation bills.


Sec. 102-118.30  Are Government corporations bound by this part?

    No, Government corporations are not bound by this part. However, 
they may choose to use it if they wish.

Definitions


Sec. 102-118.35  What definitions apply to this part?

    The following definitions apply to this part:
    Agency means Executive agency, but does not include:
    (1) A Government Controlled Corporation;
    (2) The Tennessee Valley Authority;
    (3) The Virgin Islands Corporation;
    (4) The Atomic Energy Commission;
    (5) The Central Intelligence Agency;
    (6) The Panama Canal Commission; and
    (7) The National Security Agency, Department of Defense.

    Note to the definition of Agency: All agencies' payments for 
transportation services are subject to the transportation audit 
provisions of section 322 of the Transportation Act of 1940, as 
amended (31 U.S.C. 3726).

    Agency claim means any demand by an agency upon a TSP for the 
payment of overcharges, ordinary debts, fines, penalties, 
administrative fees, special charges, and interest.
    Bill of lading, sometimes referred to as a commercial bill of 
lading (but includes GBLs), is the document used as a receipt of goods, 
and documentary evidence of title. It is also a contract of carriage 
when movement is under 49 U.S.C. 10721 and 49 U.S.C. 13712.
    Document reference number means the unique number on a bill of 
lading, Government Bill of Lading, Government Transportation Request, 
or transportation ticket, used to track the movement of shipments and 
individuals.
    EDI signature means a discrete authentication code which serves in 
place of a paper signature and binds parties to the terms and 
conditions of a contract in electronic communication.
    Electronic commerce means electronic techniques for performing 
business transactions (ordering, billing, and paying for goods and 
services), including electronic mail or messaging, Internet technology, 
electronic bulletin boards, charge cards, electronic funds transfers, 
and electronic data interchange.
    Electronic data interchange means electronic techniques for 
carrying out transportation transactions using electronic transmissions 
of the information between computers instead of paper documents. These 
electronic transmissions must use established and published formats and 
codes as authorized by the applicable Federal Information Processing 
Standards.
    Electronic funds transfer means any transfer of funds, other than 
transactions initiated by cash, check, or similar paper instrument, 
that is initiated through an electronic terminal, telephone, computer, 
or magnetic tape, for the purpose of ordering, instructing, or 
authorizing a financial institution to debit or credit an account. The 
term includes Automated Clearinghouse transfers, Fed Wire transfers, 
and transfers made at automatic teller machines and point of sale 
terminals.
    Government Bill of Lading (GBL) means Optional Forms 1103 and 1203, 
the transportation documents issued by GSA and used as a receipt of 
goods, evidence of title, and generally a contract of carriage.
    Government contractor-issued charge card means both an individually 
billed travel card, which the individual is required to pay, and a 
centrally billed account for paying travel expenses, which the agency 
is required to pay.
    Government Transportation Request (GTR) means Optional Form 1169, 
the Government document used to buy transportation services. The 
document normally obligates the Government to pay for the 
transportation services provided.
    Offset means agency use of money owed by the agency to a 
transportation service provider (TSP) to cover a previous debt incurred 
to the agency by the TSP.
    Ordinary debt means an amount that a TSP owes an agency other than 
for the repayment of an overcharge. Ordinary debts include, but are not 
limited to, payments for transportation services ordered and not 
provided (including unused transportation tickets), duplicate payments, 
and amounts for which a TSP is liable because of loss and/or damage to 
property it transported.
    Overcharge means those charges for transportation and travel 
services that exceed those applicable under the contract for carriage. 
This also includes charges more than those applicable under rates, 
fares and charges established pursuant to section 13712 and 10721 of 
the Revised Interstate Commerce Act, as amended (49 U.S.C. 13712 and 
10721), or other equivalent contract, arrangement or exemption from 
regulation.
    Postpayment audit means an audit of transportation billing 
documents after payment to decide their validity, propriety, and 
conformity with tariffs, quotations, agreements, or tenders. This 
process may also include subsequent adjustments and collections actions 
taken against a TSP by the Government.
    Prepayment audit means an audit of transportation billing documents 
before payment to determine their validity, propriety, and conformity 
with tariffs, quotations, agreements, or tenders.
    Privately Owned Personal Property Government Bill of Lading, 
Optional Form 1203, means the agency transportation document used as a 
receipt of goods, evidence of title, and generally a contract of 
carriage. It is only available for the transportation of household 
goods. Use of this form is mandatory for Department of Defense, but 
optional for other agencies.
    Rate authority means the document that establishes the legal 
charges for a

[[Page 24572]]

transportation shipment. Charges included in a rate authority are those 
rates, fares, and charges for transportation and related services 
contained in tariffs, tenders, and other equivalent documents.
    Released value is stated in dollars and is considered the assigned 
value of the cargo for reimbursement purposes, not necessarily the 
actual value of the cargo. Released value may be more or less than the 
actual value of the cargo. The released value is the maximum amount 
that could be recovered by the agency in the event of loss or damage 
for the shipments of freight and household goods. In return, when 
negotiating for rates and the released value is proposed to be less 
than the actual value of the cargo, the TSP should offer a rate lower 
than other rates for shipping cargo at full value. The statement of 
released value may be shown on any applicable tariff, tender, contract, 
transportation document or other documents covering the shipment.
    Reparation means the payment involving a TSP to or from an agency 
of an improper transportation billing as determined by a postpayment 
audit. Improper routing, overcharges, or duplicate payments may cause 
such improper billing. This is different from payments to settle a 
claim for loss and damage to items shipped under those rates.
    Standard carrier alpha code (SCAC) means an unique four-letter code 
assigned to each TSP by the National Motor Freight Traffic Association, 
Inc.
    Statement of difference means a statement issued by an agency or 
its designated audit contractor during a prepayment audit when they 
determine that a TSP has billed the agency for more than the proper 
amount for the services. This statement tells the TSP on the invoice, 
the amount allowed and the basis for the proper charges. The statement 
also cites the applicable rate references and other data relied on for 
support. The agency issues a separate statement of difference for each 
transportation transaction.
    Statement of difference rebuttal means a document used by the 
agency to respond to a TSP's claim about an improper reduction made 
against the TSP's original bill by the paying agency.
    Supplemental bill means a bill for services that the TSP submits to 
the agency for additional payment after reimbursement for the original 
bill. The need to submit a supplemental bill may occur due to an 
incorrect first bill or due to charges which were not included on the 
original bill.
    Taxpayer identification number (TIN) means the number required by 
the Internal Revenue Service to be used by the TSP in reporting income 
tax or other returns. For a TSP, the TIN is an employer identification 
number.
    Transportation document (TD) means any executed agreement for 
transportation service, such as a bill of lading (including a 
Government Bill of Lading), a Government Transportation Request, or 
transportation ticket.
    Transportation service means service involved in the physical 
movement (from one location to another) of products, people, household 
goods, and any other objects by a TSP for an agency as well as 
activities directly relating to or supporting that movement. Examples 
of this are storage, crating, or connecting appliances.
    Transportation service provider (TSP) means any party, person, 
agent, or carrier that provides freight or passenger transportation and 
related services to an agency. For a freight shipment this would 
include packers, truckers, and storers. For passenger transportation 
this would include airlines, travel agents and travel management 
centers.
    Transportation service provider claim means any demand by the TSP 
for amounts not included in the original bill that the TSP believes an 
agency owes them. This includes amounts deducted or offset by an 
agency; amounts previously refunded by the TSP, which they now believe 
they are owed; and any subsequent bills from the TSP resulting from a 
transaction that was pre- or postpayment audited by the GSA Audit 
Division.
    Virtual GBL (VGBL) means the use of a unique GBL number on a 
commercial document, which binds the TSP to the terms and conditions of 
a GBL.

    Note to Sec. 102-118.35: 49 U.S.C. 13102, et seq., defines 
additional transportation terms not listed in this section.

Subpart B--Ordering and Paying for Transportation and 
Transportation Services


Sec. 102-118.40  How does my agency order transportation and 
transportation services?

    Your agency orders:
    (a) Transportation of freight and household goods and related 
transportation services (e.g., packing, storage) with a charge card, 
bill of lading, purchase order (or electronic equivalent), or for 
domestic shipments until September 30, 2001, a Government Bill of 
Lading (GBL). GBLs will continue to be available after that date, if 
needed, for international shipments (including domestic overseas 
shipments).
    (b) Transportation of people through the purchase of transportation 
tickets with a Government issued charge card (or centrally billed 
travel account citation), Government issued individual travel charge 
card, personal charge card, cash (in accordance with Department of the 
Treasury regulations), or in limited prescribed situations, a 
Government Transportation Request (GTR). See the ``U.S. Government 
Passenger Transportation--Handbook,'' obtainable from:

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

Sec. 102-118.45  How does a transportation service provider (TSP) bill 
my agency for transportation and transportation services?

    The manner in which your agency orders transportation and 
transportation services determines the manner in which a TSP bills for 
service. This is shown in the following table:

                 Transportation Service Provider Billing
------------------------------------------------------------------------
          (a) Ordering method                   (b) Billing method
------------------------------------------------------------------------
(1)(i) Government issued agency charge   (1) Bill from charge card
 card,.                                   company (may be electronic).
(ii) Centrally billed travel account
 citation.
------------------------------------------------------------------------
(2)(i) Purchase order,.................  (2) Bill from TSP (may be
                                          electronic).
(ii) Bill of lading,
(iii) Government Bill of Lading,
(iv) Government Transportation Request.
------------------------------------------------------------------------
(3)(i) Contractor issued individual      (3) Voucher from employee (may
 travel charge card.                      be electronic).

[[Page 24573]]

 
(ii) Personal charge card,
(iii) Personal cash.
------------------------------------------------------------------------

Sec. 102-118.50  How does my agency pay for transportation services?

    Your agency may pay for transportation services in three ways:
    (a) Electronic funds transfer (EFT) (31 U.S.C. 3332, et seq.). Your 
agency is required by statute to make all payments by EFT unless your 
agency receives a waiver from the Department of the Treasury.
    (b) Check. For those situations where EFT is not possible and the 
Department of the Treasury has issued a waiver, your agency may make 
payments by check.
    (c) Cash. In very unusual circumstances and as a last option, your 
agency payments may be made in cash in accordance with Department of 
the Treasury regulations (31 CFR part 208).


Sec. 102-118.55  What administrative procedures must my agency 
establish for payment of freight, household goods, or other 
transportation services?

    Your agency must establish administrative procedures which assure 
that the following conditions are met:
    (a) The negotiated price is fair and reasonable;
    (b) A document of agreement signifying acceptance of the 
arrangements with terms and conditions is filed with the participating 
agency by the TSP;
    (c) The terms and conditions are included in all transportation 
agreements and referenced on all transportation documents (TDs);
    (d) Bills are only paid to the TSP providing service under the bill 
of lading to your agency and may not be waived;
    (e) All fees paid are accounted for in the aggregate delivery 
costs;
    (f) All payments are subject to applicable statutory limitations;
    (g) Procedures (such as an unique numbering system) are established 
to prevent and detect duplicate payments, properly account for 
expenditures and discrepancy notices;
    (h) All transactions are verified with any indebtedness list. On 
charge card transactions, your agency must consult any indebtedness 
list if the charge card contract provisions allow for it; and
    (i) Procedures are established to process any unused tickets.


Sec. 102-118.60  To what extent must my agency use electronic commerce?

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


Sec. 102-118.65  Can my agency receive electronic billing for payment 
of transportation services?

    Yes, when mutually agreeable to the agency and the GSA Audit 
Division, your agency is encouraged to use electronic billing for the 
procurement and billing of transportation services.


Sec. 102-118.70  Must my agency make all payments via electronic funds 
transfer?

    Yes, under 31 U.S.C. 3332, et seq., your agency must make all 
payments for goods and services via EFT (this includes goods and 
services ordered using charge cards).


Sec. 102-118.75  What if my agency or the TSP does not have an account 
with a financial institution or approved payment agent?

    Under 31 U.S.C. 3332, et seq., your agency must obtain an account 
with a financial institution or approved payment agent in order to meet 
the statutory requirements to make all Federal payments via EFT unless 
your agency receives a waiver from the Department of the Treasury. To 
obtain a waiver, your agency must contact:

The Commissioner
Financial Management Service
Department of the Treasury
401 Fourteenth Street, SW.
Washington, DC 20227
http://www.fms.treas.gov/

Sec. 102-118.80  Who is responsible for keeping my agency's electronic 
commerce transportation billing records?

    Your agency's internal financial regulations will identify 
responsibility for recordkeeping. In addition, the GSA Audit Division 
keeps a central repository of electronic transportation billing records 
for legal and auditing purposes. Therefore, your agency must forward 
all relevant electronic transportation billing documents to:

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

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

    Yes, your agency may use a Government contractor issued charge card 
to purchase transportation services if permitted under the charge card 
contract or task order. In these circumstances your agency will receive 
a bill for these services from the charge card company.


Sec. 102-118.90  If my agency orders transportation and/or 
transportation services with a Government contractor issued charge card 
or charge account citation, is this subject to prepayment audit?

    Generally, no transportation or transportation services ordered 
with a Government contractor issued charge card or charge account 
citation can be prepayment audited because the bank or charge card 
contractor pays the TSP directly, before your agency receives a bill 
that can be audited from the charge card company. However, if your 
agency contracts with the charge card or charge account provider to 
provide for a prepayment audit, then, as long as your agency is not 
liable for paying the bank for improper charges (as determined by the 
prepayment audit verification process), a prepayment audit can be used. 
As with all prepayment audit programs, the charge card prepayment audit 
must be approved by the GSA Audit Division prior to implementation. If 
the charge card contract does not provide for a prepayment audit, your 
agency must submit the transportation line items on the charge card to 
the GSA Audit Division for a postpayment audit.


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

    Your agency must use commercial payment practices and forms to the 
maximum extent possible; however, when viewed necessary by your agency, 
your agency may use the following Government forms to pay 
transportation bills:
    (a) Standard Form (SF) 1113, Public Voucher for Transportation 
Charges, and SF 1113-A, Memorandum Copy;

[[Page 24574]]

    (b) Optional Form (OF) 1103, Government Bill of Lading and OF 1103A 
Memorandum Copy (used for movement of things, both privately owned and 
Government property for official uses);
    (c) OF 1169, Government Transportation Request (used to pay for 
tickets to move people); and
    (d) OF 1203, Privately Owned Personal Property Government Bill of 
Lading, and OF 1203A, Memorandum Copy (used by the Department of 
Defense to move private property for official transfers).

    Note to Sec. 102-118.95: By September 30, 2001, your agency may 
no longer use the GBLs (OF 1103 and OF 1203) for domestic shipments. 
After September 30, 2000, your agency should minimize the use of 
GTRs (OF 1169).

Sec. 102-118.100  What must my agency ensure is on each SF 1113?

    Your agency must ensure during its prepayment audit of a TSP bill 
that the TSP filled out the Public Vouchers, SF 1113, completely 
including the taxpayer identification number (TIN), and standard 
carrier alpha code (SCAC). An SF 1113 must accompany all billings.


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

    The ``U.S. Government Freight Transportation--Handbook'' contains 
information on how to prepare this GBL form. To get a copy of this 
handbook, you may write to:

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


Sec. 102-118.110  Where can I find the rules governing the use of a 
Government Transportation Request?

    The ``U.S. Government Passenger Transportation--Handbook'' contains 
information on how to prepare this GTR form. To get a copy of this 
handbook, you may write to:

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


Sec. 102-118.115  Must my agency use a GBL?

    No, your agency is not required to use a GBL and must use 
commercial payment practices to the maximum extent possible. Effective 
September 30, 2001, your agency must phase out the use of the Optional 
Forms 1103 and 1203 for domestic shipments. After this date, your 
agency may use the GBL solely for international shipments.


Sec. 102-118.120  Must my agency use a GTR?

    No, your agency is not required to use a GTR. Your agency must 
adopt commercial practices and eliminate GTR use to the maximum extent 
possible.


Sec. 102-118.125  What if my agency uses a TD other than a GBL?

    If your agency uses any other TD for shipping under its account, 
the requisite and the named safeguards must be in place (i.e., terms 
and conditions found herein and in the ``U.S. Government Freight 
Transportation--Handbook,'' appropriate numbering, etc.).


Sec. 102-118.130  Must my agency use a GBL for express, courier, or 
small package shipments?

    No, however, in using commercial forms all shipments must be 
subject to the terms and conditions set forth for use of a bill of 
lading for the Government. Any other non-conflicting applicable 
contracts or agreements between the TSP and an agency involving buying 
transportation services for Government traffic remain binding. This 
purchase does not require a SF 1113. When you are using GSA's schedule 
for small package express delivery, the terms and conditions of that 
contract are binding.


102-118.135  Where are the mandatory terms and conditions governing the 
use of bills of lading?

    The mandatory terms and conditions governing the use of bills of 
lading are contained in this part and the ``U.S. Government Freight 
Transportation Handbook.''


102-118.140  What are the major mandatory terms and conditions 
governing the use of GBLs and bills of lading?

    The mandatory terms and conditions governing the use of GBLs and 
bills of lading are:
    (a) Unless otherwise permitted by statute, the TSP must not demand 
prepayment or collect charges from the consignee. The TSP, providing 
service under the bill of lading, must present the original, properly 
certified GBL or bill of lading attached to an SF 1113, Public Voucher 
for Transportation Charges, to the paying office for payment;
    (b) The shipment must be made at the restricted or limited 
valuation specified in the tariff or classification or limited 
contract, arrangement or exemption at or under which the lowest rate is 
available, unless indicated on the GBL or bill of lading. (This is 
commonly referred to as an alternation of rates);
    (c) Receipt for the shipment is subject to the consignee's 
annotation of loss, damage, or shrinkage on the delivering TSP's 
documents and the consignee's copy of the same documents. If loss or 
damage is discovered after delivery or receipt of the shipment, the 
consignee must promptly notify the nearest office of the last 
delivering TSP and extend to the TSP the privilege of examining the 
shipment;
    (d) The rules and conditions governing commercial shipments for the 
time period within which notice must be given to the TSP, or a claim 
must be filed, or suit must be instituted, shall not apply if the 
shipment is lost, damaged or undergoes shrinkage in transit. Only with 
the written concurrence of the Government official responsible for 
making the shipment is the deletion of this item considered to valid;
    (e) Interest shall accrue from the voucher payment date on the 
overcharges made and shall be paid at the same rate in effect on that 
date as published by the Secretary of the Treasury pursuant to the Debt 
Collection Act of 1982 31 U.S.C. 3717); and
    (f) Additional mandatory terms and conditions are in this part and 
the ``U.S. Government Freight Transportation--Handbook.''


102-118.145  Where are the mandatory terms and conditions governing the 
use of passenger transportation documents?

    The mandatory terms and conditions governing the use of passenger 
transportation documents are contained in this part and the ``U.S. 
Government Passenger Transportation--Handbook.''


102-118.150  What are the major mandatory terms and conditions 
governing the use of passenger transportation documents?

    The mandatory terms and conditions governing the use of passenger 
transportation documents are:
    (a) Government travel must be via the lowest cost available, that 
meets travel requirements; e.g., Government contract, fare, through, 
excursion, or reduced one way or round trip fare. This should be done 
by entering the term ``lowest coach'' on the Government travel document 
if the specific fare basis is not known;
    (b) The U.S. Government is not responsible for charges exceeding 
those applicable to the type, class, or character authorized in 
transportation documents;

[[Page 24575]]

    (c) The U.S. Government contractor-issued charge card must be used 
to the maximum extent possible to procure passenger transportation 
tickets. GTRs must be used minimally;
    (d) Government passenger transportation documents must be in 
accordance with Federal Travel Regulation Chapters 300 and 301 (41 CFR 
chapters 300 and 301), and the ``U.S. Government Passenger 
Transportation--Handbook'';
    (e) Interest shall accrue from the voucher payment date on 
overcharges made hereunder and shall be paid at the same rate in effect 
on that date as published by the Secretary of the Treasury pursuant to 
the Debt Collection Act of 1982;
    (f) The TSP must insert on the TD any known dates on which travel 
commenced;
    (g) The issuing official or traveler, by signature, certifies that 
the requested transportation is for official business;
    (h) The TSP must not honor any request containing erasures or 
alterations unless the TD contains the authentic, valid initials of the 
issuing official; and
    (i) Additional mandatory terms and conditions are in this part and 
the ``U. S. Government Passenger Transportation--Handbook.''


Sec. 102-118.155  How does my agency handle supplemental billings from 
the TSP after payment of the original bill?

    Your agency must process, review, and verify supplemental billings 
using the same procedures as on an original billing. If the TSP 
disputes the findings, your agency must attempt to resolve the disputed 
amount.


Sec. 102-118.160  Who is liable if my agency makes an overpayment on a 
transportation bill?

    If the agency conducts prepayment audits of its transportation 
bills, agency transportation certifying and disbursing officers are 
liable for any overpayments made. If GSA has granted a waiver to the 
prepayment audit requirement and the agency performs a postpayment 
audit (31 U.S.C. 3528 and 31 U.S.C. 3322) neither the certifying nor 
disbursing officers are liable for the reasons listed in these two 
cited statutes.


Sec. 102-118.165  What must my agency do if it finds an error on a TSP 
bill?

    Your agency must advise the TSP via statement of difference of any 
adjustment that you make either electronically or in writing within 7 
days of receipt of the bill, as required by the Prompt Payment Act (31 
U.S.C. 3901, et seq.). This notice must include the TSP's taxpayer 
identification number, standard carrier alpha code, bill number and 
document reference number, agency name, amount requested by the TSP, 
amount paid, payment voucher number, complete tender or tariff 
authority, the applicable rate authority and the complete fiscal 
authority including the appropriation.


Sec. 102-118.170  Will GSA continue to maintain a centralized numbering 
system for Government transportation documents?

    Yes, GSA will maintain a numbering system for GBLs and GTRs. For 
commercial TDs, each agency must create a unique numbering system to 
account for and prevent duplicate numbers. The GSA Audit Division must 
approve this system. Write to:

General Services Administration
Federal supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav

Subpart C--Use of Government Billing Documents

Terms and Conditions Governing Acceptance and Use of a Government 
Bill of Lading (GBL) or Government Transportation Request (GTR) 
(Until Form Retirement)


Sec. 102-118.175  Must my agency prepare for the GBL retirement?

    Yes, your agency must prepare for the GBL retirement. Effective 
September 30, 2001, your agency must phase out the use of the SF 1103, 
Government Bill of Lading, GBL, and SF 1203, Privately Owned Personal 
Property Government Bill of Lading (PPGBLs), for domestic shipments. 
After September 30, 2001, your agency may use the GBL or PPGBL solely 
for international shipments (including domestic overseas shipments).


Sec. 102-118.180  Must my agency prepare for the GTR retirement?

    Yes, your agency must use the GTR only in situations that do not 
lend themselves to the use of commercial payment methods.


Sec. 102-118.185  When buying freight transportation, must my agency 
reference the applicable contract or tender on the bill of lading 
(including a GBL)?

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


Sec. 102-118.190  When buying passenger transportation must my agency 
reference the applicable contract?

    Yes, when buying passenger transportation, your agency must 
reference the applicable contract on a GTR or passenger transportation 
document (e.g., ticket).


Sec. 102-118.195  What documents must a transportation service provider 
(TSP) send to receive payment for a transportation billing?

    For shipments bought on a TD, the TSP must submit an original 
properly certified GBL, PPGBL, or bill of lading attached to an SF 
1113, Public Voucher for Transportation Charges. The TSP must submit 
this package and all supporting documents to the agency paying office.


Sec. 102-118.200  Can a TSP demand advance payment for the 
transportation charges submitted on a bill of lading (including GBL)?

    No, a TSP cannot demand advance payment for transportation charges 
submitted on a bill of lading (including GBL), unless authorized by 
law.


Sec. 102-118.205  May my agency pay an agent functioning as a 
warehouseman for the TSP providing service under the bill of lading?

    No, your agency may only pay the TSP with whom it has a contract. 
The bill of lading will list the TSP with whom the Government has a 
contract.


Sec. 102-118.210  May my agency use bills of lading other than the GBL 
for a transportation shipment?

    Yes, as long as the mandatory terms and conditions contained in 
this part (as also stated on a GBL) apply. The TSP must agree in 
writing to the mandatory terms and conditions (also found in the ``U.S. 
Government Freight Transportation Handbook'') contained in this part.


Sec. 102-118.215  May my agency pay a TSP any extra fees to pay for the 
preparation and use of the GBL or GTR?

    No, your agency must not pay any additional charges for the 
preparation and use of the GBL or GTR. Your agency may not pay a TSP a 
higher rate than comparable under commercial procedures for 
transportation bought on a GBL or GTR.


Sec. 102-118.220  If a transportation debt is owed to my agency by a 
TSP because of loss or damage to property, does my agency report it to 
GSA?

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

[[Page 24576]]

Sec. 102-118.225  What constitutes final receipt of shipment?

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


Sec. 102-118.230  What if my agency creates or eliminates a field 
office approved to prepare transportation documents?

    Your agency must tell the GSA Audit Division whenever it approves a 
new or existing agency field office to prepare transportation documents 
or when an agency field office is no longer authorized to do so. This 
notice must show the name, field office location of the bureau or 
office, and the date on which your agency granted or canceled its 
authority to schedule payments for transportation service.

Agency Responsibilities When Using Government Bills of Lading 
(GBLs) or Government Transportation Requests (GTRs)


Sec. 102-118.235  Must my agency keep physical control and 
accountability of the GBL and GTR forms or GBL and GTR numbers?

    Yes, your agency is responsible for the physical control and 
accountability of the GBL and GTR stock and must have procedures in 
place and available for inspection by GSA. Your agency must consider 
these Government transportation documents to be the same as money.


Sec. 102-118.240  How does my agency get GBL and GTR forms?

    Your agency can get GBL and GTR forms, in either blank or 
prenumbered formats, from:

General Services Administration
Federal Supply Service
General Products Commodity Center (7FXM-WS)
819 Taylor Street, Room 6A24
Fort Worth, TX 76102


Sec. 102-118.245  How does my agency get an assigned set of GBL or GTR 
numbers?

    If your agency does not use prenumbered GBL and GTR forms, you may 
get an assigned set of numbers from:

General Services Administration
Federal Supply Service
General Products Commodity Center (7FXM-WS)
819 Taylor Street, Room 6A24
Fort Worth, TX 76102


Sec. 102-118.250  Who is accountable for the issuance and use of GBL 
and GTR forms?

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


Sec. 102-118.255  Are GBL and GTR forms numbered and used sequentially?

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

Quotations, Tenders or Contracts


Sec. 102-118.260  Must my agency send all quotations, tenders, or 
contracts with a TSP to GSA?

    (a) Yes, your agency must send two copies of each quotation, 
tender, or contract of special rates, fares, charges, or concessions 
with TSPs including those authorized by 49 U.S.C. 10721 and 13712, upon 
execution to:

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

    (b) When this information is in an electronic format approved by 
the GSA Audit Division, your agency will transfer the information 
electronically.

Subpart D--Prepayment Audits of Transportation Services

Agency Requirements for Prepayment Audits


Sec. 102-118.265  What is a prepayment audit?

    A prepayment audit is a review of a transportation service provider 
(TSP) bill that occurs prior to your agency making payment to a TSP. 
This review compares the charges on the bill against the charge 
permitted under the contract, rate tender, or other agreement under 
which the TSP provided the transportation and/or transportation related 
services.


Sec. 102-118.270  Must my agency establish a prepayment audit program?

    (a) Yes, under 31 U.S.C. 3726, your agency is required to establish 
a prepayment audit program. Your agency must send a preliminary copy of 
your prepayment audit program to:

General Services Administration
Office of Transportation and Personal Property (MT)
1800 F Street, NW.
Washington, DC 20405
http://policyworks.gov/org/main/MT

    (b) The final plan must be approved and in place by April 20, 2000.


Sec. 102-118.275  What must my agency consider when designing and 
implementing a prepayment audit program?

    As shown in Sec. 102-118.45, the manner in which your agency orders 
transportation services determines how and by whom the bill for those 
services will be presented. Your agency's prepayment audit program must 
consider all of the methods that you use to order and pay for 
transportation services. With each method of ordering transportation 
services, your agency should ensure that each TSP bill or employee 
travel voucher contains enough information for the prepayment audit to 
determine which contract or rate tender is used and that the type and 
quantity of any additional services are clearly delineated. Each method 
of ordering transportation and transportation services may require a 
different kind of prepayment audit.


Sec. 102-118.280  What advantages does the prepayment audit offer my 
agency?

    Prepayment auditing will allow your agency to detect and eliminate 
billing errors before payment and will eliminate the time and cost of 
recovering agency overpayments.


Sec. 102-118.285  What options for performing a prepayment audit does 
my agency have?

    Your agency may perform a prepayment audit by:
    (a) Creating an internal prepayment audit program;
    (b) Contracting directly with a prepayment audit service provider; 
or
    (c) Using the services of a prepayment audit contractor under GSA's 
multiple award schedule covering audit and financial management 
services.

    Note to Sec. 102-118.285: Either of the choices in paragraph 
(a), (b) or (c) of this section might include contracts with charge 
card companies that provide prepayment audit services.

Sec. 102-118.290  Must every electronic and paper transportation bill 
undergo a prepayment audit?

    Yes, all transportation bills and payments must undergo a 
prepayment audit unless your agency's prepayment audit program uses a 
statistical sampling technique of the bills or the Administrator of 
General Services grants a specific waiver from the prepayment audit 
requirement. If your agency chooses to use statistical sampling, all 
bills must be at or below the Comptroller General specified limit of 
$2,500.00 (31 U.S.C. 3521(b) and General Accounting Office Policy and

[[Page 24577]]

Procedures Manual Chapter 7, obtainable from:

U.S. General Accounting Office
P.O. Box 6015
Gaithersburg, MD 20884-6015
http://www.gao.gov


Sec. 102-118.295  What are the limited exceptions to every bill 
undergoing a prepayment audit?

    The limited exceptions to bills undergoing a prepayment audit are 
those bills subject to a waiver from GSA (which may include bills 
determined to be below your agency's threshold). The waiver to 
prepayment audit requirements may be for bills, mode or modes of 
transportation or for an agency or subagency.


Sec. 102-118.300  How does my agency fund its prepayment audit program?

    Your agency must pay for the prepayment audit from those funds 
appropriated for transportation services.


Sec. 102-118.305  Must my agency notify the TSP of any adjustment to 
the TSP's bill?

    Yes, your agency must notify the TSP of any adjustment to the TSP's 
bill either electronically or in writing within 7 days of receipt of 
the bill. This notice must refer to the TSP's bill number, agency name, 
taxpayer identification number, standard carrier alpha code, document 
reference number, amount billed, amount paid, payment voucher number, 
complete tender or tariff authority, including item or section number.


Sec. 102-118.310  Must my agency prepayment audit program establish 
appeal procedures whereby a TSP may appeal any reduction in the amount 
billed?

    Yes, your agency must establish an appeal process that directs TSP 
appeals to an agency official who is able to provide adequate 
consideration and review of the circumstances of the claim. Your agency 
must complete the review of the appeal within 30 days.


Sec. 102-118.315  What must my agency do if the TSP disputes the 
findings and my agency cannot resolve the dispute?

    (a) If your agency is unable to resolve the disputed amount with 
the TSP, your agency should forward all relevant documents including a 
complete billing history, and the appropriation or fund charged, to:

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

    (b) The GSA Audit Division will review the appeal of an agency's 
final, full or partial denial of a claim and issue a decision. A TSP 
must submit claims within 3 years under the guidelines established in 
Sec. 102-118.460.


Sec. 102-118.320  What information must be on transportation bills that 
have completed my agency's prepayment audit?

    (a) The following information must be annotated on all 
transportation bills that have completed a prepayment audit:
    (1) The date received from a TSP;
    (2) A TSP's bill number;
    (3) Your agency name;
    (4) A Document Reference Number (DRN);
    (5) The amount billed;
    (6) The amount paid;
    (7) The payment voucher number;
    (8) Complete tender or tariff authority, including item or section 
number;
    (9) The TSP's taxpayer identification number (TIN);
    (10) The TSP's standard carrier alpha code (SCAC);
    (11) The auditor's authorization code or initials; and
    (12) A copy of any statement of difference sent to the TSP.
    (b) Your agency can find added guidance in the ``U.S. Government 
Freight Transportation--Handbook,'' obtainable from:

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

Maintaining an Approved Program


Sec. 102-118.325  Must I get approval for my agency's prepayment audit 
program?

    Yes, your agency must get approval for your prepayment audit 
program. The highest level budget or financial official of each agency, 
such as the Chief Financial Officer, initially approves your agency's 
prepayment audit program. After internal agency approval, your agency 
submits the plan in writing to the GSA Audit Division for final 
approval.


Sec. 102-118.330  What are the elements of an acceptable prepayment 
audit program?

    An acceptable prepayment audit program must:
    (a) Verify all transportation bills against filed rates and charges 
before payment;
    (b) Comply with the Prompt Payment Act (31 U.S.C. 3901, et seq.);
    (c) Allow for your agency to establish minimum dollar thresholds 
for transportation bills subject to audit;
    (d) Require your agency's paying office to offset debts from 
amounts owed to the TSP within the 3 years as per 31 U.S.C. 3726(b);
    (e) Be approved by the GSA Audit Division. After the initial 
approval, the agency may be subject to periodic program review and 
reapproval;
    (f) Complete accurate audits of transportation bills and notify the 
TSP of any adjustment within 7 calendar days of receipt;
    (g) Create accurate notices to the TSPs that describe in detail the 
reasons for any full or partial rejection of the stated charges on the 
invoice. An accurate notice must include the TSP's invoice number, the 
billed amount, TIN, standard carrier alpha code, the charges calculated 
by the agency, and the specific reasons including applicable rate 
authority for the rejection;
    (h) Forward documentation monthly to the GSA Audit Division, which 
will store paid transportation bills under the General Records Schedule 
9, Travel and Transportation (36 CFR Chapter XII, 1228.22) which 
requires keeping records for 3 years. GSA will arrange for storage of 
any document requiring special handling (e.g., bankruptcy, court case, 
etc.). These bills will be retained pursuant to 44 U.S.C. 3309 until 
claims have been settled;
    (i) Establish procedures in which transportation bills not subject 
to prepayment audit (i.e., bills for unused tickets and charge card 
billings) are handled separately and forwarded to the GSA Audit 
Division; and
    (j) Implement a unique agency numbering system to handle commercial 
paper and practices (see Sec. 102-118.55).


Sec. 102-118.335  What does the GSA Audit Division consider when 
verifying an agency prepayment audit program?

    The GSA Audit Division bases verification of agency prepayment 
audit programs on objective cost-savings, paperwork reductions, current 
audit standards and other positive improvements, as well as adherence 
to the guidelines listed in this part.


Sec. 102-118.340  How does my agency contact the GSA Audit Division?

    Your agency may contact the GSA Audit Division by writing to:

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


Sec. 102-118.345  If my agency chooses to change an approved prepayment 
audit program, does the program need to be reapproved?

    Yes, you must receive approval of any changes in your agency's 
prepayment

[[Page 24578]]

audit program from the GSA Audit Division.

Liability for Certifying and Disbursing Officers


Sec. 102-118.350  Does establishing a prepayment audit system or 
program change the responsibilities of the certifying officers?

    Yes, in a prepayment audit environment, an official certifying a 
transportation voucher is held liable for verifying transportation 
rates, freight classifications, and other information provided on a 
transportation billing instrument or transportation request undergoing 
a prepayment audit (31 U.S.C. 3528).


Sec. 102-118.355  Does a prepayment audit waiver change any liabilities 
of the certifying officer?

    Yes, a certifying official is not personally liable for verifying 
transportation rates, freight classifications, or other information 
provided on a GBL or passenger transportation request when the 
Administrator of General Services or designee waives the prepayment 
audit requirement and your agency uses postpayment audits.


Sec. 102-118.360  What relief from liability is available for the 
certifying official under a postpayment audit?

    The agency counsel relieves a certifying official from liability 
for overpayments in cases where postpayment is the approved method of 
auditing and:
    (a) The overpayment occurred solely because the administrative 
review before payment did not verify transportation rates; and
    (b) The overpayment was the result of using improper transportation 
rates or freight classifications or the failure to deduct the correct 
amount under a land grant law or agreement.


Sec. 102-118.365  Do the requirements of a prepayment audit change the 
disbursing official's liability for overpayment?

    Yes, the disbursing official has a liability for overpayments on 
all transportation bills subject to prepayment audit (31 U.S.C. 3322).


Sec. 102-118.370  Where does relief from prepayment audit liability for 
certifying, accountable, and disbursing officers reside in my agency?

    Your agency's counsel has the authority to relieve liability and 
give advance opinions on liability issues to certifying, accountable, 
and disbursing officers (31 U.S.C. 3527).

Waivers from Mandatory Prepayment Audit


Sec. 102-118.375  Who has the authority to grant a waiver of the 
prepayment audit requirement?

    Only the Administrator of General Services or designee has the 
authority to grant waivers from the prepayment audit requirement.


Sec. 102-118.380  How does my agency apply for a waiver from a 
prepayment audit of requirement?

    Your agency must submit a request for a waiver from the requirement 
to perform a prepayment in writing to:

General Services Administration
Office of Transportation and Personal Property (MT)
1800 F Street, NW.
Washington, DC 20405
 http://policyworks.gov/org/main/MT


Sec. 102-118.385  What must a waiver request include?

    A waiver request must explain in detail how the use of a prepayment 
audit increases costs over a postpayment audit, decreases efficiency, 
involves a relevant public interest, adversely affects the agency's 
mission, or is not feasible for the agency. A waiver request must 
identify the mode or modes of transportation, agency or subagency to 
which the waiver would apply.


Sec. 102-118.390  On what basis does GSA grant a waiver to the 
prepayment audit requirement?

    GSA issues waivers to the prepayment audit requirement based on:
    (a) Cost-effectiveness;
    (b) Government efficiency;
    (c) Public interest; or
    (d) Other factors the Administrator of General Services considers 
appropriate.


Sec. 102-118.395  How long will GSA take to respond to a waiver 
request?

    GSA will respond to a written waiver request within 30 days from 
the receipt of the request.


Sec. 102-118.400  Must my agency renew a waiver of the prepayment audit 
requirements?

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


Sec. 102-118.405  Are my agency's prepayment audited transportation 
bills subject to periodic postpayment audit oversight from the GSA 
Audit Division?

    Yes, two years or more after starting prepayment audits, the GSA 
Audit Division (depending on its evaluation of the results) may subject 
your agency's prepayment audited transportation bills to periodic 
postpayment audit oversight rather than blanket postpayment audits. The 
GSA Audit Division will then prepare a report analyzing the success of 
your agency's prepayment audit program. This report will be on file at 
GSA and available for your review.

Suspension of Agency Prepayment Audit Programs


Sec. 102-118.410  Can GSA suspend my agency's prepayment audit program?

    (a) Yes, the Director of the GSA Audit Division may suspend your 
agency's prepayment audit program based on his or her determination of 
a systematic or frequent failure of the program to:
    (1) Conduct an accurate prepayment audit of your agency's 
transportation bills;
    (2) Abide by the terms of the Prompt Payment Act;
    (3) Adjudicate TSP claims disputing prepayment audit positions of 
the agency regularly within 30 days of receipt;
    (4) Follow Comptroller General decisions, GSA Board of Contract 
Appeals decisions, the Federal Management Regulation and GSA 
instructions or precedents about substantive and procedure matters; 
and/or
    (5) Provide information and data or to cooperate with on-site 
inspections necessary to conduct a quality assurance review.
    (b) A systematic or a multitude of individual failures will result 
in suspension. A suspension of an agency's prepayment audit program may 
be in whole or in part for failure to conduct proper prepayment audits.

Subpart E--Postpayment Transportation Audits


Sec. 102-118.415  Will the widespread mandatory use of prepayment 
audits eliminate postpayment audits?

    No, the mandatory use of prepayment audits will not eliminate 
postpayment audits because:
    (a) Postpayment audits will continue for those areas which do not 
lend themselves to the prepayment audit; and
    (b) The GSA Audit Division will continue to review and survey the 
progress of the prepayment audit by performing a postpayment audit on 
the bills. The GSA Audit Division has a Congressionally mandated 
responsibility under 31 U.S.C. 3726 to perform oversight on 
transportation bill payments. During the early startup period for 
prepayment audits, transportation bills are subject to a

[[Page 24579]]

possible postpayment audit to discover the effectiveness of the 
prepayment audit process.


Sec. 102-118.420  Can the Administrator of General Services waive the 
postpayment auditing provisions of this subpart?

    Yes, in certain circumstances, the Administrator of General 
Services or designee may waive the postpayment audit oversight 
requirements of this subpart on a case by case basis.


Sec. 102-118.425  Is my agency allowed to perform a postpayment audit 
on our transportation bills?

    No, your agency must forward all transportation bills to GSA for a 
postpayment audit regardless of any waiver allowing for postpayment 
audit.


Sec. 102-118.430  What information must be on my agency's 
transportation bills submitted for a postpayment audit?

    Your agency must annotate all of its transportation bills submitted 
for postpayment audit with:
    (a) The date received from a TSP;
    (b) A TSP's bill number;
    (c) Your agency name;
    (d) A Document Reference Number;
    (e) The amount requested;
    (f) The amount paid;
    (g) The payment voucher number;
    (h) Complete tender or tariff authority, including contract price 
(if purchased under the Federal Acquisition Regulation), item or 
section number;
    (i) The TSP's taxpayer identification number; and
    (j) The TSP's standard carrier alpha code (SCAC).


Sec. 102-118.435  What procedures does GSA use to perform a postpayment 
audit?

    When GSA performs a postpayment audit, the GSA Audit Division has 
the delegated authority to implement the following procedures:
    (a) Audit selected TSP bills after payment;
    (b) Audit selected TSP bills before payment as needed to protect 
the Government's interest (i.e., bankruptcy, fraud);
    (c) Examine, settle, and adjust accounts involving payment for 
transportation and related services for the account of agencies;
    (d) Adjudicate and settle transportation claims by and against 
agencies;
    (e) Offset an overcharge by any TSP from an amount subsequently 
found to be due that TSP;
    (f) Issue a Notice of Overcharge stating that a TSP owes a debt to 
the agency. This notice states the amount paid, the basis for the 
proper charge for the document reference number, and cites applicable 
tariff or tender along with other data relied on to support the 
overcharge. A separate Notice of Overcharge is prepared and mailed for 
each bill; and
    (g) Issue a GSA Notice of Indebtedness when a TSP owes an ordinary 
debt to an agency. This notice states the basis for the debt, the TSP's 
rights, interest, penalty, and other results of nonpayment. The debt is 
due immediately and subject to interest charges, penalties, and 
administrative cost under 31 U.S.C. 3717.


Sec. 102-118.440  What are the postpayment audit responsibilities and 
roles of the GSA Audit Division?

    When the GSA Audit Division performs a postpayment audit for your 
agency, GSA will:
    (a) Examine and analyze payments to discover their validity, 
relevance and conformity with tariffs, quotations, contracts, 
agreements or tenders and make adjustments to protect the interest of 
an agency;
    (b) Examine, adjudicate, and settle transportation claims by and 
against the agency;
    (c) Collect from TSPs by refund, setoff, offset or other means, the 
amounts determined to be due the agency;
    (d) Adjust, terminate or suspend debts due on TSP overcharges;
    (e) Prepare reports to the Attorney General of the United States 
with recommendations about the legal and technical bases available for 
use in prosecuting or defending suits by or against an agency and 
provide technical, fiscal, and factual data from relevant records;
    (f) Provide transportation specialists and lawyers to serve as 
expert witnesses, assist in pretrial conferences, draft pleadings, 
orders, and briefs, and participate as requested in connection with 
transportation suits by or against an agency;
    (g) Review agency policies, programs, and procedures to determine 
their adequacy and effectiveness in the audit of freight or passenger 
transportation payments, and review related fiscal and transportation 
practices;
    (h) Furnish information on rates, fares, routes, and related 
technical data upon request;
    (i) Tell an agency of irregular shipping routing practices, 
inadequate commodity descriptions, excessive transportation cost 
authorizations, and unsound principles employed in traffic and 
transportation management; and
    (j) Confer with individual TSPs or related groups and associations 
presenting specific modes of transportation to resolve mutual problems 
concerning technical and accounting matters and acquainting them with 
agency requirements.


Sec. 102-118.445  Must my agency pay for a postpayment audit when using 
the GSA Audit Division?

    No, the expenses of postpayment audit contract administration and 
audit-related functions are financed from overpayments collected from 
the TSP's bills previously paid by the agency and similar type of 
refunds.

Subpart F--Claims and Appeal Procedures

General Agency Information for All Claims


Sec. 102-118.450  Can a TSP file a transportation claim against my 
agency?

    Yes, a TSP may file a transportation claim against your agency 
under 31 U.S.C. 3726 for:
    (a) Amounts owed but not included in the original billing;
    (b) Amounts deducted or set off by an agency that are disputed by 
the TSP;
    (c) Requests by a TSP for amounts previously refunded in error by 
that TSP; and/or
    (d) Unpaid original bills requiring direct settlement by GSA, 
including those subject to doubt about the suitability of payment 
(mainly bankruptcy or fraud).


Sec. 102-118.455  What is the time limit for a TSP to file a 
transportation claim against my agency?

    The time limits on a TSP transportation claim against the 
Government differ by mode as shown in the following table:

                   Time Limits on Actions Taken by TSP
------------------------------------------------------------------------
             Mode                Freight charges          Statute
------------------------------------------------------------------------
(a) Air Domestic..............  6 years..........  28 U.S.C. 2401, 2501.

[[Page 24580]]

 
------------------------------------------------------------------------
(b) Air International.........  6 years..........  28 U.S.C. 2401, 2501.
------------------------------------------------------------------------
(c) Freight Forwarders          3 years..........  49 U.S.C. 14705(f).
 (subject to the IC Act).
------------------------------------------------------------------------
(d) Motor.....................  3 years..........  49 U.S.C. 14705(f).
------------------------------------------------------------------------
(e) Rail......................  3 years..........  49 U.S.C. 14705(f).
------------------------------------------------------------------------
(f) Water (subject to the IC    3 years..........  49 U.S.C. 14705(f).
 Act).
------------------------------------------------------------------------
(g) Water (not subject to the   2 years..........  46 U.S.C. 745.
 IC Act).
------------------------------------------------------------------------
(h) TSPs exempt from            6 years..........  28 U.S.C. 2401, 2501.
 regulation.
------------------------------------------------------------------------

Sec. 102-118.460  What is the time limit for my agency to file a court 
claim with a TSP for freight charges, reparations, and loss or damage 
to the property?

    Statutory time limits vary depending on the mode and the service 
involved and may involve freight charges. The following tables list the 
time limits:

                     (A) Time Limits on Actions Taken by the Federal Government Against TSPs
----------------------------------------------------------------------------------------------------------------
                 Mode                      Freight charges            Reparations            Loss and damage
----------------------------------------------------------------------------------------------------------------
(1) Rail.............................  3 years................  3 years................  6 years.
                                       49 U.S.C. 11705........  49 U.S.C. 11705........  28 U.S.C. 2415.
----------------------------------------------------------------------------------------------------------------
(2) Motor............................  3 years................  3 years................  6 years.
                                       49 U.S.C...............  49 U.S.C...............  28 U.S.C. 2415.
                                       14705(f)...............  14705(f)...............
----------------------------------------------------------------------------------------------------------------
(3) Freight Forwarders subject to the  3 years................  3 years................  6 years.
 IC Act.                               49 U.S.C...............  49 U.S.C...............  28 U.S.C. 2415.
                                       14705(f)...............  14705(f)...............
----------------------------------------------------------------------------------------------------------------
(4) Water (subject to the IC Act)....  3 years................  3 years................  6 years.
                                       49 U.S.C...............  49 U.S.C...............  28 U.S.C. 2415.
                                       14705(f)...............  14705(f)...............
----------------------------------------------------------------------------------------------------------------
(5) Water (not subject to the IC Act)  6 years 28 U.S.C. 2415.  2 years 46 U.S.C. 821..  1 year.
                                                                                         46 U.S.C.
                                                                                         1303(6) (if subject to
                                                                                          Carriage of Goods by
                                                                                          Sear Act, 46 U.S.C.
                                                                                          1300-1315).
----------------------------------------------------------------------------------------------------------------
(6) Domestic Air.....................  6 years................  .......................  6 years.
                                       28 U.S.C. 2415.........                           28 U.S.C. 2415.
----------------------------------------------------------------------------------------------------------------
(7) International Air................  6 years................  .......................  2 years.
                                       28 U.S.C. 2415.........                           49 U.S.C. 40105.
----------------------------------------------------------------------------------------------------------------


         (B) Time Limits on Actions Taken by the Federal Government Against TSPs Exempt From Regulation
----------------------------------------------------------------------------------------------------------------
                 Mode                          Freight                Reparations            Loss and damage
----------------------------------------------------------------------------------------------------------------
(1) All..............................  6 years................  .......................  6 years.
                                       28 U.S.C. 2415.........                           28 U.S.C. 2415.
----------------------------------------------------------------------------------------------------------------


[[Page 24581]]

Sec. 102-118.465  Must my agency pay interest on a disputed amount 
claimed by a TSP?

    No, interest penalties under the Prompt Payment Act, (31 U.S.C. 
3901, et seq.), are not required when payment is delayed because of a 
dispute between an agency and a TSP.


Sec. 102-118.470  Are there statutory time limits for a TSP on filing 
an administrative claim with the GSA Audit Division?

    Yes, an administrative claim must be received by the GSA Audit 
Division or its designee (the agency where the claim arose) within 3 
years beginning the day after the latest of the following dates (except 
in time of war):
    (a) Accrual of the cause of action;
    (b) Payment of charges for the transportation involved;
    (c) Subsequent refund for overpayment of those charges; or
    (d) Deductions made to a TSP claim by the Government under 31 
U.S.C. 3726.


Sec. 102-118.475  Does interest apply after certification of payment of 
claims?

    Yes, interest under the Prompt Payment Act (31 U.S.C. 3901, et 
seq.) begins 30 days after certification for payment by GSA.


Sec. 102-118.480  How does my agency settle disputes with a TSP?

    As a part of the prepayment audit program, your agency must have a 
plan to resolve disputes with a TSP. This program must allow a TSP to 
appeal payment decisions made by your agency.


Sec. 102-118.485  Is there a time limit for my agency to issue a 
decision on disputed claims?

    Yes, your agency must issue a ruling on a disputed claim within 30 
days of receipt of the claim.


Sec. 102-118.490  What if my agency fails to settle a dispute within 30 
days?

    (a) If your agency fails to settle a dispute within 30 days, the 
TSP may appeal to:

General Services Administration
Federal Supply Service
Audit Division (FBA)
Code: CC 1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav

    (b) If the TSP disagrees with the administrative settlement by the 
Audit Division, the TSP may appeal to the General Services Board of 
Contract Appeals.


Sec. 102-118.495  May my agency appeal a decision by the General 
Services Board of Contract Appeals (GSBCA)?

    No, your agency may not appeal a decision made by the GSBCA.


Sec. 102-118.500  How does my agency handle a volunary refund submitted 
by a TSP?

    (a) An agency must report all voluntary refunds to the GSA Audit 
Division (so that no Notice of Overcharge or financial offset occurs), 
unless other arrangements are made (e.g., charge card refunds, etc.). 
These reports must be addressed to:

General Services Administration
Federal Supply Service
Audit Division (FBA)
Code: CC
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav

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


Sec. 102-118.505  Must my agency send a voluntary refund to the 
Treasurer of the United States?

    No, your agency may keep and use voluntary refunds submitted by a 
TSP, if the refund was made prior to a Notice of Overcharge issued by 
the GSA Audit Division.


Sec. 102-118.510  Can my agency revise or alter a GSA Form 7931, 
Certificate of Settlement?

    Generally, no, an agency must not revise or alter amounts on a GSA 
Form 7931. The only change an agency can make to a GSA Form 7931 is to 
change the agency financial data to a correct cite. Any GSA Form 7931 
that cannot be paid (e.g., an amount previously paid), must be 
immediately returned to the GSA Audit Division with an explanation.


Sec. 102-118.515  Does my agency have any recourse not to pay a 
Certificate of Settlement?

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


Sec. 102-118.520  Who is responsible for determining the standards for 
collection, compromise, termination, or suspension of collection action 
on any outstanding debts to my agency?

    Under the Federal Claims Collection Act of 1966, as amended (31 
U.S.C. 3711, et seq.), the Comptroller General and the Attorney General 
have joint responsibility for issuing standards for your agency.


Sec. 102-118.525  What are my agency's responsibilities for verifying 
the correct amount of transportation charges?

    Your agency's employees are responsible for diligently verifying 
the correct amount of transportation charges prior to payment (31 
U.S.C. 3527).


Sec. 102-118.530  Will GSA instruct my agency's disbursing offices to 
offset unpaid TSP billings?

    Yes, GSA will instruct one or more of your agency's disbursing 
offices to deduct the amount due from an unpaid TSP's bill. A 3-year 
limitation applies on the deduction of overcharges from amounts due a 
TSP (31 U.S.C. 3726) and a 10-year limitation applies on the deduction 
of ordinary debts (31 U.S.C. 3716).


Sec. 102-118.535  Are there principles governing my agency's TSP debt 
collection procedures?

    Yes, the principles governing your agency collection procedures for 
reporting debts to the General Accounting Office (GAO) or the 
Department of Justice are found in 4 CFR parts 101 through 105 and in 
the GAO Policy and Procedures Manual for Guidance of Federal Agencies. 
The manual may be obtained by writing:

Superintendent of Documents
Government Printing Office
Washington, DC 20402
http://www.access.gpo.gov/

Sec. 102-118.540  Who has the authority to audit, settle accounts, and/
or start collection action for all transportation services provided for 
my agency?

    The Director of the GSA Audit Division has the authority and 
responsibility to audit and settle all transportation related accounts 
(31 U.S.C. 3726). The reason for this is that he or she has access to 
Governmentwide data on a TSP's payments and billings with the 
Government. Your agency has the responsibility to correctly pay 
individual transportation claims.

Transportation Service Provider (TSP) Filing Requirements


Sec. 102-118.545  What information must a TSP claim include?

    Transportation service provider (TSP) claims received by GSA or its 
designee must include one of the following:
    (a) The signature of an individual or party legally entitled to 
receive payment for services on behalf of the TSP;
    (b) The signature of the TSP's agent or attorney accompanied by a 
duly executed power of attorney or other documentary evidence of the 
agent's or attorney's right to act for the TSP; or
    (c) An electronic signature, when mutually agreed upon.

[[Page 24582]]

Sec. 102-118.550  How does a TSP file an administrative claim using EDI 
or other electronic means?

    The medium and precise format of data for an administrative claim 
filed electronically must be approved in advance by the GSA Audit 
Division. GSA will use an authenticating EDI signature to certify 
receipt of the claim. The data on the claim must contain proof of the 
delivery of goods, and an itemized bill reflecting the services 
provided, with the lowest charges available for service. The TSP must 
be able to locate, identify, and reproduce the records in readable form 
without loss of clarity.


Sec. 102-118.555  Can a TSP file a supplemental administrative claim?

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


Sec. 102-118.560  What is the required format that a TSP must use to 
file an administrative claim?

    A TSP must bill for charges claimed on a SF 1113, Public Voucher 
for Transportation Charges, in the manner prescribed in the ``U.S. 
Government Freight Transportation--Handbook'' or the ``U.S. Government 
Passenger Transportation--Handbook.'' To get a copy of these handbooks, 
you may write to:

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


Sec. 102-118.565  What documentation is required when filing an 
administrative claim?

    An administrative claim must be accompanied by the transportation 
document, payment record, reports and information available to GSA and/
or to the agency involved and the written and documentary records 
submitted by the TSP. Oral presentations supplementing the written 
record are not acceptable.

Transportation Service Provider (TSP) and Agency Appeal Procedures 
for Prepayment Audits


Sec. 102-118.570  If my agency denies the TSP's challenge to the 
statement of difference, may the TSP appeal?

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


Sec. 102-118.575  If a TSP disagrees with the decision of my agency, 
can the TSP appeal?

    Yes, the TSP may file a claim with the GSA Audit Division, which 
will review the TSP's appeal of your agency's final full or partial 
denial of a claim. The TSP may also appeal to the GSA Audit Division if 
your agency has not responded to a challenge within 30 days.


Sec. 102-118.580  May a TSP appeal a prepayment audit decision of the 
GSA Audit Division?

    (a) Yes, the TSP may appeal to the GSA's Board of Contract Appeals 
(GSBCA), under guidelines established in this subpart, or file a claim 
with the United States Court of Federal Claims. The TSP's request for 
review must be received by the GSBCA in writing within 6 months (not 
including time of war) from the date the settlement action was taken or 
within the periods of limitation specified in 31 U.S.C. 3726, as 
amended, whichever is later. The TSP must address requests to:

GSA Board of Contract Appeals
1800 F Street, NW.
Room 7022
Washington, DC 20405

    (b) The GSBCA will accept legible submissions via facsimile (FAX) 
on (202) 501-0664.


Sec. 102-118.585  May a TSP appeal a prepayment audit decision of the 
GSBCA?

    No, a ruling by the GSBCA is the final administrative remedy 
available and the TSP has no statutory right of appeal. This subpart 
governs administrative actions only and does not affect any of the 
TSP's rights. A TSP may still pursue a legal remedy through the courts.


Sec. 102-118.590  May my agency appeal a prepayment audit decision of 
the GSA Audit Division?

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


Sec. 102-118.595  May my agency appeal a prepayment audit decision by 
the GSBCA?

    No, your agency may not appeal a prepayment audit decision. Your 
agency must follow the ruling of the GSBCA.

Transportation Service Provider (TSP) and Agency Appeal Procedures 
for Postpayment Audits


Sec. 102-118.600  When a TSP disagrees with a Notice of Overcharge 
resulting from a postpayment audit, what are the appeal procedures?

    A TSP who disagrees with the Notice of Overcharge may submit a 
written request for reconsideration to the GSA Audit Division at:

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


Sec. 102-118.605  What if a TSP disagrees with the Notice of 
Indebtedness?

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


Sec. 102-118.610  Is a TSP notified when GSA allows a claim?

    Yes, the GSA Audit Division will acknowledge each payable claim 
using GSA Form 7931, Certificate of Settlement. The certificate will 
give a complete explanation of any amount that is disallowed. GSA will 
forward the certificate to the agency whose funds are to be charged for 
processing and payment.


Sec. 102-118.615  Will GSA notify a TSP if they internally offset a 
payment?

    Yes, the GSA Audit Division will inform the TSP if they internally 
offset a payment.


Sec. 102-118.620  How will a TSP know if the GSA Audit Division 
disallows a claim?

    The GSA Audit Division will furnish a GSA Form 7932, Settlement 
Certificate, to the TSP explaining the disallowance.


Sec. 102-118.625  Can a TSP request a reconsideration of a settlement 
action by the GSA Audit Division?

    Yes, a TSP desiring a reconsideration of a settlement action may 
request a review by the Administrator of General Services.


Sec. 102-118.630  How must a TSP refund amounts due to GSA?

    (a) TSPs must promptly refund amounts due to GSA, preferably by 
EFT. If an EFT is not used, checks must be made payable to ``General 
Services Administration'', including the document reference number, TSP 
name, bill number(s), taxpayer identification number and standard 
carrier alpha code, then mailed to:

General Services Administration
P.O. Box 93746
Chicago, IL 60673

    (b) If an EFT address is needed, please contact the GSA Audit 
Division at:

General Services Administration

[[Page 24583]]

Federal Supply Service
Audit Division (FBA)
1800 F Street, NW.
Washington, DC 20405
http://pub.fss.gsa.gov/transtrav

    Note to Sec. 102-118.630: Amounts collected by GSA are returned 
to the Treasurer of the United States (31 U.S.C. 3726).

Sec. 102-118.635  Can the Government charge interest on an amount due 
from a TSP?

    Yes, the Government can charge interest on an amount due from a 
TSP. This procedure is provided for under the Debt Collection Act (31 
U.S.C. 3717), the Federal Claims Collection Standards (4 CFR parts 101 
through 105), and 41 CFR part 105-55.


Sec. 102-118.640  If a TSP fails to pay or to appeal an overcharge, 
what actions will GSA pursue to collect the debt?

    GSA will pursue debt collection through one of the following 
methods:
    (a) When an indebted TSP files a claim, GSA will apply all or any 
portion of the amount it determines to be due the TSP, to the 
outstanding balance owed by the TSP, under the Federal Claims 
Collection Standards (4 CFR parts 101 through 105) and 41 CFR part 105-
55;
    (b) When the action outlined in paragraph (a) of this section 
cannot be taken by GSA, GSA will instruct one or more Government 
disbursing offices to deduct the amount due to the agency from an 
unpaid TSP's bill. A 3-year limitation applies on the deduction of 
overcharges from amounts due a TSP (31 U.S.C. 3726) and a 10-year 
limitation applies on the deduction of ordinary debt (31 U.S.C. 3716);
    (c) When collection cannot be accomplished through either of the 
procedures in paragraph (a) or (b) of this section, GSA normally sends 
two additional demand letters to the indebted TSP requesting payment of 
the amount due within a specified time. Lacking a satisfactory 
response, GSA may place a complete stop order against amounts otherwise 
payable to the indebted TSP by adding the name of that TSP to the 
Department of the Army ``List of Contractors Indebted to the United 
States''; and/or
    (d) When collection actions, as stated in paragraphs (a) through 
(c) of this section are unsuccessful, GSA may report the debt to the 
Department of Justice for collection, litigation, and related 
proceedings, as prescribed in 4 CFR parts 101 through 105.


Sec. 102-118.645  Can a TSP file an administrative claim on collection 
actions?

    Yes, a TSP may file an administrative claim involving collection 
actions resulting from the transportation audit performed by the GSA 
directly with the GSA Audit Division. Any claims submitted to GSA will 
be considered ``disputed claims'' under section 4(b) of the Prompt 
Payment Act (31 U.S.C. 3901, et seq.). The TSP must file all other 
transportation claims with the agency out of whose activities they 
arose. If this is not feasible (e.g., where the responsible agency 
cannot be determined or is no longer in existence) claims may be sent 
to the GSA Audit Division for forwarding to the responsible agency or 
for direct settlement by the GSA Audit Division. Claims for GSA 
processing must be addressed to:

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


Sec. 102-118.650  Can a TSP request a review of a settlement action by 
the Administrator of General Services?

    Yes, a TSP desiring a review of a settlement action taken by the 
Administrator of General Services may request a review by the GSA Board 
of Contract Appeals (GSBCA) or file a claim with the United States 
Court of Federal Claims (28 U.S.C. 1491).


Sec. 102-118.655  Are there time limits on a TSP request for an 
administrative review by the GSBCA?

    (a) Yes, the GSBCA must receive a request for review from the TSP 
within six months (not including time of war) from the date the 
settlement action was taken or within the periods of limitation 
specified in 31 U.S.C. 3726, as amended, whichever is later. The 
request must be addressed to:

GSA Board of Contract Appeals
1800 F Street, NW.
Room 7022
Washington, DC 20405

    (b) The GSBCA will accept legible submissions via facsimile (FAX) 
on (202) 501-0664.


Sec. 102-118.660  May a TSP appeal a postpayment audit decision of the 
GSBCA?

    No, a ruling by the GSBCA is the final administrative remedy and 
the TSP has no statutory right of appeal. This subpart governs 
administrative actions only and does not affect any rights of the TSPs. 
A TSP may still pursue a legal remedy through the courts.


Sec. 102-118.665  May my agency appeal a postpayment audit decision by 
the GSBCA?

    No, your agency may not appeal a postpayment audit decision and 
must follow the ruling of the GSBCA.

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


Sec. 102-118.670  If a TSP cannot immediately pay a debt, can they make 
other arrangements for payment?

    Yes, if a TSP is unable to pay the debt promptly, the Director of 
the GSA Audit Division has the discretion to enter into alternative 
arrangements for payment.


Sec. 102-118.675  What recourse does my agency have if a TSP does not 
pay a transportation debt?

    If a TSP does not pay a transportation debt, GSA may refer 
delinquent debts to consumer reporting agencies and Federal agencies 
including the Department of the Treasury and Department of Justice.

    Dated: April 20, 2000.
David J. Barram,
Administrator of General Services.
[FR Doc. 00-10271 Filed 4-21-00; 12:47 pm]
BILLING CODE 3820-24-U