[Federal Register Volume 67, Number 100 (Thursday, May 23, 2002)]
[Notices]
[Pages 36192-36193]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-12901]


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GENERAL SERVICES ADMINISTRATION

Federal Supply Service


GSA Standard Tender of Service (STOS), GSA National Rules Tender 
No. 100-D, Item 1300 Fuel Related General Rate Adjustment (FRGRA)

AGENCY: Federal Supply Service, GSA.

ACTION: Notice of amendment to STOS with request for comments.

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SUMMARY: The General Services Administration (GSA), in compliance with 
41 U.S.C. 418b, is publishing for comment in the attachment to this 
notice an amendment to Item 1300, Fuel Related General Rate Adjustment 
(FRGRA), of the GSA National Rules Tender No. 100-D, a part of the GSA 
STOS. Item 1300 offers transportation service providers (TSP's) that 
participate in GSA's STOS, a means to recover operating cost increases 
as a result of sudden and unforeseen increases in the price of diesel 
fuel. Correspondingly, the item provides for a downward adjustment when 
the price of diesel fuel suddenly or unexpectedly decreases. Without 
this provision, TSP's could compensate for operating expenses changes 
due to sudden and unforeseen fuel cost increases or decreases only 
twice yearly when GSA implements new transportation rates solicited 
under its semiannual Request for Rates Offers.

DATES: Please submit your comments by June 24, 2002.

ADDRESSES: Mail comments to the General Services Administration, Travel 
and Transportation Management Division (FBL), Crystal Mall Bldg. 4, Rm. 
812, 1941 Jefferson Davis Highway, Arlington, VA 22202, Attn: Raymond 
Price (Re: Item 1300, Fuel Related General Rate Adjustment, Federal 
Register Notice).

FOR FURTHER INFORMATION CONTACT: Mr. Raymond Price, Transportation 
Programs Branch, by phone at 703-305-7536 or by e-mail at 
[email protected].

SUPPLEMENTARY INFORMATION: Item 1300 inadvertently was omitted when the 
currently effective version of the STOS was implemented upon 
publication in the Federal Register (66 FR 63061, December 4, 2001). 
This Federal Register publication of Item 1300 serves to correct 
omission of Item 1300 from the December 4, 2001, version of the STOS, 
and to incorporate this item in the STOS in amended version that 
provides TSP's a means of compensating for operating expenses changes 
due to sudden and unforeseen fuel cost increases or decreases.

    Dated: May 16, 2002.
Tauna T. Delmonico,
Director, Travel and Transportation, Management Division.

Section 3--Fuel Related General Rate Adjustment

Item 1300  Fuel Related General Rate Adjustment (FRGRA)

    The provisions of subsections A through E of this section govern a 
Fuel Related General Rate Adjustment (FRGRA) that a Transportation 
Service Provider (TSP) participating in this STOS (including revisions 
to or reissues thereof) makes to its line-haul charge.
    A. General. The FRGRA provides a TSP flexibility to obtain 
reasonable relief from sudden and unforeseen increases in diesel fuel 
prices. Additionally, the FRGRA requires a TSP to correspondingly 
discount its line-haul charge when there are sudden and unforeseen 
decreases in diesel fuel prices. Since fuel related rate adjustments 
for gradual changes in a TSP's fuel related costs over a longer period 
of time are beyond the purpose of this provision, a TSP should consider 
gradual fuel price changes when it submits or supplements its STOS 
rates during a rate filing open window if such changes significantly 
affect the TSP's operating costs.
    B. Application. The FRGRA is applicable to all GSA negotiated/
accepted rate offers as well as rate offers negotiated/accepted by a 
Federal agency that participates in the STOS. The FRGRA may be waived 
or altered only by the Freight Program Management Office (FPMO) or 
appropriate Federal agency that negotiated/accepted the rate offer.
    C. Setting Baseline. Diesel fuel price ranges and corresponding 
applicable percent rate adjustment levels were collaboratively 
established with the motor TSP industry as of November 2000. The levels 
specified in this section reflect current standard industry practice 
and will be reviewed and revised on an as-needed basis.

[[Page 36193]]

    D. Computation.
    1. Determination of Adjustment. Each Monday, or first working day 
thereafter if the Monday falls on a Federal Holiday (hereinafter 
referred to as ``Monday''), the Department of Energy, Energy 
Information Administration (EIA), posts the National U.S. Average 
diesel fuel price. If a FRGRA is justified under subsection D of this 
section based on each Monday's posting, the FRGRA applies to shipments 
picked up the ensuing Wednesday through the following Tuesday (Note: 
shipment pickup date is controlling for FRGRA purposes). A TSP is 
responsible for monitoring diesel fuel prices each Monday using one of 
the sources identified below to determine whether a FRGRA will apply 
for the one-week period beginning the upcoming Wednesday through 
Tuesday of the following week.
     EIA Web site: http://www.eia.doe.gov/
     EIA Weekly Petroleum Status Report
     EIA Hotline: (202) 586-6966
    2. Amount of Adjustment. If on any given Monday National U.S. 
Average disease fuel prices, as published in one of the sources 
identified in subsection D1, exceed or fall below the neutral range 
specified in the table under subsection D2c, a TSP will compute its 
FRGRA under subsection D2a or b, as appropriate.
    a. If the National U.S. Average diesel fuel prices exceed the 
neutral range, the TSP may increase its line-haul charge by the 
appropriate percentage specified in the table under subsection D2c; or
    b. If the National U.S. Average diesel fuel prices fall below the 
neutral range, the TSP must decrease its line-haul charge by the 
percentage specified in the table under subsection D2c.
    c. Increase/Decrease Schedule: The following table specifies the 
percentage FRGRA to be applied based on diesel fuel cost per gallon:

------------------------------------------------------------------------
                                                     Percent    Percent
                  Cost per gallon                    decrease   increase
------------------------------------------------------------------------
                                                          \1\  .........
Neutral range:
    $1.00-$1.10...................................  .........          0
    $1.11-$1.15...................................  .........        0.5
    $1.16-$1.20...................................  .........        1.0
    $1.21-$1.25...................................  .........        1.5
    $1.26-$1.30...................................  .........        2.0
    $1.31-$1.35...................................  .........        2.5
    $1.36-$1.40...................................  .........        3.0
    $1.41-$1.45...................................  .........        3.5
                                                          \2\  .........
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\1\ For each 5 cents per gallon below $1.00, subtract 0.5%.
\2\ For each 5 cents per gallon above $1.45, add 0.5%.

    E. Billing Procedures. A TSP must clearly show the amount of any 
diesel fuel rate adjustment, either an increase or a decrease 
(discount), as a separate line item on all affected freight bills, 
Transportation Service Orders (TSO's), or bills of lading.
[FR Doc. 02-12901 Filed 5-22-02; 8:45 am]
BILLING CODE 6820-24-M