[Federal Register Volume 69, Number 17 (Tuesday, January 27, 2004)]
[Proposed Rules]
[Pages 4004-4009]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-1507]



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Part II





Department of Defense

General Services Administration

National Aeronautics and Space Administration





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 48 CFR Parts 42, 47, 52, and 53



Federal Acquisition Regulation; Transportation: Standard Industry 
Practices; Proposed Rule

  Federal Register / Vol. 69, No. 17 / Tuesday, January 27, 2004 / 
Proposed Rules  

[[Page 4004]]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 42, 47, 52, and 53

[FAR Case 2002-005]
RIN 9000-AJ84


Federal Acquisition Regulation; Transportation: Standard Industry 
Practices

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Proposed rule.

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SUMMARY: The Civilian Agency Acquisition Council and the Defense 
Acquisition Regulations Council (Councils) are proposing to amend the 
Federal Acquisition Regulation (FAR) to implement changes to the 
Interstate Transportation Act, which abolished tariff-filing 
requirements for motor carriers of freight and the Interstate Commerce 
Commission. Also, the rule implements changes resulting from the 
Federal Management Regulation amendments that require use of commercial 
bills of lading for domestic shipments.

DATES: Interested parties should submit comments in writing on or 
before March 29, 2004, to be considered in the formulation of a final 
rule.

ADDRESSES: Submit written comments to--General Services Administration, 
FAR Secretariat (MVA), 1800 F Street, NW., Room 4035, ATTN: Laurie 
Duarte, Washington, DC 20405.
    Submit electronic comments via the Internet [email protected]

    Please submit comments only and cite FAR case 2002-005 in all 
correspondence related to this case.

FOR FURTHER INFORMATION CONTACT: The FAR Secretariat at (202) 501-4755 
for information pertaining to status or publication schedules. For 
clarification of content, contact Ms. Jeritta Parnell, Procurement 
Analyst, at (202) 501-4082. Please cite FAR case 2002-005.

SUPPLEMENTARY INFORMATION:

A. Background

    This proposed rule amends the FAR to implement changes to the 
Interstate Transportation Act. The Act has been substantially amended 
in recent years, most notably by the Trucking Industry Reform Act of 
1994, which abolished tariff-filing requirements for motor carriers of 
freight, and by the Interstate Commerce Commission (ICC) Termination 
Act of 1995 (Pub. L. 014-88), which abolished the ICC. Also, the rule 
implements changes resulting from the Federal Management Regulation 
amendments that require use of commercial bills of lading for domestic 
shipments. This rule proposes to--
     Move FAR Subpart 42.14, Traffic and 
Transportation Management, to FAR Part 47, Transportation;
     Delete the clauses at FAR 52.242-10 and FAR 
52.242-11, and revise and relocate FAR clause 52.242-12 to FAR 52.247-
68;
     Add definitions of ``Bill of lading,'' 
``Commercial bill of lading,'' and ``Government bill of lading'' and 
clarify the usage of each term throughout FAR Part 47;
     Add definitions of ``Government rate tenders,'' 
``Household goods,'' ``Noncontiguous domestic trade,'' and ``Release/
declared value''
     Require the use of commercial bills of lading 
for domestic shipments;
     Revise the references to ``49 U.S.C. 10721'' to 
read ``49 U.S.C. 10721 and 13712'' throughout FAR Part 47 to make it 
clear that government rate tenders can be used in certain situations 
for the transportation of household goods by rail carrier (authorized 
by 49 U.S.C. 10721), as well as by motor carriers, water carrier, and 
freight forwarder (authorized by 49 U.S.C. 13712 and the definition of 
``carrier'' at 49 U.S.C. 12102);
     Update the fact that the Federal Motor Carrier 
Safety Administration prescribes commercial zones at 49 CFR part 372, 
subpart B; and
     Make other conforming and editorial changes to 
FAR Part 47 and related clauses.
    This is not a significant regulatory action and, therefore, was not 
subject to review under Section 6(b) of Executive Order 12866, 
Regulatory Planning and Review, dated September 30, 1993. This rule is 
not a major rule under 5 U.S.C. 804.

B. Regulatory Flexibility Act

    The Councils do not expect this proposed rule to 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 clarifies and updates the coverage to reflect the 
latest changes of the referenced Federal Management Regulation and 
statutes. An Initial Regulatory Flexibility Analysis has, therefore, 
not been performed. We invite comments from small businesses and other 
interested parties. The Councils will consider comments from small 
entities concerning the affected FAR Parts 42, 47, 52, and 53 in 
accordance with 5 U.S.C. 610. Interested parties must submit such 
comments separately and should cite 5 U.S.C. 601, et seq. (FAR case 
2002-005), in correspondence.

C. Paperwork Reduction Act

    The Paperwork Reduction Act does not apply because the proposed 
changes to the FAR do not impose information collection requirements 
that require the approval of the Office of Management and Budget under 
44 U.S.C. 3501, et seq.

List of Subjects in 48 CFR Parts 42, 47, 52, and 53

    Government procurement.

    Dated: January 20, 2004.
Laura Auletta,
Director, Acquisition Policy Division.
    Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 42, 47, 
52, and 53 as set forth below:
    1. The authority citation for 48 CFR parts 42, 47, 52, and 53 is 
revised to read as follows:

    Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 42--CONTRACT ADMINISTRATION AND AUDIT SERVICES

Subpart 42.14--[Reserved]

    2. Remove and reserve Subpart 42.14.

PART 47--TRANSPORTATION

    3. Amend section 47.000 by revising paragraph (a)(2) to read as 
follows:


47.000  Scope of subpart.

    (a) * * *
    (2) Acquiring transportation or transportation-related services by 
contract methods other than bills of lading, transportation requests, 
transportation warrants, and similar transportation forms. 
Transportation and transportation services can be obtained by 
acquisition subject to the FAR or by acquisition under 49 U.S.C. 10721 
or 49 U.S.C. 13712. Even though the FAR does not regulate the 
acquisition of transportation or transportation-related services when 
the bill of lading is the contract, this contract method is widely used 
and, therefore, relevant guidance on the use of the bill of lading is 
provided in this part (see 47.104).
* * * * *
    4. Amend section 47.001 by adding, in alphabetical order, the 
definitions

[[Page 4005]]

``Bill of lading'', ``Government rate tender'', ``Household goods'', 
``Noncontiguous domestic trade'', and ``Release/declared value'' to 
read as follows:


47.001  Definitions.

* * * * *
    Bill of lading, means a transportation document, used as a receipt 
of goods, as documentary evidence of title, for clearing customs, and 
generally used as a contract of carriage.
    (1) Commercial bill of lading (CBL), unlike the GBL, the CBL is not 
an accountable transportation document.
    (2) Government bill of lading (GBL) is an accountable 
transportation document, authorized and prepared by a Government 
official.
* * * * *
    Government rate tender under 49 U.S.C. 10721 and 13712 means an 
offer by a common carrier to the United States at a rate below the 
regulated rate offered to the general public.
    Household goods in accordance with 49 U.S.C. 13102 means personal 
effects and property used or to be used in a dwelling, when a part of 
the equipment or supply of such dwelling, and similar property if the 
transportation of such effects or property is arranged and paid for by-
-
    (1) The householder, except such term does not include property 
moving from a factory or store, other than property that the 
householder has purchased with the intent to use in his or her dwelling 
and is transported at the request of, and the transportation charges 
are paid to the carrier by, the householder; or
    (2) Another party.
    Noncontiguous domestic trade means transportation (except with 
regard to bulk cargo, forest products, recycled metal scrap, waste 
paper, and paper waste) subject to regulation by the Surface 
Transportation Board involving traffic originating in or destined to 
Alaska, Hawaii, or a territory or possession of the United States (see 
49 U.S.C. 13102(15)).
    Release/declared value means 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.
    5. Revise section 47.002 to read as follows:


47.002  Applicability.

    All Government personnel concerned with the following activities 
shall follow the regulations in part 47 as applicable:
    (a) Acquisition of supplies.
    (b) Acquisition of transportation and transportation-related 
services.
    (c) Transportation assistance and traffic management.
    (d) Administration of transportation contracts, transportation-
related services, and other contracts that involve transportation.
    (e) The making and administration of contracts under which payments 
are made from Government funds for--
    (1) The transportation of supplies;
    (2) Transportation-related services; or
    (3) Transportation of contractor personnel and their personal 
belongings.
    6. Amend section 47.101 by--
    a. Redesignating paragraphs (a), (b), (c), (d), and (e) as (c), 
(d), (e), (f), and (g), respectively; and adding new paragraphs (a), 
(b), and (h); and
    b. Amending newly designated paragraph (d)(2) introductory text by 
removing ``subparagraph (b)(1) above'' and adding ``paragraph (d)(1) of 
this section'' in its place. The added text reads as follows:


47.101  Policies.

    (a) For domestic shipments, the contracting officer shall authorize 
shipments on commercial bills of lading (CBL's). Government bills of 
lading (GBL's) may be used for international or noncontiguous domestic 
trade shipments or when otherwise authorized.
    (b) The contract administration office (CAO) shall ensure that 
instructions to contractors result in the most efficient and economical 
use of transportation services and equipment. Transportation personnel 
will assist and provide transportation management expertise to the CAO. 
Specific responsibilities and details on transportation management are 
located in the Federal Management Regulation at 41 CFR parts 102-117 
and 102-118. (For the Department of Defense, DoD 4500.9-R, Defense 
Transportation Regulation.)
* * * * *
    (h) When a contract specifies delivery of supplies f.o.b. origin 
with transportation costs to be paid by the Government, the contractor 
shall make shipments on bills of lading, or on other shipping documents 
prescribed by Military Traffic Management Command in the case of seavan 
containers, either at the direction of or furnished by the CAO or the 
appropriate agency transportation office.
    7. Revise section 47.103 and add sections 47.103-1 and 47.103-2 to 
read as follows:


47.103  Transportation Payment and Audit Regulation.


47.103-1  General.

    (a)(1) Regulations and procedures governing the bill of lading, 
documentation, payment, and audit of transportation services acquired 
by the United States Government are prescribed in 41 CFR part 102-118, 
Transportation Payment and Audit.
    (2) For DoD shipments, corresponding guidance is in DoD 4500.9-R, 
Defense Transportation Regulation, Part II.
    (b) Under 31 U.S.C. 3726, all agencies are required to establish a 
prepayment audit program. For details on the establishment of a 
prepayment audit, see 41 CFR part 102-118.


47.103-2  Contract clause.

    Complete and insert the clause at 52.247-67, Submission of 
Transportation Documents for Audit, in solicitations and contracts when 
a cost-reimbursement contract is contemplated and the contract or a 
first-tier cost-reimbursement subcontract thereunder will authorize 
reimbursement of transportation as a direct charge to the contract or 
subcontract.
    8. Revise sections 47.104 through 47.104-5 to read as follows:


47.104  Government rate tenders under sections 10721 and 13712 of the 
Interstate Commerce Act (49 U.S.C. 10721 and 13712).

    (a) This subpart explains statutory authority for common carriers 
subject to the jurisdiction of the Surface Transportation Board (motor 
carrier, water carrier, freight forwarder, rail carrier) to offer to 
transport persons or property for the account of the United States 
without charge or at ``a rate reduced from the applicable commercial 
rate''. Reduced rates are offered in a Government rate tender. 
Additional information for civilian agencies is available in the 
Federal Management Regulation (41 CFR chapter 102) and for DoD in the 
Defense Transportation Regulation (DoD 4500.9-R).
    (b) Reduced rates offered in a Government rate tender are 
authorized for transportation provided by a rail carrier, for the 
movement of household goods, and for movement by or with a water 
carrier in noncontiguous domestic trade.
    (1) For Government rate tenders submitted by a rail carrier, ``a 
rate reduced from the applicable commercial rate'' is a rate reduced 
from a rate regulated by the Surface Transportation Board.

[[Page 4006]]

    (2) For Government rate tenders submitted for the movement of 
household goods, ``a rate reduced from the applicable commercial rate'' 
is a rate reduced from a rate contained in a published tariff subject 
to regulation by the Surface Transportation Board.
    (3) For Government rate tenders submitted for movement by or with a 
water carrier in noncontiguous domestic trade, ``a rate reduced from 
the applicable commercial rate'' is a rate reduced from a rate 
contained in a published tariff required to be filed with the Surface 
Transportation Board.


47.104-1  Government rate tender procedures.

    (a) 49 U.S.C. 10721 and 13712 rates are published in Government 
rate tenders and apply to shipments moving for the account of the 
Government on--
    (1) Commercial bills of lading endorsed to show that total 
transportation charges are assignable to, and will be reimbursed by, 
the Government (see the clause at 52.247-1, Commercial Bill of Lading 
Notations); and
    (2) Government bills of lading.
    (b) Agencies may negotiate with carriers for additional or revised 
49 U.S.C. 10721 and 13712 rates in appropriate situations. Only 
personnel authorized in agency procedures may carry out these 
negotiations. The following are examples of situations in which 
negotiations for additional or revised 49 U.S.C. 10721 and 13712 rates 
may be appropriate:
    (1) Volume movements are expected.
    (2) Shipments will be made on a recurring basis between designated 
places, and substantial savings in transportation costs appear possible 
even though a volume movement is not involved.
    (3) Transit arrangements are feasible and advantageous to the 
Government.


47.104-2  Fixed-price contracts.

    (a) F.o.b. destination. 49 U.S.C. 10721 and 13712 rates do not 
apply to shipments under fixed-price f.o.b. destination contracts 
(delivered price).
    (b) F.o.b. origin. If it is advantageous to the Government, the 
contracting officer may occasionally require the contractor to prepay 
the freight charges to a specific destination. In such cases, the 
contractor shall use a commercial bill of lading and be reimbursed for 
the direct and actual transportation cost as a separate item in the 
invoice. The clause at 52.247-1, Commercial Bill of Lading Notations, 
will ensure that the Government in this type of arrangement obtains the 
benefit of 49 U.S.C. 10721 and 13712 rates.


47.104-3  Cost-reimbursement contracts.

    (a) 49 U.S.C. 10721 and 13712 rates may be applied to shipments 
other than those made by the Government if the total benefit accrues to 
the Government, i.e., the Government shall pay the charges or directly 
and completely reimburse the party that initially bears the freight 
charges. Therefore, 49 U.S.C. 10721 and 13712 rates may be used for 
shipments moving on commercial bills of lading in cost reimbursement 
contracts under which the transportation costs are direct and allowable 
costs under the cost principles of Part 31.
    (b) 49 U.S.C. 10721 and 13712 rates may be applied to the movement 
of household goods and personal effects of contractor employees who are 
relocated for the convenience and at the direction of the Government 
and whose total transportation costs are reimbursed by the Government.
    (c) The clause at 52.247-1, Commercial Bill of Lading Notations, 
will ensure that the Government receives the benefit of lower 49 U.S.C. 
10721 and 13712 rates in cost-reimbursement contracts as described in 
paragraphs (a) and (b) of this subsection.
    (d) Contracting officers shall--
    (1) Include in contracts a statement requiring the contractor to 
use carriers that offer acceptable service at reduced rates if 
available; and
    (2) Ensure that contractors receive the name and location of the 
transportation officer designated to furnish support and guidance when 
using Government rate tenders.
    (e) The transportation office shall--
    (1) Advise and assist contracting officers and contractors; and
    (2) Make available to contractors the names of carriers that 
provide service under 49 U.S.C. 10721 and 13712 rates, cite applicable 
rate tenders, and advise contractors of the statement that must be 
shown on the carrier's commercial bill of lading (see the clause at 
52.247-1, Commercial Bill of Lading Notations).


47.104-4  Contract clauses.

    (a) In order to ensure the application of 49 U.S.C. 10721 and 13712 
rates, where authorized (see 47.104(b)), insert the clause at 52.247-1, 
Commercial Bill of Lading Notations, in solicitations and contracts 
when the contracts will be--
    (1) Cost-reimbursement contracts, including those that may involve 
the movement of household goods (see 47.104-3(b)); or
    (2) Fixed-price f.o.b. origin contracts (other than contracts at or 
below the simplified acquisition threshold) (see 47.104-2(b) and 
47.104-3).
    (b) The contracting officer may insert the clause at 52.247-1, 
Commercial Bill of Lading Notations, in solicitations and contracts 
made at or below the simplified acquisition threshold when it is 
contemplated that the delivery terms will be f.o.b. origin.


47.104-5  Citation of Government rate tenders.

    When 49 U.S.C. 10721 and 13712 rates apply, transportation offices 
or contractors, as appropriate, shall identify the applicable 
Government rate tender by endorsement on bills of lading.


47.105  [Amended]

    9. Amend section 47.105 in the last sentence of paragraph (b) by 
removing the words ``appropriate area headquarters of the''.
    10. Amend section 47.200 by revising paragraphs (b)(3), (d), and 
(e) to read as follows:


47.200  Scope of subpart.

* * * * *
    (b) * * *
    (3) Household goods for which rates are negotiated under 49 U.S.C. 
1072 and 13712; or
* * * * *
    (d) The procedures in this subpart are applicable to the 
transportation of household goods of persons being relocated at 
Government expense except when acquired--
    (1) Under the commuted rate schedules as required in the Federal 
Travel Regulation (41 CFR chapter 302);
    (2) By DoD under DoD 4500.9-R, Defense Transportation Regulation; 
or
    (3) Under 49 U.S.C. 10721 and 13712 rates.
    (e) Additional guidance for DoD acquisition of freight and 
passenger transportation is in the Defense Transportation Regulation.


47.201  [Amended]

    11. Amend section 47.201 by removing the definition ``Household 
goods''.


47.203  [Reserved]

    12. Remove and reserve section 47.203.
    13. Amend section 47.207-9 by revising the last sentence of 
paragraph (a) to read as follows:


47.207-9  Annotation and distribution of shipping and billing 
documents.

    (a) * * * See 41 CFR part 102-118, Transportation Payment and 
Audit.
* * * * *
    14. Add sections 47.207-10 and 47.207-11 to read as follows:

[[Page 4007]]

47.207-10  Discrepancies incident to shipments.

    Discrepancies incident to shipment include overage, shortage, loss, 
damage, and other discrepancies between the quantity and/or condition 
of supplies received from commercial carrier and the quantity and/or 
condition of these supplies as shown on the covering bill of lading or 
other transportation document. Regulations and procedures for reporting 
and adjusting discrepancies in Government shipments are in 41 CFR parts 
102-117 and 102-118. (For the Department of Defense (DoD), see DoD 
4500.9-R, Defense Transportation Regulation, Part II, Chapter 210.)


47.207-11  Volume movements within the continental United States.

    (a) For purposes of contract administration, a volume movement is--
    (1) In DoD, the aggregate of freight shipments amounting to or 
exceeding 25 carloads, 25 truckloads, or 500,000 pounds, to move during 
the contract period from one origin point for delivery to one 
destination point or area; and
    (2) In civilian agencies, 50 short tons (100,000 pounds) in the 
aggregate to move during the contract period from one origin point for 
delivery to one destination point or area.
    (b) Transportation personnel assigned to or supporting the CAO, or 
appropriate agency personnel, shall report planned and actual volume 
movements in accordance with agency regulations. DoD activities report 
to the Military Traffic Management Command (MTMC) under DoD 4500.9-R, 
Defense Transportation Regulation. Civilian agencies report to the 
local office of GSA's Office of Transportation (see http://www.fss.gsa.gov (click on Related Links, FSS contracts)).
    15. Add sections 47.208, 47.208-1 and 47.208-2 to read as follows:


47.208  Report of shipment (REPSHIP).


47.208-1  Advance notice.

    Military (and as required, civilian agency) storage and 
distribution points, depots, and other receiving activities require 
advance notice of shipments en route from contractors' plants. 
Generally, this notification is required only for classified material; 
sensitive, controlled, and certain other protected material; 
explosives, and some other hazardous materials; selected shipments 
requiring movement control; or minimum carload or truckload shipments. 
It facilitates arrangements for transportation control, labor, space, 
and use of materials handling equipment at destination. Also, timely 
receipt of notices by the consignee transportation office precludes the 
incurring of demurrage and vehicle detention charges.


47.208-2  Contract clause.

    The contracting officer shall insert the clause at 52.247-68, 
Report of Shipment (REPSHIP), in solicitations and contracts when 
advance notice of shipment is required for safety or security reasons, 
or where carload or truckload shipments will be made to DoD 
installations or, as required, to civilian agency facilities.
    16. Amend section 47.303-1 by revising paragraphs (a)(4) and 
(b)(5)(v) to read as follows:


47.303-1  F.o.b. origin.

    (a) * * *
    (4) If stated in the solicitation, to any Government-designated 
point located within the same city or commercial zone as the f.o.b. 
origin point specified in the contract (the Federal Motor Carrier 
Safety Administration prescribes commercial zones at Subpart B of 49 
CFR part 372).
    (b) * * *
    (5) * * *
    (v) Special instructions or annotations requested by the ordering 
agency for commercial bills of lading; e.g., ``This shipment is the 
property of, and the freight charges paid to the carrier(s) will be 
reimbursed by, the Government''; and
* * * * *
    17. Amend section 47.303-3 by revising paragraph (a)(1)(iv) to read 
as follows:


47.303-3  F.o.b. origin, freight allowed.

    (a) * * *
    (1) * * *
    (iv) If stated in the solicitation, to any Government-designated 
point located within the same city or commercial zone as the f.o.b. 
origin point specified in the contract (the Federal Motor Carrier 
Safety Administration prescribes commercial zones at Subpart B of 49 
CFR part 372); and
* * * * *
    18. Amend section 47.303-4 by revising paragraph (a)(1)(iv) to read 
as follows:


47.303-4  F.o.b. origin, freight prepaid.

    (a) * * *
    (1) * * *
    (iv) If stated in the solicitation, to any Government-designated 
point located within the same city or commercial zone as the f.o.b. 
origin point specified in the contract (the Federal Motor Carrier 
Safety Administration prescribes commercial zones at Subpart B of 49 
CFR part 372); and
* * * * *
    19. Amend section 47.303-5 by revising paragraph (a)(1)(iv); and in 
paragraph (c) by removing ``The contracting officer shall insert'' and 
adding ``Insert'' in its place. The revised text reads as follows:


47.303-5  F.o.b. origin, with differentials.

    (a) * * *
    (1) * * *
    (iv) If stated in the solicitation, to any Government-designated 
point located within the same city or commercial zone as the f.o.b. 
origin point specified in the contract; and
* * * * *


47.303-13  [Amended]

    20. Amend section 47.303-13 in paragraph (a) by removing``C.&f. 
destination'' and adding ``C.&f. (cost & freight) destination'' in its 
place.


47.303-15  [Amended]

    21. Amend section 47.303-15 in paragraph (b)(3) by removing the 
word ``Government''.


47.305-3  [Amended]

    22. Amend section 47.305-3 in the first sentence of the 
introductory paragraph by removing ``, and to 42.1404-2, where the use 
of bills of lading, parcel post, and indicia mail is prescribed''.


47.305-6  [Amended]

    23. Amend section 47.305-6 by--
    a. Removing ``c.i.f. destination'' from the introductory text of 
paragraph (a)(4) and adding ``c.i.f. (cost, insurance, freight) 
destination'' in its place;
    b. Removing ``MILSTAMP'' from paragraph (f)(1)(i) and adding ``DoD 
4500.9-R, Defense Transportation Regulation, Part II,'' in its place; 
and revising the parenthetical in paragraph (f)(1)(ii) to read ``(see 
DoD 4500.9-R, Defense Transportation Regulation, Part II)''; and
    c. Removing ``(see MILSTAMP at 47.301-3)'' from paragraph (g).


47.305-13  [Amended]

    24. Amend section 47.305-13 in paragraph (b)(3) by removing the 
last sentence.


47.504  [Amended]

    25. Amend section 47.504 in paragraph (a) by removing ``of the 
Panama Canal Commission or''.

[[Page 4008]]

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES 52.242-10, 
52.242-11, AND 52.242-12 [RESERVED]

    26. Remove and reserve sections 52.242-10, 52.242-11, and 52.242-
12.


52.247-1  [Amended]

    27. Amend section 52.247-1 by revising the date of the clause to 
read ``(Date)''; and by removing the word ``If'' from the introductory 
paragraph of the clause and adding ``When'' in its place.


52.247-3  [Amended]

    28. Amend section 52.247-3 by--
    a. Revising the date of the clause to read ``(Date)'';
    b. Removing ``Interstate Commerce Commission'' from the end of 
paragraph (a) of the clause and adding ``Surface Transportation Board'' 
in its place; and
    c. Removing ``(see 49 CFR 1048)'' from the second sentence of 
paragraph (b)(2) of the clause and adding ``(see Subpart B of 49 CFR 
part 372)'' in its place.
    29. Amend section 52.247-29 by revising the date of the clause and 
paragraphs (a)(4) and (b)(5)(v) to read as follows:


52.247-29  F.o.b. Origin.

* * * * *

F.O.B. ORIGIN (DATE)

    (a) * * *
    (4) If stated in the solicitation, to any Government-designated 
point located within the same city or commercial zone as the f.o.b. 
origin point specified in the contract (the Federal Motor Carrier 
Safety Administration prescribes commercial zones at Subpart B of 49 
CFR part 372).
    (b) * * *
    (5) * * *
    (v) Special instructions or annotations requested by the 
ordering agency for commercial bills of lading; e.g., ``This 
shipment is the property of, and the freight charges paid to the 
carrier(s) will be reimbursed by, the Government''; and
* * * * *
    (End of clause)

    30. Amend section 52.247-30 by revising the date of the clause and 
paragraph (b)(5)(v) to read as follows:


52.247-30  F.o.b. Origin, Contractor's Facility.

* * * * *

F.O.B. ORIGIN, CONTRACTOR'S FACILITY (DATE)

    (b) * * *
    (5) * * *
    (v) Special instructions or annotations requested by the 
ordering agency for bills of lading; e.g., ``This shipment is the 
property of, and the freight charges paid to the carrier(s) will be 
reimbursed by, the Government''; and
* * * * *
    (End of clause)

    31. Amend section 52.247-31 by revising the date of the clause and 
paragraphs (a)(1)(iv) and (b)(5)(v) to read as follows:


52.247-31  F.o.b. Origin, Freight Allowed.

* * * * *

F.O.B. ORIGIN, FREIGHT ALLOWED (DATE)

    (a) * * *
    (1) * * *
    (iv) If stated in the solicitation, to any Government-designated 
point located within the same city or commercial zone as the f.o.b. 
origin point specified in the contract (the Federal Motor Carrier 
Safety Administration prescribes commercial zones at Subpart B of 49 
CFR part 372); and
* * * * *
    (b) * * *
    (5) * * *
    (v) Special instructions or annotations requested by the 
ordering agency for commercial bills of lading; e.g., ``This 
shipment is the property of, and the freight charges paid to the 
carrier(s) will be reimbursed by, the Government''; and
* * * * *
    (End of clause)

    32. Amend section 52.247-32 by revising the date of the clause and 
paragraph (a)(1)(iv); removing the word ``commercial'' from the first 
sentence of the introductory text of paragraph (b)(5); and revising 
paragraph (b)(5)(v) to read as follows:


52.247-32  F.o.b. Origin, Freight Prepaid.

* * * * *

F.O.B. ORIGIN, FREIGHT PREPAID (DATE)

    (a) * * *
    (1) * * *
    (iv) If stated in the solicitation, to any Government-designated 
point located within the same city or commercial zone as the f.o.b. 
origin point specified in the contract (the Federal Motor Carrier 
Safety Administration prescribes commercial zones at Subpart B of 49 
CFR part 372); and
* * * * *
    (b) * * *
    (5) * * *
    (v) Special instructions or annotations requested by the 
ordering agency for bills of lading; e.g., ``This shipment is the 
property of, and the freight charges paid to the carrier(s) will be 
reimbursed by, the Government''; and
* * * * *
    (End of clause)

    33. Amend section 52.247-33 by revising the date of the clause and 
paragraphs (a)(1)(iv), (b)(5)(v), and the second sentence of (c)(2) to 
read as follows:


52.247-33  F.o.b. Origin, with Differentials.

* * * * *

F.O.B. ORIGIN, WITH DIFFERENTIALS (DATE)

    (a) * * *
    (1) * * *
    (iv) If stated in the solicitation, to any Government-designated 
point located within the same city or commercial zone as the f.o.b. 
origin point specified in the contract (the Federal Motor Carrier 
Safety Administration prescribes commercial zones at Subpart B of 49 
CFR part 372); and
* * * * *
    (b) * * *
    (5) * * *
    (v) Special instructions or annotations requested by the 
ordering agency for bills of lading; e.g., ``This shipment is the 
property of, and the freight charges paid to the carrier will be 
reimbursed by, the Government''; and
* * * * *
    (c)(1) * * *
    (2) * * * If, at the time of shipment, the Government specifies 
a mode of transportation, type of vehicle, or place of delivery for 
which the offeror has set forth a differential, the Contractor shall 
include the total of such differential costs (the applicable 
differential multiplied by the actual weight) as a separate 
reimbursable item on the Contractor's invoice for the supplies.
* * * * *
    (End of clause)


52.247-38  [Amended]

    34. Amend section 52.247-38 by revising the date of the clause to 
read ``(DATE)''; and in paragraph (b)(2) of the clause by adding ``or 
other transportation receipt'' after the word ``lading''.


52.247-43  [Amended]

    35. Amend section 52.247-43 by revising the date of the clause to 
read ``(DATE)''; and removing the word ``Government'' from paragraph 
(b)(3) of the clause.


52.247-52  [Amended]

    36. Amend section 52.247-52 by--
    a. Revising the date of the clause to read ``(DATE)'';
    b. Removing ``49 CFR 170-179'' from paragraph (a)(3)(vi) of the 
clause and adding ``49 CFR 173.403'' in its place;
    c. Removing ``MILSTAMP'' from paragraph (f)(1) of the clause and 
adding ``transportation responsibilities under DoD 4500.9-R, Defense 
Transportation Regulation,'' in its place; and
    d. Removing the word ``commercial'' from paragraphs (h)(1) and 
(h)(2) of the clause.


52.247-64  [Amended]

    37. Amend section 52.247-64 by revising the date of the clause to 
read ``(DATE)''; and removing ``of the Panama Canal Commission or'' 
from paragraph (e)(1) of the clause.

[[Page 4009]]

    38. Amend section 52.247-67 by--
    a. Revising the section heading;
    b. Revising the clause heading, paragraph (a)(1) introductory text, 
and (a)(2), and adding paragraph (a)(3);
    c. Revising paragraphs (b) and (c); and
    d. Removing the word ``Contractor'' from the first sentence of 
paragraph (d) and paragraph (d)(1) and adding ``specified agency'' in 
its place. The revised text reads as follows:


52.247-67  Submission of Transportation Documents for Audit.

* * * * *

SUBMISSION OF TRANSPORTATION DOCUMENTS FOR AUDIT (DATE)

    (a)(1) In accordance with paragraph (a)(2) of this clause, the 
Contractor shall submit to the address identified below, for 
prepayment audit, transportation documents on which the United 
States will assume freight charges that were paid--
* * * * *
    (2) Cost-reimbursement Contractors shall only submit for audit 
those bills of lading with freight shipment charges exceeding $100. 
Bills under $100 shall be retained on-site by the Contractor and 
made available for on-site audits. This exception only applies to 
freight shipment bills and is not intended to apply to bills and 
invoices for any other transportation services.
    (3) Contractors shall submit the above-referenced transportation 
documents to--
-----------------------------------------------------------------------
-----------------------------------------------------------------------
-----------------------------------------------------------------------
    (To be filled in by Contracting Officer)

    (b) The agency designated in paragraph (a)(3) of this clause 
shall forward original copies of paid freight bills/invoices, bills 
of lading, passenger coupons, and supporting documents as soon as 
possible following the end of the month, in one package, for 
postpayment audit to the--General Services Administration, ATTN: 
FBA, 1800 F Street, NW., Washington, DC 20405. The specified agency 
shall include the paid freight bills/invoices, bills of lading, 
passenger coupons, and supporting documents for first-tier 
subcontractors under a cost-reimbursement contract. If the inclusion 
of the paid freight bills/invoices, bills of lading, passenger 
coupons, and supporting documents for any subcontractor in the 
shipment is not practicable, the documents may be forwarded to GSA 
in a separate package.
    (c) Any original transportation bills or other documents 
requested by GSA shall be forwarded promptly. The specified agency 
shall ensure that the name of the contracting agency is stamped or 
written on the face of the bill before sending it to GSA.
* * * * *
    (End of clause)

    39. Section 52.247-68 is added to read as follows:


52.247-68  Report of Shipment (REPSHIP).

    As prescribed in 47.208-2, insert the following clause:

REPORT OF SHIPMENT (REPSHIP) (DATE)

    Unless otherwise directed by the Contracting Officer, the 
Contractor shall send a prepaid notice of shipment to the consignee 
transportation officer for all shipments of classified material, 
protected sensitive, and protected controlled material; explosives 
and poisons, classes A and B; radioactive materials requiring the 
use of a III bar label; or when a truckload/carload shipment of 
supplies weighing 20,000 pounds or more, or a shipment of less 
weight that occupies the full visible capacity of a railway car or 
motor vehicle, is given to any carrier (common, contract, or 
private) for transportation to a domestic (i.e., within the United 
States, excluding Alaska or Hawaii, or if shipment originates in 
Alaska or Hawaii, within Alaska or Hawaii, respectively) destination 
(other than a port for export). The notice shall be transmitted by 
rapid means to be received by the consignee transportation officer 
at least 24 hours before the arrival of the shipment. The bill of 
lading or letter or other document that contains all of the 
following shall be addressed and sent promptly to the receiving 
transportation officer. This document shall be prominently 
identified by the Contractor as being a ``Report of Shipment'' or 
``REPSHIP FOR T.O.''
    (a) Message example:
REPSHIP FOR T.O. 81 JUN 01
TRANSPORTATION OFFICER
DEFENSE DEPOT, MEMPHIS, TN.
SHIPPED YOUR DEPOT 1981 JUN 1 540 CTNS MENS
COTTON TROUSERS, 30,240 LB, 1782 CUBE, VIA XX-YY*
IN CAR NO. XX 123456**-GBL***-C98000031****
CONTRACT DLA------ETA*****-JUNE 5 JONES & CO., JERSEY CITY, N.J.
*Name of rail carrier, trucker, or other carrier.
**Vehicle identification.
***Bill of lading.
****If not shipped by BL, identify lading document and state whether 
paid by contractor.
*****Estimated time of arrival.
    (End of clause)

PART 53--FORMS

    40. Revise section 53.247 to read as follows:


53.247  Transportation (Commercial Bill of Lading).

    The commercial bill of lading is the preferred document for the 
transportation of property, as specified in 47.101.

[FR Doc. 04-1507 Filed 1-26-04; 8:45 am]
BILLING CODE 6820-EP-P