[Federal Register Volume 71, Number 244 (Wednesday, December 20, 2006)]
[Notices]
[Pages 76339-76340]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-21732]


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GENERAL SERVICES ADMINSTRATION


Implementation of a mileage based Fuel Cost Price Adjustment 
(Surcharge) for Household Goods

AGENCY: Federal Acquisition Service, GSA

ACTION: Notice for Comments

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SUMMARY: GSA is proposing a change to the Centralized Household Goods 
Traffic Management Program (CHAMP) and the Household Goods Standard 
Tender of Service (HTOS) to implement a mileage based Fuel Cost Price 
Adjustment on the shipment of household goods effective May 1, 2007.

DATES: Interested parties should submit written comments before January 
10, 2007.

ADDRESSES: Mail comments to General Services Administration, Federal 
Acquisition Service, Travel and Transportation Management Division 
(6FBDX), 1500 East Bannister Road, Building 6, Kansas City, Missouri 
64131. Comments may be sent via email to [email protected].

FOR FURTHER INFORMATION CONTACT:  Brian Kellhofer, Transportation 
Programs Branch, by telephone at 816-823-3646 or via email at 
[email protected].

SUPPLEMENTARY INFORMATION:

A. Background

    GSA's CHAMP uses the Domestic Household Goods Government Rate 
Tender (415-G) published by the American Moving and Storage Association 
(AMSA) through its Household Goods Carriers'' Bureau Committee. The 
tender contains a Fuel Cost Price Adjustment (Surcharge) provision 
identified in Item 16, which GSA has utilized since May 2000. The 
current Fuel Cost Price Adjustment calculation is based on the net 
transportation charges of the line haul and the delivery in and 
delivery out of storage in transit (SIT). The Fuel Cost Price 
Adjustment is designed to compensate the Transportation Service 
Provider (TSP) when the cost of diesel fuel exceeds $1.399. When 
applicable, a percentage as identified in Item 16 is taken against the 
net line haul charges.
    GSA is proposing changing the Fuel Cost Price Adjustment 
methodology from a percentage based to a mileage based calculation. The 
mileage based Fuel Cost Price Adjustment will be calculated on the 
distance between the shipment's origin and destination, and if 
applicable, the distance for delivery in or delivery out of storage in 
transit (SIT), using the billable mileage as currently identified by 
ALK Technologies. When the cost of diesel fuel exceeds $1.399, as 
identified by the Department of Energy (DOE) on the first Monday of 
every month, with an effective date of the 15th day of the same month, 
the TSP may calculate a fuel surcharge based on the difference between 
the DOE price and the trigger price of $1.40. Effective May 1, 2007, 
this will be accomplished by first taking the number of billable miles 
and dividing it by 4.5 to identify the number of gallons of fuel used. 
The total will then be multiplied by the cost difference between the 
DOE price and $1.399. Beginning May 1, 2008, the number of billable 
miles will be divided by five (5) to identify the number of gallons of 
fuel used.

B. Substantive Changes

    The implementation of the mileage based Fuel Cost Price Adjustment 
reflects a more accurate view of additional cost incurred by TSPs for 
the increases in the fuel costs. It eliminates

[[Page 76340]]

weight pricing and aligns the fuel cost with the distance the shipment 
travels and the fuel usage. As a result of this change, agencies should 
realize transportation cost savings.

    Dated: December 14, 2006.
Tauna T. Delmonico
Director, Travel and Transportation Management Division (FBL), GSA
[FR Doc. E6-21732 Filed 12-19-06; 8:45 am]
BILLING CODE 6820-89-S