[Federal Register Volume 80, Number 190 (Thursday, October 1, 2015)]
[Proposed Rules]
[Pages 59094-59102]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-24858]
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GENERAL SERVICES ADMINISTRATION
41 CFR Parts 102-117 and 102-118
[FMR Case 2015-102-2; Docket 2015-0014; Sequence 1]
RIN 3090-AJ59
Federal Management Regulation (FMR); Transportation Payment and
Audit
AGENCY: Office of Government-wide Policy (OGP), General Services
Administration (GSA).
ACTION: Proposed rule.
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SUMMARY: GSA is proposing to amend the Federal Management Regulation
(FMR), Transportation Payment and Audit, to clarify agency and
Department of Defense (DOD) transportation
[[Page 59095]]
payment and audit requirements. GSA is also proposing to amend relevant
definitions as a result of these proposed amendments. The FMR is
written in plain language to provide agencies with updated regulatory
material that is easy to read and understand.
DATES: Submit comments on or before November 30, 2015.
ADDRESSES: Submit comments identified by FMR Case 2015-102-2,
Transportation Payment and Audit, by any of the following methods:
Regulations.gov: http://www.regulations.gov.
Submit comments via the Federal eRulemaking portal by searching FMR
Case 2015-102-2. Select the link ``Comment Now'' that corresponds with
``FMR Case 2015-102-2, Transportation Payment and Audit''. Follow the
instructions provided on the screen. Please include your name, company
name (if any), and ``FMR Case 2015-102-2, Transportation Payment and
Audit'' on your attached document.
Mail: General Services Administration, Regulatory
Secretariat Division (MVCB), 1800 F Street NW., Washington, DC 20405.
ATTN: Ms. Flowers/FMR Case 2015-102-2, Transportation Payment and
Audit.
Instructions: Please submit comments only and cite ``FMR Case 2015-
102-2, Transportation Payment and Audit'' in all correspondence related
to this case. All comments received will be posted without change to
http://www.regulations.gov, including any personal and/or business
confidential information provided.
FOR FURTHER INFORMATION CONTACT: For clarification of content, contact
Ms. Lois Mandell, Office of Government-wide Policy, at 202-501-2735.
Please cite FMR Case 2015-102-2. For information pertaining to status
or publication schedules, contact the Regulatory Secretariat Division
(MVCB), 1800 F Street NW., Washington, DC 20405, 202-501-4755.
SUPPLEMENTARY INFORMATION:
A. Background
Agencies are authorized to procure transportation services either
through the Federal Acquisition Regulation (FAR) by utilizing a
contract, or via 49 U.S.C. 10721 (for rail transportation), 49 U.S.C.
13712 (for surface transportation), and/or 49 U.S.C. 15504 (for
pipeline transportation) by utilizing rate tenders. It is critical that
agencies ensure that services received are properly charged and that
the payment made is correct.
Over the past year, GSA, working with the Governmentwide
Transportation Policy Council (GTPC) completed the first of a two-part
phase reviewing FMR Part 102-118, Transportation Payment and Audit. The
GTPC is composed of representatives from civilian agencies and the
Department of Defense and provides guidance in the planning and
development of uniform transportation policies and procedures.
The first phase focused on transportation prepayment and
postpayment audits and reviewed FMR Part 102-118 Subparts A (General),
D (Prepayment Audits of Transportation Services), and E (Postpayment
Transportation Audits), resulting in this proposed rule.
The Travel and Transportation Reform Act of 1998 (Pub. L. 105-264)
established agency statutory requirements for prepayment audits of
Federal agency and DoD transportation expenses and GSA statutory
authority for audit oversight to protect the interests of the
Government.
This proposed rule clarifies and strengthens the regulations for
agency compliance for transportation prepayment audits and postpayment
audits.
The proposed rule also includes updates to definitions in 41 CFR
part 102-117, Transportation Management, as a result of the proposed
amendments to FMR part 102-118.
The second phase, beginning January 2015, will continue the review
process for 41 CFR part 118, Transportation Payment and Audit Subparts
A (General), B (Ordering and Paying for Transportation and
Transportation Services), C (Use of Government Billing Documents), and
F (Claims and Appeals Procedures).
B. Proposed Substantive Changes
GSA proposes to:
Revise the definitions for ``Agency'', ``Bill of lading'',
``Government bill of lading'', ``Transportation document'', and
``Transportation Service Provider'', remove the term and definition of
``Release/declared value'', and add the term and definition ``Declared
value'' in FMR Part 102-117; and to revise the definitions of the terms
``Agency'', ``Bill of lading'', ``Document reference number'',
``Government bill of lading'', ``Government transportation request'',
Offset'', ``Overcharge'', ``Postpayment audit'', Rate authority'',
``Reparation'', Standard Carrier Alpha Code'', ``Statement of
difference'', ``Supplemental bill'', ``Transportation document'', and
``Transportation Service provider'', remove the terms ``Agency claim'',
``Transportation service provider claim'', and ``Virtual GBL (VGBL)'',
and add the terms ``Claim'' and ``Declared value'' in FMR Part 102-118
to ensure consistency.
Strengthen agencies requirements and responsibilities of
transportation prepayment audits and transportation postpayment audit,
submission requirements to the GSA Transportation Audits Division, and
the required information on all transportation documentation.
Clarify GSA Transportation Audit roles and
responsibilities.
C. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is not a significant regulatory action, and therefore, will not be
subject to review under Section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993. This proposed rule is not a major
rule under 5 U.S.C. 804.
D. Regulatory Flexibility Act
These revisions are not substantive, and therefore, this proposed
rule would 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. The proposed rule is also exempt
from the Administrative Procedure Act per 5 U.S.C. 553(a)(2), because
it applies to agency management or personnel.
E. Paperwork Reduction Act
The rule does not contain any information collection requirements
that require the approval of the Office of Management and Budget under
the Paperwork Reduction Act (44 U.S.C. chapter 35).
F. Small Business Regulatory Enforcement Fairness Act
This proposed rule is also exempt from Congressional review
prescribed under 5 U.S.C. 801 since it relates to agency management or
personnel.
List of Subjects
41 CFR Part 102-117
Freight, Government property management, Moving of household goods,
Reporting and recordkeeping requirements. Transportation.
[[Page 59096]]
41 CFR Part 102-118
Accounting, Claims, Government property management., Reporting and
recordkeeping requirements, Transportation.
Dated: September 17, 2015.
Christine Harada,
Associate Administrator.
For the reasons set forth in the preamble, GSA proposes to amend 41
CFR parts 102-117 and 102-118 as follows:
PART 102-117--TRANSPORTATION MANAGEMENT
0
1. The authority citation for 41 CFR part 102-117 continues to read as
follows:
Authority: 31 U.S.C. 3726; 40 U.S.C. 121(c); 40 U.S.C. 501, et
seq.; 46 U.S.C. 55305; 49 U.S.C. 40118.
0
2. Amend Sec. 102-117.25 by--
0
a. Revising the definitions of ``Agency'' and ``Bill of lading'';
0
b. Adding, in alphabetical order, the definition ``Declared value'';
0
c. Revising the definition of ``Government bill of lading (GBL)'';
0
d. Removing the definition ``Release/declared value''; and
0
e. Revising the definitions of ``Transportation document'', and
``Transportation service provider (TSP)''.
The revised and added text reads as follows:
Sec. 102-117.25 What definitions apply to this part?
* * * * *
Agency means a department, agency, and independent establishment in
the executive branch of the Government as defined in 5 U.S.C. 101 et
seq., and a wholly-owned Government corporation as defined in 31 U.S.C.
9101(3).
Bill of lading (BOL), sometimes referred to as a commercial bill of
lading, but includes a Government bill of lading (GBL), means the
document used as a receipt of goods, a contract of carriage, and
documentary evidence of title.
* * * * *
Declared value, sometimes referred to as released value,'' means
the assigned value of the cargo for reimbursement purposes and is
stated in dollars. Declared value may be more or less than the actual
value of the cargo. The declared 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. The statement of declared
value must be shown on any applicable tariff, tender, contract, bill of
lading, or other document covering the shipment.
* * * * *
Government bill of lading (GBL) means the transportation document
used as a receipt of goods, evidence of title, and a contract of
carriage for Government international shipments (see Bill of Lading
(BOL) definition).
* * * * *
Transportation document (TD) means any executed document for
transportation service, such as a bill of lading, a tariff, a tender, a
contract, a Government Transportation Request (GTR), invoices, paid
invoices, any transportation bills, or other equivalent documents,
including electronic documents.
* * * * *
Transportation service provider (TSP) means any party, person,
agent, or carrier that provides freight, including household goods, or
passenger transportation and related services to an agency.
* * * * *
PART 102-118--TRANSPORTATION PAYMENT AND AUDIT
0
3. The authority citation for 41 CFR part 102-118 is revised to read as
follows:
Authority: 31 U.S.C. 3726; 40 U.S.C. 121(c); 40 U.S.C. 501, et
seq.; 46 U.S.C. 55305; 49 U.S.C. 40118.
0
4. Revise Sec. 102-118.10 to read as follows:
Sec. 102-118.10 What is a transportation audit?
A transportation audit is a thorough review and validation of
transportation related documents and bills. The audit must examine the
validity, propriety, and conformity of the charges or rates with
tariffs, quotations, contracts, agreements, or tenders, as appropriate.
Sec. 102-118.15 [Amended]
0
5. Amend Sec. 102-118.15 by removing ``or people and/or'' and adding
``, people or'' in its place.
0
6. Revise Sec. 102-118.20 to read as follows:
Sec. 102-118.20 Who is subject to this part?
This part applies to all agencies (including the Department of
Defense) and TSPs defined in Sec. 102-118.35, and wholly-owned
Government corporations as defined in 31 U.S.C. 101, et seq. and 31
U.S.C. 9101(3). Your agency is required to incorporate this part into
its internal regulations.
0
7. Revise Sec. Sec. 102-118.25 and 102-118.30 to read as follows:
Sec. 102-118.25 What must my agency provide to GSA regarding its
transportation policies?
As part of the postpayment audit, GSA may request to examine your
agency's transportation prepayment audit program and policies to verify
the performance of the prepayment audit. GSA Transportation Audits
Division may suggest revisions of agencies audit program or policies.
Sec. 102-118.30 Are Government-controlled corporations bound by this
part?
This part does not apply to Government-controlled corporations and
mixed-ownership Government corporations as defined in 31 U.S.C. 9101(1)
and (2).
0
8. Amend Sec. 102-118.35 by--
0
a. Revising the definition ``Agency'';
0
b. Removing the definition ``Agency claim'';
0
c. Revising the definition ``Bill of lading (BOL)'';
0
d. Adding, in alphabetical order, the definitions ``Claim'' and
``Declared value'';
0
e. Revising the definitions ``Document Reference Number (DRN)'',
``Government bill of lading (GBL)'', ``Government contractor-issued
charge card'', ``Government Transportation Request (GTR)'', ``Offset'',
``Overcharge'', ``Postpayment audit'', ``Prepayment audit'', ``Rate
authority'', ``Reparation'', ``Standard Carrier Alpha Code (SCAC)'',
``Statement of difference'', ``Supplemental bill'', ``Transportation
document (TD)'' ``Transportation Service'', and ``Transportation
Service provider (TSP)'';
0
f. Removing the definitions, ``Transportation service provider claim''
and ``Virtual GBL (VGBL)''; and
0
g. Revising the ``Note'' at the end of the section. The revised and
added text reads as follows:
Sec. 102-118.35 What definitions apply to this part?
* * * * *
Agency means a department, agency, or instrumentality of the United
States Government (31 U.S.C. 101).
* * * * *
Bill of lading (BOL), sometimes referred to as a commercial bill of
lading, but includes a Government bill of lading (GBL), means the
document used as a receipt of goods, a contract of carriage, and
documentary evidence of title.
* * * * *
Claim means--
(1) Any demand by an agency upon a Transportation Service Provider
(TSP) for the payment of overcharges, ordinary
[[Page 59097]]
debts, fines, penalties, administrative fees, special charges, and
interest; or
(2) 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 is believed to be owed; and any subsequent bills from the
TSP resulting from a transaction that was prepayment or postpayment
audited by the GSA Transportation Audits Division.
Declared value, sometimes referred to as ``released value,'' means
the assigned value of the cargo for reimbursement purposes and is
stated in dollars. Declared value may be more or less than the actual
value of the cargo. The declared 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. The statement of declared
value must be shown on any applicable tariff, tender, contract, bill of
lading, or other document covering the shipment.
Document reference number (DRN) means the unique number on a bill
of lading, Government Transportation Request (GTR), or transportation
ticket used to track the movement of shipments and individuals.
* * * * *
Government bill of lading (GBL) means the transportation document
used as a receipt of goods, evidence of title, and a contract of
carriage for Government international shipments (see Bill of lading
(BOL) definition).
Government contractor-issued charge card means the charge card used
by authorized individuals to pay for official travel and transportation
related expenses for which the contractor bills the employee. This is
different than a centrally billed account paying for official travel
and transportation related expenses for which the agency is billed.
Government Transportation Request (GTR) means a Government document
used to procure common carrier transportation services. A common
carrier is a carrier offering its services at published rates to all
persons for interstate transportation. The document obligates the
Government to pay for transportation services provided.
Offset means something that serves to counterbalance or to
compensate for something else. These are funds owed to a TSP that are
not released by the agency but instead used to repay the agency for a
debt incurred by the TSP.
* * * * *
Overcharge means those charges for transportation that exceed those
applicable under the executed agreement for services such as bill of
lading (including a GBL), contract, rate tender or a GTR.
Postpayment audit means an audit of transportation billing
documents, and all related transportation documents after payment, to
decide their validity, propriety, and conformity of rates with tariffs,
quotations, agreements, contracts, or tenders. The audit process may
also include subsequent adjustments and collection actions taken
against a TSP by the Government (31 U.S.C. 3726).
Prepayment audit means an audit of transportation billing documents
before payment to determine their validity, propriety, and conformity
of rates with tariffs, quotations, agreements, contracts, or tenders
(31 U.S.C. 3726).
* * * * *
Rate authority means the document that establishes the legal
charges for a transportation shipment. Charges included in a rate
authority are those rates, fares, and charges for transportation and
related services contained in tariffs, tenders, contracts, bills of
lading, and other equivalent documents.
* * * * *
Reparation means a payment to or from an agency to correct an
improper transportation billing involving a TSP. Improper routing,
overcharges, or duplicate payments may cause such improper billing.
This is different from a payment to settle a claim for loss and damage.
Standard Carrier Alpha Code (SCAC) is the unique four-letter code
used to identify American-based motor transportation companies assigned
by the National Motor Freight Traffic Association, Inc. Their Web site
address is http://www.NMFTA.org.
Statement of difference means a statement issued by an agency or
its designated audit contractor during a prepayment audit when there is
a discrepancy of the TSP amount billed the agency to the TSP 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(s) for
each transportation transaction.
Supplemental bill means the bill for services that the TSP submits
to the agency for additional payment of the services provided.
* * * * *
Transportation document (TD) means any executed document for
transportation service, such as a bill of lading, a tariff, a tender, a
contract, a GTR, invoices, paid invoices, any transportation bills, or
other equivalent documents, including electronic documents.
Transportation service means service involved in the physical
movement (from one location to another) of people, household goods, and
freight by a TSP or a Third Party Logistics (3PL) entity for an agency,
as well as activities directly relating to or supporting that movement.
Transportation service provider (TSP) means any party, person,
agent, or carrier that provides freight, including household goods, or
passenger transportation and related services to an agency.
Note to Sec. 102-118.35: 15 U.S.C. 96, et seq., 49 U.S.C.
13102, et seq., and 41 CFR Chapter 302 Federal Travel Regulation,
defines additional transportation terms not listed in this section.
0
9. Revise Subpart D to read as follows:
Subpart D--Prepayment Audit of Transportation Services
Agency Requirements for a Transportation Prepayment Audit Program
Sec.
102-118.265 What is a prepayment audit?
102-118.270 Must my agency establish a transportation prepayment
audit program, and how is it funded?
102-118.275 What must my agency consider when developing a
transportation prepayment audit program?
102-118.280 Must all transportation payment records, whether they
are electronic or paper, undergo a prepayment audit?
102-118.285 What must be included in my agency's transportation
prepayment audit program?
Agency Requirements With Transportation Service Providers
102-118.290 Must my agency notify the TSP of any adjustment to the
TSP bill?
102-118.295 Does my agency transportation prepayment audit program
need to establish appeal procedures?
102-118.300 What must my agency do if the TSP disputes the findings
and my agency cannot resolve the dispute?
102-118.305 What information must be on all transportation payment
records that have completed my agency's prepayment audit?
102-118.310 What does the GSA Transportation Audits Division
consider when verifying an agency prepayment audit program?
102-118.315 How does my agency contact the GSA Transportation Audits
Division?
102-118.320 What action should my agency take if the agency's
transportation prepayment audits program changes?
[[Page 59098]]
Agency Certifying and Disbursing Officers
102-118.325 Does establishing an agency Chief Financial Officer-
approved transportation prepayment audit program change the
responsibilities of the certifying officers?
102-118.330 Does a transportation prepayment audit waiver change any
liabilities of the certifying officer?
102-118.335 What relief from liability is available for the
certifying official under a transportation postpayment audit?
102-118.340 Do the requirements of a transportation prepayment audit
change the disbursing official's liability for overpayment?
102-118.345 Where does relief from transportation prepayment audit
liability for certifying, accountable, and disbursing officers
reside in my agency?
Exemptions and Suspensions of the Mandatory Transportation Prepayment
Audit Program
102-118.350 What agency has the authority to grant an exemption from
the transportation prepayment audit requirement?
102-118.355 How does my agency apply for an exemption from a
transportation prepayment audit requirement?
102-118.360 How long will GSA take to respond to an exemption
request from a transportation prepayment audit requirement?
102-118.365 Can my agency renew an exemption from the transportation
prepayment audit requirements?
102-118.370 Are my agency's prepayment audited transportation
documentation subject to periodic postpayment audit oversight from
the GSA Transportation Audits Division?
102-118.375 Can GSA suspend my agency's transportation prepayment
audit program?
Subpart D--Prepayment Audit of Transportation Services
Agency Requirements for a Transportation Prepayment Audit Program
Sec. 102-118.265 What is a prepayment audit?
Prepayment audit means a review of transportation documentation
before payment to determine their validity, propriety, and conformity
of rates with tariffs, quotations, agreements, contracts, or tenders.
Prepayment auditing by your agency will detect and eliminate billing
errors before payment (31 U.S.C. 3726).
Sec. 102-118.270 Must my agency establish a transportation prepayment
audit program, and how is it funded?
(a) Yes, under 31 U.S.C. 3726, your agency is required to establish
a transportation prepayment audit program. GSA recommends your agency's
Chief Financial Officer (CFO) approve the prepayment audit program.
(b) Your agency must pay for the prepayment audit program from
those funds appropriated for transportation services.
Sec. 102-118.275 What must my agency consider when developing a
transportation prepayment audit program?
(a) Your agency's transportation prepayment audit program must
consider all of the methods that your agency uses to order and pay for
passenger, household goods, and freight transportation to include
Government-issued credit cards (see Sec. 102-118.35 for definition of
Government issued credit cards).
(b) Each method of ordering transportation and transportation
services for passenger, household goods, and freight transportation may
require a different kind of prepayment audit process. The manner in
which your agency orders or procures transportation services determines
how and by whom the bill for those services will be presented. 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.
(c) The prepayment audit cannot be conducted by the same firm who
is providing transportation services for the agency, such as a move
manager. Contracts with charge card companies that provide prepayment
audit services are a valid option. The agency can choose to--
(1) Create an internal prepayment audit program;
(2) Contract directly with a prepayment audit service provider;
(3) Use the services of a prepayment audit contractor under GSA's
multiple award schedule covering audit and financial management
services; or
(4) Use a Third-Party Payment System or charge card company that
includes prepayment audit functions, such as Syncada and Payport
Express.
(d) An appeals process must be established for a transportation
service provider (TSP) to appeal any reduction in the amount billed. It
is recommended the agency establish an electronic appeal process that
will direct TSP-filed appeals to an agency official for determination
of the claim.
(e) A process to ensure that all agency transportation procurement
and related documents including contracts and tenders are submitted to
GSA Transportation Audits Division.
(f) Use of GSA Transportation Audits Division's Prepayment Audit
Program template is recommended. If the template is not used, provide
same information listed on the template to GSA Transportation Audits
Division.
Sec. 102-118.280 Must all transportation payment records, whether
they are electronic or paper, undergo a prepayment audit?
Yes, all transportation bills and payment records, whether they are
electronic or paper, must undergo a prepayment audit with the following
exceptions:
(a) Your agency's prepayment audit program uses a statistical
sampling technique of the bills. If your agency chooses to use
statistical sampling, all bills must be
(1) At or below the Comptroller General specified limit of
$2,500.00 (31 U.S.C. 3521(b)); and
(2) In compliance with the U.S. Government Accountability Office
Using Statistical Sampling (GAO/PEMD-10.1.6), Rev. 1992, Chapter 7
Random Selection Procedures obtainable from http://www.gao.gov; or
(b) The Administrator of General Services grants your agency a
specific exemption from the prepayment audit requirement which may
include bills determined to be below your agency's threshold, mode or
modes of transportation, or for an agency or subagency.
Sec. 102-118.285 What must be included in an agency's transportation
prepayment audit program?
The agency prepayment audit program must include--
(a) The agency's CFO approval of the transportation prepayment
audit program and submission to GSA Transportation Audits Division;
(b) Compliance with the Prompt Payment Act (31 U.S.C. 3901, et
seq.);
(c) Assurance that each TSP bill or employee travel voucher
contains appropriate 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;
(d) Verification of all transportation bills against filed rates
and charges before payment;
(e)(1) A process to forward all transportation documentation (TD)
monthly to the GSA Transportation Audits Division. GSA Transportation
Audits Division can provide your agency a Prepayment Audit Program with
a monthly reporting template upon request at [email protected] (see
Sec. 102-118.35 for definition of TD).
(2) GSA will store paid transportation bills under the General
Records Schedule 9, Travel and Transportation
[[Page 59099]]
(36 CFR Chapter XII, 1228.22), which requires keeping records for 3
years. GSA will arrange for storage of any document requiring special
handling, such as bankruptcy and court cases. These bills will be
retained pursuant to 44 U.S.C. 3309 until claims have been settled;
(f) Establish procedures in which transportation bills not subject
to prepayment audit, such as bills for unused tickets and charge card
billings, are handled separately and are also forwarded monthly to the
GSA Transportation Audits Division;
(g) A minimum dollar threshold for transportation bills subject to
audit;
(h) For transportation payments made through cost reimbursable
contracts, the agency must include a statement in the contract or rate
tender that the contractor shall submit to the address and in the
electronic format identified for prepayment audit, transportation
documents which show that the United States will assume freight charges
that were paid by the contractor. Cost reimbursable contractors shall
only submit for audit bills of lading with freight shipment charges
exceeding $100.00. Bills under $100.00 shall be retained on-site by the
contractor and made available for on-site Government audits (Federal
Acquisition Regulation (FAR) 52.247-67);
(i) Require your agency's paying office to offset, if directed by
GSA's Transportation Audits Division, debts from amounts owed to the
TSP within the 3 years (31 U.S.C. 3726 (b));
(j) Complete accurate audits of all transportation bills and notify
the TSP of any adjustment within 7 calendar days of receipt of the
bill;
(k) Establish an appeals process in the approved prepayment audit
program for a TSP to appeal any reduction in the amount billed. It is
recommended that the agency establish an electronic appeal process that
will direct TSP-filed appeals to an agency official for determination
of the claim. Your agency must complete the review of the appeal and
inform the TSP either electronically or in writing the agency
determination within 30 calendar days.
(1) Create accurate notices and agency procedures for notifying the
TSPs with a detailed description of 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, Taxpayer
identification number (TIN), standard carrier alpha code (SCAC) or
other agency unique identifier for the carrier, the charges calculated
by the agency, the specific reasons including applicable rate authority
for the rejection, and information of the appeal process; and
(2) Implement a unique agency numbering system to handle commercial
paper and practices (see Sec. 102-118.55 for information on
administrative procedures your agency must establish).
Agency Requirements With Transportation Service Providers
Sec. 102-118.290 Must my agency notify the TSP of any adjustment to
the TSP bill?
(a) Yes, your agency must notify the TSP of any adjustment to the
TSP bill either electronically or in writing within seven calendar days
of the agency receipt of the bill.
(b) This notice must refer to the--
(1) TSP's bill number;
(2) Agency name;
(3) TSP's TIN;
(4) SCAC or other agency identifier for the carrier, such as the
Department of Defense Activity Address Code (DODAC) number;
(5) Document reference number (DRN);
(6) Date invoice submitted;
(7) Amount billed;
(8) Date invoice was approved for payment;
(9) Date and amount agency paid;
(10) Payment location number and agency organization name;
(11) Payment voucher number;
(12) Complete contract, tender or tariff authority, including item
or section number; and
(13) Complete information on the agency appeal process.
(c) A TSP must submit claims to the agency within three years under
the guidelines established in subpart F of this part.
Sec. 102-118.295 Does my agency transportation prepayment audit
program need to establish appeal procedures?
Yes, your agency must establish, in the approved prepayment audit
program, an appeals process for a TSP to appeal any reduction in the
amount billed. It is recommended the agency establish an electronic
appeal process that will direct TSP-filed appeals to an agency official
for determination of the claim. Your agency must complete the review of
the appeal and inform the TSP of the agency determination within 30
calendar days of the receipt of the appeal, either electronically or in
writing.
Sec. 102-118.300 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 must submit, within 30 calendar days, all relevant
transportation documentation associated with the dispute, including a
complete billing history and the appropriation or fund charged, to GSA
Transportation Audits Division by email at [email protected], or by
mail to: U.S. General Services Administration, 1800 F St. NW., 3rd
Floor, Mail Hub 3400, Washington, DC 20405.
(b) The GSA Transportation Audits Division will review the appeal
of an agency's final, full, or partial denial of a claim and issue a
decision within 30 calendar days of receipt of appeal.
(c) A TSP must submit claims to the agency within three years under
the guidelines established in subpart F of this part.
Sec. 102-118.305 What information must be on all transportation
payment records that have completed my agency's prepayment audit?
(a) The following information must be annotated on all
transportation payment records, electronically or on paper, that have
completed your agency's prepayment audit and for submission to GSA
Transportation Audits Division:
(1) The date the bill was received from a TSP;
(2) A TSP's bill number;
(3) Your agency name;
(4) DRN;
(5) Amount billed;
(6) Date invoice was approved for payment;
(7) Date and amount agency paid;
(8) Payment location code number and office or organization name;
(9) Payment voucher number;
(10) Complete contract, tender or tariff authority, including item
or section number;
(11) The TSP's TIN;
(12) The TSP's SCAC or other agency identifier for the carrier,
such as the DODAC number;
(13) The auditor's authorization code or initials; and
(14) The date and 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.'' This handbook is located at
www.gsa.gov/transaudits.
Sec. 102-118.310 What does the GSA Transportation Audits Division
consider when verifying an agency prepayment audit program?
GSA Transportation 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.
[[Page 59100]]
Sec. 102-118.315 How does my agency contact the GSA Transportation
Audits Division?
Your agency may contact the GSA Transportation Audits Division at
[email protected].
Sec. 102-118.320 What action should my agency take if the agency's
transportation prepayment audits program changes?
(a) If your agency's transportation prepayment audit program
changes in any way to include changes in prepayment auditors, your
agency must submit the CFO-approved revised transportation prepayment
audit program to GSA Transportation Audits Division via email at
[email protected], Subject line: Agency PPA-Revised.
(b) If GSA determines the agency's approved plan is insufficient,
GSA will contact the agency CFO to inform of the prepayment audit
program deficiencies and request corrective action and resubmission to
GSA Transportation Audits Division.
Agency Certifying and Disbursing Officers
Sec. 102-118.325 Does establishing an agency Chief Financial Officer-
approved transportation prepayment audit program change the
responsibilities of the certifying officers?
No, in a prepayment audit program, the 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. 102-118.330 Does a transportation 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 bill of lading or passenger transportation request when
the Administrator of General Services or designee waives the prepayment
audit requirement and your agency uses postpayment audits.
Sec. 102-118.335 What relief from liability is available for the
certifying official under a transportation postpayment audit?
The agency counsel relieves a certifying official from liability
for transportation 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. 102-118.340 Do the requirements of a transportation prepayment
audit change the disbursing official's liability for overpayment?
No, the disbursing official has a liability for overpayments on all
transportation bills subject to prepayment audit (31 U.S.C. 3322).
Sec. 102-118.345 Where does relief from transportation 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).
Exemptions and Suspensions of the Mandatory Transportation Prepayment
Audit Program
Sec. 102-118.350 What agency has the authority to grant an exemption
from the transportation prepayment audit requirement?
Only the Administrator of General Services or their designee has
the authority to grant an exemption for a specific time period from the
prepayment audit requirement. The Administrator may exempt bills, a
particular mode or modes of transportation, or an agency or subagency
from a prepayment audit and verification and in lieu thereof require a
postpayment audit, based on cost effectiveness, public interest, or
other factors the Administrator considers appropriate (31 U.S.C.
3726(a)(2)).
Sec. 102-118.355 How does my agency apply for an exemption from a
transportation prepayment audit requirement?
Your agency must submit a request for an exemption from the
requirement to perform transportation prepayment audits by email to
[email protected], Subject Line: Prepayment Audit
Exemption Request. The agency exemption request must explain in detail
why the request is submitted based on cost effectiveness, public
interest, or other factors the Administrator considers appropriate,
such as transportation modes, dollar thresholds, adversely affecting
the agency's mission, or is not feasible (31 U.S.C. 3726(a)(2)).
Sec. 102-118.360 How long will GSA take to respond to an exemption
request from a transportation prepayment audit requirement?
GSA will respond to the exemption from the transportation
prepayment audit requirement request within 180 calendar days from the
date of receipt.
Sec. 102-118.365 Can my agency renew an exemption from the
transportation prepayment audit requirements?
Your agency exemption to the transportation prepayment audit
requirements does not exceed the period granted in the GSA issued
exemption letter. If your agency determines that it will desire another
exemption for the transportation prepayment audit requirements, your
agency must submit this request a minimum of six months before the
current exemption period expires.
Sec. 102-118.370 Are my agency's prepayment audited transportation
documentation subject to periodic postpayment audit oversight from the
GSA Transportation Audits Division?
Yes, all your agency's prepayment audited transportation documents
are subject to the GSA Transportation Audits Division postpayment audit
oversight. Upon request, GSA Transportation Audits Division will
provide a report analyzing your agency's prepayment audit program.
Sec. 102-118.375 Can GSA suspend my agency's transportation
prepayment audit program?
(a) Yes, the Director of the GSA Transportation Audits Division may
suspend your agency's transportation prepayment audit program until the
agency corrects their prepayment audit program deficiencies. This
suspension may be in whole or in part. If GSA suspends your agency's
transportation prepayment audit and GSA assumes responsibility for
auditing an agencies prepayment audit program, the agency will
reimburse GSA for the expense.
(b) This suspension determination is based on identification of a
systematic or frequent failure of the agency's transportation
prepayment audit program to--
(1) Conduct a prepayment audit of your agency's transportation
bills;
(2) Abide by the terms of the Prompt Payment Act (31 U.S.C. 3901,
et seq.);
(c) Adjudicate TSP claims disputing prepayment audit positions of
the agency regularly within 30 calendar days of receipt;
(d) Follow Comptroller General decisions, Civilian Board of
Contract Appeals decisions, the Federal Management Regulation and GSA
[[Page 59101]]
instructions or precedents about substantive and procedure matters;
and/or
(e) Provide information and data or to cooperate with on-site
inspections necessary to conduct a quality assurance review.
0
10. Revise Subpart E to read as follows:
Subpart E--Postpayment Transportation Audits
Sec.
102-118.400 What is a transportation postpayment audit?
102-118.405 Who conducts a transportation postpayment audit?
102-118.410 If agencies perform the mandatory transportation
prepayment audit, will this eliminate the requirement for a
transportation postpayment audit conducted by GSA?
102-118.415 Can the Administrator of General Services exempt the
transportation postpayment audit requirement?
102-118.420 Is my agency allowed to perform a postpayment audit on
our transportation documents?
102-118.425 Is my agency required to forward all transportation
documents to the GSA Transportation Audits Division, and what
information must be on these documents?
102-118.430 What is the process the GSA Transportation Audits
Division employs to conduct a postpayment audit?
102-118.435 What are the transportation postpayment audit roles and
responsibilities of the GSA Transportation Audits Division?
102-118.440 Does my agency pay for a transportation postpayment
audit conducted by the GSA Transportation Audits Division?
102-118.445 How do I contact the GSA Transportation Audits Division?
Subpart E--Postpayment Transportation Audits
Sec. 102-118.400 What is a transportation postpayment audit?
Postpayment audit means an audit of transportation billing
documents after payment to decide their validity, propriety, and
conformity of rates with tariffs, quotations, agreements, contracts, or
tenders. The audit may also include subsequent adjustments and
collections actions taken against a transportation service provider
(TSP) by the Government (31 U.S.C. 3726).
Sec. 102-118.405 Who conducts a transportation postpayment audit?
The Administrator of General Services (GSA) has a congressionally
mandated responsibility under 31 U.S.C. 3726 to perform oversight on
transportation bills. The GSA Transportation Audits Division
accomplishes this oversight by conducting postpayment audits of all
agencies' transportation bills.
Sec. 102-118.410 If agencies perform the mandatory transportation
prepayment audit, will this eliminate the requirement for a
transportation postpayment audit conducted by GSA?
No, agency compliance to the mandatory transportation prepayment
audit does not eliminate the requirement of the transportation
postpayment audit conducted by GSA (31 U.S.C. 3726).
Sec. 102-118.415 Can the Administrator of General Services exempt the
transportation postpayment audit requirement?
Yes, the Administrator of General Services or designee may exempt,
for a specified time, an agency or subagency from the GSA
transportation postpayment audit oversight requirements of this
subpart. The Administrator can also exempt modes (31 U.S.C. 3726).
Sec. 102-118.420 Is my agency allowed to perform a postpayment audit
on our transportation documents?
No, your agency may not perform a transportation postpayment audit
unless specifically directed to do so by the Administrator in lieu of a
prepayment audit. Whether such an exemption is granted or not, your
agency must forward all transportation documents (TD) to GSA for
postpayment audit (see Sec. 102-118.35 for definition of TD).
Sec. 102-118.425 Is my agency required to forward all transportation
documents to GSA Transportation Audits Division, and what information
must be on these documents?
(a) Yes, your agency must provide all TDs to GSA Transportation
Audits Division (see Sec. 102-118.35 for definition of TD).
(b) The following information must be annotated on all TDs and
bills that have completed your agency's prepayment audit for submission
to GSA Transportation Audits Division:
(1) The date the bill was received from a TSP;
(2) A TSP's bill number;
(3) Your agency name;
(4) A Document Reference Number (DRN);
(5) Amount billed;
(6) Date invoice was approved for payment;
(7) Date and amount agency paid;
(8) Payment location code number and office name;
(9) Payment voucher number;
(10) Complete contract, tender, or tariff authority, including item
or section number;
(11) The TSP's taxpayer identification number (TIN);
(12) The TSP's standard carrier alpha code (SCAC) or other agency
unique identifier for the carrier such as the Department of Defense
Activity Address Code (DODAC) number;
(13) The auditor's full name, email address, contact telephone
number, and authorization code; and
(14) A copy of any statement of difference sent to the TSP.
(c) Your agency can find additional guidance in the ``U.S.
Government Freight Transportation Handbook.'' This handbook is located
at www.gsa.gov/transaudits.
Sec. 102-118.430 What is the process the GSA Transportation Audits
Division employs to conduct a postpayment audit?
The GSA Transportation Audits Division:
(a) Audits select TSP bills after payment;
(b) Audits select TSP bills before payment as needed to protect the
Government's interest;
(c) Examines, settles, and adjusts accounts involving payment for
transportation and related services for the account of agencies;
(d) Adjudicates and settles transportation claims by and against
agencies;
(e) Offsets an overcharge by any TSP from an amount subsequently
found to be due that TSP;
(f) Issues a Notice of Overcharge stating that a TSP owes a debt to
the agency. This notice states the amount paid and the basis for the
proper charge for the document reference number (DRN), and cites
applicable contract, tariff, or tender, along with other data relied on
to support the overcharge; and
(g) Issues 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 is subject to interest charges, penalties, and
administrative cost under 31 U.S.C. 3717.
Sec. 102-118.435 What are the transportation postpayment audit roles
and responsibilities of the GSA Transportation Audits Division?
(a) The GSA Transportation Audits Division role is to perform the
oversight responsibility of transportation prepayment and postpayment
granted to the Administrator. The GSA Transportation Audits Division
will--
(1) Examine and analyze transportation documents and 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;
[[Page 59102]]
(2) Examine, adjudicate, and settle transportation claims by and
against the agency;
(3) Collect from TSPs by refund, setoff, offset, or other means,
the amounts determined to be due the agency;
(4) Adjust, terminate, or suspend debts due on TSP overcharges;
(5) 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;
(6) 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;
(7) 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;
(8) Furnish information on rates, fares, routes, and related
technical data upon request;
(9) Inform an agency of irregular shipping routing practices,
inadequate commodity descriptions, excessive transportation cost
authorizations, and unsound principles employed in traffic and
transportation management; and
(10) Confer with individual TSPs or related groups and associations
presenting specific modes of transportation to resolve mutual problems
concerning technical and accounting matters, and providing information
on requirements.
(b) The Administrator of General Services may provide
transportation audit and related technical assistance services, on a
reimbursable basis, to any other agency. Such reimbursements may be
credited to the appropriate revolving fund or appropriation from which
the expenses were incurred (31 U.S.C. 3726(j)).
Sec. 102-118.440 Does my agency pay for a transportation postpayment
audit conducted by the GSA Transportation Audits Division?
The GSA Transportation Audits Division does not charge agencies a
fee for conducting the transportation postpayment audit. Transportation
postpayment audits expenses are financed from overpayments collected
from the TSP's bills previously paid by the agency and similar type of
refunds. However, if a postpayment audit is conducted in lieu of a
prepayment audit at the request of an agency, or if there are
additional services required, GSA may charge the agency.
Sec. 102-118.445 How do I contact the GSA Transportation Audits
Division?
You may contact the GSA Transportation Audits Division by email at
[email protected].
[FR Doc. 2015-24858 Filed 9-30-15; 8:45 am]
BILLING CODE 6820-14-P