[Federal Register Volume 84, Number 115 (Friday, June 14, 2019)]
[Notices]
[Page 27773]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-12594]


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DEPARTMENT OF DEFENSE

Department of the Army


Updated TR-12 Fuel Related Rate Adjustment Policy

AGENCY: Department of the Army, DoD.

ACTION: Notice.

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SUMMARY: The Military Surface Deployment and Distribution Command 
(SDDC) has published an updated TR-12 Fuel Relate Rate Adjustment 
Policy. This version of Policy No. TR-12 supersedes all previous 
versions of TR-12, except to the extent that a previous version is 
explicitly referenced as the basis for payment in an agreement with 
SDDC. This policy reflects the new Defense Freight Transportation 
services (DFTS) contract. A summary of changes is listed under 
SUPPLEMENTARY INFORMATION.

DATES: The mileage-based formula and the increment change will take 
effect on 10 June 2019 for FAK and TPS. No changes made to PSSFC FRA 
effective dates. This policy is in effect until superseded or withdrawn 
in writing.

FOR FURTHER INFORMATION CONTACT: Kevin Snider, (618) 220-7129.

SUPPLEMENTARY INFORMATION: 
    1. The FRA policy applies to commercial Transportation Service 
Provider (TSP) freight movements within the United States. This policy 
provides the transportation industry, including individual TSP(s), 
economic adjustment and reasonable relief for unanticipated increases 
in diesel fuel prices. TSP(s) are urged to consider anticipated 
variation in fuel prices when submitting or supplementing rates during 
rate filing and/or bid submission periods.
    2. FRA for freight-all-kinds (FAK) and transportation protective 
service (TPS) truckload (TL) shipments will be calculated using a 
mileage-based formula. The current percentage of line-haul formula will 
remain in effect for less-than-truckload (LTL) shipments. The 
percentage of line-haul increment factor will increase from $.10 to 
$.13. The baseline will remain at $2.50.
    3. The above changes will not apply to the Protective Security 
Service Freight Contract (PSSFC) for Defense Distribution Center, 
Warner Robins, GA (DDWG), or Defense Freight Transportation Services 
(DFTS). Shipments for PSSFC DDWG will be calculated using a percentage 
of line haul formula with $.10 increments. PSSFC DDWG and DFTS will 
remain at $2.50.
    4. SDDC will not pay FRA on Negotiated shipments. Bids submitted on 
or after 1 June 2013 must be submitted as an all-inclusive rate. SDDC 
will not pay FRA on ``Spot Bid'' or One Time Only (OTO) personal 
property movements, regardless of mode. SDDC will not pay FRA for rail, 
barge, pipeline, or air shipment. SDDC will not pay FRA on commercial 
security escort vehicles (CSEV).
    5. Written provision will be made in SDDC regulations, Tariff, and 
solicited tender agreements for FRAs. At the sole discretion of the 
appropriate Contracting Officer, this policy may be applied to Federal 
Acquisitions Regulation (FAR) contracts. SDDC has no obligation 
whatsoever to apply this policy to FAR contracts other than where the 
appropriate Contracting Officer determines that it shall apply.
    Miscellaneous: This announcement can be accessed via the SDDC 
website at: http://www.sddc.army.mil.

Jeff Olenick,
Director, Movement Support.
[FR Doc. 2019-12594 Filed 6-13-19; 8:45 am]
BILLING CODE 5001-03-P