§ 101-41.304-2 - Limited authority to use commercial forms and procedures.

(a) Discretionary authority to approve use of commercial forms and procedures. Subject to the limitations in paragraph (b) of this section, the head of an agency or his designee may elect to use commercial bills of lading or commercial express receipts and commercial procedures, rather than the regular GBL and related procedures to procure freight or express transportation services for certain small shipments. This discretionary authority is directed generally toward those situations involving shipments of a recurring nature where it is cumbersome and impractical to issue GBL's. In implementing this small shipment procedure, agencies shall adhere to the restrictions on the use of foreign-flag carriers as set forth in § 101-41.302-4(b).

(b) Limitations on use of commercial forms and procedures. The use of commercial forms and procedures for small shipments is subject to the limitations and instructions set forth in paragraphs (b)(1) through (b)(4) of this section.

(1) Upon determination that commercial forms and procedures are to be used, the agency shall establish administrative regulations and procedures clearly defining the particular shipping circumstances and conditions for their use. Notice of adoption and of any subsequent cancellation of the small shipment procedure prescribed in this § 101-41.304-2 shall be sent to the General Services Administration (BWCP), Washington, DC 20405.

(2) The use of commercial forms and procedures for small shipments, as prescribed in § 101-41.304-2, shall be optional on the part of carriers and forwarders. However, a letter of agreement signifying acceptance of the arrangements must be executed and filed with the participating agency by the carrier or forwarder. That letter shall include the following provision:

The letter of agreement also shall include, where applicable, the carrier's concurrence in the use of cash for payment of transportation charges for these shipments as set forth in paragraph (d)(3) of this section.

(3) The commercial forms and procedures authorized in § 101-41.304-2 are to be applied only to the following types of shipments:

(i) Shipments for which the transportation charges ordinarily do not exceed $100 per shipment and the occasional exception does not exceed that monetary limitation by an unreasonable amount.

(ii) Single-parcel shipments via express, courier, small package, or similar carriers, without regard to shipping cost, if the parcel shipped weighs 70 pounds or less and does not exceed 108 inches in length and girth combined.

(iii) Multi-parcel shipments via express, courier, small package, or similar carriers for which the transportation charges do not exceed $250 per shipment.

(4) Commercial forms and procedures shall not be used for household goods van shipments.

(c) Billing of charges for transportation services furnished on commercial forms. Charges for transportation services furnished under commercial documenatation, as authorized by this § 101-41.304-2, shall be billed by and paid to the origin carrier or forwarder and may not be waived to any other carrier or forwarder. Also, these charges shall be billed on the commercial forms customarily used by carriers, rather than on the SF 1113, in order to clearly identify the bills as commercial-type shipments.

(d) Payment of charges for transportation services procured on commercial forms. (1) Payment of charges for transportation furnished under the commercial forms and procedures authorized herein are subject to the standards set forth in subpart 101-41.4.

(2) Payment of charges for transportation services procured on commercial forms as prescribed in § 101-41.304-2 may be made prior to or upon completion of service and at either origin or destination only upon presentation by the origin carrier or forwarder of the usual ticket, receipt, bill of lading, or equivalent document covering the service involved, subject to later recovery by deduction or otherwise of any payment made for any service not received as ordered by the United States. The commercial document shall be clearly annotated to indicate the point at which payment shall be made. Further, regarding shipments paid at origin, the consignee or receiver of a shipment not delivered in good order shall notify the shipper so that proper claim action may be initiated.

(3) Payment may be made in cash from imprest funds at the option of the agency but only with the concurrence of the carrier or forwarder. Imprest fund disbursements, forms, and accountability for the transportation transactions specified herein shall be made in accordance with paragraph (d)(2) of this section and the regulations of the General Accounting Office relating to imprest funds.

(4) All payments, including supplemental payments, are subject to otherwise applicable statutory limitations.

(e) Administrative procedures for processing vouchers covering small shipments on commercial forms. (1) The disbursing forms and documentation prescribed by the Department of the Treasury shall be used for commercial-type billings. Agencies shall not classify these paid bills as transportation vouchers for submission to GSA for postpayment audit but shall retain them in file for site audit.

(2) Supplemental transportation claims arising after payment of the original bills should ordinarily be settled by agencies direct with the carriers. However, claims involving a doubtful question of fact or law, or a question regarding the amounts properly due, may be forwarded to GSA (BWCA) for direct settlement as prescribed in subpart 101-41.6. The complete record shall be furnished including a reference to the appropriation or fund to be charged.

(3) Each agency shall establish adequate procedures and controls to pre-vent and detect duplicate payments, properly account for expenditures, and require notice from the consignee when a discrepancy in shipment occurs. Agencies may prescribe the use of statistical sampling procedures in accordance with General Accounting Office regulations, for examining and approving those disbursement vouchers.

(31 U.S.C. 952, 31 U.S.C. 3726 and sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c))