[Federal Register Volume 62, Number 78 (Wednesday, April 23, 1997)]
[Proposed Rules]
[Pages 19720-19723]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10514]
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GENERAL SERVICES ADMINISTRATION
41 CFR Part 101-40
RIN 3090-AG34
Transportation and Traffic Management Regulations
AGENCY: Office of Governmentwide Policy, GSA.
ACTION: Proposed rule.
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SUMMARY: The General Services Administration proposes to amend Part
101-40 of the Federal Property Management Regulations by revising and/
or removing text in the first three subparts to reflect procedural and
policy changes. This action gives individual agencies greater
flexibility and authority for administering their freight and household
goods transportation and traffic management activities.
DATES: Comments must be received by June 23, 1997.
ADDRESSES: Written comments must be sent to the General Services
Administration (MTT), 18th & F Streets, NW, Washington, DC 20405.
FOR FURTHER INFORMATION CONTACT: William P. Hobson, Travel and
Transportation Management Policy Division, (202) 501-0483.
SUPPLEMENTARY INFORMATION: The General Services Administration (GSA)
has determined that this rule is not a significant regulatory action
for the purpose of Executive Order 12866 of September 30, 1993, because
it is not likely to result in an annual effect on the economy of $100
million or more; a major increase in costs to consumers or others; or
significant adverse effects. Therefore, a regulatory impact analysis
has not been prepared. GSA has based all administrative decisions
underlying this rule on adequate information concerning the need for
and consequences of this rule; has determined that potential benefits
to society from this rule outweigh the potential costs and has
maximized the net benefit; and has chosen the alternative approach
involving the least net cost to society.
The reporting forms required by this regulation are not subject to
the provisions of the Paperwork Reduction Act of 1996 (44 U.S.C.
Chapter 35). Therefore, the Paperwork Reduction Act does not apply.
Pursuant to the Regulatory Flexibility Act, it is determined that
this rule will not have a significant economic impact on a substantial
number of small entities. Therefore, no regulatory flexibility analysis
has been prepared.
List of Subjects in 41 CFR Part 101-40
Freight, Government property management, Moving of household goods,
Reporting and recordkeeping requirements, Transportation.
GSA proposes to amend 41 CFR Part 101-40 as follows:
PART 101-40--TRANSPORTATION AND TRAFFIC MANAGEMENT
1. The authority citation for 41 CFR Part 101-40 continues to read
as follows:
Authority: Sec. 205(c), 63 Stat. 390; 40 U.S.C. 486(c).
Sec. 101-40.001 [Reserved]
2. Section 101-40.001 is removed and reserved.
Subpart 101-40.1--General Provisions
3. Section 101-40.101-1 is revised to read as follows:
Sec. 101-40.101-1 Freight transportation management assistance.
Executive agencies may request assistance from the Department of
State on shipments of household goods moving from, to, and between
foreign countries. The Department of State, if requested, will prepare
documents, book shipments, and make all customs arrangements.
Assistance on movements originating abroad should be arranged through
the nearest Embassy or Consulate. International shipments originating
in the conterminous United States can be arranged with Transportation
Operations, Room 1244, Department of State, Washington, DC 20520, (202)
647-4140 or 1-800-424-2947.
Sec. 101-40.101-2 [Removed and Reserved]
4. Section 101-40.101-2 is removed and reserved.
Sec. 101-40.106 [Removed and Reserved]
Sec. 101-40.107 [Removed and Reserved]
Sec. 101-40.108 [Removed and Reserved]
5. Sections 101-40.106 through 101-40.108 are removed and reserved.
Sec. 101-40.109-1 [Removed and Reserved]
6. Section 101-40.109-1 is removed and reserved.
7. Section 101-40.109-2 is revised to read as follows:
Sec. 101-40.109-2 Office relocation contracts.
(a) Prior to entering into office relocation contracts, agencies
should ensure they are complying with the provisions of FPMR Temp. Reg.
D-73, or reissues thereof. (See 41 CFR, appendix to subchapter D.)
Compliance
[[Page 19721]]
assistance may be obtained from the respective regional directors of
the GSA Public Building Service, Real Estate Division.
(b) Arrangements for moving services, other than local office
relocation moves, will be contracted for using competitive procedures
or other appropriate relocation arrangements including Government
tenders pursuant to section 13712 of the ICC Termination Act of 1995
(49 U.S.C. 13712).
(c) Local office relocation moves must be acquired by contract.
Neither the statutory exemption provided for in paragraph (3) of
section 7 of the McNamara-O'Hara Service Contract Act of 1965 (Service
Contract Act) (41 U.S.C. 351 et seq.) exempting ``any contract for the
carriage of freight of personnel * * * where published tariff rates
are in effect'' nor the administrative exemption for contracts for the
carriage of freight or personnel subject to rates covered by section
13712 of the ICC Termination Act of 1995. (See 29 CFR 4.123.) The
Service Contract Act applies to local office relocation moves where
transportation costs (such as packing, crating, handling, loading, and/
or storage of goods prior to or following line-haul transportation) are
incidental to the principal purpose of the contract. (See 29 CFR
4.118.)
Sec. 101-40.109-3 [Removed and Reserved]
8. Section 101-40.109-3 is removed and reserved.
9. Section 101-40.110-2 is revised to read as follows:
Sec. 101-40.110-2 Minority business enterprises.
Consistent with the policies of the Government stated in 48 CFR
part 19, minority business enterprises shall have the maximum
practicable opportunity to participate in the performance of Government
purchases and contracts. Agencies shall encourage transportation-
related minority enterprises, regardless of the mode of transportation,
to identify themselves and provide services that will support the
agencies' transportation requirements.
10. Section 101-40.111 is revised to read as follows:
Sec. 101-40.111 Maintenance of tariff files.
Executive agencies should maintain those tariffs and rate tenders
necessary to meet their operational requirements.
11. Section 101-40.112 is amended by revising paragraph (b) to read
as follows:
Sec. 101-40.112 Transportation factors in the location of Government
facilities.
* * * * *
(b) If changes in the location, relocation or deactivation of
Government installations or facilities are contemplated and will result
in significant changes in the movement of property, executive agencies
shall ensure that consideration is given to the various transportation
factors that may be involved in this relocation or deactivation.
12. The heading of Subpart 101-40.2 is revised to read as follows:
Subpart 101-40.2--Household Goods Transportation
13. Section 101-40.200 is revised to read as follows:
Sec. 101-40.200 Scope of subpart.
This subpart prescribes regulations concerning the movement of
household goods of Government employees and their dependents who are
eligible for relocation within the conterminous United States. As used
in this subpart, the term ``household goods'' includes personal
effects, and the term ``employee(s)'' includes eligible dependents.
Sec. 101-40.202 [Removed and Reserved]
14. Section 101-40.202 is removed and reserved.
15. The heading of Section 101-40.203 is revised to read as
follows:
Sec. 101-40.203 Household goods movement evaluation procedures.
16. Section 101-40.203-1 is revised to read as follows:
Sec. 101-40.203-1 Negotiations by executive agencies.
Executive agencies are authorized to negotiate with carriers in
establishing or modifying rates, charges, classification ratings,
services, and rules or regulations for household goods transportation.
(See Sec. 101-40.306.)
17. Section 101-40.203-2 is amended by revising paragraph (a) to
read as follows:
Sec. 101-40.203-2 The GBL method.
(a) For the purposes of this subpart, shipments of Government
employees' household goods authorized to move under a Government bill
of lading (GBL) are classified as ``GBL method'' shipments. This method
is distinguishable from the commuted rate system (Sec. 101-40.203-3) in
that when a GBL is used, the Government, not the employee, is the
shipper and the Government pays the carrier the applicable
transportation charges. The decision on which method shall be
authorized is the decision of the employing agency, and shall be based
on a comparison of costs between the two systems (see Sec. 101-40.203-
4). When a shipment moves under a GBL, the agency or its agent prepares
the bill of lading, books the shipment, and in event of loss or damage
to the household goods, may either file claims directly with the
carrier, on behalf of the employee, or assist the employee in filing
claims against the carrier.
* * * * *
18. Section 101-40.203-4 is revised to read as follows:
Sec. 101-40.203-4 Cost comparisons.
Agencies shall compare the costs of using the commuted rate system
with the cost of using the GBL method. The comparisons shall include
the costs of transportation, packing, and other accessorial services.
The calculation of costs for the commuted rate system shall be based on
the Commuted Rate Schedule in effect at the time the cost comparison is
prepared. The calculation of costs of the GBL method shall be based on
actual carrier rates and charges as maintained by a carrier or
otherwise tendered to the Government. Section 302-8.3(c)(4)(i) of the
Federal Travel Regulation (41 CFR chapters 301 through 304) provides
that the commuted rate system shall be used for individual employee
transfers without consideration being given to the GBL method, except
that the GBL method may be used if the actual transportation costs
(including the costs of packing and other accessorial services) to be
incurred by the Government are predetermined and can be expected to
result in a real savings to the Government of $100 or more. Agencies
requiring the Commuted Rate Schedule for Transportation of Household
Goods shall prepare a Standard Form 1, Printing and Binding
Requisition, and send it to: Superintendent of Documents, Departmental
Account Representative Division, U.S. Government Printing Office (GPO),
Washington, DC 20401.
19. Section 101-40.204 is revised to read as follows:
Sec. 101-40.204 Carrier selection and distribution of shipments.
Agencies authorizing the GBL method shall select the eligible
carrier that meets the agency's service requirements and offers the
lowest cost consistent therewith. Deviations from this methodology
shall be documented in the requesting agency's records. (See Sec. 101-
40.302.)
20. Section 101-40.205 is revised to read as follows:
[[Page 19722]]
Sec. 101-40.205 Quality control.
Agencies should monitor the performance and quality of household
goods carriers' service, including the extent of its and its relocating
employees' satisfaction with the carriers' service. Relocating
employees should monitor the direct performance of carrier service,
including but not limited to such factors as quality of packing,
personal courtesy, communication of services, problem responsiveness,
delivery without damage, delivery on time, and overall quality. Traffic
managers should monitor the carriers' management of the move and how
that management affects carrier service, including but not limited to
such factors as courtesy at tracing, communicating changes,
flexibility, timeliness of pickup and delivery, and overall quality.
21. Section 101-40.206 is amended by revising the introductory text
and paragraph (a) to read as follows:
Sec. 101-40.206 Household goods carriers' liability.
Carriers' Government rate tenders and their applicable tariffs
establish the carriers' minimum liability for the loss of or damage to
Government employees' household goods transported in conjunction with
this subpart. A value exceeding the tender or tariff minimum may be
declared on the bill of lading, but the carrier will charge a valuation
fee for each $100, or fraction thereof, of such higher declared
valuation. Employees should be fully informed as to the extent the
Government will be monetarily responsible for the transportation of
household goods, the differences in standard liability under Government
and commercial bills of lading, the steps necessary to increase or
decrease the carriers' liability, and the relative advantage the
employee would have under the Military Personnel and Civilian
Employees' Claims Act of 1964 (see Sec. 101-40.207(b)) when the
employee chooses to declare a valuation that either exceeds (in which
case, the employee is liable for an excess valuation charge) or does
not exceed the tender or tariff minimum.
(a) Carriers' Government tenders or their tariffs establish the
carriers' minimum liability for loss or damage, and carriers' tenders
or tariffs prescribe any additional charges for which the Government
may be responsible relative to that liability. In the absence of an
employee's written request for a valuation that exceeds the minimum
liability specified in the tender or tariff, all GBLs should be
annotated to show the minimum, liability specified in the tender or
tariff. If an employee requests the agency to declare a valuation that
exceeds the tender or tariff minimum, the agency will enter the
declaration on the GBL, pay the carrier the valuation fee (if
applicable), and collect the fee from the employee; alternatively, the
agency will enter the declaration on the GBL and direct the carrier to
collect the valuation fee (if applicable) directly from the employee.
Should the employee's request for increased valuation be made after the
GBL has been tendered to the carrier but before the shipment has been
picked up, the employee should not make a separate arrangement with the
carrier for increased valuation. Instead, the employee should notify
the GBL issuing officer of the valuation desired, and request that the
original GBL be amended on Standard Form 1200, Government Bill of
Lading Correction Notice. (See Sec. 101-41.4901-1200.)
* * * * *
22. Section 101-40.207 is amended by revising paragraphs (a), (c),
and (d) and by removing paragraph (e) to read as follows:
Sec. 101-40.207 Household goods loss and damage claims.
(a) Claims for loss and damage to household goods will normally be
filed and processed with the line-haul carrier; i.e., the carrier to
which the household goods were tendered and which is shown on the bill
of lading as having received the shipment. Depending on agency policy,
claims for the repair, replacement, or loss of household goods may be
filed by either the agency or the employee (as owner of the goods).
When the employee files the claim, the agency will furnish the employee
necessary assistance in claim procedures.
* * * * *
(c) When settling a claim for loss or damage to a shipment of
household goods, carriers may settle either for the full value declared
by the shipper or arrive at the current actual value of the lost or
damaged item by using the criterion of replacement cost of the lost or
damaged item, less depreciation. The basis upon which carriers will
settle a claim is contained in carriers' tariffs or tenders offered the
Government under section 13712 of the ICC Termination Act of 1995.
(d) Regulations governing household goods carriers subject to the
ICC Termination Act of 1995 are contained in 49 CFR part 1056.
23. Section 101-40.208 is revised to read as follows:
Sec. 101-40.208 Temporary nonuse, debarment, or suspension of
household goods carriers.
Based on information obtained as provided in Sec. 101-40.205 or
documented instances of other service complaints or deficiencies,
agencies may place household goods carriers in temporary nonuse,
debarred, or suspended status in accordance with the procedures
specified in subpart 101-40.4.
Subpart 101-40.3--Rates, Routes, and Services
Sec. 101-40.301 [Removed and Reserved]
24. Section 101-40.301 is removed and reserved.
25. Section 101-40.302 is revised to read as follows:
Sec. 101-40.302 Standard routing principle.
Shipments shall be routed using the mode of transportation, or
individual carrier or carriers within the mode, that can provide the
required service at the lowest overall delivered cost to the
Government. Executive agency shippers will comply with all Federal,
State, and local laws and regulations relating to vehicular size and
weight limitations.
26. Section 101-40.303 is revised to read as follows:
Sec. 101-40.303 Application of the standard routing principle.
In the application of the standard routing principle, the principal
factors for consideration, in their relative order of importance, are:
Satisfactory service, aggregate delivered cost, equitable distribution
of traffic, and least fuel-consumptive carrier/mode.
27. Section 101-40.303-1 is amended by revising the introductory
paragraph to read as follows:
Sec. 101-40.303-1 Service requirements.
The following factors should be considered in determining whether a
carrier or mode of transportation can meet an agency's transportation
service requirements for each individual shipment:
* * * * *
28. Section 101-40.303-2 is revised to read as follows:
Sec. 101-40.303-2 Aggregate delivered costs.
When comparing aggregate delivered costs to determine the most
economical routing of shipments consistent with service requirements,
consideration should be given to all factors which increase costs to
the shipping or receiving activity. In addition to the actual
transportation rates and charges, other cost factors, such as packing,
blocking, bracing, dunnage, drayage,
[[Page 19723]]
loading, and unloading, should be considered where these items affect
overall costs.
29. Section 101-40.303-3 is revised to read as follows:
Sec. 101-40.303-3 Equitable distribution of traffic among carriers.
When more than one mode of transportation or more than one carrier
within a mode can provide equally satisfactory service at the same
aggregate cost and all modes are equally fuel efficient, the traffic
should be distributed as equally as practicable among the modes and
among the carriers within the modes. When socially or economically
disadvantaged carriers and women-owned carriers are among the eligible
competing carriers, positive action will be taken to include such
carriers in the equitable distribution of traffic.
30. Section 101-40.303-4 is revised to read as follows:
Sec. 101-40.303-4 Most fuel efficient mode.
When more than one mode can satisfy the service requirements of a
specific shipment at the same lowest aggregate delivered cost, the mode
determined to be the most fuel efficient should be selected. In
determining the most fuel efficient mode, consideration should be given
to such factors as use of the carrier's equipment in ``turn around''
service, proximity of carrier equipment to the shipping activity, and
ability of carrier to provide the most direct service to the
destination points.
31. Section 101-40.304 is amended by revising paragraph (a) and by
removing paragraph (d) to read as follows:
Sec. 101-40.304 Description of property for shipment.
(a) Each shipment shall be described on the bill of lading or other
shipping document as provided in the applicable tender offered to the
Government by the carrier or as provided in the agreement negotiated
with the carrier by the Government or in accordance with the carrier's
tariff. Trade names such as ``Foamite'' or ``Formica'' or general terms
such as ``vehicles,'' ``furniture,'' or ``Government supplies,'' shall
not, unless specifically negotiated with the carrier by the Government,
be used as bill of lading descriptions.
* * * * *
Sec. 101-40.305-1 [Removed and Reserved]
Sec. 101-40.305-2 [Removed and Reserved]
32. Sections 101-40.305-1 and 101-40.305-2 are removed and
reserved.
33. Section 101-40.305-3 is revised to read as follows:
Sec. 101-40.305-3 Negotiations by executive agencies.
Executive agencies are authorized to negotiate with carriers in
establishing or modifying rates, charges, classification ratings,
services, and rules or regulations for freight transportation.
34. Section 101-40.306 is revised to read as follows:
Sec. 101-40.306 Rate tenders to the Government.
Under the provisions of sections 10721 (rail) and 13712 (motor) of
the ICC Termination Act of 1995 (49 U.S.C. 10721 and 13712), common
carriers are permitted to submit tenders to the Government which
contain transportation rates and/or charges for accessorial services
that are lower than those published in tariffs applicable to the
general public; and the Government may solicit from carriers offers to
provide transportation and accessorial services at rates and/or charges
lower than those published in tariffs applicable to the general public.
Rate tenders may be applied to shipments made by the Government on
behalf of foreign governments. In addition, rate tenders may be applied
to shipments other than those made by the Government provided the total
benefits accrue to the Government; that is, provided the Government
pays the charges or directly and completely reimburses the party that
initially pays the freight charges. (Interpretation of Government Rate
Tariff for Eastern Central Motor Carriers Association, Inc., 332 I.C.C.
161 (1968).)
35. Section 101-40.306-2 is amended by revising the introductory
text of paragraph (a) to read as follows:
Sec. 101-40.306-2 Required shipping documents and annotations.
(a) To qualify for transportation under section 10721 or 13712,
property must be shipped by or for the Government on:
* * * * *
36. Section 101-40.306-3 is revised to read as follows:
Sec. 101-40.306-3 Distribution.
Each agency receiving rate tenders shall promptly submit two copies
(including at least one signed copy) to the General Services
Administration, Office of Transportation Audits (FW), Washington, DC
20405.
37. Section 101-40.306-4 is revised to read as follows:
Sec. 101-40.306-4 Bill of lading endorsements.
To ensure application of Government rate tenders to all shipments
qualifying for their use, bills of lading covering the shipments shall
be endorsed with the applicable tender or quotation number and carrier
identification; e.g., ``Section 13712 quotation, ABC Transportation
Company, Tender No. 143.'' In addition, where commercial bills of
lading are used rather than Government bills of lading, the commercial
bills of lading shall be endorsed in conformance with the provisions
set forth in Sec. 101-40.306-2(a). (For specific regulations covering
transportation generated under cost-reimbursement type contracts, see
48 CFR 47.104-3.)
Dated: December 17, 1996.
G. Martin Wagner,
Associate Administrator, Office of Governmentwide Policy.
[FR Doc. 97-10514 Filed 4-22-97; 8:45 am]
BILLING CODE 6820-34-P
