[Federal Register Volume 61, Number 125 (Thursday, June 27, 1996)]
[Proposed Rules]
[Pages 33409-33414]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-16147]
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DEPARTMENT OF DEFENSE
Department of the Army
32 CFR Part 619
Program for Qualifying DOD, Motor Common Carriers of Perishable
Subsistence and Bulk Fuel
AGENCY: Military Traffic Management Command, DOD.
ACTION: Proposed rule.
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SUMMARY: This action revises the qualifications standards to the basic
agreement between the Military Traffic Management Command and Motor
Common Carriers for Approval to Transport General Commodities for and
on behalf of U.S. Department of Defense. This action also updates the
basic agreement between the Military Traffic Management Command and
Motor Common Carriers for Governing the Transportation of Hazardous
Material other than Class A and B Explosives for and on Behalf of the
U.S. Department of Defense. The proposal to amend those qualifications,
where appropriate, are submitted to be consistent with the program
qualifications for DOD Motor Common Carriers of Perishable Subsistence
and Bulk Fuel.
DATES: Comments must be received by July 29, 1996.
ADDRESSES: Headquarters, Military Traffic Management Command, ATTN:
MTOP-Q, 5611 Columbia Pike, Falls Church, Virginia 22041-5050.
FOR FURTHER INFORMATION CONTACT:
Mr. Rick Wirtz at (703) 681-6393; Headquarters, Military Traffic
Management Command, ATTN: MTOP-QQ, 5611 Columbia Pike, Falls Church,
Virginia 22041-5050.
SUPPLEMENTARY INFORMATION: Basic information on the Carrier
Qualification Program was previously published in the Federal Register,
53 FR 17970, 54 FR 17070, 54 FR 27667, 55 FR 7361, 55 FR 52976, 56 FR
45895, and 57 FR 11376.
Executive Order 12219
This proposed rule was reviewed under Executive Order 12219 and the
Secretary of the Army has classified this action as non major. The
effect of the rule on the economy will be less than $100 million.
Regulatory Flexibility Act
This rule has been reviewed with regard to the requirements of the
Regulatory Flexibility Act of 1980 and the Secretary of the Army has
certified that this action does not have a significant impact on a
substantial number of small entities. The objective of the program is
to ensure that DOD obtains safe, dependable and reliable transportation
services. The requirements are not designed to preclude participation
by small business. Rather, they are part of a mechanism designed to
ensure that the traffic offered to small businesses does not exceed
their capabilities. The program's reporting and record keeping
requirements are essentially administrative in nature and do not demand
significant expenditures of resources such as personnel, computer
equipment, or software. No professional or technical training is
necessary to comply with these requirements. Alternatives to facilitate
entry of small businesses have been identified and implemented.
Paperwork Reduction Act
This rule has been approved by the Office of Management and Budget
as required under the requirements of the Paperwork Reduction Act of
1980 (44 U.S.C. 3507).
List of Subjects in 32 CFR Part 619
Common carriers, Freight, Motor vehicle, Safety, Shipping, and
Trucks.
Accordingly, Title 32, Part 619, of the Code of Federal Regulations
is amended by the following changes:
PART 619 [AMENDED]
1. The authority citation for part 619 continues to read as
follows:
Authority: 49 U.S.C. 1801-1813, 2503, 2505, and 2509.
2. In Sec. 619.4, the Insurance--Public liability and cargo text is
amended by revising paragraphs (b), introductory text, (b) (3) and (4)
as follows:
Sec. 619.4 Insurance--public liability and cargo.
* * * * *
(b) Cargo. Motor common carriers, surface freight forwarders,
shipper agents and air freight forwarders must have their insurance
company provide a certificate of insurance form. The deductible portion
will be shown on the certificate. The insurance underwriter must have a
policyholder's rating in the Best's Insurance Guide, listed in the
Fiscal Service Treasury Department Circular 570, Listing of Surety
Companies or specifically approved by HQMTMC. DOD's minimum cargo
insurance requirements are listed below.
* * * * *
(3) Perishables carriers--$10,000 per shipment.
(4) Bulk Fuel carriers--$10,000 per shipment.
* * * * *
3. Appendix A to Part 619 is revised to read as follows:
Appendix A to Part 619--Basic Agreement Between the Military Traffic
Management Command and Motor Common Carriers for Approval To Transport
General Commodities for and on Behalf of U.S. Department of Defense.
1. The undersigned, who is duly authorized and empowered to act
on behalf of ____________ (Name of Company, Typed or Legibly
Printed), hereinafter called the carrier, as a prerequisite for
approval to transport general commodities for the account of the
Department of Defense (DOD) and the Military Traffic Management
Command (MTMC), hereinafter called the Government, agree to comply
with all additional requirements, terms and conditions as set forth
in this Agreement. This Agreement governs the transportation of all
DOD general commodity freight administered by the Carrier
Qualification Division, MTMC (except used household goods).
Noncompliance by the carrier with any provision of this Agreement
may result in MTMC taking action against the carrier under the
Carrier Performance Program, governed by MTMC Regulation 15-1, and
revoking approval to participate in this traffic. If the carrier's
approval is revoked, the carrier may be disqualified from further
participation in any DOD Freight Traffic.
2. Approval and Revocation. a. Carrier understands that its
initial approval and
[[Page 33410]]
retention of approval are contingent upon establishing and
maintaining, to MTMC's satisfaction, sufficient resources to support
its propose scope of operations and services. Sufficient resources
include equipment, personnel facilities, and finances to handle
traffic anticipated by DOD/MTMC under the carrier's proposed scope
of operations in accordance with the service requirements of the
shipper.
b. The carrier understands that MTMC may revoke approval at any
time upon discovery of grounds for ineligibility or
disqualification. The carrier further understands that it is not
authorized to submit tenders for shipments requiring a
Transportation Protective Service (TPS) until it has served DOD in
an approved status for 12 continuous months. Prior to being allowed
to handle shipments which require a TPS or classes A & B explosives,
the carrier must first meet any additional requirements in effect at
the time.
c. In addition to the initial evaluation, the carrier agrees
that it will cooperate with MTMC follow-up evaluations at any time
subsequent to signing this Agreement to confirm continued
eligibility.
d. The carrier certifies that neither the owners, company,
corporate officials, nor any affiliation or subsidiary thereof are
currently debarred or suspended, disqualified by a MTMC General
Freight Board, or placed in non-use by MTMC from doing business with
DOD.
3. Lawful Performance.
a. Carrier agrees to comply with all applicable Federal, State,
municipal, and other local laws and regulations governing the safe,
proper, and lawful operation of motor vehicles, to include Title 49
Code of Federal Regulations (CFR) 386-397. Intrastate carriers are
required to comply with all applicable state or federal regulations,
whichever are more stringent.
b. No fines, charges, or assessments for overload vehicles or
other violations of applicable laws and regulations will be passed
to or be paid by any agency of the Federal Government.
4. Operating Authority. Carrier agrees to maintain valid motor
common carrier operating certificates for its scope of operations.
Any carrier found to be involved in brokerage, as defined by the
Interstate Commerce Commission (ICC), of DOD freight traffic will
have its approval revoked.
5. Insurance. a. Minimum public liability insurance requirements
are prescribed in title 49 of the Code of Federal Regulations (CFR)
5387.9. Carrier agrees to ensure that the ICC is provided proof of
their public liability insurance, in the form of a BMC 91 or 91-X,
or MCS 90, in accordance with sections 29 and 30 of the Motor
Carrier Act of 1980. Further, the motor carrier agrees to provide
MTMC with a certificate of insurance form. The certificate holder
block of the form will indicate that MTMC, 5611 Columbia Pike, Falls
Church, Virginia 22041-5050, ATTN: MTOP-QQ, will be notified in
writing, 30 days in advance of any change or cancellation. The
deductible portion will be shown on the certificate. The insurance
underwriter must have a policy holder's rating of ``Excellent'' or
better in the Best's Key Rating Guide.
(1) The carrier agrees to also file with MTMC proof of: $750,000
per vehicle for property (excluding hazardous) and $1,000,000 per
vehicle for oil, hazardous wastes, hazardous materials and hazardous
substances defined in 49 Code of Federal Regulations (CFR) 171.8 and
listed in 49 CFR 172.101.
(2) Public liability insurance Intrastate Carriers--Public
liability insurance shall be that as required by the state, except
that for deregulated states, public liability shall be the same as
that required of interstate carriers.
(3) Cargo insurance. Cargo insurance in the minimum $150,000 for
loss and damages of government freight per vehicle and/or $20,000
per vehicle and/or $20,000 per vehicle transported (e.g. automobile
transporters or vehicles in haulaway service) must be maintained.
Perishable carriers will maintain, as a minimum, cargo insurance in
the amount of $10,000 per shipment and bulk petroleum carriers will
maintain $10,000 per shipment.
b. The insurance, carrier in the name of the carrier, will be in
force at all times while this Agreement is in effect or until such
time as the carrier cancels all tenders. The carrier agrees to
ensure that the policies include a provision requiring the insurer
to notify MTMC prior to any performance of service for the carrier.
Charges, renewals, and cancellation notices must also be sent to
MTMC, 5611 Columbia Pike, Falls Church, Virginia 22041-5050, ATTN:
MTOP-QQ. This requirement applies to both interstate and intrastate
carriers. Carrier's insurance policy(s) must cover all equipment
used to transport DOD freight.
6. Performance Bond. a. Carrier agrees to provide MTMC with a
Performance Bond. The bond secures performance and fulfillment of
the carrier obligation to deliver DOD freight to destination. It
will cover DOD re-procurement costs as a result of carrier default,
abandoned shipments, or bankruptcy. The bond will not be utilized
for operational problems such as late pick up or delivery, excessive
transit time, refusals, no shows, improper/inadequate equipment or
claims for lost or damaged cargo. The bond must be issued by a
surety company listed in the Fiscal Service Treasury Department
Circular No. 570. The bond must be completed on the form provided by
MTMC. The bond will be continuous until canceled. MTMC will be
notified in writing 30 days in advance of any change or
cancellation. A letter of intent by the surety company is required
with the initial application package. Upon MTMC approval, the
carrier agrees to submit the Performance Bond before the Tender of
Service will be accepted.
b. The sum of the bond will be determined as follows:
(1) Carriers having done business in their own name with DOD for
3 years or more will be required to submit a Performance Bond in the
amount of 2.5% of their total DOD revenue, taken from the Freight
Information Systems Report (FINS), for the previous 12 months, not
to exceed $100,000 and not less than $25,000.
(2) New carriers and those carriers having done business in
their own name with the DOD for less than 3 years will be required
to submit a Performance Bond based on areas of service they offer.
Areas of service will be computed as both origins and destinations
served. 1 state (including intrastate)--$25,000; 2 to 3 states--
$50,000; 4 or more states--$100,000.
(3) Once a carrier has been doing business with the DOD for 3
years, their bond requirement will change from area of service to
percent revenue.
c. Bulk fuel carriers and Perishable carriers will be required
to submit a $25,000 Performance Bond.
d. Local drayage and commercial zone carriers are exempt from
the bond requirement.
e. If carrier has secured the Performance Bond as a result of
qualifying under Ammunition and Explosive, Classes A and B program
or hazardous materials, other than ammunition and explosives,
Classes A and B program no additional Performance Bond is required.
7. Safety. a. Carrier will not have an ``unsatisfactory'' safety
rating with the Federal Highway Administration, Department of
Transportation, and, if it is an intrastate motor carrier, with the
appropriate state agency. The carrier further agrees to permit
unannounced safety inspections of its facilities, terminals,
equipment, employees, and procedures by DOD civilian, military
personnel, or DOD contract employees. The inspection may include in-
transit surveillance of vehicles and drivers. The carrier agrees to
provide evidence that fulfills the requirement set forth in 49 Code
of Federal Regulations parts 390 through 396. Inspection of carrier
equipment, drivers' records, route plans and inspection reports will
be permitted during both the pickup and delivery of shipments and in
coordination with local police or other authorities while in
transit. Carrier also agrees to allow inspection of carrier records
and individual driver qualification files. When requested, carrier
agrees to provide adequate evidence of an active driver safety,
security training and evaluation program. Upon request, the
information to permit MTMC to verify or inspect carrier and driver
records.
b. The carrier agrees to have in place a company-wide safety
management program. Carrier safety program will comply with
applicable Federal, State, and local statutes or requirements.
Safety programs at the company-wide level may be subject to
evaluation by DOD representatives.
c. The carrier agrees to notify, within 24 hours, the consignor
and consignee named by the Government Bill of Lading (GBL) or
Commercial Bill of Lading (CBL) of cargo loss, damage, or unusual
delay. Information reported will include origin/destination, GBL/CBL
number, shipping paper and other pertinent accident details. When
requested, carrier agrees to furnish MTMC a copy of accident reports
submitted to the Department of Transportation on Form MCS 50-T
(Property).
8. Drivers Requirement. a. The carrier agrees to ensure that any
driver used by the carrier to transport DOD freight possesses a
valid commercial driver's license (in compliance with Federal
Commercial Motor
[[Page 33411]]
Vehicle Safety Act of 1986) issued by his or her state of domicile.
Drivers must have a minimum 1 year of driving experience driving
equipment similar to that used to transport DOD freight, or have
proof of graduation from an accredited trade truck motor driving
school, operating the aforementioned equipment.
b. The carrier agrees to further ensure that driver carry a
company picture identification card to verify affiliation with the
carrier named on the Government Bill of Lading.
9. Equipment. The carrier is prohibited from using trip-leased
equipment or drivers, except upon prior approval from MTMC. Leases
of less than 30 days are considered trip-leases. In order to trip-
lease, a carrier must apply for approval under MTMC's trip-lease
program. In order to trip-lease, a carrier must apply for approval
under MTMC's trip-lease program.
10. Shipment. The carrier agrees to provide, at no additional
cost to the government, the status of any shipment within 24 hours
after an inquiry is made. Further, the carrier agrees to not divulge
any information to unauthorized persons concerning the nature and
movement of any DOD shipment.
11. Documentation. a. The carrier agrees to accept GBLs and CBLs
on which freight charges will be paid by the Government, and be
bound by all terms stated on the SF 1103, Government Bill of Lading,
regardless of the type of bill of lading tendered.
b. The carrier agrees to comply with the documentation prelodge
procedures in effect at Military Ocean Terminals or the
installation, when cargo is consigned for further movement overseas.
(Prelodging is the submission of advance shipment documents which
identifies the shipment to the Military Ocean Terminal prior to
delivery of the cargo at the terminal.) Instructions will be
provided by the consignor to furnish certain data at least 24 hours
in advance of cargo delivery to the terminal.
12. Loss of Damage. The carrier agrees to be liable for loss or
damage to cargo in accordance with the provisions of 49 U.S.C. 11707
(the Carmack Amendment to the Interstate Commerce Act). Carrier
agrees to promptly settle uncontested claims for loss or damage.
13. Standard Tender of Service. a. The carrier agrees to comply
with the preparation and filing instructions in applicable freight
traffic rules publications issued by MTMC. Carrier understands that
MTMC will reject tenders not in compliance with these instructions.
b. Carrier agrees to provide a street address where the company
office is located in lieu of a post office box number. Carrier
agrees to provide the address prior to or in conjunction with
submission of any tenders or other rate schedules. The carrier
agrees to also advise MTMC of any change in address prior to the
effective date of the change. Failure to do so is grounds to
discontinue use of the carriers.
c. Carrier understands that tenders inadvertently accepted and
distributed for use and not in compliance with this agreement, the
provisions contained in the Standard Tender of Freight Services (MT
Form 364-R), or the applicable MTMC Freight Traffic Rules
Publication, and supplements thereof, will be subject to immediate
removal or non-use until corrections are made. The issuing carrier
tender will be placed in an inactive status.
14. Rates. a. Carrier agrees to transport Government shipments
at the lowest tender rate specifically applicable to the department
or agency involved.
b. Carrier agrees to publish guaranteed through rates for at
least 30 days. These rates must be filed with MTMC, HQ, Eastern
Area, ATTN: MTE-IN, Bayonne, New Jersey 07002-5302. The carrier must
publish all rates, charges, and accessorial services on a MTMC
approved form, and must comply with the tender preparation
instructions. (Only services annotated with a charge in the tender
will be paid by the shipper.)
15. Carrier Performance. Carrier agrees that carrier's
equipment, performance, and standards of service will conform with
its obligations under Federal, State and local law and regulation as
well as with the guidelines found in the Defense Traffic Management
Regulation (DTMR) and this Agreement. The carrier fully understands
its obligation to remain current in its knowledge of service
standards. The carrier accepts the government's right to revoke
approval, declare ineligible, non-use, or disqualify the carrier for
unsatisfactory service for any operating deficiency, noncompliance
with terms of this Agreement or terms of any negotiated agreements,
tariffs, tenders, bills of lading or similar arrangements
determining the relationship of the parties, or for the publications
or assessment of unreasonable rates, charges, rules, descriptions
classifications, practices, or other unreasonable provisions of
tariffs/tenders. Rules governing the Carrier Performance Program are
found in MTMC Regulation 15-1, and Army Regulation 55-355, DTMR. If
a carrier is removed or disqualified for 6 months or more, it will
have to be re-qualified.
16. General Provisions. The carrier agrees to possess a valid
Standard Carrier Alpha Code (SCAC). When a company holding the
appropriate authority has operating divisions each with its own
unique SCAC, each such division is required to execute a separate
agreement with MTMC governing the transportation of protected
commodities.
17. Terms of the Agreement. a. The terms of this Agreement will
be applicable to each shipment.
b. This agreement shall be effective from the date of approval
by MTMC, until terminated. Termination is effective upon receipt of
written notice by either party.
c. Nothing in this Agreement will be construed as a guarantee by
the Government of any particular volume of traffic.
d. The carrier agrees to immediately notify MTMC of any changes
in ownership, in affiliations, executive officers, and/or board
members, and carrier name. Carrier understands that failure to
notify MTMC shall be grounds for immediate revocation of the
carrier's approval and their participation in the movement of DOD
freight.
18. Additional Specialized Requirements. The terms of this
Agreement will not prevent different or additional requirements with
respect to negotiated agreements or added requirements for other
types of service and/or commodities.
19. Inquiries. Inquiries may be referred to: Commander, Military
Traffic Management Command, ATTN: MTOP-QQ, 5611 Columbia Pike, Falls
Church, VA 22041-5050.
20. Carrier Acknowledgment and Acceptance. The certifying
carrier official agrees to ensure that the appropriate company
officials and employees are familiar with the requirements, terms,
and conditions of this Agreement and are in full compliance with the
applicable provisions herein. Any information found to be falsely
represented in the Motor Carrier Qualification Form, the attachments
or during the qualification procedures, to include additional
requirements of this Agreement, shall be grounds for automatic
revocation of this Agreement and immediate non-use of the carrier,
the affiliated companies, divisions and entities.
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(Typed Name and Title of Carrier Official) verify under penalty of
perjury under the laws of the United States of America, that the
information contained in the carrier qualification application
packet and this Agreement is true, correct and complete. If
representing a company or organization, I certify that I am
qualified and authorized to offer this information. I know that
willful misstatements or omissions of material facts constitute
Federal criminal violations punishable under 18 U.S.C. 1001 by up to
5 years imprisonment and fines up to $10,000 for each offense, or
punishable as perjury under 18 U.S.C. 1621 by fines up to $2,000 or
imprisonment up to 5 years for each offense. Further I understand
the requirements of this Agreement and on behalf of
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(Typed Name of Carrier and MC Number) agree to comply with the terms
and conditions contained herein. Signature of Carrier Official and
Title
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Date
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Carrier Address
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Telephone number
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24 hr Emergency Number
(________, ________) Interstate Operating Authority Certificate
Number--MC
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Intrastate Operating Authority
4. Appendix C to part 619 is revised as follows:
Appendix C to Part 619--Agreement Between the Military Traffic
Management Command and Motor Common Carriers Governing the
Transportation of Hazardous Material Other Than Class A and B
Explosives for and on Behalf of the U.S. Department of Defense.
1. I, the undersigned, who is duly authorized and empowered to
act on behalf
[[Page 33412]]
of ________________________________________, hereinafter called the
carrier to transport hazardous materials, (other than class A and B
explosives), as defined in 49 Code of Federal Regulations (CFR)
172.3. Hazardous commodities in bulk include, but not limited to,
such items as gasoline, kerosene, lubricating oil, turbine fuel and
fuel oil, for the account for the DOD and the Military Traffic
Management Command (MTMC), hereinafter called the Government, agrees
to comply with all additional requirements, terms and conditions as
set forth in this Agreement. If the carrier wishes to participate in
DOD traffic, which requires a protective service, the carrier must
also be a party to and in full compliance with requirements
contained in the Agreement governing shipments which required a
Transportation Protective Service (TPS). Noncompliance by the
carrier with any provision of this or any other Agreement it is a
party to will be sufficient grounds for immediate revocation of the
carrier's approval to participate in the movement of hazardous
materials. This carrier may also be subject to further action under
the carrier Performance Program, governed by MTMC Regulation 15-1,
which could result in nationwide disqualification on all DOD freight
shipments.
2. Approval and Revocation. a. Carrier understands that its
initial approval and retention of approval are contingent upon
establishing and maintaining to MTMC's satisfaction, sufficient
resources to support its proposed scope of operations and services.
Sufficient resources include equipment, personnel, facilities, and
finances to handle traffic anticipated by DOD/MTMC under the
carrier's proposed scope of operations in accordance with the
service requirements of the shipper.
b. The carrier understands that MTMC may revoke approval at any
time upon discovery of grounds for ineligibility or
disqualification. The carrier further understands that it is not
authorized to submit tenders for shipments requiring a TPS until it
has served DOD in an approved status for 12 continuous months. Prior
to being allowed to handle shipments which require a TPS or class A
and B explosives, the carrier must first meet any additional
requirements in effect at that time.
c. In addition to the initial evaluation, the carrier agrees
that it will cooperate with MTMC follow-up evaluations at any time
subsequent to signing this agreement to confirm continued
eligibility.
d. The carrier certifies that neither the owners, company,
corporate officials, nor any affiliation or subsidiary thereof are
currently debarred or suspended, disqualified by a MTMC General
Freight Board, or placed in non-use by MTMC from doing business with
DOD.
3. Lawful Performance. a. Carrier agrees to comply with all
applicable Federal, State, municipal, and other local law and
regulations governing the safe, proper, and lawful operation of
motor vehicles, to include Title 49 Code of Federal Regulations
(CFR) 177 and 386 through 397. Provisions for exempt intricate
operations as defined in 49 CFR will not apply to the transpiration
of explosives for the DOD. Intrastate carries are required to comply
with all applicable state or federal regulations, whichever are more
stringent.
b. No fines, charges, or assessments for overloaded vehicles or
other violations of applicable laws and regulations will be passed
to or be paid by any agency of the Federal Government.
4. Operating Authority. Carrier agrees to maintain valid Motor
Common Carrier operating certificates for its scope of operations
which is not restricted against the handling and transport of
hazardous materials or ammunition and explosives, class A and B. Any
carrier found to be involved in brokerage, as defined by the
Interstate Commerce Commission (ICC), of DOD freight traffic will
have its approval revoked.
5. Insurance. a. Minimum public liability insurance requirements
are prescribed in title 49 of the Code of Federal Regulations (CFR)
387.9. Carrier agrees to ensure that the ICC is provided proof of
their public liability insurance, in the form of a BMC 91 or 91-X,
or MCS 90, in accordance with sections 29 and 30 of the Motor
Carrier Act of 1980. Further, the Motor carrier agrees to provide
MTMC with a certificate of insurance form. The certificate holder
block of the form will indicate that MTMC, ATTN: MTOP-QQ, will be
notified in writing, 30 days in advance of any change or
cancellation. The deductible portion will be shown on the
certificate. The insurance underwriter must have a policy holder's
rating in the Best's Insurance Guide, listed in the Fiscal Service
Treasury Department Circular 570, Listing of surety companies.
b. The carrier agrees to also file with MTMC proof of:
(1) Interstate Public Liability. Carrier will ensure that its
insurance company(s) file with MTMC proof of public liability and
property damage insurance for the transportation of hazardous
commodities in the minimum and amounts prescribed in 49 CFR 387.9.
(2) Intrastate Public Liability. Carrier will ensure that its
insurance company(s) file with MTMC proof of insurance which meets
the estate requirements for public liability and property damage for
the transportation of hazardous materials.
(3) Cargo Insurance. Carrier will also file with MTMC proof of
$150,000 per incident minimum cargo insurance for loss and bulk fuel
which is set at $10,000.
c. The insurance, carried in the name of the carrier, will be in
force at all times while this Agreement is in effect or until such
time as the carrier cancels all tenders. The carrier agrees to
ensure that the policies include a provision requiring the insurer
to notify MTMC prior to any performance of service by the carrier.
Changes, renewals, and cancellation notices must be also sent to:
MTMC, ATTN: MTOP-QQ. This requirement applies to both interstate and
intrastate carriers. Carrier's insurance policy(s) must cover all
equipment used to transport DOD freight.
6. Performance Bond. a. Carrier agrees to provide MTMC with a
Performance Bond. The bond secures performance and fulfillment of
the carrier obligation to deliver DOD freight to destination. It
will cover DOD reprocurement costs as a result of carrier default,
abandoned shipments, or bankruptcy by the carrier. The bond will not
be utilized for operational problems such as late pick up or
delivery, excessive transit time, refusals, no shows, improper/
inadequate equipment or claims for lost or damaged cargo. The bond
must be issued by a surety company listed in the Fiscal Service
Treasury Department Circular No. 570. The bond must be completed on
the form provided by MTMC. The bond will be continuous until
canceled. MTMC will be notified in writing, 30 days in advance of
any change or cancellation. A letter of intent, by the surety
company, is required with the initial application package. Upon MTMC
approval, the carrier agrees to submit the performance bond before
the Tender of Service will be accepted.
b. The sum of the bond will be determined as follows:
(1) Carriers having done business in their own name with DOD for
3 years or more will be required to submit a Performance Bond in the
amount of 2.5% of their total DOD revenue, taken from the Freight
Information Systems Report (FINS), for the previous 12-months, not
to exceed $100,000 and not less than $10,000.
(2) New carriers and those carriers having done business in
their own name with the DOD for less than 3 years will be required
to submit a Performance Bond based on areas of service they offer.
Areas of service will be computed as both origins and destinations
served.
1 state (including intrastate)--$10,000;
2 to 3 states--$50,000; and
4 or more states--$100,000.
(3) Once a carrier has been doing business with the DOD for 3
years, their bond requirement will change from areas of service to
percent revenue.
c. Bulk fuel carriers will be required to submit a $10,000
performance bond.
d. Local drayage and commercial zone carriers are exempt from
the bond requirement.
e. If carrier has secured the performance bond as a result of
qualifying under the general commodity program or class A and B
program, no additional performance bond is required.
7. Safety and Security. a. A ``unsatisfactory'' safety rating
with the Federal Highway Administration, Department of
Transportation, and/or with the appropriate state agency or
commission in the case of intrastate. Safety ratings which are
``unsatisfactory,'' ``unconditional,'' ``insufficient information,''
or ``not rated'' will not be accepted. The carrier agrees to permit
unannounced safety inspections of its facilities, terminals,
equipment, employees, and procedures by DOD civilian, military
personnel, or DOD contract employees, inspection. Inspection of
carrier equipment, drivers' records, route plans and inspection
reports will be permitted during both the pickup and delivery of
shipments and in coordination with local police or other authorities
while in transit. Carrier also agrees to allow inspection of carrier
records
[[Page 33413]]
and individual driver qualification files. When requested, carrier
agrees to provide adequate evidence of an active driver safety,
security training and evaluation program. Carrier agrees to furnish,
on request, driver's Social Security Numbers to verify their
security clearances and allow for inspection of carrier/driver
records.
b. The carrier agrees to have in place a company-wide safety and
security management program which includes specific on-going safety
and security programs for each terminal location. Individual
terminal programs will encompass planning and execution of safety
and security in routine operations, to include emergency responders
and planners, and with the local police and fire authority. Carrier
programs will incorporate compliance with all applicable Federal,
State and local statutes or requirements. Conformance with other
safety standards, such as NFPA Code 498, will be accomplished as
much as possible, with compensating measures for deviations. Safety
and security programs at the company wide or terminal level may be
subject to evaluation by a DOD representative.
c. The carrier agrees to notify, within a reasonable period of
time, the consignor and consignee names by the Government Bill of
Lading (GBL) of cargo loss, damage, or unusual delay. Carrier also
agrees to notify the consignor or consignee named on the GBL
immediately by telephone of an accident, incident or significant
delay. The information to be reported will include origin/
destination, GBL number, shipping paper information, time and place
of occurrence and other pertinent accident details. Carriers agrees
to notify the MTMC area command annotated on the GBL and the Defense
Logistics Agency (DLA), within one half (\1/2\) hour after
notification of the consignor and consignee, and provide status
updates as required. The MTMC HOTLINE and AOC telephone numbers are
as follows:
--Eastern Area: (800) 524-0331; New Jersey only: (800) 624-1361
--Western Area: (800) 331-1822; California only: (800) 348-4639
--DLA: (800) 851-8061
When requested, carrier agrees to furnish MTMC a copy of accident
reports submitted to Department of Transportation on Form MCS 50-T
(Property) or MCS 50-B (Passengers) when DOD classes A and B
explosives movements are involved.
d. Carrier agrees to provide the driver(s) transporting
protected commodities an emergency telephone number (indicated on
the last page of this Agreement) which, when used at any time (24-
hours a day, 7 days a week), will reach a qualified carrier
representative who will be able to provide information and
assistance. MTMC will be immediately notified if this telephone
number is changed. Carrier also agrees to equip the vehicle
transporting the material with communications equipment (citizens
band radio, mobile phone, etc.) capable of being used to obtain
assistance in an emergency.
e. Carriers approved to transport DOD hazardous materials
requiring TPS agree that no driver disqualified under 49 CFR 391.15
will be permitted to operate any vehicle transporting such
commodities.
f. Carriers approved to transport DOD hazardous materials agree
to ensure that drivers of a motor vehicle transporting such drivers
of motor vehicle transporting such commodities must undergo a
physical examination and must be certified physically qualified to
drive a commercial motor vehicle in accordance with 49 CFR 391.43.
Carrier also agrees to have driver screening programs in place to
ensure that the provisions of this paragraph are met.
8. Drivers Requirement. a. Driver agrees to ensure that the
driver(s) employed to transport hazardous commodities driving
experience (using similar equipment prior to transporting hazardous
commodities, and that its drivers are trained and competent in the
movement of these commodities to include an understanding of the
following: 49 CFR part 397, instructions on procedures to be
followed in the event of a delay, nature of the materials being
transported, precautions to be taken in an emergency; written route
plans; and shipping paper entries. The carrier will certify that the
driver is trained and competent in the movement of hazardous
commodities, and proof of certification must be carrier in the
vehicle of the unit transporting these commodities.
b. The carrier agrees to further ensure that driver(s) carry a
valid commercial motor vehicle operator's license issued by his/her
state of domicile, a certificate of physical examination issued
during the preceding 24 months, and an employee record card, or
similar document, one of which must contain the driver's photograph.
The driver(s) must be 21 years of age. The driver(s) must carry a
company picture identification to verify affiliation with the
carrier named on the GBL.
9. Equipment. a. Trip leased equipment, with or without drivers,
will not be used to transport hazardous materials for the account of
the DOD. Exceptions for the use of intermittent or occasional
drivers in 49 CFR 391.63 will not apply to any DOD movement. Any
equipment, with or without drivers, leased to augment carrier-owned
equipment will be on a not less than 90-day noncancellable basis.
b. A copy of the equipment lease agreement must be carried in
the vehicle of the unit transporting these commodities. (Facsimile,
Xerox, or otherwise reproduced copies are not acceptable.)
Interchange agreements which originate at origin will be considered
trip leases and will not be accepted. The lease must be complete at
time of pick up and should require no further information to be
completed by the driver. Failure to comply with this requirement or
attempted abuse of this requirement could result in the carrier's
participation in this type traffic to be immediately revoked and up
to a nationwide disqualification on all DOD freight shipments should
further action under the Carrier Performance Program be deem
appropriate.
c. Carriers approved to transport DOD hazardous material
requiring TPS agree to comply with all equipment requirements
contained in paragraph 8 of the Agreement Between the Military
Traffic Management Command and Motor Carriers Governing the
Transportation of Shipments Which Require a Transportation
Protective Service for and on behalf of the U.S. Department of
Defense.
10. Shipment. a. Carrier is responsible for shipments from
origin to ultimate destination. The carrier also remains responsible
for shipments placed in a safe haven or refuge location. Carrier
agrees not to disclose any information to unauthorized persons
concerning the nature, kind, quantity, destination, consignee or
routing of any hazardous material shipment tendered to it. The
carrier further agrees to provide, at no additional cost to the
Government, the status of any shipment within 24-hours after an
inquiry is made.
b. Carrier agrees to ensure that shipper-provided placards are
displayed in accordance with the general requirements found in 49
CFR 172.504 for the transportation of hazardous materials. The
carrier further agrees to conform to the requirements found in 49
CFR 177.825 pertaining to the transportation of radioactive
materials for which placarding is required. Carrier also agrees to
route all other shipments of hazardous commodities in accordance
with the provisions of 49 CFR 397.9.
c. When requested by the shipper for reasons of security,
carrier agrees to cover the shipment with a carrier-provided
tarpaulin. Protective tarping is an accessorial service.
d. Carriers approved to transport DOD hazardous materials
requiring TPS agree to comply with all shipment requirements
contained in paragraph 9 of the Agreement Between the Military
Traffic Management Command and Motor Common Carriers Governing the
Transportation of Shipments Which Require a Transportation
Protective Service (TPS) for and on behalf of the U.S. Department of
Defense.
11. Documentation. a. The carrier agrees to accept GBLs on which
freight charges will be paid by the Government, and bound by all
terms stated on the Standard Form (SF)-1103, GBL, regardless of the
type of bill of lading tendered.
b. The carrier will comply with the documentation prelodge
procedures in effect at Military Ocean Terminals or the
installation, when cargo is consigned for further movement overseas.
(Prelodging is the submission of advance shipment documents which
identifies the shipment to the Military Ocean Terminal prior to
delivery of the cargo at the terminal.) Instructions will be
provided by the consignor to furnish certain data at least 24-hours
in advance of cargo delivery to the terminal.
12. Loss or Damage. The carrier agrees to be liable for loss or
damage to cargo in accordance with the provisions of 49 U.S.C. 11707
(the Carmack Amendment to the Interstate Commerce Act.) Carrier
agrees to promptly settle uncontested claims for loss or damage.
13. Standard Tender of Service. a. The carrier agrees to comply
with the preparation and filing instructions in applicable freight
traffic rules publications issued by MTMC. Carrier understands that
MTMC will reject tenders not in compliance with these instructions.
b. Carrier agrees to provide a street address where the company
office is located in lieu of post office box number. Carrier agrees
to provide the address prior to or in conjunction
[[Page 33414]]
with submission of any tenders or other rate schedules. The carrier
agrees to also advise MTMC of any change in address prior to the
effective date of the change. Failure to do so is grounds to
discontinue use of the carriers.
c. Carrier understands that tenders inadvertently accepted and
distributed for use and not in compliance with this agreement, the
provisions contained in the Standard Tender of Freight Services (MT
Form 364-R), or the application MNC Freight Traffic Rules
Publication, and supplements thereof, will be subject to immediate
removal or non-use until corrections are made. The issuing carrier
will be advised when tenders are removed under these circumstances.
14. Rates. a. Carrier agrees to transport shipments at the
lowest tender rate specifically applicable to the department or
agency involved.
b. The carrier's rates must be on file with MTMC, HQ Eastern
Area, ATTN: MTE-IN, Bayonne, New Jersey 07002-5302. The carrier must
publish all rates, charges, and accessorial services on a
``Department of Defense Standard Tender of Freight Services'' MT
Form 364-R and must comply with the tender preparation instructions.
(Only services annotated with a charge in the tender will be paid by
the shipper.)
15. Carrier Performance. Carrier agrees that carrier's
equipment, performance and status of service will conform with its
obligations under Federal, State and local law and regulation as
well as with the guidelines found in the Defense Traffic Management
Regulation (DTMR) and this Agreement. The carrier fully understands
its obligation to remain current in its knowledge of service
standards. The carrier accepts the Government's right to revoke
approval, declare ineligible, non-use, or disqualify the carrier for
unsatisfactory service for any operating deficiency, noncompliance
with the terms of this Agreement or terms of any negotiated
agreements, tariffs, tenders, bills of lading or similar
arrangements determining the relationship of the parties, or for the
publication of unreasonable rates, charges, rules, descriptions,
classifications, practices, or other unreasonable provisions of
tariffs/tenders. Rules governing the Carrier Performance Program are
found in MTMC Regulation 15-1, and Army Regulations 55-355 DTMR. If
a carrier is removed or disqualified for 6 months or more, it will
have to be re-qualified.
16. General Provisions. The carrier must possess a valid
Standard Carrier Alpha Code (SCAC). When a company holding the
appropriate authority has operating divisions, each with its own
unique SCAC, each such division is required to execute a separate
agreement with MTMC governing the transportation of protected
commodities.
17. Terms of the Agreement. a. The terms of this Agreement will
be applicable to each shipment.
b. This agreement shall be effective from the date of approval
by MTMC, until terminated. Termination is effective upon receipt of
written notice by either party.
c. Nothing in this Agreement will be construed as a guarantee,
by the Government, of any particular volume of traffic.
d. The carrier agrees to immediately notify MTMC of any changes
in ownership, in affiliations, executive officers, and/or board
members, and carrier name. Carrier understands that failure to
notify MTMC shall be grounds for immediate revocation of the
carrier's approval and their participation in the movement of DOD
freight.
18. Additional Specialized Requirements. The terms of this
Agreement will not prevent different or additional requirements with
respect to negotiated agreements or added requirements for other
types of service and/or commodities.
19. Inquiries. Inquiries may be referred to: Commander, MTMC,
Attn: MTOP-QQ, Falls Church, Virginia 22041-5050.
20. Carrier Acknowledgment and Acceptance. The certifying
carrier official agrees to ensure that the appropriate company
officials and employees are familiar with the requirements, terms
and conditions of this Agreement and are in full compliance with the
applicable provisions herein. Any information found to be falsely
represented in the Motor Carrier Qualification Form, the attachments
or during the qualification procedures, to include additional
requirements of this Agreement, shall be grounds for automatic
revocation of this Agreement and immediate non-use of the carrier,
the affiliated companies, division and entities, I,
________________________________________, verify under penalty of
perjury under the laws of the United States of America, that the
information contained in the carrier qualification application
packet and this Agreement is true, correct and complete. If
representing a company or organization, I certify that I am
qualified and authorized to offer this information. I know that
willful misstatements or omissions of material facts constitute
Federal criminal violations punishable under 18 U.S.C. 1001 by up to
5 years imprisonment and fines up to $10,000 for each offense, or
punishable as perjury under 18 U.S.C. 1621 by fines up to $2,000 or
imprisonment up to 5 years for each offense. Further, I understand
the requirements of this Agreement and on behalf of:
________________________________________ (Typed Name of Carrier and
MC Number) agree to comply with the terms and conditions contained
herein.
----------------------------------------------------------------------
(Signature of Carrier Official and Title)
Signature of Agent Official and Title:
----------------------------------------------------------------------
----------------------------------------------------------------------
Date:------------------------------------------------------------------
Address:---------------------------------------------------------------
Telephone Number: (________________)-----------------------------------
24-Hr Emergency Number:------------------------------------------------
(________________)
Interstate Operating Authority Certificate Number--MC:-----------------
Intrastate Operating Authority:----------------------------------------
Certificate Number(s) Include:-----------------------------------------
Issuing State--For Example:--------------------------------------------
PA--#12345
Military Traffic Management Command Acknowledgment/Acceptance
Signature and Title:
----------------------------------------------------------------------
Date Approved:---------------------------------------------------------
Gregory D. Showalter,
Army Federal Register Liaison Officer.
[FR Doc. 96-16147 Filed 6-26-96; 8:45 am]
BILLING CODE 3710-08-M
