TRANSPORTATION MANAGEMENT

• Citation: 41 CFR Part 102-117
• Sections: 25

§ 102-117.5 Applicable entities and exemptions.

(a) This part applies to all agencies and wholly owned Government corporations as defined in 5 U.S.C. 101, et seq., and 31 U.S.C. 9101(3), unless exempt.

(b) Exemptions include:

(1) The Department of Defense in accordance with the Federal Property and Administrative Services Act of 1949, as amended (40 U.S.C. 501 et seq. ).

(2) Uniformed service members, under title 37 of the United States Code, including the U.S. Coast Guard, National Oceanic and Atmospheric Administration, and the Public Health Service are exempt from the household goods shipping requirements in this part.

§ 102-117.10 Definitions.

The following definitions apply to this part:

Accessorial charges means charges that are applied to the base tariff rate or base contract of carriage rate.

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).

Best value means selecting the shipping option that offers the most benefit to the government considering mode, cost, reliability, and service quality.

Bill of lading (BOL), sometimes referred to as a commercial bill of lading, but includes a Government bill of lading (GBL), is a transportation document that can be issued by either the agency or the TSP. It serves multiple purposes as a receipt of goods, contract of carriage, and evidence of title. It also specifies contract terms and conditions, and is mandatory for all shipments. The TSP must comply with applicable Federal regulations, specifically this part and 41 CFR part 102-118.

Cargo preference is the legal requirement for all, or a portion of all, ocean-borne cargo that moves internationally to be transported on U.S. flag vessels.

Coastwise laws govern waterborne shipments between U.S. points or territories to ensure reliable service and maintain maritime readiness during war or national emergencies.

Consignee is the person or agent to whom freight or household goods are delivered.

Consignor, also referred to as the shipper, is the person or firm that ships freight or household goods to a consignee.

Contract of carriage is a contract between the TSP and the agency to transport freight or household goods.

Debarment is an action to exclude a TSP, for a period of time, from providing services under a rate tender or any Federal Acquisition Regulation (FAR) contract.

Declared value means the actual value of cargo as declared by the agency for reimbursement purposes or to establish duties, taxes, or other customs fees.

Freight is property or goods transported as cargo.

Government bill of lading (GBL), Standard Form (SF) 1103, is a Government issued bill of lading.

Hazardous material (HAZMAT) is a substance or material the Secretary of Transportation determines to be an unreasonable risk to health, safety, and property when transported in commerce, and labels as hazardous under section 5103 of the Federal Hazardous Materials Transportation Law (49 U.S.C. 5103 et seq. ). All such freight must be marked in accordance with applicable regulations and the carrier must be notified in advance.

Household goods (HHG) are the personal effects of Government employees and their dependents.

Mode is a method of transportation, such as rail, road, air, water, or pipeline.

Rate tender is an offer a TSP sends to an agency, containing service rates and charges.

Receipt is a written or electronic acknowledgment by the consignee or TSP as to when and where a shipment was received.

Suspension is an action taken by an agency to disqualify a TSP from receiving orders for certain services under a FAR contract or rate tender.

Transportation is the movement of goods and all related services, including the use of motor vehicles, vessels, warehouses, and necessary equipment, as well as associated activities such as storage, handling, packing, delivery, and receipt.

Transportation management is agency oversight of the physical movement of commodities, HHG, small packages, cargo and other freight from one location to another by a TSP including related services such as warehousing.

Transportation service provider (TSP) means any party, person, agent, or carrier that provides freight, household goods, or passenger transportation or related services to an agency.

U.S. flag air carrier is an air carrier holding a certificate issued by the United States under 49 U.S.C. 41102 (49 U.S.C. 40118).

U.S. flag vessel is a commercial vessel, registered and operated under the laws of the U.S., owned and operated by U.S. citizens, and used in commercial trade of the United States.

§ 102-117.15 Procurement options.

Agency procurement options are:

(a) Use a General Services Administration (GSA) tender of service:

(1) Freight—Standard Tender of Service (STOS).

(2) HHG—Household Goods Tender of Service (HTOS).

(b) Issue a FAR contract if permitted by statute or authorized by GSA.

(c) Using another agency's contract or rate tender if permitted by statute or if GSA has issued a delegation of authority allowing other agencies to use the rate tender or contract.

(d) In consultation with GSA, negotiate a rate tender under a Federal transportation procurement statute, 49 U.S.C. 10721 or 13712.

§ 102-117.20 Procurement requirement.

GSA leverages the Federal Government's collective buying power to procure transportation services at reduced rates. It uses standardized agreements to ensure consistency and protect the government's interests. Therefore, agencies subject to this FMR part must select an option provided in § 102-117.15 to procure transportation.

§ 102-117.25 Mandatory terms and conditions.

All rate tenders and contracts must include, at a minimum, the following terms and conditions:

(a) Charges cannot be prepaid.

(b) Charges are not paid at time of delivery.

(c) Interest shall accrue from the voucher payment date on overcharges made and shall be paid at the same rate in effect on that date as published by the Secretary of the Treasury according to the Debt Collection Act of 1982, 31 U.S.C. 3717.

(d) To qualify for the rates specified in a rate tender filed under the provisions of the Federal transportation procurement statutes (49 U.S.C. 10721 or 13712), property must be shipped by or for the Government and the rate tender must indicate the Government is either the consignor or the consignee.

(e) Using a rate tender for transportation in a cost-reimbursable contract, requires the following statement in the rate tender:

Transportation is for the (agency name), and the actual total transportation charges paid to the transportation service provider by the consignor or consignee are to be reimbursed by the Government pursuant to cost reimbursable contract (number). This may be confirmed by contacting the agency representative at (name, address and telephone number).

(f) Other terms and conditions that may be specific to the agency or the shipment such as specialized packaging requirements or HAZMAT.

(g) The TSP must comply with all the conditions of the contract or tender and the appropriate requirements of this part and 41 CFR part 102-118.

§ 102-117.30 Rate reference.

Agencies must include the rate tender, tariff, or contract number on the BOL to ensure the BOL is correctly audited prior to payment.

§ 102-117.35 Required shipping documents.

Bills of lading and purchase orders are required to acquire freight, household goods shipments, and other transportation services.

§ 102-117.40 International transportation.

Federal law requires using U.S. flag carriers for international air and ocean shipments. Key statutes include:

(a) Fly America Act (49 U.S.C. 40118)—requires use of U.S. air carriers when available.

(b) Cargo Preference Act (46 U.S.C. 55305)—requires that at least 50% of U.S. Government-impelled ocean cargo be transported on U.S. flag vessels.

§ 102-117.45 Exceptions.

(a) Fly-America Act. Shippers may use a foreign-flag carrier only when:

(1) No U.S. flag carrier service is available;

(2) Emergency or mission-critical time constraints require foreign service;

(3) A bilateral/multilateral air transport agreement permits it;

(4) Transportation costs are fully reimbursed by a third party; or

(5) Using a U.S. carrier would create an unreasonable safety risk, supported by appropriate agency documentation.

(b) Detailed Fly America exemptions are published separately by GSA. Refer to GSA's Transportation Policy web page guidance for the latest criteria. See https://www.gsa.gov/policy-regulations/policy/transportation-management-policy.

(c) Maritime Administration (MARAD). See https://www.maritime.dot.gov/ports/cargo-preference/cargo-preference for exceptions and determinations of non-availability.

§ 102-117.50 Coastwise laws.

(a) Coastwise laws (46 U.S.C. chapter 551) require the use of U.S.-flag, coastwise-endorsed vessels for domestic water shipments between U.S. ports.

(b) For exceptions and further information, refer to regulations issued by the U.S. Customs and Border Protection (CBP) (19 CFR 4.80) and MARAD.

§ 102-117.55 Procurement requirements.

Select a transportation method in § 102-117.15. (See Federal Travel Regulation (FTR), 41 CFR chapter 302, subchapter D, for additional information regarding HHG.)

§ 102-117.60 Process.

Use the following shipping process:

(a) For shipments, it is required to—

(1) Identify what is being shipping;

(2) Decide if the cargo is HAZMAT, classified, or sensitive that may require special handling or placards;

(3) Select the most efficient and cost effective mode;

(4) Select an acquisition method from § 102-117.15;

(5) Consider all costs associated with the shipment including accessorial charges, surcharges, customs fees, etc.;

(6) Select the most efficient and economical TSP that gives the best value;

(7) Demonstrate no preferential treatment to any TSP when arranging for transportation services except on international shipments (International shipments must be given to United States registered commercial vessels and aircraft.);

(8) Prepare shipping documents; and

(9) Schedule pickup, ensure prompt delivery with a fully executed receipt, and oversee shipment.

(b) For international shipments, follow all requirements of paragraph (a) of this section and international requirements in § 102-117.40.

§ 102-117.65 Determine mode.

Shipping urgency, origin, destination, and any special handling requirements determine which mode of transportation is selected. Each mode has unique requirements for documentation, liability, size, weight, and delivery time. HAZMAT, radioactive, and other specialized cargo may require special permits which may limit choices.

§ 102-117.70 Property description.

Describe property in enough detail for the TSP to determine the type of equipment or any special precautions necessary to move the shipment including, the cargo's declared value, weight, volume, measurements, routing, hazardous cargo, or special handling designations.

§ 102-117.75 Documentation.

Shipping—

(a) By land (domestic shipments), use a bill of lading;

(b) By land (international shipments), use of the optional GBL is permitted but not required;

(c) By ocean, use an ocean bill of lading, when suitable, along with the GBL (only for door-to-door movements); and

(d) By air, use a bill of lading.

§ 102-117.80 Document reporting and retention.

(a) Agencies must maintain all transportation documents in accordance with the General Records Schedules.

(b) For all shipments subject to cargo preference laws a copy of the ocean carrier's bill of lading, showing all freight charges, must be sent to MARAD within 20 working days of the date of loading for shipments originating in the United States, the District of Columbia, its territories or possessions and within 30 working days for shipments originating outside the United States, the District of Columbia, its territories or possessions.

§ 102-117.85 Filing damage claims.

File a claim for loss or damage to property with the TSP. Refer to 41 CFR part 102-118 for more information regarding statutory time limits to file administrative claims or judicial actions against a TSP.

§ 102-117.90 TSP's liability for HHG loss or damage claims.

Regarding the TSP's liability for loss or damage claims, agencies must—

(a) Advise employees on the limits of the TSP's liability for loss of and damage to their HHG so the employee may evaluate the need for added insurance;

(b) Inform the employee about the procedures to file claims for loss and damage to HHG with the TSP; and

(c) Counsel employees who have a loss or damage to their HHG that exceeds the amount recovered from a TSP on procedures for filing a claim against the Government for the difference. Agencies may compensate employees up to $40,000 on claims for loss and damage under 31 U.S.C. 3721, 3723.

§ 102-117.95 Agency responsibilities after shipping HHG.

(a) Each agency develops an evaluation survey for the employee to complete following the move.

(b) When using GSA's Centralized Household Goods Traffic Management Program (CHAMP), agencies must instruct the employee to complete their portion of the GSA Form 3080, Household Goods Carrier Evaluation Report, using the link provided by the TSP.

§ 102-117.100 HAZMAT restrictions.

The Secretary of Transportation prescribes regulations for the safe transport of HAZMAT in intrastate, interstate, and foreign commerce in 49 CFR parts 171 through 180. The Environmental Protection Agency also prescribes regulations on transporting HAZMAT in 40 CFR parts 260 through 266. International, State, and local government rules and regulations also apply to HAZMAT shipments.

§ 102-117.105 TSP performance expectations.

Agencies are required to ensure that TSPs deliver consistent, satisfactory service that meets their transportation needs. At a minimum, monitor—

(a) On-time delivery rates;

(b) Accuracy of billing, including overcharges or undercharges;

(c) Frequency of claims filed;

(d) Shipment rejection rates; and

(e) Responsiveness to shipment tracing requests.

§ 102-117.110 Corrective options.

Decisions regarding temporary nonuse, suspension, or debarment are made by the agency, following procedures outlined in the FAR in title 48 of the Code of Federal Regulations and other applicable regulations. Agencies must maintain records of these actions and notify relevant parties as required.

§ 102-117.115 Corrective option differences.

(a) Temporary nonuse. Temporarily excluding the TSP from receiving new shipments (agencywide).

(b) Suspension. Temporarily disqualifying the TSP from Government contracts pending investigation (Governmentwide).

(c) Debarment. Permanently disqualifying the TSP from Government contracts due to serious misconduct (Governmentwide).

§ 102-117.120 Appearance before a regulatory body.

No executive agency may appear on its own behalf in any proceeding before a transportation regulatory body, unless the Administrator of General Services delegates his or her authority under 40 U.S.C. 501(c)(1)(B) to the agency. Send a request, via email, with enough detail to explain the circumstances surrounding the need for a delegation of authority for representation to [email protected].

§ 102-117.125 Other assistance by GSA.

(a) Oversees all public utilities used by the Federal Government including transportation. There are specific regulatory requirements a TSP must meet at the State level, such as the requirement to obtain a certificate of public convenience and necessity.

(b) Maintains a list of TSPs which meet certain criteria regarding insurance and safety and are approved by the Department of Transportation. Agencies must furnish GSA with an affidavit to determine if the TSP meets basic qualifications to protect the Government's interest. For further information email [email protected].

(c) Represents agencies in negotiations with TSPs.