3/29/89
OPR: Admin/Facilities and Management Services
1. Purpose. This chapter prescribes regulations and procedures concerning the movement of household goods and personal effects of USGS employees who are eligible for a paid relocation in connection with their employment. Under the centralized household goods traffic management program, General Services Administration (GSA) will provide agencies with cost comparisons, and the names of carriers eligible to handle specific shipments. The GSA Centralized Household Goods Program was established to provide federal civilian agencies with a consistent way to choose between the "actual expense method" and the "commuted rate system".
2. Definitions.
A. Actual Expense Method/Government Bill of Lading (GBL) Method. Authorized shipments of USGS employees' household goods moving under a Government Bill of Lading are classified as "actual expense method" shipments. Under this method, the Government, not the employee, is considered the shipper, and the Government reimburses the carrier for the transportation charges. Under the actual expense method, payment is executed by use of a GBL. Agencies are responsible for preparing the GBL, booking the shipment and filing loss and damage claims.
B. Commuted Rate Schedule. Under the Commuted Rate System an employee makes his/her own arrangements for line-haul, packing, other accessorial services with the carrier. The employee pays the moving company directly and is solely responsible for settlement of any claims with the mover. The employee is then reimbursed on the basis of the shipment's weight and distance it travelled. The reimbursement is computed on the basis of the Commuted Rate Schedule contained in FPMR Bulletin A-2.
C. Interstate Shipments are those shipments transported from a point in one state to a point in another state.
D. Intrastate Shipments are those shipments transported from one point to another point within the same state.
E. Household Goods. (FTR para.2-1.4h) All personal property associated with the home and all personal effects belonging to an employee and the immediate family when shipment or storage begins, which can be legally accepted and transported as household goods by an authorized commercial carrier in accordance with the rules and regulations established or approved by an appropriate Federal or State regulatory authority, except the items listed in (1) through (4) below. Snowmobiles and vehicles with two or three wheels, e.g., motorcycles, mopeds, and golf carts, may be shipped as household goods.
(1) Automobiles, trucks, vans and similar motor vehicles; boats; airplanes; mobile homes; camper trailers; and farming vehicles.
(2) Live animals, birds, fowls, and reptiles.
(3) Cordwood and building materials.
(4) Property for resale, disposal, or commercial use rather than for use by the employee or the immediate family.
F. Temporary Storage. (FTR para. 2-1.4e) Storage of household goods for a limited period of time at origin, destination, or enroute in connection with transportation to, from, or between official stations or posts of duty or authorized alternate points.
3. Policy.
A. USGS employees entitled to a household goods move shall be relocated under the GSA Centralized Household Goods Program by the GBL Method.
(1) When an employee chooses, for personal reasons, to use a higher cost carrier than the carrier selected by the USGS, excess costs will be paid by the USGS directly to the carrier and then collected from the employee.
(2) When an employee chooses to use a rental truck, trailer or private conveyance, reimbursement will be limited to the actual costs incurred (e.g., truck rental, material handling equipment, packaging materials, gasoline, toll charges, etc.), not to exceed the cost of the carrier selected by the USGS.
B. Employee household goods moves must be authorized by a written travel authorization specifically authorizing the transportation and storage of the employee's household goods.
C. The United States Government Bill of Lading (GBL) is the document used to procure transportation services. For household goods shipments, it is USGS policy to use Standard Form 1203 (Privately Owned Personal Property).
D. Administrative Officers within the regions should coordinate employee relocations with the transportation officers at the following locations; the Branch of Materials Management, Office of Facilities and Management Services in Reston, VA, and the Supply Management Unit, Office of the Management Officer in Denver, CO, and Menlo Park, CA.
4. Responsibilities.
A. The Chief, Branch of Materials Management, Office of Facilities and Management Services, Administrative Division in Reston, VA, and the Chief, Supply Management Unit, Office of the Management Officer in Denver, CO, and Menlo Park, CA. (See SM 410.1)
B. The Chief, Office of Financial Management, is responsible for the processing and payment of all financial transactions for transportation services related to the movement of household goods.
C. The Transportation Officer, Branch of Materials Management, Office of Facilities and Management Services in Reston, VA, and the Supply Management Unit, Office of the Management Officer in Denver, CO, and Menlo Park, CA, are responsible for obtaining cost comparisons for each move, booking the move, issuing the GBL, assisting employees when filing loss and damage claims, and maintaining files for each move.
D. Administrative Officers are responsible for issuing travel authorizations and notifying the transportation officers of their intent to relocate an employee.
5. GSA Centralized Household Goods Program.
A. The GSA Centralized Household Goods Program was established to provide federal civilian agencies with a consistent way to choose between the commuted rate/actual expense systems and to use the GBL Method. The five basic functions of the program are:
(1) To provide reasonable pricing levels for the services furnished under the GBL Method.
(2) To provide agencies with the pricing information needed to decide between the Commuted Rate System and the GBL Method.
(3) To provide a base of qualified carriers for use in the GBL Method and a way to choose among them.
(4) To define the services that must be furnished.
(5) To provide a system for the resolution of problems.
B. The Tender of Service (TOS) Agreement. This agreement establishes carrier service and performance standards which participating carriers agree to provide. Commercial carriers who desire to participate in this program must enter into an individual TOS agreement with GSA. This provides a base of qualified carriers.
(1) The TOS applies only when an employee's household goods are moved under the GBL Method.
(2) The TOS specifies standards for personnel use, packing, loading, transportation, transit time, unloading, unpacking, and storage. The TOS also establishes documentation and reporting requirements.
(3) The TOS provides a system for the resolution of problems. This system begins with defining the rights and responsibilities of the federal agency making the shipment, of the employee whose property it is, of the carrier handling the shipment, and of GSA. The program then provides a mechanism for resolving disputes.
6. Procedures.
A. Obtaining the Cost Comparison. Under the centralized household goods traffic management program, agencies shall obtain cost comparisons from the appropriate GSA office. (See Figure 1, GSA Regional Offices).
(1) Requests for cost comparisons shall be made as far in advance of the move date as possible and shall contain the following information:
(a) Name of employee to be moved.
(b) Origin city and state.
(c) Destination city and state.
(d) Anticipated or actual date household goods are to be picked up.
(e) Estimated weight of shipment.
(f) Storage-in-transit if required.
(2) Transportation officers should use GSA Form 2485, Cost Comparison for Shipping Household Goods (Commuted Rate System vs. Actual Expense Methods) when requesting a cost comparison (Figure 2, GSA Form 2485). The form should be mailed to the appropriate GSA regional office.
In the case of an imminent move date (less than 15 working days), a cost comparison can be transmitted to GSA by phone. When information is requested by telephone, GSA will respond by telephone. Regardless, all cost comparisons and carrier selection information will be confirmed in writing by GSA.
B. Selecting the Carrier and Booking the Shipment.
(1) Results of the cost comparison are furnished to the requesting transportation officer with the names, phone numbers, and tender number of carriers eligible to handle the shipment. Carriers are listed on the cost comparison from the lowest cost to the highest (Figure 3). Two factors are involved in selecting the carrier: cost and service. Thus, in selecting the carrier, the transportation officer must first determine the services required to execute the move and then select the carrier giving the lowest price. Carriers offering higher rates should be used only if the less costly carrier cannot accept the shipment.
(2) Once the carrier has been selected, the order for the move (called "booking the shipment") must be placed with the carrier. This is accomplished by calling the carrier, then mailing the GBL. In booking a shipment, the carrier needs the following information:
(a) Shipping agency.
(b) Shipping agency contact and telephone number.
(c) Employee name. (Owner of the property).
(d) Pickup address(es) for the property.
(e) Home and office telephone numbers of the employee and at pickup location.
(f) Destination address of the property.
(g) Destination contact name and telephone number.
(h) Estimated or exact pickup date.
(i) Required delivery date, if appropriate.
(j) Shipment valuation.
(k) Anything special or unusual about the shipment.
(l) Any special requirement of the USGS.
(m) GBL number.
The transportation officer should ask the carrier about the performance of the pre-move survey, the origin agent, and the destination agent. The carrier should be given a specific timeframe within which to contact the employee. The employee should then be advised of this information.
C. GBL Preparation. In the transportation of household goods, the main function of the GBL is as a contract of carriage. As such, it establishes the terms and conditions under which the USGS is purchasing the services. When additional services are requested for a specific shipment, the terms and conditions of those requirements must be detailed on the GBL. The SF 1203 is designed specifically for household goods shipments. Figure 4 contains an example of a blank SF 1103 complete with a guide for preparation of the document.
D. Storage Entitlement. The time allowable for temporary storage is 90 days. However, upon an employee's written request, the initial 90-day period may be extended an additional period not to exceed 90 days under certain conditions if approved by the Assistant Director for Administration in Reston, VA. (See FTR para. 2-8.2c.)
7. Carrier Liability. Under the GSA Centralized Household Goods Traffic Management Program, carriers offer three levels of insurance. These options are: (1) Depreciated Value (which is automatically paid by the Government, and is therefore at no expense to the employee), (2) Full Value Protection and (3) Full Value Protection with Deductibles (if the employee selects either of these options the additional cost will be paid by the Government and then collected from the employee). The choice of valuation option is the employee's and the option chosen must be listed on the GBL. If it is not, the shipment is deemed released at the lowest valuation available from the carrier.
A. Depreciated Value. Often the depreciated value is referred to as "1.25 Value" or "Lump Sum Value." When establishing the total value, the GSA Tender of Service requires that the total value be an amount equal to the weight of the shipment times $1.25. This establishes the total value of the shipment for the purpose of setting the shipper's total liability if the entire shipment were to be completely destroyed. For example, a 10,000 pound shipment would result in a lump sum value of $12,500. It is referred to here as depreciated value because the mover's liability for any given item in the shipment is limited to the depreciated value of that item. Rates of depreciation are published as a guide in the Tender of Service to indicate the values that will apply for purposes of settling loss and damage claims.
In addition to the depreciated value liability, under the provisions of 31 U.S.C. 240-242, the Department of the Interior assumes liability up to $25,000 for loss/damage that occurs while property is being shipped or held in temporary storage.
Filing of a claim under this valuation is a two step procedure:
(1) The employee must notify the carrier of his/her intent to file a claim, whereupon the carrier will furnish claim forms for preparation by the employee. The carrier is obligated to settle the claim based on the depreciated value of the items in question.
(2) After receiving settlement based on the depreciated value, if the employee believes compensation was not adequate, a claim will be prepared on his/her behalf and submitted to the DOI Solicitor's Office. The employee must mail copies of all documentation to the transportation officer in Reston, VA, Denver, CO or Menlo Park, CA. After review of the claim the Solicitor's Office can make an additional award.
B. Full Value Protection. Full value Protection deals with carrier liability at the full replacement cost level. Household goods damaged or soiled will be restored or repaired to the customer's satisfaction. The mover's liability for any given item is limited to the replacement cost of the item, or an item of comparable features and quality. When establishing the full replacement value of a shipment, carriers require that the total value be an amount equal to the weight of the shipment times $3.50 or $21,000, (the minimum value that can be placed on a shipment). Example 1: A 5,000 pound shipment multiplied by $3.50 equals to a sum of $17,500. Under full replacement value this shipment would automatically be valued at $21,000 or a larger amount if the employee should request a higher valuation. Example 2: A 10,000 pound shipment would require a minimum value of $35,000 (10,000 times $3.50). The employee cannot request a value less than $35,000 but he/she can set an amount greater than $35,000.
The charge for full replacement value protection will be the amount determined by multiplying $ .85 times each $100 of value, less the shipment charge which is paid by the Government (See Table 1).
Example: A value of $35,000 would compute to a charge of $297.50 ($.85 x 350), minus $62.50 (shipping charge), resulting in a cost of $235.00 to the employee for Full Value Protection on a 10,000 pound shipment.
TABLE 1
Weight Group Shipment Charge
500 - 1,999 $ 7.80
2,000 - 3,999 $ 18.75
4,000 - 7,999 $ 37.50
8,000 - 11,999 $ 62.50
12,000 - 15,999 $ 87.50
16,000 - 19,999 $ 112.50
20,000 - 23,999 $ 137.50
24,000 - and over $ 150.00
C. Full Value Protection with Deductibles. In addition to the provisions of the full value protection item in the governing tariff, the following options apply:
Option 1 - $100.00 Deductible: In consideration of a reduction in the rate to 70 cents for each $100.00 of value, the shipper assumes responsibility for the first $100.00 of any claim in excess of this amount.
Option 2 - $250.00 Deductible: In consideration of a reduction in the rate to 35 cents for each $100.00 of value, the shipper assumes responsibility for the first $250.00 of any claim in excess of this amount.
Option 3 - $500.00 Deductible: In consideration of a reduction in the rate to 20 cents for each $100.00 of value, the shipper assumes responsibility for the first $500.00 of any claim in excess of this amount.
When calculating the charges for Full Value Protection with Deductibles, do not subtract the shipping charge.
D. Assistance in Selecting Coverage. Transportation Officers can advise employees of the type of insurance coverage most advantageous to their specific move.
8. Claim Preparation.
A. Depreciated Value. When a claim is made by an employee for property loss/damage, it must satisfy four specific criteria:
(1) It must be in writing.
(2) It must identify the shipment (name of property owner, origin, destination, date of shipment, and GBL number).
(3) It must identify the loss/damage and assert that it was carrier caused.
(4) It must demand restitution in a specific amount.
These four items are formal requirements for a claim. If a submission fails to meet any one of these, that submission is not a claim and does not need to be acknowledged or acted upon by the carrier.
The Tender of Service requires that claims for loss and/or damage discovered by the owner be filed against the carrier, in writing, within 75 days after the date of delivery. The employee's right to file a claim with the Government under 31 U.S.C. 240-242, is limited to two years from the date of delivery.
Once the claim has been prepared, it must be sent to the carrier. It should be sent via certified mail, return receipt requested. This will eliminate problems that arise when a carrier does not receive the claim. The carrier must notify the claimant within 10 days of receipt that the claim was received.
B. Full Value Protection. Claims filed under Full Value Protection are between the employee and the carrier. Transportation officers can advise employees in the filing of such a claim. A claim filed against a carrier under Full Value Protection must also satisfy the four criteria and timeframe in 410.2.8A.