B-142854, NOV. 3, 1960

B-142854, NOV. 3, 1960

TO THE SECRETARY OF STATE:

FURTHER REFERENCE IS MADE TO A LETTER DATED MAY 2, 1960, (WITH ENCLOSURE), FROM MR. LANE DWINELL, ASSISTANT SECRETARY, IN WHICH IT IS REQUESTED THAT THE DEPARTMENT OF STATE BE GRANTED A ,BLANKET" EXEMPTION FROM THE REQUIREMENTS OF 5 GAO 2010.20, AS TO THE USE OF THE UNITED STATES OF AMERICA TRANSPORTATION REQUEST, STANDARD FORM 1169, PARTICULARLY (ALTHOUGH NOT SPECIFICALLY INDICATED) FOR THE PROCUREMENT OF PASSENGER TRANSPORTATION SERVICES FROM AND BETWEEN OVERSEAS POINTS.

MR. DWINELL STATES THAT THE DEPARTMENT RECOGNIZES THE ADVANTAGES ACCRUING TO THE GOVERNMENT BY USING TRANSPORTATION REQUESTS, THE GOVERNMENT'S STANDARD PROCUREMENT DOCUMENT FOR PASSENGER TRANSPORTATION SERVICES, BUT HE SUGGESTS THAT CERTAIN CHARACTERISTICS AND EXISTING CONDITIONS OF FOREIGN SERVICE TRAVEL, DISPERSED AS IT IS AMONG A LARGE NUMBER OF CARRIERS CONDUCTING THEIR OPERATIONS IN A MULTITUDE OF COUNTRIES VASTLY DIFFERENT IN THEIR SOCIAL, ECONOMIC AND BUSINESS PRACTICES, MAKE IT HIGHLY IMPRACTICABLE AND EXTREMELY DIFFICULT TO REQUIRE THE EXCLUSIVE USE OF TRANSPORTATION REQUESTS IN PROCURING THAT TRAVEL WITHOUT SERIOUSLY DISRUPTING THE PASSENGER TRANSPORTATION PROCUREMENT ACTIVITIES OF THE DEPARTMENT'S FOREIGN SERVICE POSTS. THE CHARACTERISTICS AND EXISTING CONDITIONS RELIED ON TO SUPPORT THE REQUEST FOR THE BLANKET EXEMPTION REPORTEDLY RELATE TO THE IRREGULAR ACCEPTANCE OF TRANSPORTATION REQUESTS BY FOREIGN CARRIERS, SOME OF WHICH, BECAUSE OF INTERNAL FISCAL ARRANGEMENTS, PREFER TO OPERATE EXCLUSIVELY ON A CASH BASIS; TO LANGUAGE BARRIERS; TO MANAGERIAL DIFFICULTIES OF FOREIGN CARRIERS AND THE APPARENT LACK OF COMMUNICATION OR COORDINATION BETWEEN DIFFERENT TICKET OFFICES OF THE SAME CARRIER; AND TO THE FACT THAT SOME FOREIGN CARRIERS HAVE EXPERIENCED DIFFICULTIES IN COLLECTIONS AND HAVE SUFFERED LOSSES BECAUSE OF THEIR ACCEPTANCE OF IMPROPERLY AUTHORIZED TRANSPORTATION REQUESTS. MR. DWINELL SUGGESTS THAT THE GRANTING OF THE BLANKET EXEMPTION, COUPLED WITH THE DEPARTMENT'S ISSUANCE OF A SPECIAL PROPOSED INSTRUCTION (COPY FURNISHED US) TO OVERSEAS POSTS EMPHASIZING THE IMPORTANCE OF EXTENDING THE USE OF THE TRANSPORTATION REQUEST AND REQUESTING RENEWED EFFORTS TO PERSUADE RELUCTANT FOREIGN CARRIERS TO ACCEPT THE USE OF THE TRANSPORTATION REQUEST, WOULD PROVIDE A SATISFACTORY SOLUTION TO THE FOREIGN SERVICE'S DIFFICULTIES WITH CARRIERS THROUGHOUT THE WORLD.

DURING THE PAST SEVERAL YEARS, WE HAVE HAD NUMEROUS MEETINGS, DISCUSSIONS AND COMMUNICATIONS WITH LEADING REPRESENTATIVES OF MAJOR AIR AND STEAMSHIP CARRIERS AND TRANSPORTATION ASSOCIATIONS, INCLUDING THOSE ENGAGED IN FOREIGN AND INTERNATIONAL OPERATIONS. OUR ATTENTION HAS NOT BEEN DIRECTED TO ANY REPORTED SPECIFIC OBJECTION OR REFUSAL BY ANY PARTICULAR CARRIER TO ACCEPT THE UNITED STATES OF AMERICA TRANSPORTATION REQUEST. ON THE CONTRARY, OUR CONTACTS AND EXPERIENCE WITH INTERESTED CARRIERS OPERATING BETWEEN AND WITHIN FOREIGN COUNTRIES DISCLOSE THAT STANDARD FORM 1169 IS GENERALLY READILY ACCEPTABLE BECAUSE IT IDENTIFIES THE EXACT TRANSPORTATION SERVICES WHICH ARE AUTHORIZED TO BE FURNISHED. CONTRAST, OUR AUDIT AND SURVEYS IN YOUR DEPARTMENT AND ELSEWHERE, DISCLOSE THAT THE USE OF PURCHASE ORDERS AND LOCALLY DEVISED PROCUREMENT DOCUMENTS OFTEN GENERATES PROBLEMS CONNECTED WITH THE COLLECTION OF EXCESS TRANSPORTATION CHARGES BECAUSE OF INADEQUATE ROUTE AND SERVICE SPECIFICATIONS. THE USE OF SUCH SUBSTITUTE DOCUMENTS COMPLICATES OUR AUDIT PROCEDURES AND MATERIALLY INCREASES OUR AUDIT COSTS BECAUSE EXPENSIVE INVESTIGATIONS OFTEN ARE NECESSARY TO COMPLETE THE RECORD UNDERLYING THE EXPENDITURE INVOLVED.

THE REASONS ADVANCED TO SUPPORT THE REQUEST FOR THE BLANKET EXEMPTION ARE OF A GENERAL NATURE RELATIVE TO CONDITIONS EXISTING IN SOME OVERSEAS AREAS. WE ARE INFORMED THAT MOST OF THE RAILWAYS IN GREAT BRITAIN, IN OTHER COUNTRIES IN EUROPE, AND IN JAPAN, ARE HONORING TRANSPORTATION REQUESTS OR WARRANTS ISSUED BY DEPARTMENT OF DEFENSE AUTHORITIES ON A CREDIT BASIS. IF THE SIZE OF THE PROBLEM JUSTIFIES ITS USE, THE LANGUAGE DIFFICULTIES POSSIBLY COULD BE SOLVED BY USING A MULTILINGUAL TRANSPORTATION REQUEST. WE RECOGNIZE THAT LOCAL CIRCUMSTANCES OFTEN CAUSE PROCUREMENT PROBLEMS BUT IT MAY BE THAT FOREIGN CARRIERS AND THEIR PERSONNEL AT THE VARIOUS STATIONS, IF PROPERLY INFORMED OF THE MUTUAL ADVANTAGES AND BENEFITS INHERENT IN THE USE OF THE UNITED STATES OF AMERICA TRANSPORTATION REQUEST, WILL FIND IT CONVENIENT TO ADAPT THEIR PROCEDURES TO THE NEEDS OF THE UNITED STATES GOVERNMENT WHENEVER OCCASION ARISES.

IN THESE CIRCUMSTANCES, WE CANNOT APPROVE THE REQUEST FOR A "BLANKET" EXEMPTION FROM 5 GAO 2010.20. HOWEVER, WE RECOGNIZE THAT UNUSUAL SITUATIONS INVOLVING PARTICULARIZED CONDITIONS MAY JUSTIFY THE FAILURE TO USE THE UNITED STATES OF AMERICA TRANSPORTATION REQUEST IN SOME FOREIGN AREAS; THUS, IF OUR ATTENTION IS BROUGHT TO SPECIFIC EXAMPLES, IDENTIFIED BY CARRIER OR CARRIERS AND GEOGRAPHICAL AREA, OF REFUSALS TO ACCEPT THE TRANSPORTATION REQUEST, OF LANGUAGE BARRIER PROBLEMS, OF FOREIGN CARRIER MANAGERIAL DIFFICULTIES, AND OF PARTICULAR INSTANCES WHERE FOREIGN CARRIERS HAVE EXPERIENCED DIFFICULTY AND HAVE SUFFERED LOSSES DUE TO IMPROPERLY AUTHORIZED TRANSPORTATION REQUESTS, WE WILL BE GLAD TO CONSIDER THE NECESSITY OF GRANTING AN EXEMPTION, RELATED TO THE JUSTIFICATION OF THE SPECIFIC NEED FOR ONE. WE ARE, OF COURSE, INTERESTED IN PROMOTING MEANS AND METHODS OF ADMINISTRATIVE EFFICIENCY IN MAINTAINING PROGRAMS AND ACHIEVING OBJECTIVES. AT THE SAME TIME WE ARE CONCERNED WITH THE NEED FOR ADHERENCE TO UNIFORM STANDARDS AND DOCUMENTATION AS AN AID TO AUDITING AND SETTLING ACCOUNTS COVERING PAYMENTS MADE FROM PUBLIC FUNDS IN ACCORDANCE WITH OUR DUTIES AND RESPONSIBILITIES UNDER THE LAW. THE APPLICABLE SECTIONS OF YOUR DEPARTMENT'S REGULATIONS SHOULD BE REVISED TO BE CONSISTENT WITH THE CURRENT PROVISIONS OF 5 GAO 2000, RELATIVE TO THE REQUIRED USE OF TRANSPORTATION REQUESTS, EXCEPT AS OTHERWISE AUTHORIZED.