A-24222, DEC. 13, 1961

A-24222, DEC. 13, 1961

TO CHAIRMAN, UNITED STATES ATOMIC ENERGY COMMISSION

FURTHER REFERENCE IS MADE TO THE LETTER OF SEPTEMBER 15, 1961, FROM MR. DWIGHT INK, ASSISTANT GENERAL MANAGER OF YOUR COMMISSION, REQUESTING MODIFICATION OF OUR DECISION OF MARCH 28, 1951, WHICH SET OUT CERTAIN PROCEDURES TO BE FOLLOWED WHEN COMMERCIAL BILLS OF LADING ARE USED BY COST -TYPE CONTRACTORS IN MAKING SHIPMENTS FOR THE ACCOUNT OF THE ATOMIC ENERGY COMMISSION.

WITH THIS LETTER WERE ENCLOSED COPIES OF SECTIONS FROM THE CURRENT AEC MANUAL (CHAPTER 1130, SUBSECTIONS 093, 094, AND 095) SETTING FORTH PROCEDURES FOR THE PAYMENT AND AUDIT OF TRANSPORTATION CHARGES ACCRUING ON FREIGHT SHIPMENTS MADE BY COST-TYPE CONTRACTORS TOGETHER WITH A COPY OF YOUR TRANSPORTATION AND TRAFFIC MANAGEMENT HANDBOOK (AEC MANUAL APPENDIX 5201) CONTAINING, AMONG OTHER THINGS, INSTRUCTIONS FOR THE USE AND PREPARATION OF COMMERCIAL BILLS OF LADING FOR THIS TYPE OF SHIPMENT. THE PAYMENT AND AUDIT PROCEDURES DESCRIBED IN YOUR MANUAL SEEM DESIGNED TO ADEQUATELY PROTECT THE INTERESTS OF THE UNITED STATES AND, THEREFORE, CONDITIONS 2 TO 8, INCLUSIVE, OF OUR DECISION OF MARCH 28, 1951, ARE HEREBY RESCINDED AND ARE NO LONGER FOR APPLICATION IN ANY CASE. THE MENTIONED CONDITIONS 2 THROUGH 8 PRIMARILY CONCERN THE PROCEDURES FOR THE BILLING AND PAYMENT OF CARRIER CHARGES ON STANDARD FORM NO. 1113, PUBLIC VOUCHER FOR TRANSPORTATION CHARGES, IN THE CASE OF SHIPMENTS COVERED BY COMMERCIAL BILLS OF LADING INCORPORATING GOVERNMENT BILL OF LADING CONDITIONS. YOUR MANUAL CONTEMPLATES THAT THE ORIGINALS OR LEGIBLE COPIES OF COMMERCIAL FREIGHT AND EXPRESS BILLS FOR TRANSPORTING GOVERNMENT PROPERTY (THE SCOPE OF THE PARTICULAR PROVISION--- AEC 1130-094A--- SHOULD BE BROADENED TO INCLUDE PROPERTY TRANSPORTED FOR THE ACCOUNT OF, AND ON WHICH, THE UNITED STATES WILL ASSUME THE FREIGHT CHARGES) PAID BY AEC COST -TYPE CONTRACTORS AND THEIR FIRST-TIER COST-TYPE SUBCONTRACTORS ARE TO BE TRANSMITTED, PERIODICALLY, DIRECTLY TO THE GENERAL ACCOUNTING OFFICE FOR RATE AUDIT.

WE AGREE THAT CONDITION 1 OF OUR DECISION OF MARCH 28, 1951, MAY BE RESTATED IN THE FORM THAT YOU SUGGEST FOR ANNOTATION ON EACH COMMERCIAL BILL OF LADING OR EXPRESS RECEIPT AND COPIES THEREOF, PRIOR TO TENDER TO THE INITIAL CARRIER. WE BELIEVE, HOWEVER, THAT SOME ADDITIONAL LANGUAGE (SHOWN BELOW BY UNDERLINEATION FOR EMPHASIS ONLY) MAY FACILITATE GENERAL ACCEPTANCE BY THE CARRIERS, AND WE SUGGEST THAT THE FOLLOWING SUBSTITUTE STATEMENT BE USED:

"THIS SHIPMENT IS FOR ACCOUNT OF THE U.S. GOVERNMENT WHICH WILL ASSUME THE FREIGHT CHARGES AND IS SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN THE STANDARD FORM OF THE U.S. GOVERNMENT BILL OF LADING AND TO ANY AVAILABLE SPECIAL RATES OR CHARGES.' AS YOU REQUEST, THE LANGUAGE OF THE FOREGOING STATEMENT MAY BE VARIED (WITHOUT MATERIALLY CHANGING ITS SUBSTANCE) TO SATISFY THE NEEDS OF PARTICULAR COST-TYPE CONTRACTORS FOR THE PURPOSE OF OBTAINING THE BENEFIT OF THE LOWEST AVAILABLE RATES FOR THE ACCOUNT OF THE GOVERNMENT.

CONDITION 10 OF OUR DECISION OF MARCH 28, 1951, REQUIRES THE USE OF GOVERNMENT BILLS OF LADING WHERE THERE ARE INVOLVED SHIPMENTS TO OR FROM GROUND STORAGE OR HOLDING AND RECONSIGNING POINTS OR THOSE INVOLVING TRANSIT PRIVILEGES. YOU ASK PERMISSION TO USE COMMERCIAL BILLS OF LADING FOR SUCH SHIPMENTS MADE BY COST-TYPE CONTRACTORS TO OBTAIN THE SAME ADVANTAGES WHICH ACCRUE TO YOUR COMMISSION THROUGH THE USE OF COMMERCIAL PAPER ON OTHER CATEGORIES OF SHIPMENTS BY COST-TYPE CONTRACTORS. WE WOULD HAVE NO OBJECTION TO HAVING THIS TYPE SHIPMENT MOVE UNDER A COMMERCIAL BILL OF LADING, PROVIDED THAT THE BILL OF LADING COVERING THE OUTBOUND SHIPMENT FROM THE TRANSIT POINT MAKES REFERENCE TO THE INBOUND SHIPMENT AND GIVES THE COMPLETE IN BOUND BILLING RECORD SHOWING THE POINT OF ORIGIN, DATE OF SHIPMENT, COMMODITY, WEIGHT, RATE, AND THE CORRECT AMOUNT PAID ON THE INBOUND SHIPMENT, SO THAT RELIABLE INFORMATION MAY BE AVAILABLE FOR USE IN COMPUTING THE THROUGH CHARGES IN CONNECTION WITH THE OUTBOUND SHIPMENT. ACCORDINGLY, CONDITION 10 IS RESCINDED IF COMPLIANCE WITH THESE REQUIREMENTS CAN BE MADE.

CONDITION 9 OF OUR DECISION OF MARCH 28, 1951, REMAINS IN EFFECT; IT REQUIRES THAT U.S. GOVERNMENT BILLS OF LADING BE USED BY THE COMMISSION FOR FREIGHT OR EXPRESS SHIPMENTS FROM AND TO ITSELF AND FOR ITS OWN ACCOUNT. IN ADDITION, IT IS NOTED THAT AEC 1130-096 MAKES PROVISION FOR BILLING, PAYMENT, AND AUDIT IN ACCORDANCE WITH THE USUAL PROCEDURES WHERE GOVERNMENT BILLS OF LADING ARE USED FOR COST-TYPE CONTRACTORS' SHIPMENTS. WE ENDORSE ANY EFFORT TO OBTAIN THE BROADEST POSSIBLE USE OF GOVERNMENT BILLS OF LADING WHENEVER THE UNITED STATES ASSUMES THE TRANSPORTATION CHARGES.

WE NOTE THAT THE HEADING OF AEC 1130.09 REFERS TO "CARRIERS' CHARGES FOR TRANSPORTING GOVERNMENT PROPERTY UNDER COST-TYPE CONTRACTS.' THE TERM "GOVERNMENT PROPERTY" IS ALSO USED IN SUBSECTIONS 091, 093, AND 094. ORDER TO BE CONSISTENT WITH THE NEW ANNOTATION TO BE PLACED ON COMMERCIAL BILLS OF LADING AND EXPRESS RECEIPTS IT WOULD BE APPROPRIATE IN THE NEXT REVISION OF THE MANUAL TO CHANGE THE TERM "GOVERNMENT PROPERTY" TO "PROPERTY FOR ACCOUNT OF THE U.S. GOVERNMENT.' ANOTHER ITEM FOR LATER REVISION CONCERNS AEC 1130-093, 094, AND 095 WHERE REFERENCE IS MADE TO GAO "NOTICES OF OVERPAYMENT" (FORMS 1003). SINCE THE PROVISIONS OF 49 U.S.C.A. 66 NOW DO NOT AUTHORIZE DEDUCTIONS FROM CARRIERS' BILLS FOR UNREASONABLE CHARGES (OVERPAYMENTS) AND FORMS 1003 ARE PRESENTLY STATED ONLY FOR THE RECOVERY OF INAPPLICABLE CHARGES (TERMED OVERCHARGES" IN 49 U.S.C.A. 66) THESE FORMS ARE NOW ENTITLED "NOTICE OF OVERCHARGE.' SHOULD BE NOTIFIED OF ANY PROPOSED MATERIAL CHANGES IN THE MANUAL AND HANDBOOK MENTIONED ABOVE.

THESE CHANGES SHOULD ENABLE YOUR COMMISSION TO EFFECTIVELY CARRY ON ITS PROGRAMS AND, AT THE SAME TIME, RETAIN THE BASIC PROCEDURES AND CONTROLS NEEDED TO INSURE PROPER APPLICATION OF AND ACCOUNTABILITY FOR PUBLIC FUNDS.