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B-163758, AUG 14, 1975

B-163758 Aug 14, 1975
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IS SUBJECT TO CERTAIN RESTRICTIONS. IT IS BELIEVED THAT GREATER SAVINGS IN PROCUREMENT PRACTICES AND PROCEDURES AND IN PAPER HANDLING CAN BE EFFECTED FOR BOTH THE GOVERNMENT AND THE CARRIER INDUSTRY IF THE MONETARY LIMITATION WERE RAISED. AUTHORITY IS THEREFORE GRANTED TO THOSE ESTABLISHMENTS THAT UTILIZE THE DISCRETIONARY AUTHORITY OUTLINED IN 5 GAO 3017. THE EFFICIENCIES AND ECONOMIES TO BE ACHIEVED IN THE USE OF COMMERCIAL FORMS AND PROCEDURES FOR THESE SMALL SHIPMENTS HAVE BECOME WELL ESTABLISHED. AGENCIES THEREFORE NO LONGER NEED SUBMIT COPIES OF ADMINISTRATIVE AUTHORIZATIONS DEFINING THE CIRCUMSTANCES AND CONDITIONS UNDER WHICH THE COMMERCIAL FORMS WILL BE USED BUT NEED MERELY NOTIFY THE TRANSPORTATION AND CLAIMS DIVISION.

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B-163758, AUG 14, 1975

SUBJECT: MONETARY LIMITATION ON USE OF COMMERCIAL FORMS AND PROCEDURES TO PROCURE FREIGHT TRANSPORTATION SERVICES AND ON PAYMENT OF FREIGHT TRANSPORTATION SERVICES FROM IMPREST FUNDS

TO THE HEADS OF DEPARTMENTS, AGENCIES, AND OTHERS CONCERNED:

THE USE OF COMMERCIAL FORMS AND PROCEDURES TO PROCURE TRANSPORTATION SERVICES FOR CERTAIN TYPES OF SMALL DOMESTIC SHIPMENTS UNDER THE PROVISIONS OF 5 GAO 3017, AS AMENDED (4 CFR 52.16), AS WELL AS THE PAYMENT FOR SUCH SERVICES FROM IMPREST FUNDS, IS SUBJECT TO CERTAIN RESTRICTIONS, THE MAJOR ONE BEING THAT THE TRANSPORTATION CHARGES ORDINARILY NOT EXCEED $25 PER SHIPMENT. IT IS BELIEVED THAT GREATER SAVINGS IN PROCUREMENT PRACTICES AND PROCEDURES AND IN PAPER HANDLING CAN BE EFFECTED FOR BOTH THE GOVERNMENT AND THE CARRIER INDUSTRY IF THE MONETARY LIMITATION WERE RAISED.

AUTHORITY IS THEREFORE GRANTED TO THOSE ESTABLISHMENTS THAT UTILIZE THE DISCRETIONARY AUTHORITY OUTLINED IN 5 GAO 3017, AS AMENDED MAY 6, 1971 (B- 163758), AND JANUARY 7, 1974, TO USE COMMERCIAL FORMS AND PROCEDURES FOR CERTAIN SMALL SHIPMENTS AND TO PAY THE TRANSPORTATION CHARGES FROM IMPREST FUNDS WHERE THE CHARGES DO NOT EXCEED $100 PER SHIPMENT AND THE OCCASIONAL EXCEPTION DOES NOT EXCEED THAT SUM BY AN UNREASONABLE AMOUNT.

IN RAISING THE MONETARY LIMITATION TO $100, HOWEVER, WE BELIEVE IT IN THE BEST INTERESTS OF THE GOVERNMENT TO INSTITUTE AN ADDITIONAL MEASURE DESIGNED TO STRENGTHEN ACCOUNTABILITY FOR THESE SHIPMENTS. TO THAT END, ALL CHARGES FOR TRANSPORTATION SERVICES FURNISHED UNDER THE PROCEDURES SET FORTH IN 5 GAO 3017, AS AMENDED, MUST HEREAFTER BE BILLED BY AND PAID TO THE ORIGIN CARRIER OR FORWARDER AND MAY NOT BE WAIVED TO ANY OTHER CARRIER.

THE EFFICIENCIES AND ECONOMIES TO BE ACHIEVED IN THE USE OF COMMERCIAL FORMS AND PROCEDURES FOR THESE SMALL SHIPMENTS HAVE BECOME WELL ESTABLISHED, THUS MAKING UNNECESSARY THE REQUIREMENT IN 5 GAO 3017(1) FOR ADMINISTRATIVE DETERMINATIONS OF SUCH EFFICIENCIES AND ECONOMIES. AGENCIES THEREFORE NO LONGER NEED SUBMIT COPIES OF ADMINISTRATIVE AUTHORIZATIONS DEFINING THE CIRCUMSTANCES AND CONDITIONS UNDER WHICH THE COMMERCIAL FORMS WILL BE USED BUT NEED MERELY NOTIFY THE TRANSPORTATION AND CLAIMS DIVISION, U. S. GENERAL ACCOUNTING OFFICE, OF THE ADOPTION (AND ANY SUBSEQUENT CANCELLATION) OF THESE PROCEDURES.

IT IS EMPHASIZED, HOWEVER, THAT THIS USE OF COMMERCIAL FORMS AND PROCEDURES AND THE PAYMENT FOR THESE SERVICES FROM IMPREST FUNDS, EITHER IN ADVANCE OR AFTER COMPLETION OF DELIVERY, ARE OPTIONAL AND APPLICABLE ONLY UPON MUTUAL AGREEMENT BETWEEN THE AGENCY AND THE CARRIER OR FORWARDER INVOLVED. ALSO, THESE SHIPMENTS REMAIN SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN THE STANDARD FORM OF THE U. S. GOVERNMENT BILL OF LADING (EXCEPT AS TO PREPAYMENT) AND ANY OTHER APPLICABLE CONTRACT OR AGREEMENT OF THE CARRIER FOR THE TRANSPORTATION OF SHIPMENTS FOR THE UNITED STATES ON GOVERNMENT BILLS OF LADING. FURTHER, EACH AGENCY IS HELD ACCOUNTABLE FOR MAINTAINING A SYSTEM OF CONTROL THAT WILL PRECLUDE THE MAKING OF DUPLICATE PAYMENTS FOR THE SUBJECT TRANSPORTATION SERVICES.

THIS AUTHORITY SHALL BE APPLICABLE ONLY TO SHIPMENTS MADE IN ACCORDANCE WITH THOSE LIMITATIONS AND PROCEDURES STATED IN 5 GAO 3017, AS AMENDED, THAT ARE NOT SUPERSEDED HEREIN.

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