B-144429, JUN. 23, 1967

B-144429: Jun 23, 1967

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GENERAL SERVICES ADMINISTRATION: REFERENCE IS MADE TO YOUR LETTER OF MARCH 1. IT IS FURTHER STATED THAT THESE SAMPLES ARE SHIPPED FROM ALL PARTS OF THE COUNTRY. ARE NOT PARTICULARLY SKILLED IN THEIR PREPARATION AND USE. SPEED IN THE TRANSPORTATION OF THESE SAMPLES IS CONSIDERED ESSENTIAL IN ORDER TO AVOID THE POSSIBILITY OF DETERIORATION IN TRANSIT. ANTICIPATED SAVINGS IN ADMINISTRATIVE PROCESSING COSTS ARE ALSO CITED IN SUPPORT OF THE REQUEST FOR DEVIATION FROM THE PRESCRIBED PROCEDURES. 000 SHIPMENTS ARE MADE ANNUALLY. THE GENERAL ACCOUNTING OFFICE POLICY AND PROCEDURES MANUAL REQUIREMENT FOR THE USE OF GOVERNMENT BILLS OF LADING IS HEREBY WAIVED FOR THESE SHIPMENTS. IS AUTHORIZED TO USE EXPRESS RECEIPTS OR OTHER COMMERCIAL DOCUMENTS.

B-144429, JUN. 23, 1967

TO THE ADMINISTRATOR, GENERAL SERVICES ADMINISTRATION:

REFERENCE IS MADE TO YOUR LETTER OF MARCH 1, 1967, IN WHICH YOU REQUEST AUTHORITY FOR THE FOOD AND DRUG ADMINISTRATION OF THE DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE (FDA) TO USE COMMERCIAL SHIPPING DOCUMENTS, IN LIEU OF GOVERNMENT BILLS OF LADING, TO COVER REPETITIVE TYPE SMALL SHIPMENTS OF FOOD, DRUG, AND COSMETIC SAMPLES.

YOUR LETTER STATES THAT THE FOOD AND DRUG ADMINISTRATION'S DISTRICT OFFICES, AS PART OF THEIR INSPECTION RESPONSIBILITIES, COLLECT SAMPLES OF FOOD, DRUGS, AND COSMETICS FOR SUBMISSION TO ONE OF 18 EXAMINING LABORATORIES. IT IS FURTHER STATED THAT THESE SAMPLES ARE SHIPPED FROM ALL PARTS OF THE COUNTRY, AND GOVERNMENT BILLS OF LADING MUST, OF NECESSITY, BE PREPARED BY INDIVIDUAL INSPECTORS WHO, FOR THE MOST PART, ARE NOT PARTICULARLY SKILLED IN THEIR PREPARATION AND USE. ACCORDING TO ADVICE SUBSEQUENTLY FURNISHED BY A GENERAL SERVICES ADMINISTRATION STAFF MEMBER, SPEED IN THE TRANSPORTATION OF THESE SAMPLES IS CONSIDERED ESSENTIAL IN ORDER TO AVOID THE POSSIBILITY OF DETERIORATION IN TRANSIT, AND THE ARTICLES TO BE SHIPPED BEAR ONLY NOMINAL VALUE. ADDITIONAL ADMINISTRATIVE PROBLEMS, SUCH AS DISTRIBUTION AND ACCOUNTABILITY, AND ANTICIPATED SAVINGS IN ADMINISTRATIVE PROCESSING COSTS ARE ALSO CITED IN SUPPORT OF THE REQUEST FOR DEVIATION FROM THE PRESCRIBED PROCEDURES.

AS FURTHER STATED IN YOUR LETTER, APPROXIMATELY 4,000 SHIPMENTS ARE MADE ANNUALLY, FOR THE MOST PART VIA REA EXPRESS, GREYHOUND BUS LINES, AND TRAILWAYS BUS SYSTEM. VIA THESE CARRIERS, THE COST PER SHIPMENT GENERALLY AVERAGES $15.

YOU SUGGEST, AS A SOLUTION TO THE PROBLEM, THE USE OF REA EXPRESS RECEIPTS OR OTHER COMMERCIAL DOCUMENTS FOR THESE SHIPMENTS, WITH CUMULATIVE BILLING BY THE CARRIER AT MONTHLY INTERVALS ON AN APPROPRIATE VOUCHER FORM.

IN VIEW OF THE LOW AVERAGE COST FOR TRANSPORTATION OF THE SAMPLES, THE NOMINAL VALUE OF THE MATERIAL, THE NEED FOR EXPEDITED SERVICE, AND THE ADMINISTRATIVE PROBLEMS INCURRED BY ISSUANCE OF GOVERNMENT BILLS OF LADING FOR THE TRAFFIC INVOLVED, THE GENERAL ACCOUNTING OFFICE POLICY AND PROCEDURES MANUAL REQUIREMENT FOR THE USE OF GOVERNMENT BILLS OF LADING IS HEREBY WAIVED FOR THESE SHIPMENTS. IN THAT CIRCUMSTANCE THE SHIPPING AND PAYMENT RECORDS SHOULD BE RETAINED AT THE SITE.

THE FOOD AND DRUG ADMINISTRATION, ACCORDINGLY, IS AUTHORIZED TO USE EXPRESS RECEIPTS OR OTHER COMMERCIAL DOCUMENTS, WITHOUT CONVERSION TO GOVERNMENT BILLS OF LADING, ON REPETITIVE TYPE SMALL SHIPMENTS OF FOOD, DRUG, AND COSMETIC SAMPLES MOVING TO THE FDA DISTRICT OFFICES IDENTIFIED IN YOUR REQUEST, VIA REA EXPRESS AND BUS CARRIERS, SUBJECTTO THE FOLLOWING CONDITIONS:

1. THE CARRIERS' BILLS FOR CHARGES WILL BE SUBMITTED MONTHLY ON STANDARD FORM 1034, PUBLIC VOUCHER FOR PURCHASES AND SERVICES OTHER THAN PERSONAL, SUPPORTED BY THE ORIGINAL COMMERCIAL BILLING FORMS AND A SHOWING OF THE RECEIPT OF THE SHIPMENTS BY THE CONSIGNEES. IF A CARRIER FAILS TO FURNISH RECEIPT AT TIME OF BILLING, PAYMENT MAY BE MADE ON THE BASIS OF AN ADMINISTRATIVE NOTATION ON THE VOUCHER FORM INDICATING THAT GOOD ORDER DELIVERY WAS OTHERWISE VERIFIED.

2. THE MAXIMUM ALLOWABLE TRANSPORTATION CHARGE FOR A SINGLE SHIPMENT MADE UNDER THIS AUTHORIZATION SHALL BE $50.

3. A LETTER OF AGREEMENT WILL BE EXECUTED AND FILED WITH THE FOOD AND DRUG ADMINISTRATION BY EACH PARTICIPATING CARRIER (OR A TARIFF PUBLISHING OR OTHER AGENT AUTHORIZED TO ACT FOR GROUPS OF CARRIERS) SIGNIFYING ACCEPTANCE OF THESE ARRANGEMENTS. THE LETTER SHOULD CONTAIN THE FOLLOWING PROVISION:

"THE SHIPMENTS COVERED BY THIS AGREEMENT CONSIST OF PROPERTY OF THE UNITED STATES AND, EXCEPT AS SPECIFICALLY PROVIDED HEREIN, ARE SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN THE STANDARD FORM OF THE UNITED STATES GOVERNMENT BILL OF LADING AND ANY OTHER APPLICABLE CONTRACT OR AGREEMENT OF THE CARRIER FOR THE TRANSPORTATION OF SHIPMENTS FOR THE UNITED STATES ON GOVERNMENT BILLS OF LADING.'

THE FOOD AND DRUG ADMINISTRATION WILL BE RESPONSIBLE FOR VERIFICATION OF THE FACT THAT THE SERVICES FOR WHICH THE CARRIER CLAIMS REIMBURSEMENT HAVE BEEN FURNISHED. PAYMENTS OF THIS TYPE ARE NOT TO BE SCHEDULED ON VOUCHER- SCHEDULES COVERING VOUCHERS IN THE TRANSPORTATION SERIES, AND THE PAYMENT RECORDS SHOULD NOT BE SENT TO OUR TRANSPORTATION DIVISION. IN VIEW OF THE FOREGOING, RECORDS RETENTION SCHEDULES GOVERNING TRANSPORTATION VOUCHERS AND SUPPORTING DOCUMENTS WILL NOT BE APPLICABLE TO THIS TYPE OF PAYMENT.

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