Federal Supply Service; Broker and Direct Move Management Services Provider Participation in the General Services Administration's Centralized Household Goods Traffic Management Program (CHAMP)

GENERAL SERVICES ADMINISTRATION

Federal Supply Service; Broker and Direct Move Management

Services Provider Participation in the General Services

Administration's Centralized Household Goods Traffic Management Program

(CHAMP)

AGENCY: Federal Supply Service, GSA.

ACTION: Notice of proposed program changes for comment.

-----------------------------------------------------------------------

SUMMARY: Earlier this year, GSA provided the household goods

transportation industry an opportunity to comment on its draft 1997

Household Goods Tender of Service (HTOS). GSA has received and reviewed

the industry's comments on the draft 1997 HTOS and is in the process of

making appropriate revisions to the document before issuing it in

final. The provisions contained in this notice apply to household goods

transportation broker and direct move management services provider

participants in CHAMP and were not included in the original draft HTOS.

We are offering these provisions for industry review and comment at

this time.

DATES: Please submit your comments by January 5, 1998.

ADDRESSES: Mail comments to the Travel and Transportation Management

Staff (FBX), General Services Administration, Washington, DC 20406,

Attn: Federal Register Notice. GSA will consider your comments in

developing the final move management services provisions. In the

interim, rates filed in response to GSA's 1996 Request for Offers have

been extended for 90 days from October 31, 1997 to January 29, 1998.

FOR FURTHER INFORMATION CONTACT: Larry Tucker, Senior Program Analyst,

Travel and Transportation Management Staff, FSS/GSA, 703-305-7660.

Section xx--Move Management Services

Subsection A--General

xx-1. Scope

This section establishes terms and conditions for participation by

licensed move management services providers (hereinafter referred to as

``broker'') and direct move management services providers in the

General Services Administration's (GSA's) Centralized Household Goods

Traffic Management Program (CHAMP).

xx-2. Applicable Provisions

Except as otherwise provided in this section, the provisions of

sections 1 through -- -- of this Household Goods Tender of Service

(HTOS), and any amendments thereto, apply both to brokers and direct

move management services providers covered under this section and to

the transportation services furnished by them.

xx-3. Definition of Services

CHAMP offers Federal agencies the following two kinds of services:

A. Transportation services. Transportation services are the

transportation and accessorial services normally associated with a

household goods move as set out in interstate and intrastate tariffs or

this HTOS for international moves.

B. Move management services. Move management services are those set

out in subsection B of this section plus transportation services as

defined in paragraph xx-3A, above.

xx-4. Move Management Services Provider Treated as Carrier

A. Use of the term ``carrier''. The term ``carrier'' as used in

sections 1 through---- of this HTOS includes both a broker and a direct

move management services provider.

B. Service performance requirements. For purposes of participation

in CHAMP, a broker or a direct move management services provider must

furnish or otherwise comply with all applicable requirements of this

HTOS, including services, delivery timeframes, billing, reporting, and

liability responsibilities, unless waived by the GBL Issuing Officer or

responsible Transportation Officer. A broker must handle any shipment

an agency tenders it the same as if it were a carrier. A direct move

management services provider must provide the move management services

set out in subsection B of this section in conjunction with

transportation services; it may not conduct any brokering of shipments

under CHAMP.

C. Other performance requirements. For purposes of participation in

CHAMP, both a broker and a direct move management services provider

must file a schedule of their service charges, including carrier

transportation rates, and comply with requirements for paying GSA the

specified shipment surcharge the same as any other participant in the

program. Additionally, both are subject to the Customer Satisfaction

Rating system.

D. Carrier as subcontractor of broker. Since a broker participating

in CHAMP is included in the term ``carrier'' as used in sections 1

through---- of this HTOS, an actual carrier the broker uses to perform

transportation under CHAMP is considered to be a subcontractor of the

broker.

E. Issuance of Government bill of lading (GBL) to broker. When an

agency tenders a shipment to a broker, the agency will issue a GBL

directly to the broker. The broker is responsible for billing shipment

charges in conformity with its filed rates. The broker also is

responsible for paying its agents directly for services furnished.

F. Broker commission. If a broker has an agreement with a carrier

it engages to provide transportation services under CHAMP and the

agreement yields a commission, a discount, or anything else of value to

the broker, the broker must comply with the following before it may

accept the commission, discount, or anything else of value for work

performed under CHAMP:

(1) For agreements that yield a commission to the broker, the

broker

[[Page 64226]]

must propose a single commission rate and a uniform rate structure

forming the basis for the commission which it will use with all

carriers it selects to perform work under CHAMP. The broker must

disclose in writing to GSA its commission rate and structure

(describing what the commission represents; e.g., a percentage of full

tariff charges) and state that it will use only this rate for work

performed under CHAMP;

(2) For agreements that do not specify a commission but yield a

discount or anything else of value to the broker, the broker must

establish a rate structure with a uniform spread between the rate the

Government pays the broker and the rate the broker pays the carrier it

uses to perform work under CHAMP. The broker must disclose and fully

describe in writing to GSA its uniform rate structure and uniform

spread, including the basis (e.g., full tariff charges) for

calculations under the rate structure, and must state that it will use

only this rate structure and spread for work performed under CHAMP;

(3) A broker must send its disclosure letter to the following

address: General Services Administration (6FBX), 1500 E. Bannister

Road, Room 1076, Kansas City, MO 64131, Attn: HHG Rate Filing; and

(4) GSA will review the broker's proposed commission rate or

uniform rate structure and either approve or reject the broker's

arrangement.

xx-5. Restriction on Services Provided

A broker may offer only move management services as described in

paragraph xx-3B, above. A direct move management services provider may

offer move management services only in conjunction with transportation

services, as described in paragraph xx-3A, above, which it furnishes

within its current approved scope of operations.

Subsection B--Move Management Services Provided

xx-100. General

A broker or direct move management services provider is responsible

for arranging, coordinating, and monitoring a relocated employee's

household goods move from initial notification by the shipping agency

through delivery at the new residence. A household goods move within

the continental United States is a basic move consisting of one

shipment of household goods and personal effects from one or more

origins to one or more destinations. The move may include shipment of a

privately owned vehicle(s), and a move outside the conterminous United

States, including Alaska, may include shipment of unaccompanied air

baggage.

xx-101. Carrier Performance Responsibility

Notwithstanding the provisions of paragraph xx-11, below, ``Origin

and destination on-site quality control,'' the broker or direct move

management services provider, as applicable, must ensure that it

furnishes transportation services in accordance with the provisions of

this HTOS. It also must take necessary and appropriate action to

protect the interests of the shipping agency, ensure proper service

performance, and protect the real and personal property of the

relocating employee. In the event the broker or direct move management

services provider is negligent in executing its responsibilities and

the shipping agency or relocating employee is adversely affected, the

broker or direct move management services provider is liable for

damages.

xx-102. Service Performance Audit

The broker or direct move management services provider, as

applicable, must audit transportation billings to determine that billed

services were necessary to complete the move, properly authorized, and

actually performed (this audit is unrelated to an audit of the billing

charges). In performing the audit, the broker or direct move management

services provider must issue a service performance certification

specifying by line item whether the service (including any unauthorized

service specifically requested by the relocating employee) was or was

not necessary to complete the move, properly authorized, and actually

performed. The broker or direct move management services provider may

develop its own form for this purpose subject to shipping agency pre-

approval when the agency so requests.

xx-103. Employee Counseling

The broker or direct move management services provider, as

applicable, must provide employee counseling services including, but

not limited to, information on the following: Applicable Federal Travel

Regulation (FTR) provisions including employee's household goods

transportation and weight allowance entitlement; extra pickup/delivery

service; temporary storage-in-transit (SIT) authorized by the shipping

agency; non-temporary storage (NTS) for the duration of the assignment;

unauthorized items; assembly and disassembly of property; shipment of

perishable items; firearms and hazardous materials exclusions;

insurance coverage, options, and costs; reporting of concealed damages;

employee rights and responsibilities; third-party servicing; packing,

unpacking, crating, and uncrating; preparation and filing of claims;

responsibility for name and address of origin or destination storage;

delivery out of storage; services that will be paid by the shipping

agency; services that will be the responsibility of and paid for by the

employee even when the GBL Issuing Officer authorizes the service on

the GBL for charge back to the employee; moving practices of household

goods carriers; carrier's role in the relocation process; and the

Government's role in a commuted rate system (Do-it-Yourself) move under

the FTR including the limitation on reimbursement to the employee for

such a move.

xx-104. Customer Assistance

The broker or direct move management services provider, as

applicable, must provide a 24-hour, toll-free, single point of

contact(s) by name and telephone number for assistance in resolving any

problems that occur during the move, including quality control

problems, as well as help in filing a post delivery claim. The broker

or provider also must furnish, at no additional cost to the Government,

a pocket-sized pamphlet that lists relevant procedures and information

useful to the relocating employee.

xx-105. Completion of GSA Form 3080

The broker or direct move management services provider, as

applicable, must furnish the relocating employee a GSA Form 3080,

Household Goods Carrier Evaluation, for completion of the section

entitled ``Relocating Employee's Response'' and instruct the employee

to return the form to the shipping agency for completion of the

section, ``GBL Issuing Officer's Response.'' Once the shipping agency

completes its section, it must return the form to GSA, Traffic

Management Branch, 6FBX, 1500 East Bannister Road, Kansas City, MO.

64131.

Within 30 days of delivery of the household goods to the new

residence, the broker or direct move management services provider must

contact the shipping agency or employee, as appropriate, to ensure the

return of Form 3080 to GSA.

xx-106. Claim Preparation, Filing, and Settlement

A. Organizational involvement. The broker or direct move management

services provider must establish an independent claims section within

its

[[Page 64227]]

own organization or contract with an independent firm to perform the

responsibilities described in paragraph xx-106B, below. The term

``independent claims section'' means a section which is independent of

the broker's or direct move management services provider's primary

claim function and which has personnel assigned specifically to handle

Federal agency claims. These personnel may be assigned to perform other

duties not related to Federal agency claims. The broker or direct move

management services provider, not the Government, is responsible for

any costs incurred in establishing an independent claims section within

its organization or for contracting with an independent firm to handle

GSA claims.

B. Broker/direct move management services provider

responsibilities. If requested by the relocating employee or the

employing agency, the broker or direct move management services

provider must:

(1) Provide assistance in the preparation and filing of a claim

immediately upon receiving information from the employee that loss or

damage occurred during shipment of his/her household goods;

(2) Inform the employee that if he/she discovers additional loss or

damage at a later date it will provide additional assistance in

preparing and filing additional claims as necessary; and

(3) Counsel the employee in regard to the signing of any full and

unconditional releases on any settlement or offer of settlement

received before all claims resulting from the move have been resolved.

xx-107. Preparation and Maintenance of Government Bills of Lading

(GBL'S)

A. Optional use of service. Preparation and maintenance of GBL's as

specified in paragraphs xx-106 B through G is optional with the

shipping agency. If the shipping agency elects to exercise this option,

it must complete a written memorandum of understanding (MOU) with the

broker or direct move management services provider setting out the

terms and conditions, including those required in paragraphs xx-106 B

through G, applicable to GBL preparation and maintenance. The terms and

conditions should specify instructions for completing each block of the

GBL.

B. GBL accountability/responsibility. The shipping agency

ultimately is accountable/responsible for all GBL stock and must issue

and obtain a signed receipt, as required by Federal Property Management

Regulations 101-41.3024(2) and 101-41.308-1, for any GBL's it issues to

the broker or direct move management services provider.

C. Preparation of GBL forms. The broker or direct move management

services provider must prepare a GBL (Standard Form 1103) or Government

Personal Property Bill of Lading (SF 1203) (either hereinafter referred

to as GBL) in accordance with its MOU with the shipping agency and

instructions published in the GSA Federal Supply Service (FSS) Guide,

``How to Prepare and Process U.S. Government Bills of Lading,''

National Stock Number, 7610-00-682-6740, FPMR 101-41.305-1. A separate

GBL must be prepared for each authorized shipment of a privately owned

vehicle(s) or unaccompanied air baggage (UAB). Since ultimate

responsibility and accountability for GBL's remains with the shipping

agency and its GBL Issuing Officer, the name and address of the issuing

office and GBL Issuing Officer, not that of the preparer, must appear

on the GBL. Distribution of the completed GBL must be in accordance

with the above referenced FSS guide and FPMR 101-41.302-2. The broker

or direct move management services provider must give the shipping

agency issuing officer a legible memorandum copy of each GBL it has

prepared and distributed before the pickup date of the shipment.

D. Maintenance of GBL forms. The broker or direct move management

services provider is accountable for all blank GBL's provided by the

shipping agency and must:

(1) Keep them in a locked container at all times;

(2) Maintain a GBL register for all GBL's it prepares showing the

date of issuance and the employee for whose shipment it was issued; and

(3) Make the register available for review at any time upon request

by the GBL Issuing Officer or his/her designee.

E. Amendments to original GBL. If a GBL must be amended after

distribution, the broker or move management services provider must

complete a GBL Correction Notice (Standard Form 1200). Only the GBL

Issuing Officer may sign the SF 1200 and must return the signed form to

the broker or move management services provider for the same

distribution as the original GBL.

F. Lost GBL's. If the original copy of an issued GBL is lost, the

broker or direct move management services provider must notify the GBL

Issuing Officer and prepare a certification in accordance with FPMR

101-41.307 for forwarding to the GBL Issuing Officer for signature.

Only the GBL Issuing Officer may sign (certify) a true memorandum copy

of an issued GBL for use instead of the original SF 1103 for billing

purposes.

G. Damaged GBL's. A GBL that is damaged in preparation, prepared

for issuance but not used, or unusable for any other reason must be

marked ``canceled'' on all copies and returned to the GBL Issuing

Officer. The GBL Issuing Officer must sign a receipt for any canceled,

damaged, or otherwise unusable GBL returned to him/her. The GBL Issuing

Officer is responsible for disposing of any unused, obsolete, or

canceled GBL's in accordance with General Records Schedule 9, Travel

and Transportation Records, 36 CFR Chapter XII, Sec. 1228.22.

xx-108. Data Communications Capabilities

The broker or direct move management services provider must be able

to electronically transmit task orders and messages, and must provide

on-line access to its database as follows:

A. Accessibility. The GBL Issuing Officer or his/her designee and

the GSA Program Management Office (PMO) must have on-line access to all

database information pertaining to task orders and shipment records

applying to all accounts established under the terms of this HTOS. The

broker or direct move management services provider must establish

sufficient safeguards to prevent unauthorized access to the database,

and furnish clearly documented procedures for access and use of the

database. Electronic access must be available through an asynchronous

modem with a baud rate of at least 2400.

B. Database elements. The database must contain, at a minimum, task

order and shipment information sufficient to generate the reports

specified in paragraph xx-113. Shipment information must be maintained

in a separate directory with a separate record for each employee move.

Shipment files for HTOS shipments must not be commingled with non-HTOS

shipment files. Each shipment record must contain all information

required for that particular shipment, including information relevant

to any claim filed with the carrier, status of the claim, etc.(made

available on a continuous computer terminal screen when necessary).

Performance data reflecting the handling of the move must be

independently collected and maintained in this file. The broker or

direct move management services provider must be able to extract and

consolidate data, such as carrier performance information, for any

specific report that may be required.

[[Page 64228]]

C. Database maintenance. The database must be updated at a minimum

every 24 hours. The broker or direct move management services provider

must maintain on-line access to database elements for each shipment for

a period of one year from the date of pickup. For record retention

requirements after one year, see 48 CFR 4.7.

xx-109. Identification of, and Authorization for, Special Services

A. Identification of special services. The broker or direct move

management services provider must identify all services that may be

needed in connection with the shipment of a particular relocated

employee's household goods, including but not limited to shuttle

service, special crating, third party servicing, elevator charges, long

carry, and or stair carries. The broker or direct move management

services provider must provide this information to the GBL Issuing

Officer and obtain any written waivers or authorizations that may be

required under the HTOS.

B. Authorization for special services. The broker or direct move

management services provider must obtain written pre-authorization from

the GBL Issuing Officer prior to authorizing special services on the

GBL, such as shuttle service, telephone pre-move survey, SIT at origin,

custom-built crating, third party servicing, hoisting and lifting,

disassembly of waterbeds and German shrunks (large cabinets which

require disassembly to move), pickup and delivery on Saturday, Sunday,

or holidays, reweighs, etc. All written authorizations and waivers must

be maintained in the shipment file. The broker or direct move

management services provider must specify all requested services on the

GBL, both those that are authorized and will be paid as an entitlement

of the employee and those that are advanced and will be charged back to

the employee. The employee must be counseled about charges for any

service that will be advanced and charged back to the employee before

the service is performed. A generic form may be developed for this

purpose, and any service shown on the form that is not applicable to a

particular shipment must be ``crossed out'' or marked ``none'' or ``not

applicable'' prior to submitting the form to the GBL Issuing Officer

for written authorization/approval.

xx-110. Origin and Destination On-Site Quality Control

A. Optional use of this service. Origin and destination on-site

quality control services as specified in this paragraph xx-110 are

optional with the shipping agency. If the shipping agency elects to

exercise this option, the actual cost of the service to be performed is

negotiable between the broker or direct move management services

provider and the shipping agency. The agreed upon price for the service

to be performed must be in writing and retained by both parties. The

written agreement shall be construed as a one-time only amendment to

the broker's/direct move management services provider's rate filing and

a copy of the agreement must be included in its voucher for payment.

B. Origin services on-site quality control. If the shipping agency

requests, quality control personnel must provide on-site inspection

service at the origin residence on the packing and loading dates. Such

service must include at a minimum verification of: Correct inventory

coding; the use of proper packing, crating, and wrapping materials and

techniques; equipment and personnel suitability; appropriate article

servicing and disassembly; and appropriate protection for the residence

and adjacent real property. The broker/direct move management services

provider must make a pre-visit telephone call to confirm the

availability of the transferee.

C. Destination services on-site quality control. If the shipping

agency requests, quality control personnel must provide on-site

inspection service at the destination residence at the time of

delivery. Such service must include at a minimum verification of: The

inventory coding; satisfactory performance of the unpacking service;

equipment and personnel suitability; appropriate article servicing and

re-assembly; and appropriate protection for the residence and adjacent

real property.

D. Firms authorized to perform origin and destination on-site

quality control.

(1) Broker. A broker may engage another firm to perform these

services, including but not limited to a household goods carrier or

freight forwarder or representative, employee, or agent thereof.

(2) Direct move management services provider. A direct move

management services provider may engage another firm to perform these

services, provided that such other firm must be a household goods

carrier or freight forwarder or representative, employee, or agent

thereof.

xx-111. Storage-In-Transit (SIT)

A. Placement in SIT. When storage-in-transit (SIT) is authorized

the shipment will be placed into SIT in accordance with all applicable

provisions of this HTOS. The broker/direct move management services

provider must carefully counsel the employee in regard to the duration

of storage authorized. It must notify the employee of the actual

location of the SIT, including the storage company's telephone number,

within five calendar days of delivery of the shipment into SIT.

B. Monitoring shipments in SIT. The broker or direct move

management services provider must monitor shipments that have been

placed in SIT and notify the employee and the shipping agency

destination facility representative in writing, at least ten working

days before the expiration of any authorized period of SIT, of the

impending SIT expiration. Further, it must counsel the employee that

upon expiration of the authorized SIT period, the Government no longer

will be liable for storage charges, and request disposition of the

household goods, in writing, from the shipping agency destination

facility representative and the employee.

C. Storage in excess of 180 days. In cases when an employee's

household goods remain in temporary storage in excess of the maximum

180-day SIT period, the broker or direct move management services

provider must at the end of the 180-day period ascertain the condition

of the property to protect both the Government's and the relocating

employee's right to recovery for losses or damages for which the

carrier is responsible. The broker or direct move management services

provider is responsible for arranging delivery of the property from

storage to the residence in accordance with the shipping agency

destination facility representative's instructions. Payment of storage

for any period in excess of the 180-day maximum is the employee's

responsibility.

xx-112. Quality Assurance Plan

If the shipping agency requests, the broker or direct move

management services provider must provide the agency with a quality

assurance plan and designate quality assurance personnel to assist in

ensuring quality service is provided. xx-113. Management Reports.

If the shipping agency requests, the broker or direct move

management services provider must furnish on a timely basis the

management reports specified in paragraphs xx-113 A through F, below.

The format, content, and frequency of the reports will be established

in accordance with the shipping agency's requirements. The

[[Page 64229]]

broker or direct move management services provider may be required to

provide special or one-time reports to the shipping agency upon written

approval of the GSA Program Management Office.

A. Shipment summary report. A report presenting a summary of

shipments including the total number of shipments, the number of

shipments by agency organization, number of shipments by carrier

including line-haul carrier, number of interstate shipments, number of

intrastate shipments, number of international shipments, total line

haul costs, and total accessorial service costs.

B. Claims summary report. A report presenting a summary of claims

including claims frequency, number of claims by agency organization,

number of claims by carrier, number of interstate claims, number of

intrastate claims, number of international claims, average number of

days between the date of claim filing and the date of issuance of the

initial settlement offer, average number of days between the date of

receipt of the initial settlement offer and the date of final

settlement, average amount claimed and settled interstate, average

amount claimed and settled intrastate, and the average amount claimed

and settled international. For each claim that is not settled within 30

days (or 60 days when approved by the shipping agency's GBL Issuing

Officer or responsible Transportation Officer) an explanation for the

delay must be provided using the delay codes specified in section 9 of

this HTOS.

C. Counseling contact summary report. A monthly summary report of

employee counseling contacts showing employee names, date of initial

contact, and current status of the shipment including the date of the

pre-move survey, packing date, shipment pickup date, and proposed

delivery date into SIT and/or the residence.

D. On-time services summary report. A monthly summary report

listing employee names, each employee's scheduled pick up date, actual

pick up date, scheduled delivery date into SIT and/or the residence,

actual delivery date into SIT and/or the residence, scheduled date for

delivery out of SIT, and the actual delivery date out of SIT. When

scheduled and actual dates are not the same, an explanation must be

provided.

E. Billing accuracy summary report. A monthly summary report of

billing accuracy showing the number of transportation bills submitted

and the number returned for correction. An explanation of the

correction must be provided.

F. Special or one-time report. A specially requested report

approved by the GSA Program Management Office and provided to the GBL

Issuing Officer or the Responsible Transportation Officer.

xx-114. User Agency and Applicant Responsibilities-Memorandum of

Understanding

The applicant and each Federal agency desiring to use move

management services pursuant to this HTOS shall, prior to the

commencement of service, enter into a Memorandum of Understanding

(MOU). The MOU shall include, but not be limited to, a description of

services the agency requires, carrier selection criteria, service

performance auditing instructions, non-temporary storage delivery

instruction information, names of agency personnel who will have

authority to order move management services, and management report

requirements. Both parties must sign the MOU and send a copy for

approval to the address contained in paragraph xx-202B of subsection C

of this section. The agency reserves the right to specify the form,

format, and minimum requirements of the MOU.

Subsection C--Participation

xx-200. General

The provisions in section 2 of this HTOS do not apply to brokers or

direct move management services providers. The provisions contained in

this section apply instead.

xx-201. Participation

A. Broker. Participation in the Move Management Services Program

under CHAMP is open to any broker holding a household goods brokers

license from the U.S. Department of Transportation (or its predecessor,

the Interstate Commerce Commission (ICC)), the Federal Maritime

Commission (FMC), or a state regulatory authority.

B. Direct move management services provider. Participation in the

Move Management Services Program under CHAMP is open to any direct move

management services provider that is currently approved to participate

in CHAMP and that has an approved assigned scope of operations.

xx-202. Application to Participate

A. General. Except as provided in paragraphs xx-204 B and C of this

subsection, and subject to the restrictions in paragraph xx-207 of this

subsection, any broker or direct move management services provider

desiring to participate in the program must request approval to

participate (see section 2-2 of this HTOS for information on when to

submit application for approval to participate).

B. Request to participate. A request to participate must be sent on

company letterhead to the following address: General Services

Administration, Federal Supply Service Bureau, Traffic & Travel

Services (6FBX), 1500 East Bannister Road, Kansas City, MO 64131-3088.

(hereinafter referred to in this subsection C as Program Management

Office (PMO))

xx-203. Application Requirements

A broker or direct move management services provider that wishes to

participate in the program must submit an application in its own name

to be considered for approval to participate. A broker or direct move

management services provider (hereinafter referred to in this

subsection as ``applicant'' unless more specifically stated) may be

subject to punishment by fine, imprisonment, or both (see U.S. Code,

title 18, section 1001)if it: (a) Falsifies, conceals, or covers up by

any trick, scheme, or device a material fact; (b) makes a false,

fictitious, or fraudulent statement or representation; or (c) makes or

uses a false writing or document knowing the same to contain any false,

fictitious, or fraudulent statement or entry on any part of the

application or on any document furnished pursuant to this HTOS. To be

considered for approval, the applicant must meet the following

requirements:

A. Agreement to abide by this HTOS. The applicant must agree to

abide by the terms and conditions of this HTOS, and any amendments

thereto.

B. Operating authority. The applicant must hold in its own name

from an appropriate regulatory body(ies) all necessary operating

authorities, permits, and business licenses required for the

``brokering'' (applicable only to brokers) or ``furnishing''

(applicable only to direct move management services providers) of

transportation of personal property. The applicant must provide a copy

of each authority, permit, or business license to the PMO upon demand,

or provide proof that it is exempt from such regulatory certification

by operation of law or order of an appropriate regulatory body and

state that in addition to tariff and legal requirements it agrees to

abide by provisions of this HTOS

C. Broker applicant's agents. A broker applicant by agreeing to

abide by the terms and conditions of this HTOS certifies that it will

use only those household goods carriers approved to participate in

CHAMP to provide transportation services.

[[Page 64230]]

D. Broker applicant's agent agreements. A broker applicant by

agreeing to abide by the terms and conditions of this HTOS certifies

that each agent it will use to provide transportation services is at

the time of application, or will be at the time of use, party to a

valid written agreement with the broker applicant. The agreement must,

at a minimum, include the language contained in HTOS paragraph

8.5.26.6.1 and .2 and specify the terms and conditions of the agent's

representation of the broker applicant, the services the agent will

provide, the terms and method of payment for services rendered, the

quality control standards the broker applicant expects including the

method of quality measurement, and the terms under which the agreement

may be terminated.

E. SCAC (Standard Provider Alpha Code) Designation/Taxpayer

Identification Number. The applicant must have a valid SCAC issued by

the National Motor Freight Association, Washington, DC and a valid

Taxpayer Identification Number.

F. Trading partner agreement. The applicant must complete and sign

the Trading Partner Agreement (TPA) that accompanies the application

and send it back in hard copy along with all other required

documentation. If applying to handle both domestic and international

shipments, the applicant need complete only one TPA. GSA will not

process an applicant's request without the TPA.

G. Broker applicant provision of performance bond. A broker

applicant must maintain a performance bond in accordance with this

HTOS. It must renew the bond on the approval anniversary date of each

subsequent year it continues to participate in the move management

services program. The bond must be in a minimum amount of $20,000 and

executed by a surety included on the list contained in Department of

Treasury Circular 570, ``Surety Companies Acceptable on Federal Bonds''

(for additional information, see the following Internet address:

www.fms.treas.gov/c570.html).

H. Experience. The applicant must maintain its operations in a

manner consistent with standard industry practices and this HTOS and

demonstrate that it will provide an acceptable level of service.

I. Quality control program. The applicant must have a documented

and published corporate quality control plan that ensures services it

will provide equal or exceed the standards of service established under

this HTOS. The published plan must fully explain all facets of the

applicant's quality control system.

J. Agent. The applicant by agreeing to abide by the terms and

conditions of this HTOS certifies that each agent it will use has a

documented and published corporate quality control plan that ensures

services it will provide equal or exceed the standards of service

established under this HTOS. The published plan must fully explain all

facets of the agent's quality control system.

K. Financial responsibility. The applicant must demonstrate that it

is financially responsible and has the working capital and other

financial, technical, and management resources to perform under this

HTOS.

xx-204. Submission Requirements

GSA's approval of a request to participate in the move management

services program is contingent on the applicant demonstrating

compliance with the provisions of paragraph xx-203 of this subsection

through the furnishing of documentary evidence required in paragraphs

xx-204 A through H of this subsection. GSA reserves the right to waive

the approval requirements in paragraphs xx-204 E and F of this

subsection if the applicant has been formally registered as compliant

with the International Organization for Standardization Standard 9000

or one of the standards within the 9000 series (referred to hereafter

as ISO 9000) by an internationally recognized ISO 9000 registrar.

Before GSA will consider waiving the approval requirements, the

applicant must provide a certified true copy of its certificate of

conformity with ISO 9000.

A. HTOS certification. A signed copy of the applicant's HTOS

certification sheet entitled ``Request to Participate and Agreement to

Abide by the Terms and Conditions of the General Services

Administration's Centralized Household Goods Traffic Management

Program'' (see paragraph xx-203A of this subsection).

B. SCAC designation/Taxpayer Identification Number. A letter from

the National Motor Freight Association, Washington, DC showing that the

applicant has been assigned a SCAC (see paragraph xx-203E of this

subsection); statement of the applicant's Taxpayer Identification

Number.

C. Brokers license (applicable only to broker applicants). A copy

of a valid brokers license issued by an appropriate regulatory body

(see paragraph xx-201A of this subsection).

D. Applicant information. Information about the applicant such as

name, postal address, electronic mail address, telephone and facsimile

numbers, corporate office, and operating authorities. The applicant

must indicate whether it is under the financial or administrative

control (as addressed in this subsection C) of any carrier, forwarder,

or other provider of household goods services and state the name of the

controlling carrier, forwarder, or other provider. Additionally, the

applicant must provide a listing of any carrier(s), forwarder(s), and/

or other provider(s) of household goods services under its financial or

administrative control.

E. Quality control program. A copy of the applicant's published

internal quality control program covering the functions of traffic

management (carrier selection, employee counseling, routing, tracing,

and billing), packing/packaging/ containerizing, employee training,

supervision, and if appropriate, agent supervision including quality

control goals and objectives showing measurable performance standards,

measurement techniques, and plans of action based on the performance

standards.

F. Quality control interface with agents (applicable only to broker

applicants). Information on how the broker applicant applies, and

monitors the application of, its quality control program to its

designated agents. In addition, the broker applicant must describe how

its quality control program relates to and reinforces the quality

control programs of its designated agents.

G. Corporate account trends. Information concerning the applicant's

corporate account activity during the preceding five calendar years.

xx-205. Application Evaluation

GSA will evaluate an applicant's request for approval to

participate in the move management services program according to the

following criteria:

A. ISO 9000 registration. GSA will review each submitted

certification to determine its legitimacy and applicability and whether

required periodic audits have been performed.

B. HTOS certification. GSA will review the HTOS certification to

determine whether the applicant has agreed to abide by the terms and

conditions of the HTOS.

C. SCAC designation/Taxpayer Identification Number. GSA will verify

that the National Motor Freight Association, Washington, DC, has issued

the applicant a SCAC and that the applicant has provided a Taxpayer

Identification Number.

[[Page 64231]]

D. Brokers license (applicable only to broker applicants). GSA will

verify that the broker applicant's brokers license is valid.

E. Quality control program. GSA will determine whether the

applicant's internal quality control program has been formally

published; contains quality control goals and objectives with

measurable performance standards, measurement techniques, and plans of

action based on the performance standards; and is sufficient to ensure

that the applicant's operations, employees, and agents, if appropriate,

are familiar with and will be held accountable for achievement of the

program's goals and objectives. In evaluating a broker applicant's

request, GSA also will determine whether the interface between the

applicant's quality control program and the quality control programs of

each of its designated agents is such that the programs' goals and

objectives and performance standards are relatively consistent and will

result in a unified approach to the delivery of quality service.

F. Performance bond (applies only to broker applicants and only at

time of rate filing unless otherwise superseded by specific criteria in

the Request for Offers). Upon receipt of the broker applicant's

performance bond from the surety, GSA will verify that the surety

company executing the bond appears on the list contained in Department

of Treasury Circular 570, ``Surety Companies Acceptable on Federal

Bonds,'' and that the amount of the bond is at least $20,000. If the

bond is determined to be unacceptable, approval of the broker

applicant's rate filing will be subject to compliance with the GSA

Request for Offers. xx-206. APPROVAL. GSA will approve an applicant's

request for participation in the move management services program if it

determines that the applicant possesses sufficient qualifications,

experience, facilities, quality control processes, and financial

capacity to satisfactorily perform under the HTOS.

xx-207. Approval Limitation

A. Broker applicants. An approved broker applicant's scope of

operations must be the complete coverage of the move management

services program. A ``new broker'' is a broker applicant approved

during a specific approval window. The designation ``new'' applies from

October of the year in which GSA grants approval until October of the

following calendar year (for example, an applicant approved in 1997

will be considered ``new'' until October, 1998).

B. Direct move management services provider applicant. An approved

direct move management services provider applicant's scope of

operations must be identical to that of the applicable scope of

operations currently in place in CHAMP.

xx-207. Continued Participation

A. General. Once an applicant has been approved to participate in

the move management services program, continued participation is

contingent upon: (1) The participant's showing a willingness and

ability to meet the transportation requirements of the United States

Government and to comply with all provisions of the HTOS, and (2) the

participant's satisfactorily maintaining financial responsibility,

working capital, and other financial, technical, and quality control

processes and management resources to perform under the HTOS.

B. Continuation Of ISO 9000 certification. If an applicant's

approval is predicated in part on ISO 9000 certification and the

certification lapses or is terminated by the certification registrar,

the applicant participant's approval will become conditional. The

approval will remain conditional until the participant successfully

complies with all requirements waived due to its ISO 9000

certification, provided that if the participant fails to meet

evaluation standards, GSA will terminate its approval.

C. Continuation of performance bond (applicable only to broker

participants). If at any time a broker participant's performance bond

is canceled and not replaced with an acceptable new bond, GSA will

immediately terminate the broker's participation in the program.

D. Assignment of rights. Except for assignment of payment of the

broker's or direct move management provider's original bills to a bank

for collection, GSA will immediately terminate a broker's or direct

move management provider's approval if it exercises any right under a

currently existing agreement or enters into an agreement with a

party(ies) not subject to its control which in any way infringes,

controverts, or otherwise subordinates or prevents it from unilaterally

deciding whether it will or will not submit a claim or file suit

against the Government or pay a claim made by the Government after

Government audit of the original bill for services performed under this

HTOS.

E. Submission of false information. Willful submission of false

information on any document furnished by an applicant or a

participating broker or direct move management services provider

pursuant to this HTOS is punishable by fines, imprisonment, or both

(U.S. Code title 18, section 1001), and may result in denial or

termination of approval to participate in the move management services

program. Federal user agencies are responsible for selection of a

broker or direct move management services provider which best serves

its needs and final evaluation of the selected broker's or provider's

performance. If it is later discovered that a broker or direct move

management services provider was in Common Financial and Administrative

Control (CFAC) and did not disclose that fact, GSA will terminate its

approval.

Subsection D--Agreement to Abide

xx-300. Acceptance of These Terms and Conditions

A broker or direct move management services provider desiring to

participate in the move management services program established under

this HTOS section xx must, for approval consideration, complete the

following statement and return this entire document to the General

Services Administration, Centralized Household Goods Traffic Management

Program (6FBX), 1500 East Bannister Road, Kansas City, MO 64131:

Request to Participate and Agreement to Abide by the Terms and

Conditions of the General Service Administration's Centralized

Household Goods Traffic Management Program

By signing below, I, a fully authorized representative of the

[indicate one] (broker) or (direct move management services provider),

represent that I have read and understand the terms and conditions

contained herein and that I for and on behalf of the [indicate one]

(broker) or (direct move management services provider) agree to all

terms and conditions of the HTOS.

Applicant Name:

Signature and Date:

Printed Name:

Title:

Street Address:

City, State and Zip:

Telephone No.:

Fax No.:

E-mail Address:

VG-13. Cancellation of this agreement.

Except as otherwise provided in this HTOS, this agreement may be

canceled by the broker or direct move management services provider, as

applicable, or the General Services Administration upon such terms and

conditions as are mutually acceptable to the parties.

VG-14. Acceptance by the Government.

[[Page 64232]]

Accepted by the General Services Administration:

[Typed name]

----------------------------------------------------------------------

Manager, GSA Centralized Household Goods Traffic Management Program

Dated: November 26, 1997.

Janice Sandwen,

Director, Travel and Transportation Management Staff.

[FR Doc. 97-31779 Filed 12-3-97; 8:45 am]

BILLING CODE 6820-24-P