Federal Register: December 20, 2006 (Volume 71, Number 244)
DOCID: FR Doc E6-21732
GENERAL SERVICES ADMINSTRATION
General Services Administration
NOTICE: NOTICES
ACTION: Federal travel:
DOCUMENT ACTION: Notice for Comments
SUBJECT CATEGORY:
Implementation of a mileage based Fuel Cost Price Adjustment (Surcharge) for Household Goods
DATES: Interested parties should submit written comments before January 10, 2007.
DOCUMENT SUMMARY:
GSA is proposing a change to the Centralized Household Goods Traffic Management Program (CHAMP) and the Household Goods Standard Tender of Service (HTOS) to implement a mileage based Fuel Cost Price Adjustment on the shipment of household goods effective May 1, 2007.
SUMMARY:
Household goods—; Mileage-based fuel cost price adjustment; implementation,
SUPPLEMENTAL INFORMATION
A. Background
GSA's CHAMP uses the Domestic Household Goods Government Rate Tender (415G) published by the American Moving and Storage Association (AMSA) through its Household Goods Carriers'' Bureau Committee. The tender contains a Fuel Cost Price Adjustment (Surcharge) provision identified in Item 16, which GSA has utilized since May 2000. The current Fuel Cost Price Adjustment calculation is based on the net transportation charges of the line haul and the delivery in and delivery out of storage in transit (SIT). The Fuel Cost Price Adjustment is designed to compensate the Transportation Service Provider (TSP) when the cost of diesel fuel exceeds $1.399. When applicable, a percentage as identified in Item 16 is taken against the net line haul charges.
GSA is proposing changing the Fuel Cost Price Adjustment methodology from a percentage based to a mileage based calculation. The mileage based Fuel Cost Price Adjustment will be calculated on the distance between the shipment's origin and destination, and if applicable, the distance for delivery in or delivery out of storage in transit (SIT), using the billable mileage as currently identified by ALK Technologies. When the cost of diesel fuel exceeds $1.399, as identified by the Department of Energy (DOE) on the first Monday of every month, with an effective date of the 15th day of the same month, the TSP may calculate a fuel surcharge based on the difference between the DOE price and the trigger price of $1.40. Effective May 1, 2007, this will be accomplished by first taking the number of billable miles and dividing it by 4.5 to identify the number of gallons of fuel used. The total will then be multiplied by the cost difference between the DOE price and $1.399. Beginning May 1, 2008, the number of billable miles will be divided by five (5) to identify the number of gallons of fuel used.
B. Substantive Changes
The implementation of the mileage based Fuel Cost Price Adjustment
reflects a more accurate view of additional cost incurred by TSPs for the increases in the fuel costs. It eliminates
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weight pricing and aligns the fuel cost with the distance the shipment
travels and the fuel usage. As a result of this change, agencies should realize transportation cost savings.
Dated: December 14, 2006.
Tauna T. Delmonico
Director, Travel and Transportation Management Division (FBL), GSA [FR Doc. E621732 Filed 121906; 8:45 am]
BILLING CODE 682089S
FOR FURTHER INFORMATION CONTACT
Brian Kellhofer, Transportation
Programs Branch, by telephone at 8168233646 or via email at
brian.kellhofer@gsa.gov.