[Code of Federal Regulations]
[Title 41, Volume 4]
[Revised as of July 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 41CFR302-8.3]

[Page 169-171]
 
           TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT
 
                   CHAPTER 302--RELOCATION ALLOWANCES
 
PART 302-8--TRANSPORTATION AND TEMPORARY STORAGE OF HOUSEHOLD GOODS AND PROFESSIONAL BOOKS, PAPERS, AND EQUIPMENT--Table of Contents
 
Sec. 302-8.3  Transportation within the continental United States.

    (a) The commuted rate system--(1) Description. Under the commuted 
rate system an employee makes his/her own arrangements for transporting 
household goods between points within the continental United States. He/
She selects and pays the carrier or transports his/her goods by 
noncommercial means and is reimbursed by the Government in accordance 
with schedules of commuted rates which are contained in the GSA 
publication, Commuted Rate Schedule for Transportation of Household 
Goods. Agencies requiring this publication shall prepare a Standard Form 
1, Printing and Binding Requisition, and send it to: Superintendent of 
Documents, Departmental Account Representative Division, U.S. Government 
Printing Office (GPO), Washington, DC 20401. The schedules of commuted 
rates which are developed from tariffs that carriers have filed with the 
Interstate Commerce Commission consist of tables to be applied to the 
particular transportation involved. The commuted rate includes costs of 
line-haul transportation, packing, crating, unpacking, drayage incident 
to transportation, and other accessorial charges. Costs of temporary 
storage which are subject to reimbursement under Sec. 302-8.5 are stated 
separately in the schedule of commuted rates.
    (2) Reimbursement. When the commuted rate system is used, the amount 
to be paid to the employee for transportation and related services is 
computed by multiplying the number of hundreds of pounds shipped (within 
the maximum weight allowance) by the applicable rate per hundred pounds 
for the distance shipped as shown in the commuted rate schedule. The 
distance shall be determined in accordance with household goods mileage 
guides filed with the Interstate Commerce Commission. If the rate is not 
shown in the commuted rate schedule for the exact mileage, the rate 
shown for the next greater distance applies. If an employee is charged a 
minimum weight above the actual weight of his/her household goods under 
the applicable tariff (other than one based on expedited or special 
services), the reimbursement shall be based on the minimum weight as 
charged instead of the actual weight of the goods.
    (3) Documentation. Claims for reimbursement under the commuted rate 
system shall be supported by a receipted copy of the bill of lading (a 
reproduced copy may be accepted) including any attached weight 
certificate copies if such a bill was issued. If no bill of lading was 
involved, other evidence showing points of origin and destination and 
the weight of the goods must be submitted. Employees who transport their 
own household goods are cautioned to establish the weight of such goods 
by obtaining proper weight certificates showing gross weight (weight of 
vehicle and goods) and tare weight (weight of vehicle alone) because 
compliance with the requirements for payment at commuted rates on the 
basis of constructive weight (see Sec. 302-8.2(c)(4)) usually is not 
possible.
    (b) Actual expense method--(1) Description. Under the actual expense 
method, the Government assumes responsibility for awarding contracts and 
for other negotiations with carriers. The property is shipped on a 
Government bill of lading, and the Government audits and pays 
transportation vouchers directly to carriers. Under the actual expense 
method, the household goods are shipped by the Government, not by the 
employee.
    (2) Agency responsibility. Selection of the carrier, arranging for 
carrier services and for packing and crating, preparing the Government 
bill of lading, paying charges incurred, and processing any loss and 
damage claims are the direct responsibility of the agency.
    (3) Allowable charges. The actual costs of transportation of 
household goods within the authorized weight limits will be allowed at 
Government expense. Also, within that weight limit, the actual costs for 
packing, crating, unpacking, drayage incident to transportation, and 
necessary accessorial services shall be allowed.
    (4) Multiple shipment procedures. When the actual expense method is 
used in

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shipping household goods belonging to two or more employees between the 
same two points, the weight of the household goods of each employee is 
to be identified for the purpose of applying the maximum weight 
limitations.
    (5) Excess weight procedures. When the weight of an employee's 
household goods exceeds the maximum weight limitation, the total 
quantity may be shipped on a Government bill of lading, but the employee 
shall reimburse the Government for the cost of transportation and other 
charges applicable to the excess weight, computed from the total charges 
according to the ratio of excess weight to the total weight of the 
shipment.
    (c) Use of commuted rate or actual expense method--(1) 
Considerations. When the commuted rate system is used, the Government is 
relieved of the responsibility and administrative expense of selecting 
and dealing with carriers and making other arrangements for transporting 
employees' household goods; however, the Government cannot take 
advantage of special discounts which may be offered. On the other hand, 
when the actual expense method is used, the Government incurs the 
additional expenses of selecting and dealing with carriers, preparing 
bills of lading, auditing and paying transportation vouchers, 
supervising the packing of household goods, handling employee loss and 
damage claims, and other incidentals.
    (2) Estimating costs. Under the commuted rate system, an accurate 
estimate of cost depends upon the accuracy of the estimate of weight. 
However, under the actual expense method the cost to the Government will 
usually depend not only on the weight involved but also on the 
accessorial services required, the quality of packing and the quantity 
of individual cartons, boxes, barrels, and wardrobes used by the carrier 
in packing. When the commuted rate system is used, the packing and 
accessorial charges are authorized and paid for by the employee from the 
amounts allowed for those charges under that system. Under the actual 
expense method, the accessorial and packing charges are paid by the 
Government, and if those charges are high, they may more than offset any 
discount in the line-haul rate which may be available for shipments by 
Government bill of lading. A proper comparison of costs must take into 
account the line-haul transportation charge, the administrative costs as 
indicated in paragraph (c)(1) of this section, and the expected 
accessorial and packing charges.
    (3) Policy. The general policy is that commuted rates shall be used 
for transportation of employees' household goods when individual 
transfers are involved, and that appropriate action, depending on the 
amount of goods to be transported, shall be taken to estimate and 
compare actual expense method costs with commuted rate costs when groups 
of employees are transferred between the same official stations at 
approximately the same time so that the method resulting in less cost to 
the Government may be used. Specific procedures to be followed are 
contained in paragraph (c)(4) of this section.
    (4) Criteria for use of the actual expense method--(i) Individual 
transfers. Agency experience with the actual expense method has shown 
that shipment by Government bill of lading does not result in savings 
simply because a line-haul discount is available. Therefore, the 
commuted rate system shall be used for individual transfers without 
consideration being given the actual expense method; except that the 
actual expense method may be used if the actual costs to be incurred by 
the Government for packing and other accessorial services are 
predetermined (at least as to price per 100 pounds) and if that method 
is expected to result in a real savings to the Government of $100 or 
more. (For intrastate transfers, see paragraph (c)(4)(iv) of this 
section.)
    (ii) Multiple transfers. Under general rate tenders arranged by GSA 
and the Department of Defense (DOD), participating carriers agree to 
transport the household goods of Government employees at rates below 
commercial rates for specific periods of time. These tenders are 
arranged under 49 U.S.C. 10721, and no further agency negotiation is 
necessary to take advantage of them. Agencies shall evaluate the use of 
such rates when, because of the transfer of several employees, they have 
a large volume of household goods

[[Page 171]]

to be moved between the same places at the same time even though no mass 
move is involved; however, the added costs for use of the actual expense 
method, as discussed in paragraph (c)(1) of this section, and the 
uncertainty as to total cost for packing and accessorial services, as 
discussed in paragraph (c)(2) of this section, shall be taken into 
consideration, and the actual expense method shall be selected only if 
it is considered likely that a real savings to the Government will 
result from the use of that method.
    (iii) Mass moves. Whenever an entire facility is being relocated or 
whenever it is anticipated that 10 or more shipments of household goods 
are to be transported between the same two points at approximately the 
same time, the agency involved shall notify the appropriate regional or 
zonal office of the General Services Administration (for civilian 
agencies without specialized transportation personnel) or the 
appropriate transportation office of DOD (for components of that 
Department) of the forthcoming move so that an analysis can be made of 
existing available rates for use under the actual expense method. The 
notification shall be accompanied by all pertinent information 
concerning points of origin and destination, estimated weights of 
property, the number of persons or different families involved, and 
dates or periods of time when each person or family is expected to move. 
When appropriate, the GSA or DOD transportation organization shall 
attempt to arrange with carriers for worthwhile reduced rates and shall 
advise the agency concerned of the results of such efforts. If these 
efforts show that a saving will result, considering all direct and 
indirect costs involved, the actual expense method shall be used. 
Otherwise, the commuted rate system shall be used.
    (iv) Unusual circumstances. The commuted rates do not take into 
account intrastate rates that in some instances may be substantially 
higher than the interstate rates that form the basis for the commuted 
rates. In order to avoid the necessity of prescribing commuted rates for 
such circumstances, the actual expense method (Government bill of 
lading) may be used when it is administratively determined that the 
commuted rate system would cause an unusual hardship for an employee 
transferring between official stations within a State. This authority 
shall not be used indiscriminately, and its use shall be carefully 
documented and justified.

[54 FR 20324, May 10, 1989, as amended by FTR Amdt. 26, 57 FR 28636, 
June 26, 1992]