shall be used in the evaluation (see § 16.821 of this chapter).

(b) When Government property is to be furnished and shipped by the Government under a contract to a point specified by the prospective supplier in his bid or proposal, transportation costs shall be a cost factor in the evaluation of bids, or proposals.

§ 19.301-2

Sources of transportation

rates and related costs.

(a) Land and air rates; inland, coastwise, and intercoastal water rates; ocean rates and costs; port handling charges; and related information pertaining to supplies moving to or from either overseas points or points within the continental United States shall be obtained from the appropriate regional headquarters of Military Traffic Management and Terminal Service by the transportation or traffic management office which supports the contracting officer. However, rates and costs applicable to shipments of bulk petroleum via ocean tanker transportation should be obtained direct from the Military Sea Transportation Service.

(b) Rates and related costs for all supplies to be shipped between points outside of the continental United States, including Alaska and Hawaii, shall be obtained from the Headquarters of the Military Department which sponsors the cargo.

(c) Requests for rates and related costs for the evaluation of bids or proposals shall include the bid opening or proposal due date and the expected date of initial shipment, if established.

(d) The locations and geographical areas of jurisdiction of each regional headquarters of the Military Traffic Management and Terminal Service are listed in Chapter 108 of the Military Traffic Management Regulation. Subpart D-Contract Administration § 19.401

Traffic Management for contract administration.

The transportation office of the contract administration office shall have access to or be furnished a copy of the contract, including modifications thereto. When the transportation data regarding f.o.b. origin contracts are insufficient for Government

transportation purposes (see § 19.202), the contract administration office shall obtain the data used in the evaluation of the bid or proposal

from the purchasing office. This will assure that instructions to contractors result in the most efficient and economical use of carrier services and equipment. Transportation personnel are responsible for:

(a) Furnishing timely routings and releases for port shipments;

(b) Monitoring shipments to provide for carload or truckload quantities when practicable;

(c) Controlling and issuing Government bills of lading and determining proper freight classification descriptions;

(d) Reviewing documentation to assure the proper distribution and validation of shipping documents;

(e) Advising as to the effect proposed changes will have on transportation costs;

(f) Determining, for the contract requirements, the size and capabilities of carrier's equipment to be ordered, based on the need for special shipping arrangements for oversize and overweight or dangerous supplies;

(g) Developing information for reporting movements that may be the basis for negotiating special rates or for rate adjustments (see § 19.402);

(h) Exercising control of irregularities in packing, loading, loss and damage causes, sealing of vehicles, and documentation of weights;

(i) Providing information on use of transit arrangements;

(j) Recommending prepayment, when appropriate, by contractor for f.o.b. origin shipments or parcel post (see §§ 19.403-2 and 19.403-3);

(k) Diverting, reconsigning, tracing, and expediting shipments;

(1) Functioning to control new shipping situations or meet emergency requirements which arise during contract administration; and

(m) Considering the capabilities of the contractors for performing the foregoing and utilizing these capabilities when appropriate.

established after award, contracting officers shall refer a copy of any contract which will generate volume movements to the transportation office serving the purchasing office. The transportation office shall review such contracts and report planned volume movement in accordance with the Military Traffic Management Regulation (AR 55-355, NAV SUP Pub 444, AFM 75–2, MCO 4600.14, DSAR 4500.3).

(c) Reporting of volume movements will permit a determination of the reasonableness of applicable current rates, and when appropriate, negotiation of adjusted or modified rates, in accordance with the above regulation. Government traffic frequently possesses more favorable transportation characteristics (greater volume, heavier loading, less likelihood of damage, etc.) than commercial traffic. These favorable characteristics provide the basis for special adjustments of rates for Government traffic under provisions of section 22 of the Interstate Commerce Act (49 U.S.C. 22).

§ 19.403

Shipping documents covering F.O.B. origin shipments.

§ 19.403-1 Government bills of lading.

Except as provided in § 19.403-2, when a contract provides that supplies be delivered f.o.b. origin, with transportation costs to be paid by the Government, shipments shall be made on Government bills of lading furnished to the contractor by the contract administration office. The contracting officer shall not authorize the contractor to ship on a commercial bill of lading for conversion to a Government bill of lading unless delivery is extremely urgent and Government bills of lading are not readily available (see §§ 16.822 and 16.823 of this chapter). § 19.403-2 Use of prepaid commercial bills of lading.

(a) When economical or otherwise justified, the contracting officer or his representative may authorize the contractor to make the following f.o.b. origin freight or express shipments (if they have no security classification) at Government expense on prepaid commercial bills of lading to domestic destinations, including U.S. military air terminals and water terminals:

imposed by air carriers, a package weighing more than 100 pounds or measuring more than 44 x 24 x 30 inches should not be tendered to a commercial air carrier unless it is known that it will be accepted;

(2) Shipments not exceeding 250 pounds by railway express or bus express (because of restrictions imposed by bus express carriers, a package weighing more than 100 pounds or measuring more than 45 x 24 x 24 inches should not be tendered to the bus express carrier unless it is known that it will be accepted;

(3) Shipments not exceeding 1,000 pounds by other common carriers; or

(4) Shipments by common carriers, other than specified in subparagraphs (1) and (2) of this paragraph, which can be consolidated with the contractor's own prepaid shipments for delivery to one or more destinations: Provided, That all appropriate f.o.b. origin shipments, under one or more Government contracts, have been consolidated initially. The contractor may be authorized to consolidate less-load Government shipments with his own shipments to take advantage of lower carload or truckload freight costs, and the Government shall assume its pro rata share of the combined shipment cost. Overall transportation costs shall be evaluated prior to authorizing any movement to assure that savings will be realized by the Government consistent with with other contract and traffic management considerations. When consolidation is authorized, a copy of the commercial bill of lading will be mailed promptly to the consignee(s).

(b) A contract modification is not required when shipment is made under a prepaid commercial bill of lading as authorized in paragraph (a) of this section. Unless otherwise provided in the contract, the supplies will move for the account and at the risk of the Government, and will become Government property when loaded on the carrier's equipment and the contractor has obtained the carrier's receipt. The contractor pays the transportation charges and is reimbursed by the Government. Loss or damage claims shall be processed in accordance with directives of the Department concerned.

(c) Unless otherwise provided by the contract, when the contractor is authorized to ship on a prepaid commercial bill of lading in lieu of a Government bill of lading, he must agree to show the

prepaid transportation charges, or apportioned charges as agreed (see paragraph (a) (4) of this section), as a separate item on the invoice for each individual shipment of supplies. The invoice must include a notation that prepaid freight, express, or commercial air, as applicable, was authorized. The invoice must be supported with a copy of the commercial bill of lading which shall be marked or stamped "To be prepaid" or "Paid" and signed by the carrier's agent in the space for carrier's acceptance of the shipment. In the absence of the carrier's signature evidencing payment, the commercial bill of lading shall bear a notation by the contractor of his check number and the date paid.

§ 19.403-3 Shipments by parcel post or other classes of mail.

(a) Use of parcel post or other classes of mail permits direct movement from the source of supply to the user, without the intermediate documentation that is required when supplies are transported through depots or air or water terminals. However, the use of parcel post and other classes of mail shall be confined to deliveries of mailable matter which meets the size, weight, and distance limitations prescribed by the Post Office Department. Contractors shall not divide delivery quantities into mailable parcels for the express purpose of avoiding shipments by other modes of transportation.

(b) When parcels are to be mailed under "Postage and Fees Paid" indicia, the contractor shall be provided with official mailing labels printed "Postage and Fees Paid." Labels furnished to contractors must bear in every case the typed, printed, or handstamped return address of the military activity of the Department or Agency concerned over the printed words, "Official Business." The name and address of a private person or firm shall not be shown.

(c) The contractor shall use his own labels and postage when he is not furnished official mailing labels. When reimbursement for postage is to be made, the contractor shall agree to show the postage charge as a separate item on the invoice for the supplies shipped. The invoice must be supported by a statement of mailing, prepaid by the contractor and signed by a postal employee, for each individual shipment.

(d) When the contractor uses his own labels for making shipments to post of

fices serving military consignees outside the United States, the parcels shall be stamped or printed with the name of the Military Department, i.e., "(Army, Navy, Air Force, or DSA), Official Mail-Contents for Official Use-Exempt from Customs Requirements" in 1/4-inch block letters immediately above the label, to permit identification and to expedite handling within the postal system. Use of this marking does not eliminate the requirement for payment of postage by the contractor when so required by the contract or when he is to be reimbursed for the cost of postage.

(e) Shipments may not be insured at Government expense for the purpose of recovery in case of loss or damage, except that minimum insurance required for the purposes of obtaining receipts at point of origin and upon delivery is authorized. § 19.404 Routing, tracing, and expediting shipments.

Routing of military freight consists of determining a mode of transportation and the carrier which will effect safe and timely delivery of supplies at the lowest overall cost. Tracing is the procedure used for locating unduly delayed shipments. Expediting is the procedure used when a shipment is urgently needed at destination or when congestion is likely to occur on the lines of the carriers over which the shipment is to move. Methods for tracing or expediting shipments are outlined in Chapter 220, Military Traffic Management Regulation.

§ 19.405 Demurrage and detention charges.

(a) Demurrage is a fixed charge made by rail carriers on cars held by, or for, a consignor or consignee for loading, unloading, or for any other purpose. A contractor who detains cars for these reasons is required to pay the carrier's published tariff charges for demurrage. Generally, carrier demurrage rules allow a definite period called "free time" for loading or unloading cars or for any other purpose, and impose a definite per day per car charge for cars held beyond this period. The free time allowed is usually 48 hours for loading or unloading cars and 24 hours when cars are held for reconsignment, diversion, reshipment, or held in transit on orders of the shipper or consignee. Normally, the free time starts from the first 7 a.m. (excluding Saturdays, Sundays, and holidays) after placement of the car.

(b) Detention is the term used when motor carrier equipment is held by, or on behalf of, a shipper or consignee beyond a reasonable period allowed for loading, unloading, forwarding directions, or for any other purpose. Motor carrier detention rules and charges are not uniform and are published in individual carrier or agency tariffs. Detention charges are usually based on an hourly rate.

(c) Procedures involving payment or collection of demurrage or detention charges are contained in paragraph 219010 of the Military Traffic Management Regulation.

§ 19.406 Discrepancies incident to shipment of supplies.

(a) Discrepancies incident to shipment include overage, shortage, loss and damage, improper markings, and consignment deficencies (see Reporting of Transportation Discrepancies in Shipments-AR 55-38, NAVSUP Pub 459, AFM 75-34, MCO P4610.19, DSAR 4500.15). Improper markings or consignment deficiencies may result in misdirected shipments or additional handling or stowing of shipments, or affect identification of contents which necessitates opening of containers.

(b) Generally, when the place of delivery is f.o.b. origin, the Government consignee at destination is also the accountable office for the supplies, and all claims or reports dealing with discrepancies are initiated at that point in accordance with the property accountability regulations of the Department concerned. The administrative procedures required in Chapter 221 of the Military Traffic Management Regulation govern the actions to be taken with respect to discrepancies caused by carriers.

(c) When supplies are procured on an f.o.b. destination basis, any claim arising from a discrepancy occurring in transit is a matter for settlement between the contractor and the carrier. However, the Government consignee shall notify the carrier of the discrepancy by noting the exception on the carrier's receipt and shall furnish all available data to the contract administration office which shall promptly transmit the data to the contractor.

§ 19.407 Report of shipment (REP SHIP).

Military storage and distribution points, depots, and other receiving activ

ities require advance notice of shipments en route from contractor's plants. Generally, such notice is required only for minimum carload or truckload shipments. The notification facilitates arrangements for transportation control, labor, space, and use of materials handling equipment at destination. Also timely receipt of notices by the consignee transportation office precludes the incurring of demurrage and vehicle detention charges. To assure discharge by the contractor of his responsibilities related to these requirements, the substance of the clause in § 7.105-4 of this chapter shall be included in all appropriate solicitations.

Limitation on use.

22.802-1 Prestige motor vehicles.

22.802-2 Authority to rent motor vehicles. 22.802-3 Age of vehicles.

22.803

Schedule provisions.

Subpart 1-Educational Service Agreements

22.900

22.901

22.902

22.903

Scope of subpart.

Definition of educational service
agreement.

Method of procurement.
Duration.

AUTHORITY: The provisions of this Part 22 issued under sec. 2202, 70A Stat. 120; 10 U.S.C. 2202. Interpret or apply secs. 23012314, 70A Stat. 127-133; 10 U.S.C. 2301-2314.

§ 22.000 Scope of part.

This part deals generally with the obtaining of services by contract, and specifically with certain types of contracts which can properly be classified as service contracts. It does not cover the services of individuals obtained by direct appointment or through normal Civil Service employment procedures, nor does it cover the obtaining of services by grant.

[32 F.R. 550, Jan. 18, 1967]