[Federal Register: July 21, 2000 (Volume 65, Number 141)]
[Page 45362]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[[Page 45362]]



Department of the Army

Notice of Proposed Change to MTMC Freight Transportation 
Procurement Procedures

AGENCY: Military Traffic Management Command, U.S. Army, DoD.

ACTION:  Notice (Request for Comments).


SUMMARY: The Military Traffic Management Command (MTMC) proposes to 
revise the procedures it uses in procuring long term recurring freight 
transportation services from motor carriers and barge operators. MTMC 
often procures transportation services using contracting procedures 
that are not governed by the Federal Acquisition Regulation, e.g., 
guaranteed traffic (GT) agreements. A revision of these procedures is 
being proposed due to change in the governing law.

DATES: Interested parties are requested to submit comments on this 
proposal by September 19, 2000. All comments received within 60 days of 
publication of this notice will considered prior to any decision on 
whether to adopt this proposal.

ADDRESSES: Comments should be addressed to Headquarters, Military 
Traffic Management Command, ATTN: MTAQ Room 12N67, Hofffman Building 
II, 200 Stovall Street, Alexandria, Virginia 22331-5000.

FOR FURTHER INFORMATION CONTACT: Christina N. Dossman, (703-) 428-2052.

SUPPLEMENTARY INFORMATION: Historically, freight transportation 
services procured by MTMC have not been governed by the Federal 
Acquisition Regulation (FAR) contained in Title 48 of the Code of 
Federal Regulations.
    The FAR states at FAR 47.000 that it does not regulate 
transportation procured by bills of lading and similar documents. FAR 
47-104.1 states that under 49 U.S.C. 10721 (now recoded at 49 U.S.C. 
sections 10721 [rail], 13721 [motor, water and freight forwarder] and 
15504 [pipeline], carriers can offer reduced rates for Government Bill 
of Lading service and that agencies can negotiate reduced rates for 
volume moves or for shipments on a recurring basis. Under the exception 
recognized in FAR 47.200 the government could acquire transportation 
using 49 USC 10721 rates even though the FAR normally applies to 
transportation acquire by sealed bid or negotiated contracts (i.e., not 
individual GBL traffic).
    Under the above rules MTMC could and did used FAR exempt procedures 
for traffic based upon GBLs and also for traffic based upon Section 
10721 rates.
    49 U.S.C. 10721 was part of the Interstate Commerce Act which 
regulated rates offered by common carriers. This Act has been 
substantially amended in recent years, most notably by the Trucking 
Industry Reform Act of 1994, which abolished tariff filing requirements 
for motor carriers of freight, and by Public Law 104-88, the ICC 
Termination Act of 1995, which abolished the Interstate Commerce 
Commission. Thus, the provisions of the former Section 10721, to the 
extent it still exists in revised form as sections 10721, 13712 and 
15504, have no practical application to the freight service DOD 
acquires from carriers. (See Munitions Carriers Conference, Inc. v. 
United States, 147 F.3D 1027 (1998).
    In view of this change in the law, MTMC proposes to procure future 
transportation services involving recurring shipments or long term 
contracts under the FAR, including use of the FAR contract format and 
inclusion of all required FAR provisions and clauses. This will include 
future procurements based upon, or similar to, the guaranteed traffic 
(GT) agreements that MTMC now utilizes under FAR exempt procedures. 
This proposal does not apply to the current household goods program 
which is covered by different laws, but it should be noted that some 
household goods transportation contracts are already being conducted 
under the FAR.
    MTMC will continue to use a voluntary tender procedure for 
shipments not covered under a long term contract. Those GBL-based 
movements continue to be recognized as exceptions to the legal 
requirement to use the FAR.

Regulatory Flexibility Act

    This proposed change of procurement policy is not considered rule 
making within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 
601-612. Paperwork Reduction Act. The Paperwork Reduction Act, 44 
U.S.C. 3501 et seq. does not apply because no information collection 
requirements or records keeping responsibilities are imposed on 
offerors, contractors, or members of the general public.

Brenda R. Jackson-Sewell,
Lieutenant Colonel, U.S. Air Force, Deputy Principal Assistant 
Responsible for Contracting.
[FR Doc. 00-18538 Filed 7-20-00; 8:45 am]