U. S. General Services Administration. Federal Acquisition Service U.S. General Services Administration. Federal Acquisition Service. Transportation Service Provider Quarterly Meeting George Thomas Transportation Audits Division, GSA August 14, 2013

Agenda Status Audit Initiatives Overcharge Process Protest Program (Web-TARPS) Overcharge Process Notice of Overcharge TSP Dispute Dispute Decision Collection of Overcharge What Can Carriers do to Avoid Overpayments? Common Mistakes Top 5 Overcharges How is GSA working with Govt. Shippers to get Paper Work Right on the Front End?

Summarize statutes that apply to audit process Prepayment audits were mandated by Public Law 105-264 under the “Travel and Transportation Reform Act of 1998” (102-118.265) and require that all federal agencies conduct pre-payment audits of all transportation billings. By auditing prior to payment, agencies can avoid excess transportation charges and use the consequent savings to procure additional transportation services. Post payment audits were mandated by “The Transportation Act of 1940 as amended 31 USC 3726” (102-118.415). Post-payment audit occurs once a transportation service provider (TSP) bill has undergone a pre-payment audit and has subsequently been paid. Upon receipt of transportation bills, each one is examined and audited to confirm that it contains the lowest charges applicable. These audits ensure that the bills are valid and proper, while in compliance with rates, tariffs, quotations, agreements, tenders, and/or other applicable rate authorities. Three Year Rule: 31USC § 3726 - Payment for transportation, (d) Not later than 3 years (excluding time of war) after the time a bill is paid, the Government may deduct from an amount subsequently due a carrier or freight forwarder an amount paid on the bill that was greater than the rate allowed under…

Status of Protest Program (Web-TARPS) GSA developed a process in which Transportation Service Providers (TSPs) can log in their own overcharge protests into the TARPS system via the internet Apr 11, 2012 - First protest was entered into TARPS by the TSP and backup documentation was received in TSP protest mailbox Jul 31, 2012 - GSA extended the opportunity to participate to all TSPs To date, 351 TSPs are participating (19) are Freight Anyone interested in participating contact Monique.duncan@gsa.gov or, (703) 605-2881 This process was created to provide the TSPs with the ability to input and keep track of their overcharge protests

Notice of Overcharge (NOC) Process Notice of Overcharge (GSA Form 7925) A Notice of Overcharge is issued when an auditor determines that a TSP has charged more than the proper rate for the services rendered. In addition to certain general information, a NOC states the: Amount paid to the TSP by the Government d. Basis for the proper charge Amount that should have been paid by the Government e. Applicable tariff and/or tender references Amount of the overcharge

TSP Protest Process TSPs can respond to a Notice of Overcharge in a variety of ways: Protest the Notice of Overcharge Refund the total amount overcharged to the Government Refund part of the overcharge and protest part of the overcharge Take no action regarding the Notice of Overcharge If a TSP disagrees with a NOC, the TSP may protest within 30 days by email, fax, hard copy print to GSA or enter into WebTARPS (pilot) A letter of protest must contain the basis for the TSP’s objection to the overcharge and any substantiating documentation A letter is sent to each TSP filing a protest, to acknowledge receipt of their protests The Audit Contractor evaluates the protest within thirty (30) calendar days of receipt

NOC Protest Process Decision Process The Audit Contractor evaluates the protest within thirty (30) calendar days of receipt. Prepares a response in defense of the audit position and identified billing error or over billing and enters the protest decision into TARPS, where GSA’s final determination will be listed on the protest. The three options for protest responses are: (1) Allow: admit that the TSP is correct and cancel the Government’s overcharge claim; (2) Deny: sustain the overcharge, and require the TSP to pay the total amount claimed to be due to the Government. (3) Amend: increase or decrease the total amount due to the Government. Denial of TSP protests Once GSA’s decision is entered into TARPs, an automatically-generated decision letter is printed at QMCA if the protest was denied. This letter advises the TSP that the protest was denied and that deduction action will begin. If the protest is denied, GSA will initiate collection procedures. Accepting the Protest and Canceling the Notice of Overcharge If an auditor admits that a TSP is correct in its assertion that there was no overcharge for services: (1) The account is closed and considered to be reconciled. (2) The updated information is logged into TARPS and removed from the receivables file. (3) The auditor then prints the automatically generated letter, which advises the TSP that the overcharge was dismissed.

Overcharge Collection Process When a TSP fails to pay or protest an overcharge, based on his date of issuance parameter (30, 60, 90 days) in TARPS, collection of the debt is commenced by GSA. The following are the general collection methods used: All or any portion of any funds held by GSA owed to the TSP is applied to outstanding overcharges. One or more Government agencies are instructed to deduct the amount due from the TSP’s unpaid bills. If the previous collection approaches fail, the TSP is found to be delinquent, and the Collections Section initiates the delinquency process. GSA issues the first demand letter to the TSP requesting a refund or an acceptable explanation be made within 30 days.

Common Mistakes Freight Shipments 1.  Not using the applicable tender to rate the shipment. 2.  If more than one tender applies, not applying the tender that results in the lowest cost to the government. 3.  Incorrect mileage used to compute charges. 4.  Did not apply the bumping rule, where applicable. (Higher weight-lower rate) 5.  Accessorial charges billed and not authorized. 6.  Incorrect Fuel Surcharge applied. Air Cargo 1.  Service requested and billed but not provided by the carrier. (Overnight, 2nd day, etc)

Top Issues Issues Top Freight Overcharges Tender/Rate Alternation 14,043 Fuel Surcharge (Syncada) 1,871 Service Failure 1,563 Fuel Surcharge (Paper) 1,214 Services Not Authorized 984 TENDER/RATE ALTERNATION - Two tenders apply-lowest tender/rate applies FUEL SURCHARGE - Wrong fuel surcharge percentage applied SERVICE FAILURE - Example-Next day delivery requested and billed.-not provided SERVICES NOT AUTHORIZED - Expedited service billed-not authorized

What can carriers do to avoid overpayments? Ensure rates, dates, weights, origins and destinations are correct on invoices Ensure data in shipper system and payment system matches Work with shipper to ensure data is accurate Provide documentation or data to support billings

How is GSA working with govt How is GSA working with govt. shippers to get paper work right on the front end?  Participate in meetings with Federal Agencies Identify issues to DoD and GSA Transportation Program Managers and obtain clarification on application of rates and rules to ensure overcharges are being issued correctly Advise Federal Agencies to ensure rates, dates, weights, origins and destinations are correct on invoices Manage the Agency Review and Assistance Program to ensure compliance with prepayment and post payment audit requirements

Points of Contact Director Joyce Clark (703) 605-9420 Joyce.clark@gsa.gov Deputy Director Vacant Accounts & Collections Branch Chief Jeffrey Adcock (703) 605-xxxx Jeffrey.adcock@gsa.gov Audit Policy and Review Donna Jack (703) 605-3488 donna.jack@gsa.gov Disputes Resolution George Thomas, Jr. (703) 603-8188 george.j.thomas @gsa.gov Carrier Claims Status Inquiry Cynthia Pope (703) 605-9412 cynthia.pope@gsa.gov Director Mary Bates (703) 605-9402 mary.bates@gsa.gov Deputy Director Joyce Clark (703) 605-9420 joyce.clark@gsa.gov Accounts & Collections Branch Chief Annie Scott (703) 605-9425 annie.scott@gsa.gov Audit Policy and Review Donna Jack (703) 605-3488 donna.jack@gsa.gov Disputes Resolution George Thomas, Jr. 703-603-8188 george.j.thomas @gsa.gov Carrier Claims Status Inquiry

Questions?

Flowcharts of the audit process Pre-payment Audit Flowcharts of the audit process

Pre-Payment Audit (Paper Process)