1. U.S. General Services Administration Federal Acquisition Service U.S. General Services Administration George Thomas Transportation Audits Division, GSA March 25, 2015 U.S. General Services Administration. Federal Acquisition Service. 5th Annual Government Freight Transportation Forum George Thomas Transportation Audits Division, GSA March 25, 2015

2. Agenda 2  Status Audit Initiatives/Updates Protest Program (Web-TARPS) GSA Contract Auditors PayPort Express  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?

3. 3 Audit Updates  WEBTARPS GSA developed a process in which Transportation Service Providers (TSPs) can log in their own overcharge protests into the TARPS system via the internet Use of WEBTARPS provides users instant visibility of their overcharges, status of protests and claims To date, 1059 of 1262 of TSPs are using Web-TARPS of which 63 are Freight Anyone interested in participating contact Monique.duncan@gsa.gov or (703) 605-2881 Monique.duncan@gsa.gov

4. 4 Audit Updates  PayPort Express GSA Transportation Audits recently developed procedures to offset indebted TSPs through PayPort Express/Citi. If a TSP wishes to avoid an offset the overpayment must be satisfied. Payment s and copy of Notice Of Overcharge (NOC) can be made by check to: o General Services Administration; Government Lock Box 979006; 1005 Convention Plaza; St. Louis, MO 63101 A Notice of Overcharge (NOC) is issued to the TSPs for any overpayment of transportation services provided to federal agencies. Overcharges not satisfied within 120 days after the issuance of the NOC, will be offset via PayPort Express/Citi. In accordance with 41 CFR Subchapter D, Subpart F - Claims and Appeals Procedures, Part 102-118.640, GSA has the authority to execute the offset procedures.

5.  PayPort Express IFF refunds though PayPort Express (PPE): If an agency is using PPE to pay TSPs, and the TSP asserts overpayment of IFF to GSA as the result of an overcharge to the government with applicable interest, then the TSP must provide GSA a copy of the BOL, invoice, the amount paid in IFF, and the amount of IFF that should have been paid Submit IFF disputes to: frtrates.procurement@gsa.gov. GSA will review all submitted information and confirm all shipment details with the shipping agency. If it’s determined that the TSP did over-pay IFF, then GSA will set up a refund for the TSP in PPE, in the form of an offset ebill or via check through the GSA Finance office. The refund will be processed the next payment cyclefrtrates.procurement@gsa.gov 5 Audit Updates

6. 6  Doubtful Claim Transportation Audits mandate is to audit all transportation invoices to ensure the government received the services it paid for and was not overcharged in the process At times TSPs perform services and find out later that they didn’t bill for a service or something changed from the original invoice. TSPs should submit a supplemental invoice and supporting documentation to the agency for payment. If the agency fails or refuse to pay, the TSP can file a “Doubtful Claim” to GSA Cynthia.Pope@gsa.gov using the same procedures as filing a regular claimCynthia.Pope@gsa.gov TSP will prepare a package titled "Doubtful Claim" along with all supporting documentation and mail, e-mail, or fax to GSA for review and decision. Once a decision is reached, the TSP will be provided a certificate of settlement or settlement certificate

7. 7 Audit Updates  Address Changes Mail Payments: General Services Administration Government Lock Box 9006 1005 Convention Plaza St. Louis, MO 63101 Protest General Services Administration 1800 F Street NW 3rd Floor, Mail Hub 3400 Washington, DC 20405  Please include Notice of Overcharges with all payments and other correspondence

8. GSA Post Payment Contractors ContractorTierModes Commercial Traffic Logistics1 All Modes Parsifal Corporation2 Household Goods Auditech & Associates, Inc.2 Motor Freight Air Freight Rail Freight Passenger GMG Management Counseling, Inc.2 Water Freight Pipeline 8

9. 9  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… Summarize statutes that apply to audit process

10. 10 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: a. Amount paid to the TSP by the Governmentd. Basis for the proper charge b. Amount that should have been paid by the Government e. Applicable tariff and/or tender references c. Amount of the overcharge Notice of Overcharge (NOC) Process General Services Administration Government Lock Box 9006 1005 Convention Plaza Saint Louis, MO 63101

11. 11  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 *Note: GSA does not have an EFT payment process set up at this time however, TSPs may remit payments via check to the lock box address indicated on the NOC TSP Protest Process

12. 12  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. NOC Protest Process

13. 13  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. Overcharge Collection Process

14. 14 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) Common Mistakes

15. 15 IssuesTop Freight Overcharges Tender/Rate Alternation19,669 Fuel Surcharge (Syncada)1,847 Service Failure1,129 Fuel Surcharge (Paper)982 Services Not Authorized750 Top Issues

16. 16 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

17. 17 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

18. Points of Contact DirectorJoyce Clark (703) 605-9420 Joyce.clark@gsa.gov Accounts & Collections Branch Chief Stephen Fair (202) 357-9677 Stephen.fair@gsa.gov Audit Policy and Review Branch Chief Donna Jack (703) 605-3488 donna.jack@gsa.gov Disputes Resolution Branch Chief George Thomas, Jr. (703) 603-8188 george.j.thomas @gsa.gov Carrier Protest/Claims Status Inquiry Cynthia Pope (703) 605-9412 cynthia.pope@gsa.gov 18

19. 19 Questions?

20. 20 Pre-payment Audit Flowcharts of the audit process

21. 21