[Federal Register: December 3, 2007 (Volume 72, Number 231)]
[Notices]
[Page 67921-67922]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr03de07-53]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Department of the Army
Mandatory Provision of Full Replacement Value Coverage by
Department of Defense Personal Property Transportation Service
Providers (TSPs)/Contractors
AGENCY: Department of the Army, DOD.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This cancels the notice previously published in the Federal
Register on December 15, 2006 (71 FR 75509). Pursuant to Chapter 157,
Sec. 2636a of Title 10 United States Code enacted by Congress on
November 26, 2003, as amended by the Department of Defense
Authorizations Act for FY 2007, the Military Surface Deployment and
Distribution Command (SDDC), as the
[[Page 67922]]
Traffic Manager for Department of Defense (DOD) Personal Property
Program, is informing the Transportation Service Provider (TSP)/
contractor community of the mandatory requirement to provide Full
Replacement Value (FRV) coverage to all customers of the DOD Personal
Property Program. The cost of FRV shall be included in contracts with
movers and FRV shall be made available to Service members and civilian
employees.
All shipments that have been picked up or are already in storage
prior to the effective dates noted below will not be required to be
covered by FRV. This notice updates the implementation timeline for
providing FRV for loss/ damage protection.
Current Program Implementation: The cost for FRV coverage shall be
included in all rates for the International Household Goods (iHHG)
program, the Unaccompanied Baggage (UB) program, the Domestic Household
Goods (dHHG) program, Intra-Theater Tender (ITT) program, Non-Temporary
Storage (NTS) program, and the Direct Procurement Method (DPM) program
according to the following schedule:
The international household goods (iHHG) program and unaccompanied
baggage (UB), shall have FRV coverage for all shipments picked up on or
after October 1, 2007.
For the domestic household goods (dHHG) program, all shipments
picked up on or after November 1, 2007, shall have FRV coverage.
For the Intra-Theater Tender (ITT) program all rates effective on
or after March 1, 2008 shall include FRV coverage. The current rate
cycle will expire February 29, 2008, with the next rate cycle beginning
on March 1, 2008 and shall be inclusive of FRV coverage.
For the Non-Temporary Storage (NTS) program, shipments ordered with
a date on or after March 1, 2008 shall include FRV coverage. New rates
that include the cost of providing FRV must be postmarked between
December 16, 2007 and January 15, 2008.
All DPM contracts will be modified to require the provision of FRV
by March 1, 2008. (See Traffic Management Advisory released by
USTRANSCOM, September 13, 2007).
SUPPLEMENTARY INFORMATION: FRV coverage shall be provided at the
following limits: If a claim is filed directly with the TSP/contractor
within nine (9) months of delivery, then the TSP's/contractor's maximum
liability on each HHG and UB shipment will be the greater of: (1)
$5,000 per shipment; or (2) $4 times either the net weight of the HHG
or $4 times the gross weight of the UB, in pounds, not to exceed
$50,000. Certificate of Cargo Liability Insurance/Certificate of
Warehousemen's Liability Insurance must also reflect the new FRV
limits. The TSP/contractor must report settled claims information to
SDDC within seven calendar days of claims settled.
Implementing guidelines and procedures covering liability for loss/
damage along with the claims process can be found on SDDC's Web site:
http://www.sddc.army.mil, Full Replacement Value).
Background: Chapter 157, Title 10 U.S. Code Sec. 2636a, also known
as The Full Replacement Value Act of 2003, was passed on November 26,
2003. This law amended (in part) Chapter 157 of Title 10 by inserting
after section 2636 a new section Sec. 2636a entitled, ``Loss or damage
to personal property transported at Government expense: Full
replacement value; deduction from amounts due TSPs.'' This law allows
the Secretary of Defense to include a clause for full replacement value
in contracts with TSPs. It also allows a deduction of the FRV from the
amount due to a carrier if the carrier fails to settle.
The FRV Act allowed for immediate inclusion of FRV into the
Personal Property Program, but SDDC decided to delay FRV to coincide
with the roll-out of the reengineered future Personal Property Program
known as Families First. Current uncertainty surrounding the actual
roll-out date of Families First and the Defense Personal Property
System (DPS) has caused Congress and SDDC to decide to implement FRV
into the current Personal Property Program.
In June 2006 the Senate Arms Services Committee published the
following recommendation:
``Subtitle C--Travel and Transportation Allowances.
``Expansion of payment of replacement value of personal property
damaged during transport at Government expense (sec. 631).
``The committee recommends a provision that would amend Section
2636a of Title 10, United States Code, to require the Secretary of
Defense, no later than March 1, 2008, to include in contracts for the
transportation of baggage and household effects for military members
and civilian employees a clause requiring the carrier to pay the full
replacement value for loss or damage. The provision would also require
certain certifications by the Secretary about, and a review and
assessment by the General Accountability Office on December 1, 2006,
and June 1, 2007, of the `Families First' program.
``The committee believes that the time is past due for implementing
the contractual authority requested by the Department in 2003 and
included in section 634 of the National Defense Authorization Act for
Fiscal Year 2004 (Pub. L. 108-136). Military personnel and their
families have waited long enough for realization of the Families First
promise of full replacement value for household goods lost and damaged
by movers in connection with permanent changes of station.
``The committee has concluded that implementation of the full
replacement standard for both military members and civilian employees
by means of contractual changes with TSPs must precede implementation
of the Defense Personal Property System (DPS) under the Families First
program.''
Regulation Flexibility Act
This action is not considered rule making within the meaning of
Regulatory Flexibility Act, 5 U.S.C. 601-612.
Paperwork Reduction Act
The Paperwork Reduction Act, 44 U.S.C. 3051 et seq., does not apply
because no information collection or record keeping requirements are
imposed on contractors, offerors or members of the public.
Daniel J. Bradley,
Lt. Col, USAF, DCS, Passenger and Personal Property.
[FR Doc. E7-23382 Filed 11-30-07; 8:45 am]
BILLING CODE 3710-08-P