[Federal Register: May 23, 2002 (Volume 67, Number 100)]
[Notices]
[Page 36192-36193]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23my02-66]
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GENERAL SERVICES ADMINISTRATION
Federal Supply Service
GSA Standard Tender of Service (STOS), GSA National Rules Tender
No. 100-D, Item 1300 Fuel Related General Rate Adjustment (FRGRA)
AGENCY: Federal Supply Service, GSA.
ACTION: Notice of amendment to STOS with request for comments.
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SUMMARY: The General Services Administration (GSA), in compliance with
41 U.S.C. 418b, is publishing for comment in the attachment to this
notice an amendment to Item 1300, Fuel Related General Rate Adjustment
(FRGRA), of the GSA National Rules Tender No. 100-D, a part of the GSA
STOS. Item 1300 offers transportation service providers (TSP's) that
participate in GSA's STOS, a means to recover operating cost increases
as a result of sudden and unforeseen increases in the price of diesel
fuel. Correspondingly, the item provides for a downward adjustment when
the price of diesel fuel suddenly or unexpectedly decreases. Without
this provision, TSP's could compensate for operating expenses changes
due to sudden and unforeseen fuel cost increases or decreases only
twice yearly when GSA implements new transportation rates solicited
under its semiannual Request for Rates Offers.
DATES: Please submit your comments by June 24, 2002.
ADDRESSES: Mail comments to the General Services Administration, Travel
and Transportation Management Division (FBL), Crystal Mall Bldg. 4, Rm.
812, 1941 Jefferson Davis Highway, Arlington, VA 22202, Attn: Raymond
Price (Re: Item 1300, Fuel Related General Rate Adjustment, Federal
Register Notice).
FOR FURTHER INFORMATION CONTACT: Mr. Raymond Price, Transportation
Programs Branch, by phone at 703-305-7536 or by e-mail at
raymond.price@gsa.gov.
SUPPLEMENTARY INFORMATION: Item 1300 inadvertently was omitted when the
currently effective version of the STOS was implemented upon
publication in the Federal Register (66 FR 63061, December 4, 2001).
This Federal Register publication of Item 1300 serves to correct
omission of Item 1300 from the December 4, 2001, version of the STOS,
and to incorporate this item in the STOS in amended version that
provides TSP's a means of compensating for operating expenses changes
due to sudden and unforeseen fuel cost increases or decreases.
Dated: May 16, 2002.
Tauna T. Delmonico,
Director, Travel and Transportation, Management Division.
Section 3--Fuel Related General Rate Adjustment
Item 1300 Fuel Related General Rate Adjustment (FRGRA)
The provisions of subsections A through E of this section govern a
Fuel Related General Rate Adjustment (FRGRA) that a Transportation
Service Provider (TSP) participating in this STOS (including revisions
to or reissues thereof) makes to its line-haul charge.
A. General. The FRGRA provides a TSP flexibility to obtain
reasonable relief from sudden and unforeseen increases in diesel fuel
prices. Additionally, the FRGRA requires a TSP to correspondingly
discount its line-haul charge when there are sudden and unforeseen
decreases in diesel fuel prices. Since fuel related rate adjustments
for gradual changes in a TSP's fuel related costs over a longer period
of time are beyond the purpose of this provision, a TSP should consider
gradual fuel price changes when it submits or supplements its STOS
rates during a rate filing open window if such changes significantly
affect the TSP's operating costs.
B. Application. The FRGRA is applicable to all GSA negotiated/
accepted rate offers as well as rate offers negotiated/accepted by a
Federal agency that participates in the STOS. The FRGRA may be waived
or altered only by the Freight Program Management Office (FPMO) or
appropriate Federal agency that negotiated/accepted the rate offer.
C. Setting Baseline. Diesel fuel price ranges and corresponding
applicable percent rate adjustment levels were collaboratively
established with the motor TSP industry as of November 2000. The levels
specified in this section reflect current standard industry practice
and will be reviewed and revised on an as-needed basis.
[[Page 36193]]
D. Computation.
1. Determination of Adjustment. Each Monday, or first working day
thereafter if the Monday falls on a Federal Holiday (hereinafter
referred to as ``Monday''), the Department of Energy, Energy
Information Administration (EIA), posts the National U.S. Average
diesel fuel price. If a FRGRA is justified under subsection D of this
section based on each Monday's posting, the FRGRA applies to shipments
picked up the ensuing Wednesday through the following Tuesday (Note:
shipment pickup date is controlling for FRGRA purposes). A TSP is
responsible for monitoring diesel fuel prices each Monday using one of
the sources identified below to determine whether a FRGRA will apply
for the one-week period beginning the upcoming Wednesday through
Tuesday of the following week.
EIA Web site: http://www.eia.doe.gov/
EIA Weekly Petroleum Status Report
EIA Hotline: (202) 586-6966
2. Amount of Adjustment. If on any given Monday National U.S.
Average disease fuel prices, as published in one of the sources
identified in subsection D1, exceed or fall below the neutral range
specified in the table under subsection D2c, a TSP will compute its
FRGRA under subsection D2a or b, as appropriate.
a. If the National U.S. Average diesel fuel prices exceed the
neutral range, the TSP may increase its line-haul charge by the
appropriate percentage specified in the table under subsection D2c; or
b. If the National U.S. Average diesel fuel prices fall below the
neutral range, the TSP must decrease its line-haul charge by the
percentage specified in the table under subsection D2c.
c. Increase/Decrease Schedule: The following table specifies the
percentage FRGRA to be applied based on diesel fuel cost per gallon:
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Percent Percent
Cost per gallon decrease increase
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\1\ .........
Neutral range:
$1.00-$1.10................................... ......... 0
$1.11-$1.15................................... ......... 0.5
$1.16-$1.20................................... ......... 1.0
$1.21-$1.25................................... ......... 1.5
$1.26-$1.30................................... ......... 2.0
$1.31-$1.35................................... ......... 2.5
$1.36-$1.40................................... ......... 3.0
$1.41-$1.45................................... ......... 3.5
\2\ .........
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\1\ For each 5 cents per gallon below $1.00, subtract 0.5%.
\2\ For each 5 cents per gallon above $1.45, add 0.5%.
E. Billing Procedures. A TSP must clearly show the amount of any
diesel fuel rate adjustment, either an increase or a decrease
(discount), as a separate line item on all affected freight bills,
Transportation Service Orders (TSO's), or bills of lading.
[FR Doc. 02-12901 Filed 5-22-02; 8:45 am]
BILLING CODE 6820-24-M