NDTA Conference and GSA Audits

10/9/2013 10 Considerations in Choosing a Freight Audit and Payment Provider

Next week the National Defense Transportation Association (NDTA) will be holding its annual conference in St. Louis, MO. On Tuesday, October 15th, the Surface Transportation Committee will be meeting on a variety of issues of interest to our membership. Included on the agenda is a joint proposed initiative introduced by the TIA, the National Motor Freight Traffic Association (NMFTA), and the American Trucking Associations (ATA), to amend Item 33 of the MFTURP-1 by removing Per-Mile (PM) and Per-Load (PL) from the Exclusive Use service rate qualifiers exemptions under Item 31.8.

In reference to Item 31.8 clearly states that: “Charge for exclusive use service will be EXC (1) $___ per mile per trailer or dromedary”, plainly stating to Transportation Service Providers (TSPs) that when the accessorial charge for exclusive use has been included in the tender, TSPs should calculate the charge based on a per-mile per trailer basis. This language is contradictory to what Item 33 states, which adds an exception to exclusive use service when establishing the rate on the PM and a variety of other rate qualifiers. This misleading language has created a major concern to TSPs by triggering thousands of Notices of Charges (NOC) by the General Services Administration (GSA) Audit Division. Our members are being required to pay the audit division thousands of dollars of “overcharges”, with limited opportunities to appeal the charges.

The GSA audit division is merely enforcing the policy found in the Military Surface Deployment and Distribution Command (SDDC) Military Freight Traffic United Rules Publication-1 (MFTURP-1), therefore a clarification restating what is very clearly defined in 31.8 is necessary. By removing the per-mile and the per-load rate qualifiers from the exceptions to exclusive use service, the SDDC would eliminate thousands of un-necessary and costly audits on TSPs providing the Government with an invaluable service. TIA strongly supports this initiative to clarify and remove the conflicting language in the MFTURP-1.