47.104 Government rate tenders under sections 10721 and 13712 of the Interstate Commerce Act (49 U.S.C. 10721 and 13712)
Source: FAR 47.104 on acquisition.gov
FAR 47.104 allows common carriers to offer the Government transportation services at reduced rates through Government rate tenders, provided these rates are based on regulated or published tariffs.
Overview
FAR 47.104 outlines the statutory authority and procedures for common carriers (such as motor, water, freight forwarder, and rail carriers) to offer transportation services to the U.S. Government at no charge or at reduced rates compared to standard commercial rates. These reduced rates are formalized through Government rate tenders, which are special offers made to the Government. The section clarifies that such reduced rates are specifically authorized for rail carriers, household goods movements, and water carriers in noncontiguous domestic trade. It also specifies that the reduced rate must be based on a rate regulated or published under the jurisdiction of the Surface Transportation Board. Additional guidance for civilian agencies and DoD is available in their respective regulations.
Key Rules
- Statutory Authority for Reduced Rates
- Common carriers can offer the Government transportation at no charge or at reduced rates under sections 10721 and 13712 of the Interstate Commerce Act.
- Scope of Reduced Rates
- Reduced rates are authorized for rail carriers, household goods, and water carriers in noncontiguous domestic trade, and must be based on regulated or published tariffs.
- Reference Regulations
- Civilian agencies and DoD must consult the Federal Management Regulation and Defense Transportation Regulation for additional procedures.
Responsibilities
- Contracting Officers: Ensure that transportation services use Government rate tenders where applicable and verify that reduced rates comply with regulatory definitions.
- Contractors (Carriers): Submit Government rate tenders with rates reduced from applicable regulated or published tariffs.
- Agencies: Reference and comply with additional agency-specific transportation regulations.
Practical Implications
- This section enables the Government to obtain transportation services at lower costs, leveraging statutory authority for reduced rates.
- Contractors must ensure their rate tenders are properly calculated and documented according to the definitions provided.
- Failure to use or properly document Government rate tenders can result in noncompliance or missed cost savings.
(a) This section explains statutory authority for common carriers subject to the jurisdiction of the Surface Transportation Board (motor carrier, water carrier, freight forwarder, rail carrier) to offer to transport persons or property for the account of the United States without charge or at "a rate reduced from the applicable commercial rate." Reduced rates are offered in a Government rate tender. Additional information for civilian agencies is available in the Federal Management Regulation (41 CFR parts 102-117 and 102-118) and for DoD in the Defense Transportation Regulation (DoD 4500.9-R).
(b) Reduced rates offered in a Government rate tender are authorized for transportation provided by a rail carrier, for the movement of household goods, and for movement by or with a water carrier in noncontiguous domestic trade.
(1) For Government rate tenders submitted by a rail carrier, a rate reduced from the applicable commercial rate is a rate reduced from a rate regulated by the Surface Transportation Board.
(2) For Government rate tenders submitted for the movement of household goods, "a rate reduced from the applicable commercial rate" is a rate reduced from a rate contained in a published tariff subject to regulation by the Surface Transportation Board.
(3) For Government rate tenders submitted for movement by or with a water carrier in noncontiguous domestic trade, "a rate reduced from the applicable commercial rate" is a rate reduced from a rate contained in a published tariff required to be filed with the Surface Transportation Board.