47.104-1
Government rate tender procedures
Government rate tenders allow agencies to secure special transportation rates, but only authorized personnel may negotiate or revise these rates, and proper documentation is essential for compliance.
Overview
FAR 47.104-1 outlines the procedures for using Government rate tenders under 49 U.S.C. 10721 and 13712, which allow the Government to obtain special transportation rates from carriers. These rates apply to shipments made for the Government's account, either on commercial bills of lading (with proper endorsement) or on Government bills of lading. The regulation also permits agencies to negotiate additional or revised rates with carriers in specific situations, such as when large volume movements are expected, recurring shipments occur between set locations, or when advantageous transit arrangements can be made. Only authorized agency personnel may conduct these negotiations, ensuring proper oversight and compliance with agency procedures.
Key Rules
- Applicability of Government Rate Tenders
- Special rates under 49 U.S.C. 10721 and 13712 apply to Government shipments on properly endorsed commercial or Government bills of lading.
- Negotiation of Additional or Revised Rates
- Agencies may negotiate for better rates in cases of volume shipments, recurring routes, or beneficial transit arrangements, but only through authorized personnel.
Responsibilities
- Contracting Officers: Ensure correct use of bills of lading and compliance with rate tender procedures; coordinate with authorized personnel for rate negotiations.
- Contractors: Use appropriate bills of lading and ensure endorsements reflect Government reimbursement; comply with negotiated rates and procedures.
- Agencies: Authorize personnel for negotiations and oversee compliance with procedures and documentation.
Practical Implications
- This section ensures the Government receives favorable transportation rates and cost savings.
- Proper documentation and authorized negotiations are critical to compliance.
- Common pitfalls include unauthorized negotiations or incorrect bill of lading endorsements, which can lead to payment or audit issues.