Overview
This section establishes the regulatory framework for auditing and paying transportation services across federal agencies, mandating both prepayment audit programs and the submission of documentation to the General Services Administration (GSA) for postpayment audits. It primarily governs how agencies and cost-reimbursement contractors handle freight bills, invoices, and supporting transportation documents.
Key Rules
- Regulatory Authority: General procedures are governed by 41 CFR part 102-118, while DoD-specific shipments follow DoD 4500.9-R (Defense Transportation Regulation).
- Mandatory Prepayment Audits: Under 31 U.S.C. 3726, all federal agencies are required to establish a prepayment audit program for transportation expenses.
- GSA Postpayment Submission: Agencies must forward original paid freight bills, invoices, and passenger coupons to the GSA Transportation Audit Division monthly for postpayment review.
- Subcontractor Inclusion: The audit requirements extend to first-tier subcontractors under cost-reimbursement contracts.
- Administrative Requirements: Submitted document packages must include a duplicate statement identifying the agency, contract number, total number of bills, and a listing of amounts paid.
- Clause Prescription: FAR 52.247-67 must be inserted into solicitations and contracts when a cost-reimbursement contract is used and transportation is reimbursed as a direct charge.
Practical Implications
- Administrative Burden: Contractors under cost-reimbursement terms must maintain rigorous documentation and submission schedules for transportation expenses to ensure compliance with GSA audit standards.
- Audit Readiness: Agencies and contractors must ensure that original transportation documents are stamped with the agency name and meticulously tracked to avoid payment discrepancies or audit findings.