GSA weighs change to relocation program

The General Services Administration is considering changing the method for calculating fuel surcharges for shipping the possessions of federal employees who are relocating, according to an announcement Wednesday.

GSA runs a program offering freight and household goods transportation services for civilian agencies that are helping employees move. The agency wants to implement what officials believe is a more accurate measure of the additional costs incurred by transportation service providers when fuel costs exceed a certain threshold, the Federal Register notice stated.

The change would align the fuel surcharges with the distance that shipments travel and the use of fuel required. GSA officials said the change would result in saving money.

Currently GSA's Centralized Household Goods Traffic Management Program uses the domestic household goods government rate established by the American Moving and Storage Association through its Household Goods Carriers' Bureau Committee.

GSA has used the rate's fuel cost price adjustment surcharge since May 2000. This kicks in when the cost of diesel fuel exceeds $1.399. The surcharge is calculated as a percentage of net transportation charges and charges for moves in and out of storage while in transit.

The proposed rule would make the price adjustment mileage-based. The new adjustment would be calculated based on the overall distance of the move, and if applicable, the distance for delivery in or delivery out of storage while in transit.

If the cost of diesel fuel exceeds $1.399, as identified by the Energy Department on the first Monday of every month, the transportation provider would calculate the fuel surcharge based on the difference between the cost of the fuel and the trigger price of $1.40.

Effective May 1, 2007, the number of billable miles would be divided by 4.5 to identify the number of gallons of fuel used and then multiplied by the cost difference between the price of fuel and $1.40.

Beginning on May 1, 2008, the number of billable miles would be divided by five to identify the number of gallons of fuel used.

GSA is accepting comments on this draft rule until Jan. 10, 2007. Comments can be submitted to Brian Kellhofer at 816-823-3646 or by e-mail at brian.kellhofer@gsa.gov.