1.22.6  Transportation Management

Manual Transmittal

August 06, 2012

Purpose

(1) This transmits revised IRM 1.22.6, Mail and Transportation Management, Transportation Management.

(2) This section discusses the overall management of the transportation program for the IRS.

Material Changes

(1) IRM 1.22.6.1, subsection titled General is removed, updated information moved to new subsection IRM 1.22.6.1 (1) to provide brief description of Transportation Management program

(2) IRM 1.22.6.2, moved to new subsection IRM 1.22.6.4

(3) IRM 1.22.6.4.1, added new subsection on the types of Internal Revenue Service Bill of Lading

(4) IRM 1.22.6.3.1, subsection title Obtaining, Preparing and Processing Internal Revenue Bill of Lading deleted, updated information moved to IRM 1.22.6.4.1, (1) through (7)

(5) IRM 1.22.6.5, added new subsection Funding

(6) IRM 1.22.6.6, added new subsection on Modes of Transportation

(7) IRM 1.22.6.7, added new subsection on Pricing and Routing

(8) IRM 1.22.6.8, added new subsection on Modes of Transportation and Services

(9) IRM 1.22.6.8.1, added new subsection on Freight Shipments

(10) IRM 1.22.6.9.1, added new subsection on Motor and Air Freight Carrier - Inside Delivery/Pickup

(11) IRM 1.22.6.9.1, (1), (2), added new information on Delivery and Unloading Services

(12) IRM 1.22.6.10, added new subsection on Loss and Damage - Shipment Discrepancies and Claims

(13) Editorial changes have been made throughout the IRM

Effect on Other Documents

IRM 1.22.6, Transportation Management dated January 1, 2007 is superseded.

Audience

IRS Employees

Effective Date

(08-06-2012)


Crystal Philcox
Director, Distribution
Wage and Investment Division

1.22.6.1  (08-06-2012)
Introduction

  1. This section discusses the IRS transportation program and provides guidelines and procedures for shipments required in managing IRS programs.

  2. The Transportation (Traffic) Management Program is a tool to help fulfill the mission of the IRS. Successfully managing the movement of IRS shipments through the transportation system requires an understanding of logistics management concepts and procedures.

  3. The IRS ships many items using several modes of transportation daily, including:

    • Tax Forms, internal use forms, media and other printed matter

    • Household goods and personal effects of relocating employees

    • Electronics

    • Furniture

    • Office supplies

    • Equipment

    • Files and records

    • Urgent letters

  4. Since shipping expenses may exceed the product cost, the most economical shipping method for meeting program needs must be used.

1.22.6.1.1  (08-06-2012)
Responsibilities

  1. Media and Publications (M&P) /Distribution (D) /Postal and Transport Policy (PTP) Section:

    1. Negotiates rates and provides carrier service options to all IRS business units.

    2. Monitors and controls Forms 12741, Internal Revenue Service Bill of Lading (IRBL), and 13135, Internal Revenue Service Bill of Lading - Privately Owned Personal Property.

    3. Reviews carrier or vendor invoices.

    4. Reviews SF 1113, Public Voucher for Transportation Charges and forwards it to Beckley Finance Center (BFC) for payment.

    5. Acts in an advisory capacity to all business units.

    6. Issues IRBLs to provide transportation services to M&P and business units Servicewide and assures adequate funding is properly approved.

  2. The Agency Wide Shared Services (AWSS) organization has multiple program responsibilities that include transportation, mail and/or records management. The AWSS position title is Support Services Specialist or Facilities Management Assistant. It is the responsibility of this position to develop and implement a transportation program within their area of responsibility consistent with the guidelines and procedures outlined in this section. Duties include:

    1. Monitoring the dependability and adequacy of carriers to include routing and carrier selection.

    2. Issuing IRBLs and assuring adequate funding is properly approved.

    3. Keeping informed about pertinent regulatory and procedural matters.

    4. Expediting and tracing shipments.

    5. Contacting the PTP Section when unable to resolve difficult or unusual situations.

  3. All business units will request transportation advice from the PTP Section or AWSS when assistance is required.

1.22.6.2  (08-06-2012)
Quality Control

  1. The PTP Section runs a quality control program to monitor carrier performance, retains the high quality service providers with the best value and drops carriers with low quality service or excess cost.

  2. 41 CFR 102-117 I allows IRS to place carriers in a temporary non-use status when evidence of deficiencies exist, such as:

    1. Late pickups or deliveries, or inconsistent transit times

    2. Freight bills with loss, damage, or other discrepancies

    3. Frequent overcharges or incomplete invoices

  3. If the PTP Section determines that a carrier disciplinary action is necessary, IRS offices are notified.

1.22.6.3  (08-06-2012)
Annual Transportation Review

  1. The PTP Section routinely reviews transportation costs in these areas:

    • Small Package Carriers (SPCs)

    • Motor Freight

    • Air Freight

    • Forms distribution

    • Records management

    • Other aspects of the transportation program

  2. The PTP Section assures budget resources are available for current and projected funding needs.

1.22.6.4  (08-06-2012)
Bills Of Lading

  1. The IRS (PTP, AWSS, Modernization and Information Technology Services (MITS) or Chief Financial Officer (CFO)) initiates freight or household goods (HHG) transportation by issuing an IRBL. The IRBL is a contract which specifies the terms and conditions of carriage, the IRS rate authority and any special services.

  2. The IRBL shows the description of the shipment and lists origin(s) and destination(s).

  3. The IRS uses the IRBL for moving HHG and freight shipments, generally over 750 pounds. Smaller shipments are normally handled by an SPC or the United States Postal Service (USPS) who do not accept the IRBL.

  4. For IRS shipping, the IRBL has replaced the Government Bill of Lading (GBL).

1.22.6.4.1  (08-06-2012)
Internal Revenue Service Bill of Lading (IRBL) Types -
Forms 12741 and 13135

  1. Form 12741 is used for freight shipments and issued by authorized IRS users primarily in PTP, AWSS and MITS.

  2. Form 13135 is used for shipments of HHG and personal effects of relocating employees. This IRBL is issued by the CFO, Administrative Accounting Branch, Travel Management Section at the BFC.

  3. The purpose of the IRBL is to initiate and control individual freight or HHG shipments and to facilitate payment to the carrier.

  4. The IRBL is only used for transportation of property when charges are to be paid by the IRS direct to the carrier.

  5. An IRBL may be issued after the transportation services are completed:

    1. To replace or convert a Commercial Bill of Lading (CBL)

    2. To authorize payment for accessorial services billed separately

  6. A duplicate IRBL may be issued if the original is lost or destroyed but not for separate shipments.

  7. An IRS office needing help with an IRBL should contact the PTP Section at 972-308-1886.

1.22.6.4.2  (08-06-2012)
Converting a Commercial Bill of Lading (CBL) to an
Internal Revenue Service Bill of Lading (IRBL)

  1. When unable to create an IRBL, IRS offices are authorized to substitute a CBL to originate a shipment when:

    1. The IRS Transportation Management System (TMS) is not accessible.

    2. No authorized TMS user is on duty.

    3. A PTP Section employee is unavailable for assistance.

    4. Emergency circumstances exist.

  2. When using this option, the carrier must be told that no IRBL is available for the driver. The carrier may offer to prepare a CBL.

  3. If the carrier does not offer to provide a CBL, the IRS shipping office may access the carrier web site and prepare the CBL online. A generic CBL may be downloaded from the web, or a blank CBL is usually available from the carrier driver for manual preparation.

  4. For the carrier to receive payment for the CBL(s), the IRS shipping office must issue an IRBL to the carrier at a later date converting the CBL to an IRBL.

1.22.6.4.3  (08-06-2012)
Altering or Correcting Bills of Lading

  1. Form 13134, IRS US Government Bill of Lading Correction Notice, is required when making changes after an IRBL has been issued to the carrier. The preparer of Form 13134 must ensure that funds are available to cover any additional costs. A copy of the completed form will be maintained by the preparer, sent to the IRBL issuing office and the BFC.

1.22.6.4.4  (08-06-2012)
Issuance and Accountability of
Internal Revenue Service Bills of Lading (IRBLs) and
Government Bills of Lading (GBLs)

  1. An IRBL can only be issued by an authorized user on the TMS. Authorization requires completion of online 5081 (OL5081) and approved user identification and password issued by a PTP Section employee.

  2. The paper GBL has been replaced by the IRBL for IRS shipping. Any paper GBLs still on hand should be shredded. For accountability purposes the numbers of the GBLs being destroyed must be listed and retained in the file with a copy faxed to the PTP Section at 972-308-1823.

1.22.6.5  (08-06-2012)
Funding

  1. Freight shipments that are funded by Distribution must be shipped on an IRBL, showing the authorized appropriation codes.

  2. Freight shipments funded by other business units must show a Web Requisition Tracking System (WebRTS) number and corresponding appropriation codes on the IRBL.

1.22.6.5.1  (08-06-2012)
Accounting and Payment for Transportation

  1. M&P/Distribution, in conjunction with the CFO will be responsible for the proper commitment and obligation of funds for payment of transportation charges.

  2. M&P is responsible for payment of the transportation charges on freight shipments made using an IRS SPC account (typically under 750 pounds per destination) or with an IRBL. Covered shipments are in these categories:

    1. From printers on Free On Board (FOB) Origin, FOB Contractor City and Government Printing Office (GPO) contracts to destinations designated by the IRS.

    2. Between the IRS offices on printed product transfers directed by M&P.

    3. From the IRS offices on administrative shipments of all mail, packages of various sizes, multiple carton quantities, boxes, crates, or pallets.

    4. From the IRS offices on SPC or truck shipments of administrative files, tax records or Grand Jury records requiring secure transportation to an IRS storage facility or Federal Records Center.

    5. Any shipment authorized by the PTP Section.

  3. Carriers will submit all public vouchers to the designated prepayment audit contractor as shown on the IRBL. After verification of charges by the contractor, the vouchers will be forwarded to the PTP Section, certified for payment by the PTP Section and forwarded to the BFC for payment in compliance with the Prompt Payment Act.

1.22.6.6  (08-06-2012)
Modes Of Transportation

  1. The IRS uses three primary modes of transportation, SPC (express and ground), motor freight (truckload (TL) and less-than-truckload (LTL)) and air freight.

  2. The level of service necessary to meet the customer's requirements at the lowest cost determines the mode of transportation to be used.

1.22.6.7  (08-06-2012)
Pricing and Routing

  1. Two crucial steps in traffic management are negotiating pricing and routing.

    1. Pricing is the cost of transportation services expressed by a rate, based on units of weight or distance. The PTP Section negotiates rates with various carriers to satisfy the transportation needs of the entire IRS.

    2. Routing is choosing the best mode of transportation and selecting the best value carrier within that mode. Efficient routing means lower transportation costs and better service to the customer. Two primary items determine routing; the level of service required and cost.

  2. The PTP Section is responsible for:

    1. Servicewide routing, pricing and procedures for IRS shipments.

    2. Ensuring that each person authorized to use the IRS designated SPC system or TMS is provided with the necessary system access and information for all shipments.

    3. Resolving all routing and pricing issues involving IRS shipments.

  3. While the PTP Section is directly involved in negotiations for SPC pricing and other service terms, SPC contract pricing and service options are administered by the General Services Administration (GSA).

  4. Motor (truck) Freight rates, Air Freight rates and terms of service are negotiated directly with carriers and administered by the IRS. Rates, rules and service options are governed by Publication 4065, IRS General Freight Tender of Service.

  5. The PTP Section solicits individual carrier bids during the annual "open window" in June. Bid prices are input into the TMS to facilitate carrier selection and cost estimates for creating IRBLs. These carriers must be used on IRS freight shipments when feasible.

1.22.6.8  (08-06-2012)
Modes of Transportation and Services

  1. Motor Freight - Shipment weight is the primary criteria used to determine which mode of Motor Freight to use. On a per pound basis, the truckload mode is the least expensive, less-than-truckload is more costly and SPC is the highest priced per pound. Transit time by Motor Freight is usually slower than by Air Freight. The weight ranges and corresponding modes are shown in the below table.

    Weight Ranges and Corresponding Modes of Transportation
    Truckload or TL Approximately 18,000 - 44,000 pounds or the weight (pricing point) at which it is more cost-effective to use TL pricing. This pricing point is identified as a weight break, and results in IRS paying a lower price per unit on a higher total weight for a net savings.
    Less-than-Truckload or LTL Over 750 pounds up to the TL weight break.
    SPC (ground service) Up to 750 pounds per shipment or the weight break at which it is more cost-effective to use LTL pricing.

  2. Air Freight - Expedited transit time and shipment weight are the main criteria used to determine the use of Air Freight modes. In their rate tenders, air carriers specify 150 pounds as the minimum billed weight for IRS Air Freight shipments. To be cost-effective the PTP Section requires at least 500 pounds be shipped at one time to a single consignee before selecting Air Freight. When expedited service is needed, lesser weights should be sent via SPC air services. Air Freight is most often used when shipping to Alaska, Guam, Hawaii, Puerto Rico and U.S. Virgin Islands (St. Croix and St. Thomas), but may be used within CONUS (48 states) when conditions warrant. Air Freight is much less economical than Motor Freight. Next Day is the most expensive, Second Day is less costly and 3-5 Day Deferred is the lowest priced. Modes and service options are shown in the below table.

    Next Day Service Delivery on the next business day
    Second Day Service Second business day delivery
    3-5 Day Deferred Delivery in 3-5 business days

    Note:

    Unless a work stoppage is identified by the recipient, 3-5 Day Deferred is the preferred option.

1.22.6.8.1  (08-06-2012)
Freight Shipments

  1. When shipping one piece weighing more than 150 pounds or a consolidated shipment with a combined weight over 750 pounds to one customer, shipping should be coordinated through the Employee Resource Center (ERC). ERC personnel may contact the PTP Section for assistance.

  2. Freight shipments are a direct expense. Before shipping, a funded WebRTS request is required, unless the shipment is covered under IRM 1.22.6.5.1, Accounting and Payment for Transportation, and funding is authorized by M&P.

1.22.6.9  (08-06-2012)
Inside Delivery/Pickup Service

  1. Inside delivery/pickup is a service performed by freight carriers beyond the unloading position of the vehicle. Inside delivery or pickup costs extra but will only be done upon request when the carrier's operating conditions permit. When requested on the IRBL or authorized at the time of delivery/pickup, the carrier may move shipments from or to positions beyond the loading or unloading area.

  2. Because of the nature of freight carrier service and the independent control that drivers have over their vehicles, problems emerge regarding inside delivery. Drivers may provide only a minimum level of service, sometimes less than their agreement with what IRS requires. Unfortunately, there is no guarantee that the actual service performed will be the service expected.

  3. Before inside delivery/pickup can be arranged, it is necessary to determine which offices require these services. The following criteria are used to determine inside delivery:

    1. If an office lacks administrative personnel to perform internal movement of shipments from or to the point immediately adjacent to where the vehicle is located

    2. If loading or unloading facilities are inadequate for delivery/pickup without this service

  4. When inside delivery/pickup is requested and the driver delivering the shipment refuses to perform the service, follow these procedures:

    1. If the IRBL does not authorize inside delivery/pickup and the driver asks for payment, do not pay the driver. The receiver/shipper may authorize the service to be billed to the IRS by signing the driver's documents. If that fails, call the PTP Section at 972-308-1886 while the driver is there. A PTP Section employee will authorize payment of the inside/pickup charges.

    2. If the IRBL authorizes the service, call the driver's supervisor to determine why inside delivery/pickup service is being withheld. As a last resort, call the PTP Section at the number listed above.

  5. Charges for performing inside delivery/pickup vary according to the weight of the shipment. The carrier will add at least $25 for this service.

  6. Any problems or instances of carrier non-performance should be documented by the delivery location and forwarded to the PTP Section.

  7. The PTP Section is responsible for ensuring that IRBLs for shipments are appropriately annotated, requesting this service. The PTP Section will maintain and update a listing of the IRS offices requiring inside delivery.

  8. The Tax Forms Distribution Section is responsible for surveying offices requiring inside delivery and including that information on the Internal Management Documents Distribution System address file. Those addresses become available to the PTP Section through the TMS for creating IRBLs.

1.22.6.9.1  (08-06-2012)
Motor and Air Freight Carrier -
Inside Delivery/Pickup

  1. The delivery/pickup and unloading/loading of a shipment by the carrier includes the placing of a vehicle at the delivery/pickup site designated by the consignee/consignor.

  2. The driver will unload/load at the delivery/pickup site immediately adjacent to the delivery/pickup vehicle to/from a loading dock within 25 feet of the motor carrier's tailgate or to/from a door or the area inside the door (within 10 feet of the door).

  3. Unloading/loading includes the counting and removing of the freight from the position in which it is transported in or on the carrier's vehicle. The carrier is required to furnish only one person per vehicle. If additional carrier help is required, it must be pre-arranged before delivery/pickup is attempted. Additional charges are assessed for this service.

  4. When receiving/sending a shipment, the IRS is responsible for the following:

    1. Unpacking/packing, dismantling or inspecting, sorting or segregating freight

    2. Furnishing equipment for palletized or containerized shipments

    3. Moving the freight to/from the loading dock or receiving/shipping area

      Note:

      IRS failure or unwillingness to provide these services often results in added costs because the carrier is authorized to bill extra fees to cover added services.

  5. Restrictions on any carrier's ability to provide inside delivery/pickup service are usually due to the IRS building security and limited access restrictions. The mailroom is normally the delivery site for IRS locations.

1.22.6.10  (08-06-2012)
Loss and Damage -
Shipment Discrepancies and Claims

  1. The consignee will inspect incoming shipments to determine whether any items shown on the shipping document are missing or damaged.

  2. If the consignee discovers an apparent loss, damage or other discrepancy, such as wetness or open cartons, while the shipment is being unloaded, the consignee shall note the following on the delivering carrier's delivery receipt documents and on the customer copy:

    • Overages

    • Shortages

    • Visible damages

    Note:

    It is critical for a successful claim to discover and note loss or damage at the point of delivery. Both the consignee and the carrier's driver must sign to acknowledge the notations. Discrepancies that appear to exceed $50 should be reported to the PTP Section to file a claim for the IRS.

  3. If the consignee does not discover the loss, damage or discrepancy until after the delivery and the receipt of the shipment, they shall promptly notify the nearest office of the delivering carrier and request that an inspection be performed. This is classified as "concealed loss or damage." It is difficult to get full recovery in these cases.

  4. The consignee will make every effort to resolve overages or shortages within 10 working days after the detection by immediately notifying the delivering carrier.

  5. Where accessorial or special services, such as inside delivery, are authorized but have not been provided, the consignee must promptly notify the Territory Point of Contact or the PTP Section so payment for the added charges is not approved.

1.22.6.10.1  (08-06-2012)
Supporting Documents

  1. The carrier will provide forms for filing of loss or damage claims, which require full information concerning the shipment including the extent of damage and how the amount of claim was determined. Supporting documents include a copy of the IRBL, delivery receipt, proof of value, carrier's inspection report and copies of correspondence with the carrier concerning the loss or damage.

1.22.6.10.2  (08-06-2012)
Prevention of Loss and Damage

  1. The GSA has issued a handbook titled, Help Prevent Loss and Damage, which highlights some of the more practical methods of preparing goods for shipment and arranging for their safe transportation. This handbook is available to IRS employees responsible for shipping and receiving Government property. Contact the GSA for a copy of the handbook at: http://www.gsa.gov/.

1.22.6.10.3  (08-06-2012)
Tracing Lost Shipment or
Verifying Delivery

  1. A carrier may be asked to trace a freight shipment when a reasonable time has been allowed for the shipment to reach its destination or to estimate the arrival date. For tracing both Motor and Air Freight shipments, the following information should be gathered before calling the carrier or initiating an online trace:

    • Pro number (freight bill) or air bill number

    • Pickup date and location

    • Number of pieces and weight

    • IRBL number

    • Services requested (e.g., Next Day, Guaranteed Delivery, etc.,)

  2. To trace SPC shipments you must have the carrier tracking number. This will enable you to trace the shipment online by UPS or FedEx. Additional information at point of origin may be helpful such as:

    • Six digit shipper or account number

    • Pickup date and address

    • Number of packages and the weight of each package

    • Consignee's address

    • Type of service

  3. Any response to a trace should be printed or confirmed by fax.

1.22.6.11  (08-06-2012)
Processing for Payment

  1. The IRS may not reduce carrier's freight invoice amount because of loss and/or damage. Each proper invoice amount will be paid in full, and a formal claim will be filed with the carrier for the amount of the loss or damage. If the carrier does not make an adequate response within 90 days, this amount may be deducted from a subsequent invoice.

  2. The PTP Section will not file a claim against a carrier for any loss or damage of less than $50. Amounts below this amount are to be absorbed by the Government.

1.22.6.12  (08-06-2012)
Insurance

  1. Additional insurance coverage should not be purchased for the IRS shipments. 48 CFR 47.102 states that the Government retains the risk of loss and damage to its property that is not the legal liability of commercial carriers and does not buy insurance for its property in the possession of commercial carriers. This means that the IRS is self-insured. Depending on the mode of transportation used, some insurance is provided as part of the transportation contract. For more information contact the PTP Section.

1.22.6.13  (08-06-2012)
References

  1. Available references are:

    • 41 CFR 102-117, I-Transportation Service Provider (TSP) Performance

    • 48 CFR 47.102, Federal Acquisition Regulations System, Transportation Insurance


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