Attachment 3_ Prinicples for Determining Costs.pdf

ATTACHMENT 3 - PRINCIPLES FOR DETERMINIG COSTS

1. LINE HAUL SERVICES:

1.1. Transportation services shall be based on short ton/miles at the rate shown in Exhibit Line Item Numbers (ELINs) of Short Ton/Miles shall be made as follows:

(1) Weight in short tons shall be the greater of the actual shipment weight or the total cubic footage divided by 125.

(2) Determination of short ton/miles shall be the product of the short ton determination above, and mileage between the shipping point and destinations, as provided in the Mileage Distance Table (MDT) published by the 25th Transportation Movement Control Agency.

1.2. The Government will order a TRACTOR/TRAILER combination if it is physically impossible to haul the cargo by other means;

or, if an item of cargo exceeds one of the following dimensions: Height: 2.15 meters (84.65 inches); Width: 2.24 meters (88.20 inches); Length: 9.0 meters (354.33 inches). Regardless of the foregoing dimensions of an item of cargo, if an ordinary cargo truck(s) is furnished when a TRACTOR/TRAILER combination(s) is ordered and the delivery are made, it will be considered that the commitment is fulfilled on condition that the Contractor shall be paid the general cargo rate.

1.3. The tractor/trailer shall be the product of the weight of the shipment in short tons and mileage between the shipping point and destination as provided in MDT.

1.4. The Government may combine two or more deliveries of like items under one order, provided the delivery points are along the same commonly acknowledged route. In such cases, distinct short-ton/miles computation for each lot shall be combined and multiplied by the appropriate rate in the ELINs.

1.5. Minimum Line Haul Services: When, as a result of above computations, the short-ton/mile is less than the quantity specified below for any classification, the service shall be based upon the minimum quantities as follows:

(1) Non-Hardship Site Delivery

(i) General Cargo 600 Short-ton/miles per shipment

(ii) Explosives 600 Short-ton/miles per shipment

(iii) Tractor/Trailer (Flat) 600 Short-ton/miles per shipment

(iv) Tractor/Low Bed 600 Short-ton/miles per shipment

(v) LTL (Less than Truck Load) 30 cwt / 3000 pounds per shipment

2. LOCAL DRAYAGE SERVICES:

2.1. Transportation of GENERAL CARGO and EXPLOSIVES shall be based on short ton/hours at the rate shown in the ELINs.

Computation of short ton/hours shall be made as follows:

a. Weight in short tons shall be the greater of the actual shipment weight or the total cubic footage divided by 125.

b. Determination of short ton/hours shall be the product of the short ton determination above and the payable hours per shipment as determined from the Table of Payable Hours (TPH), subparagraph d below.

The determination of applicable miles shall be the distance between the shipping point and destination as provided in the MDT.

c. The TRACTOR/TRAILER shall be the product of the weight of the shipment in short tons and the payable hours between the shipping point and destination in the TPH.

DISTANCE (NON-HARDSHIP SITE)

0.0 – 5 miles 2 Hours

5.1 – 10 miles 2.5 Hours

10.1 – 15 miles 3.5 Hours

15.1 – 20 miles 4 Hours

d. Minimum Local Drayage Services: When, as a result of above computations, the short-ton/hour is less than the quantity specified below for any classification, minimum local drayage services shall be based upon the minimum quantities as follows:

(1) Non-Hardship Site Delivery

(i) General Cargo 60 Short-ton/hours per shipment

(ii) Explosives 60 Short-ton/hours per shipment

(iii) Tractor/Trailer (Flat) 60 Short-ton/hours per shipment

(iv) Tractor/Low Bed 60 Short-ton/hours per shipment

3. MATERIAL HANDING EQUIPMENT (MHE):

MHE shall be based on Equipment Day (4 hours per basis or 8 hours per basis) shown in the ELINs.

These services are incidental to Line Haul and Local Drayage services. Increments of over 2 hours after the initial 8 hour completed of work shall be charged and paid as a 1 & 1/2 equipment day.

TABLE OF HOURS

ATTACHMENT 3 - PROVISIONS