Attachment 7 - A-G6 DPM Claims and Liability Procedures.pdf

This document is Attachment A-G6, which establishes Direct Procurement Method (DPM) Claims and Liability Procedures for personal property shipments under the Defense Transportation Regulation Part IV.

The document outlines comprehensive procedures for processing loss and damage claims on household goods and unaccompanied baggage shipments. Members/employees must file claims within two years of delivery, with Full Replacement Value (FRV) available only for claims filed within nine months of delivery. The contractor is responsible for identifying and recording loss or damage on DD Form 1840 at delivery, with member/employee notification via DD Form 1840R within 180 calendar days. For claims filed directly with contractors within nine months, maximum liability is the greater of $7,500 per shipment or $6.00 times net weight (HHG) or gross weight (UB), not to exceed $75,000; all other claims are limited to $1.25 times net/gross weight. The contractor must settle complete claims within 60 days. Essential items—such as refrigerators, medical equipment, and mattresses—require contractor replacement or payment within two business days of notification. The document addresses repair estimates, salvage rights, catastrophic loss procedures (over 60% inventory loss), high-value item handling, and dispute resolution through the Military Claims Office (MCO). Exclusions from liability include acts or omissions by the member/employee, inherent defects, hostile actions, government seizure, strikes, Acts of God, pre-existing infestations, and pre-existing damage. The contractor must mitigate losses and cannot exercise salvage rights on items valued under $50–$100 or hazardous items, except antiques and collectibles over $50.