Packing and Crating PWS.docx

THIS IS STRICTLY A SOURCES SOUGHT POSTING FOR MARKET RESEARCH. NO AWARD WILL RESULT FROM RESPONSES GIVEN. THE GOVERNMENT IS NOT OBLIGATED TO

Minot AFB is conducting market research for the Packing and Crating of Personal Property Shipments. The contractor shall perform services within the following defined areas of performance:

Premove Survey. The contractor will determine the nature of personal property offered for shipment either by physical inspection or telephone survey with the customer. The survey will be conducted at a time and date mutually agreed upon between the contractor and the customer. Any pack/pickup date changes will be coordinated with the ordering officer.

Weighing.

a.) The gross, tare, and net weight of all shipments will be determined through the use of scales properly certified by a state inspector of weights and measures in accordance with (IAW) the regulations of the state or district having legal jurisdiction over the scales. Personnel designated to operate the scales will be licensed or otherwise qualified as weigh masters if required by the state, commonwealth or district. When a metric scale is utilized, the contractor will use 1 kilogram per 2.2 pounds for conversion.

b.) The contractor will submit weight tickets, reflecting gross, tare, and net weight, in duplicate, properly certified IAW federal, state, and commonwealth or district regulations to the ordering officer with documentation (Contract Data Requirements List [CDRL] 0002).

c.) When scales are not available or their use is not practical, the application of a constructive weight of 7 pounds per cubic foot will be used provided prior written approval is obtained from the ordering officer. (See Paragraph A.2.d for constructive weight of professional books, papers, and equipment [PBP&E], also known as PRO or PRO-Gear.)

d.) When PBP&E are included as part of the shipment, the weight of each item individually described on the inventory will be entered on the same line of the inventory next to the description. The total weight of such articles will be annotated separately on the inventory and packing list. The PBP&E weight may be obtained using bathroom or platform type scales. If it is not possible or practical for the contractor to weigh the items at the time of packing and pickup, and there is no cube indicated on the inventory, a constructive weight of 7 pounds per cubic foot will be used for PBP&E.

e.) The weight tickets will contain the name and address of the weighing station, date, name of contractor, van or trailer number, name of customer, call number assigned by the ordering officer, and signature of the weigh master.

f.) The contractor will perform reweigh services when ordered. The reweigh will normally be requested at the time the delivery order is placed and will be performed IAW instructions set forth in Paragraph A.2.a. When so advised by the ordering officer, a designated representative of the ordering officer or the customer will be permitted to accompany, in a separate conveyance, the contractor to witness the reweigh. This would be at no extra charge and the contractor would not provide the separate conveyance.

g.) When a reweigh is ordered, the contractor will furnish the ordering officer weight tickets in duplicate within 7 workdays of completion of the service.

h.) Billing Procedures. Shipments are payable on the basis of 500 pound minimum weight for household goods (HHG) are payable on the actual net weight shipped.

3. Time Requirements. The contractor will not begin pickup or delivery services at a customer’s residence before 0800 hours or after 1700 hours without prior approval of the ordering officer and the customer. The contractor will not begin any service that will not allow completion by 2100 hours without approval by the ordering officer and the customer by 1630 hours of the scheduled date. When services cannot be completed on the scheduled date, the contractor will notify the ordering officer and the customer. In case of an approved suspension of operations, the contractor will assure his/her return the next workday at 0800 hours to complete the services.

4. Trunks and Footlockers. Trunks and footlockers may contain a properly packed quantity of HHG that is reasonable for the construction and condition of the container.

a.) When the ordering officer authorizes tailgating, the load will not extend beyond the surface of the tailgate or beyond the surface of the vehicle. The tailgated items will be protected from inclement weather by a suitable covering.

b.) Removal of Debris. Packing and loading at the origin and unloading and unpacking at destination will include, as a minimum, removing from the member’s/employee’s residence all empty contractor-provided containers, packing materials, and other debris accumulated incident to packing and loading unless specifically waived by the customer in writing.

5.) Tagging, Inventorying, and Packing List - The contractor, in coordination with the customer, will prepare an accurate legible, HHG/UB descriptive inventory similar to figure G1-1; Household Goods Descriptive Inventory. The contractor will count and examine all goods tendered for shipments, receipt for them, and make written exception for any goods not in apparent good order. All tagging will be accomplished prior to the removal of goods from the residence.

a.) Each privately owned firearm will be annotated on the inventory by make, model, caliber or gauge, and serial number. For PB&E, ensure the term "PRO-GEAR (PRO) is used to identify such articles. motorcycles, mopeds and motor scooters will be reinventoried as one line item, listing their serial number, make, year, model and odometer reading.

6.) Appliance Servicing and Unservicing - the contractor will service and unservice appliances IAW manufacturer's specifications. If third party servicing or unservicing is required and approved by the ordering officer, the contractor will bill the services as prescribed in Paragraph A.4.b.(1) a.) Storage Charges - Storage Charges will apply for each 30-Day period or computed as a fraction thereof. Date of release from storage will not be considered in computation of storage charges.

7.) Facilities - Contractor's facilities will meet the guidelines outlined in DTR Part IV, Appendix D.

a.) Inspection of Contractor’s Facility. The contractor’s facility will be initially inspected and approved by a representative from the contracting office or PPSO for compliance with this contract and the standards and regulations stated or referenced therein. Thereafter, inspections will be on a quarterly basis or, if deemed necessary, on a more frequent basis. Inspections will be conducted using Appendix E. If a facility is found to be unsatisfactory, it may be declared ineligible to receive further orders under the contract.

8.) Erroneous Shipments - The contractor shall forward to the rightful owner, articles of personal property inadvertently packed with goods of other than the rightful owner. The contractor shall forward to the owner any pieces of one lot not included in delivery and remaining at its facility after departure of the original shipment. Any forwarding that results from an erroneous shipment shall be at the contractor’s expense and by a mode of transportation selected by the contracting officer with the least possible delay.

9.) The contractor shall provide additional services not included in the Schedule but required for satisfactory completion of the services ordered under this contract, at a rate comparable to the rate for like services as contained in tenders on file with the United States Transportation Command in effect at time of order.

General Requirements

Application. This Performance Work Statement (PWS) contains basic instructions for the packaging, packing, tagging, inventorying, containerization, marking, loading, storing, unpacking, and inspecting of HHG and UB. This PWS applies to Schedule III local moves. BPA It does not apply to domestic or international Through Government Bill of Lading shipments.

Personnel. The contractor will furnish adequate supervision, labor, materials, supplies, and equipment necessary to perform all the services contemplated under this contract. The contractor’s office will be staffed at all times during normal working hours with personnel authorized to book shipments and arrange for services under the contract. All contractors will have available an English reading, speaking, and writing employee at all times during packing and unpacking services.

Materials. The contractor will provide boxes, cartons, mattress cartons and/or plastic bags (plastic bags may only be used when a direct delivery address has been designated by the origin PPSO), tape, labels, packing lists, filler material, paper pads, wrapping, and any other type material to ensure proper packing for damage free movement. All materials will be new or in sound condition. All previous markings pertaining to any previous shipment will be completely obliterated and all material will be free of any substance injurious to the articles being packed and to the customer. New material will be used for packing mattresses, box springs, linens, bedding, and clothing. Plastic mattress shipping bags will not be used for shipments being consigned to long term NTS.

Documentation and Reports. The contractor will ensure all the documentation performed by the contractor will be accurate and legible. All invoices submitted for billing to the ordering officer will be complete and display a detailed and accurate account of services performed.

Quality Control and Assurance.

Quality Control. The contractor will establish a complete quality control program to assure the requirements of the contract are provided as specified. One copy of the contractor's quality control plan will be provided to the contracting officer as part of the proposal submission (CDRL 0001).

APPENDIX I

EXAMPLES OF HAZARDOUS MATERIALS

COMBUSTIBLE LIQUIDS

Alcoholic beverages (any single container exceeding one gallon capacity) Alcohols

Antifreeze compounds Camphor oil

Fluid cleaners (containing combustible materials, e.g., spot clothing cleaners and office machine cleaners).

CORROSIVE LIQUIDS

Acids--muriatic, nitric, photographic, sulfuric Battery with acid

Disinfectants Dyes

Flame retardant compounds

Iron/steel rust preventing/rust removing compounds Paint and paint related materials.

EXPLOSIVES

Ammunition Black powder Blasting caps

Dynamite, plastics or any similar explosives Explosive auto alarms

Fireworks Fuse lighters Igniters Primers Propellants Signal flares

Smokeless powder

Souvenir explosive instruments of war Spear guns having charged heads

Toy propellants or smoke devices.

FLAMMABLES

Acetone

Adhesives (glues, cements, and plastics) Ammonia

Charcoal briquettes Cleaning fluids Compound 3 weed killers Denatured alcohol Enamel

Gasoline Insecticides

Kerosene Lacquer

Leather dressing or bleach

Lighter fluids (pocket, charcoal, camp stove, lamp or torch) Liquors (any single container exceeding one gallon capacity) Matches

Oil stains for wood Paint

Paint or varnish remover Petroleum products

Polishes, liquid (metal, stove, furniture and wood) Propane or other gas used for cooking or heating purposes Propane tanks

Shellac

Shoe polish (liquid) Solvents, plastic Stains

Turpentine Varnish Wood filler.

GASES, COMPRESSED

Engine starting fluids Fire extinguishers Gases used in welding

Scuba diving tanks (see note below).

AEROSOL CAN

Containing a Flammable Gas, Flammable Liquid, Toxic, or Corrosive Substance

CHLORINATED HYDROCARBONS IN DECORATIVE LAMPS

OTHER REGULATED MATERIAL TERMED COMBUSTIBLE, CORROSIVE, OR FLAMMABLE

NOTE 1: Only those scuba diving tanks containing not more than 25 pounds per square inch at 70 degrees Fahrenheit may be shipped as household goods or unaccompanied baggage. Servicing for shipment will include:

Written certification of purging serviced by dive shop or licensed individual qualified to perform purging. A tag or label must be affixed to the tank certifying service was performed.

Completely empty tank, remove the valve, and replace valve with plug designed for this purpose.

NOTE 2: Completely drain all fuel from engine power driven equipment. Drain equipment (motorcycle, moped, lawn mowers, boats, snowmobiles.). Run until engine stalls. Drain all oil and water. Allow the fuel tank and lines to remain open for 24 hours prior to pickup. Disconnect non-spillable gel-type batteries and tape the ends to prevent short circuit. Only non-spillable gel-type batteries are authorized. The batteries may remain in the equipment holder, but ensure they remain upright when packed in the shipping container. Batteries with acid or alkali are prohibited from shipment.

NOTE 3: Lithium batteries, although a Class IX (9) hazardous material, have been determined are allowed to be shipped as personal property in limited quantities. Shipment of lithium batteries must be properly packaged, labeled, and certified (if required) in accordance with 49 CFR 173.185, the International Maritime Dangerous Goods (IMDG) Code, the International Air Transport Association (IATA) and in accordance with local, state, federal, and foreign country or international laws, regulations, or guidance. Limited quantities are defined as lithium-ion cells rated at 100 watt-hours or less (20 watt-hours or less for single cell) and lithium metal batteries containing 2 grams or less of lithium content (1 gram or less for single cells). Lithium batteries greater than the limited quantities listed above are prohibited from being shipped. Lithium batteries of all types and sizes are prohibited from Non-Temporary Storage.

CONTRACTOR DOCUMENTS REQUIREMENT LISTINGS

Contractor’s Quality Control Program. See Contract Data Requirements List (CDRL) 0001.

Weight Tickets. See CDRL 0002.

Household Goods Descriptive Inventory. See CDRL 0003.

Joint Statement of Loss and Damage at Delivery. See CDRL 0006.

Claims Correspondence. See CDRL 0007.

The following abbreviations and their meanings are used in the CDRL.

ASREQ - As Required COR - Contracting Officer Representative DAC - Day after contract start DS - Destination EAS - Each shipment MTHLY - Monthly N/A - Not applicable ONE/R - One time with revisions PPSO - Personal Property Shipping Office QTRLY - Quarterly WKLY - Weekly

ESTIMATED QUANTITIES

The quantities shown by area of performance for each item in this Solicitation are the Government’s estimates of requirements, which may be ordered during the period of the contract.

The Government’s estimated maximum daily requirements, excluding Saturday, Sunday; National, State, and local holidays are listed below by area of performance within each schedule. Bidders must complete the “Bidder's Guaranteed Daily Capability”, which must equal or exceed the Government’s minimum acceptable daily capability, for all items within an area of performance for which they submit bids.

Failure to do so will render the bid nonresponsive.

SCHEDULE III

INTRA-CITY AND INTRA-AREA MOVES

Item 0031. Complete Service for Intra-City and Intra-Area Moves. Service must include a premove survey, servicing of appliances, packaging and packing at member’s/employee’s residence to protect HHG properly during transit, tagging of items, inventorying, loading, weighing, drayage, unloading, unpacking, and placing of each article in member’s/employee’s new residence as directed by member/employee or member’s/employee’s designated representative and removal of all empty containers and materials from residence.

Item 0032. Attempted Pickup or Delivery. When the initial attempt to pickup or deliver a shipment at the member’s/employee’s residence is unsuccessful, charges apply provided the contractor notified the contracting officer via telephone and provided that after contractor’s notification, the contracting officer

(a) cannot locate the member/employee within 30 minutes, (b) cannot have the member/employee at the residence within one hour after notification, and (c) the contractor left a notice of attempted pickup or delivery at the residence.

Item 0033. Drayage Beyond the Contract Area of Performance. Service must consist of drayage of packed shipments beyond the contract area of performance, not to exceed miles. Mileage must be computed on the shortest highway distance commencing with the point of departure from the outer boundary of the contract area of performance to the destination point.

ATTACHMENT G4 DEFINITIONS

This part defines words and terms commonly used in this performance work statement.

BLUEBARK. United States military personnel, United States citizen civilian employees of the Department of Defense, and the dependents of both categories who travel in connection with the death of an immediate family member. It also applies to designated escorts for dependents of deceased military members. Furthermore, the term is used to designate the personal property shipment of a deceased member.

Call Number or Lot Number. A locally assigned control number provided by the ordering activity when a requirement for services is placed with the contractor. For inbound shipments, the number is normally assigned when the Personal Property Shipping Officer receives the freight bill or written receiving notice from the contractor. For outbound or local drayage shipments, the number is normally assigned at the time the order is placed with the contractor.

Complete Service. The rate bid per each item includes all related services, such as long carry, stairs, elevators, excessive distances, necessary to perform the complete pickup and delivery of the personal property shipment.

Contracting Officer. The Service member or Department of Defense civilian with the legal authority to enter into, administer, modify, and/or terminate contracts.

Direct Procurement Method. A method of shipment in which the Government manages the shipment

Employee. A civilian individual:

a.) Employed by an Agency (See Agency), regardless of status or grade.

b.) Employed intermittently as an expert or consultant and paid on a daily, while actually employed, basis.

c.) Serving without pay or at $1 a year (5 U.S.C. § 5701(2), Definitions) (also referred to as “invitational traveler” for temporary duty travel purposes only)

Household Goods. See the Joint Federal Travel Regulations, Appendix A (http://www.defensetravel.dod.mil/site/travelreg.cfm) for uniformed members and the Joint Travel Regulations, Appendix A (http://www.defensetravel.dod.mil/site/travelreg.cfm) for Department of Defense civilian employees for definitions of household goods.

Issuing Officer. Only authorized or acting Personal Property Shipping Offices may issue Personal Property Bills of Lading. Such authorized persons may be military personnel or civilian employees of the government on duty at the issuing office. As stated in 41 CFR §101-41.302-4, accountability for Personal Property Bills of Ladings used by a contractor-shipper remains with the issuing office. The name and title of the issuing officer and the name and address of the issuing office, rather than those of the contractor- shipper must appear on the Personal Property Bills of Lading.

Item or Article. The terms item and article used in this Regulation are interchangeable. Each shipping piece or package and the contents constitute one item.

Lot Number. See Call Number.

Member. A commissioned officer, commissioned warrant officer, warrant officer, and enlisted person, including a retired person, of the Uniformed Services.

NOTE: “Retired person” includes members of the Fleet Reserve and Fleet Marine Corps Reserve who are in receipt of retainer pay.)

Member/Employee. Any member of the Government’s uniformed or civilian service.

Metrics. A statistical measurement of performance.

NCWT. Code used to designate net hundredweight.

Ordering Officer. The contracting officer of a using activity or a Government individual appointed by the contracting officer authorized to order services under the contract.

Packaging. The processes and procedures used to protect materiel from deterioration, damage, or both. It includes cleaning, drying, preserving, packing, marking, and unitization.

Packing. Assembly of packaged items into a shipping container with necessary blocking, bracing, cushioning, weatherproofing, reinforcement, and marking.

Personal Property. Household goods, unaccompanied baggage, privately owned vehicles, and mobile homes, as defined in the Joint Federal Travel Regulations and the Joint Travel Regulations.

Personal Property Shipping Officer (PPSO). The individual designated by authority to perform assigned traffic management functions at military installations or activities, regardless of whether or not that is the organizational title of the individual. For the purpose of this contract, the term PPSO includes representatives designated to order the services required and to inspect and evaluate those services performed by the contractor for acceptance or rejection.

Professional Books, Papers, and Equipment for Member/Employee. (Also called PRO or PRO- Gear.) Articles of household goods in a Customer’s possession needed for the performance of official duties at the next or a later destination. Examples of Professional Books, Papers, and Equipment include:

The following items are considered PBP&E/Pro-Gear:

Reference material.

Instruments, tools, and equipment peculiar to technicians, mechanics, and members of the professions.

Specialized clothing such as diving suits, flying suits; astronaut’s suits, flying suits and helmets, band uniforms, chaplain’s vestments, and other specialized apparel not normal or usual uniform or clothing.

Communications equipment used by a member in association with the Military Affiliated Radio System.

Individually owned or specially issued field clothing and equipment.

Government-or uniformed service-owned accountable Organizational Clothing and Individual Clothing property issued to the employee or member by the Service/Department of Defense Component for official use.

NOTE: Excluded from PBP&E/Pro-Gear are:

Commercial products for sale/resale used in conducting business, Sports equipment, Office furniture, Household furniture, Shop fixtures, Furniture of any kind even though used in connection with (ICW) the PBP&E (e.g., bookcases, study/computer desks, file cabinets, and racks), Personal computer equipment and peripheral devices, Memorabilia including awards, plaques or other objects presented for past performance (includes any type of going-away gifts, office decorations, pictures, etc.), Table service including flatware (including serving pieces), dishes (including serving pieces, salvers and their heating units), other utensils, and glassware.

Other items of a professional nature that are not necessary at the next/subsequent PDS, such as text books from previous schools unrelated to future duties, personal books, even if used as part of a past professional reading program or course of instruction and reference material that ordinarily would be available at the next/subsequent PDS either in hard copy or available on the Internet.

Quality Assurance Evaluator (QAE). Representative of the Personal Property Shipping Officer who has been appointed as a QAE to be responsible for providing technical assistance to the contracting officer in administration of the contract. The QAE must be responsible for inspection and acceptance of materials and services rendered by the contractor.

Residence. Normally considered to be the home, barracks, or other dwelling of the Service/Agency customer.

DIRECT PROCUREMENT METHOD (BPA) CLAIMS AND LIABILITY PROCEDURES

CLAIMS PROCESS FOR SHIPMENTS

Claims Filing:

Member/employees who have property lost and/or damaged in transit and wish to file against the contractor must file their claims within 2 years from the delivery date of the shipment that gave rise to the claim. If the member/employee submits the claim within 9 months of the delivery date, the contractor must be liable for the full, undepreciated replacement value on all lost or destroyed items. If a claim is not completely settled after 30 days, members/employees may transfer the claim to the Service Military Claims Office (MCO). Members/employees may transfer a claim immediately, and still be eligible for Full Replacement Value (FRV), under the following conditions:

Notice that the contractor has made a final offer on the claim or denied it in full.

Notification by the United States Transportation Command (USTRANSCOM) that the contractor is in bankruptcy.

Notification that the contractor contract is terminated.

The contractor’s failure to comply with the catastrophic loss provisions in Paragraph A.13, and as verified by the MCO.

The contractor’s failure to comply with essential items provisions in Paragraph A.14, and as verified by the MCO.

War or armed conflict: For the purpose of filing with the contractor within 2 years, if a claim for loss and/or damage accrues during war or an armed conflict in which an armed force of the United States is involved, or has accrued within 2 years before war or an armed conflict begins, and there is good cause for delay in filing due to that armed conflict or war, the claim must be presented within a reasonable time frame as determined by the MCO after the cause no longer exists, or after the war or armed conflict ends, whichever is earlier. An armed conflict begins and ends as stated in concurrent resolution of Congress or a decision of the President. This same exception must apply to the 9-month filing period required to trigger the contractor liability for FRV. Any extension granted by this provision must be at least as long as the duration of the good cause and may be longer, at the discretion of the contractor. If the contractor anticipates denial of an extension, they may contact the Service Military Claims HQ for an advisory opinion.

When a member/employee transfers a claim to the MCO, the MCO may contact the contractor using the toll-free number or electronic mail (e-mail) address given to the member/employee, to determine if the contractor has already obtained estimates. If the contractor has obtained estimates, the contractor must transmit the estimates within 24 hours, or the next business day if notification occurs on a Friday, Saturday, or the day before a holiday, by facsimile (fax) or e-mail to the MCO. If the contractor has not obtained estimates, the MCO may give the contractor until the next business day to decide whether to inspect and obtain estimates on those items requiring estimates, and to make arrangements with the member/employee and repair firms for the estimates. If the contractor decides to inspect and obtain estimates, the estimates must be obtained by the second business day after contact unless the member/employee agrees to allow additional time. If the contractor is unable to obtain estimates within 2 business days and the member/employee does not agree to allow additional time, the MCO must proceed to adjudicate and settle the claim.

The MCO may assert a demand against the contractor for liability as established in Paragraph B. The contractor is not liable for payment of items for which the contractor has already paid the member/employee, if the correspondence between the contractor and the member/employee clearly indicates prior settlement was in full for the entire claim or was in full for the particular item and customer is satisfied.

For purposes of qualifying for FRV and for meeting the 2-year limit for filing claims directly with the contractor, a claim submitted directly by the member/employee to the contractor must be submitted within 9 months from the delivery date to be eligible for FRV or 2 years for depreciated value. The claim must identify the member/employee; contain facts sufficient to identify the shipment or shipments involved; must assert a demand for a specific or determinable amount of money; and, must list each lost and damaged item and give a description of the damage.

For shipments that have been in the custody of one or more contractors or a warehouse that are not agents of the delivering contractor, then the 9-month limit for obtaining FRV and the 2-year limit for filing the claim is met for all contractors and warehouses in the chain of custody, if the claim is filed with the delivering contractor within the 9-month or 2-year time limit. If the delivering contractor believes some of the loss and/or damage occurred while the goods were in the custody of a prior contractor or warehouse, the delivering contractor must forward the claim to the prior contractor with the documents or other evidence that establish the prior contractor or warehouses liability. The delivering contractor must also advise the member/employee the date the claim was forwarded, the items for which the delivery contractor is denying liability, and the address/telephone number of the prior contractor or warehouse to which the claim was forwarded. Filing with the delivery contractor satisfies the requirement for all contractors and warehouses in the chain of custody that a claim must be filed directly with a contractor to entitle the member/employee to FRV settlement.

Exceptions to Filing Claims Directly with the Contractor:

Filing with the delivery contractor satisfies the requirement for all contractors in the chain of custody that a claim must be filed directly with a contractor to entitle the member/employee to settlement on the basis of FRV. Exceptions to the requirement that the member/employee file directly with the contractor must be granted on a case-by-case basis, in writing, by the MCO. Some examples of exceptions are:

No access to a telephone or fax machine.

Claims for deceased member/employees (BLUEBARK) involving surviving family members not familiar with the claims process.

Language barriers in the claims filing process.

Substantiation of Claims:

In addition to the minimum requirements needed to meet timely filing, all claims must include the following information in order for the contractor to begin the settlement process: any notices of concealed damages or loss that were found after the date of delivery, and not previously provided to contractor under Paragraph A.4; sufficient information about the shipment to enable the contractor to locate a copy of the bill of lading (BL), service order, or inventory; a description of each item that is lost; and a list of each item that is damaged including a statement of the nature, location and extent of the damage. The description of items lost and/or damaged must also include the date of purchase of each item (if known); the age of each item (if known); or, for items that were not purchased (e.g., gifts or bequests), the date the member/employee acquired the item, along with an estimate of the original purchase price or value at time of purchase/acquisition (if known).

For claims filed directly with the contractor within 9 months of the delivery date, the contractor is responsible for obtaining all repair estimates or replacement cost estimates needed to settle the claim. The contractor may request the assistance of the closest MCO to obtain the name of reputable repair firms. If the contractor is still unable to obtain a repair or replacement estimate on an item, the contractor may ask the member/employee to obtain the estimates, provided the contractor agrees to pay all estimate fees and drayage costs incurred, even if the final settlement does not include payment for that item. If the member/employee is unable or unwilling to get the estimate(s), the contractor must adjudicate the claim based on the other evidence in the file. The member/employee must cooperate with any reasonable request from the contractor in making items available for repair or for repair estimates. If the member/employee does not cooperate, the contractor must seek assistance from the closest MCO of the member/employee’s Service. If the member/employee still does not cooperate, the contractor may delay settlement on those items that need estimates until the member/employee makes the item(s) available.

For claims that are not filed within 9 months of the delivery date, but are correctly filed in accordance with (IAW) Paragraph A. 1, the member/employee must provide the contractor with repair and replacement estimates on any item for which the amount claimed exceeds $100.00. See Paragraph A. 6, Repair Estimates, for rules on use of contractor estimates for claims filed with the military.

Internal damage rule: If the claim includes repair of internal damage to appliances or electronic items, and there is no new external damage to the item, the claim must be supported by additional substantiation regardless of the amount claimed. For these items, the member/employee must submit both a written statement explaining how they know the item was working when tendered to the contractor, along with an estimate of repair that includes both an explanation of the damage and a statement by the repair technician as to their opinion of the cause of the damage. For claims filed directly with the contractor, the same information must be required to establish that the loss or damage occurred in transit. However, on those claims that are filed directly with the contractor within 9 months of the delivery date, the contractor must attempt to obtain the repair estimate, including the repair technician’s opinion as to the source of damage, and must have the right to request assistance from the member/employee under the rules stated in Paragraph A.3.b.

Notice of Loss and/or Damage:

Recording loss and/or damage. When unloading or unpacking articles at destination, the contractor must, in coordination with the member/employee, check the inventory prepared at origin and inspect each article for loss and/or damage. The contractor must, along with the member/employee record loss and/or damage on a DD Form 1840, Joint Statement of Loss or Damage at Delivery, Figure G6-1. The DD Form 1840 must indicate any differences in count and condition from that shown on the inventory prepared at origin and must be jointly signed by the contractor and the member/employee. For split shipments or partial deliveries, a separate DD Form 1840/DD Form 1840R, Notice of Loss or Damage, Figure G6-2, must be completed for each delivery of property to member/employee.

The DD Form 1840/1840R must be prepared in five copies by the contractor. The contractor must obtain a receipt by member/employee signature in the space provided on the Form and provide the member/employee three copies of the DD Form 1840/1840R. The contractor must furnish the origin Personal Property Shipping Office (PPSO) a completed copy of the Form within 180 calendar days after the delivery date. If the member/employee waits until the 180th calendar day to submit the DD Form 1840R to the contractor, the contractor must have 48 hours to submit the DD Form 1840R to the PPSO. One copy of the form must be held in the contractor’s files for further reference.

Upon delivery of the Household Goods (HHG) or Unaccompanied Baggage (UB), it is the joint responsibility of the contractor and the member/employee to record all known loss and/or damage that is found at delivery on the DD Form 1840. Later discovered loss or transit damage must be listed on the DD Form 1840R, or a reasonable facsimile thereof. The contractor must accept the DD Form 1840R, as overcoming the presumption of correctness of the delivery receipt, if it is transmitted or postmarked within 180 calendar days of the delivery date. Notice is not required if a claim is filed with the contractor within 180 calendar days of delivery. Neither the DD Form 1840 nor DD Form 1840R are conclusive; both can be rebutted by other evidence.

If notice of loss and/or damage of HHG or UB is postmarked or transmitted to the contractor more than 180 calendar days after the delivery date, the loss and/or damage on that notice must be presumed not to have occurred while the goods were in the possession of the contractor unless there is good cause for the delay, as determined by the MCO. Good cause may include, but is not limited to, officially recognized absence or hospitalization of the member/employee during all or a portion of the period of 180 calendar days from the date of delivery. In case of recognized official absence, the Service MCO must provide the contractor with the proof of the officially recognized absence and the additional days granted must not exceed the period of official absence.

Contractors failure to provide the DD Form 1840/1840R to the member/employee and to have proof thereof must eliminate any requirement for notification to the contractor. Notice using the DD Form 1840/1840R is not required by the contractor in the case of major incidents requiring the contractor to notify USTRANSCOM and the PPSO of the incident. Such incidents include fire, pilferage, vandalism, and similar incidents that produce significant loss, damage, or delay.

The inventory prepared at origin and the delivery receipt is valid evidence that either the MCO or the contractor must consider along with timely notification in determining whether or not a member/employee has sustained loss and/or damage in the shipment.

The member/employee must use the DD Form 1844, List of Property and Claims Analysis Chart, or a reasonable facsimile thereof, when submitting a claim to the contractor or MCO. The DD Form 1844 can be obtained from the MCO, or it may be generated by the Transportation Service Provider (TSP) Contractor or MCO automated data system.

Inspection by the Contractor:

The contractor may inspect the damaged items at any time prior to settlement of the claim, but may not deny a claim solely on the basis it was unable to inspect any item. If the member/employee has repaired an item before the contractor inspection, the member/employee must provide the repair bill or some other evidence of the damage and repair cost to the contractor. If the member/employee has disposed of a damaged item, they must give the contractor evidence that the item was damaged beyond economical repair.

If, before a claim is filed, a member/employee calls the contractor and asks for either inspection of an item or permission to dispose of items, the contractor must provide notification of inspection or disposal permission to the member/employee within 2 business days of being contacted. In such cases, if the contractor gives notice to inspect the items, they must do so within 45 calendar days of being contacted by the member/employee unless the member/employee grants a further extension.

If the member/employee refuses to permit the contractor to inspect, the contractor must contact the Service MCO and request assistance in arranging an inspection of the goods. If the member/employee causes a delay by refusing inspection, the contractor must be provided with an equal number of days to perform the inspection (45 calendar days plus delay days caused by member/employee).

Repair Estimates:

Responsible party: The contractor is responsible for paying all repair estimates required to process any and all claims filed directly with the contractor by the member/employee. The MCO is responsible for paying for all repair estimates required to process and substantiate any and all claims filed with the MCO by the member/employee. The contractor is responsible to pay all estimate costs and other costs associated presented by an MCO as a result of claims transferred to the MCO by the member/employee pursuant to, claims filing in Paragraph A.1, unless:

The contractor previously provided a reasonable estimate, or;

The contractor previously offered to pay the member/employee a value that matches or exceeds the repair cost for all items on the estimate, or;

The item damaged is repairable and the contractor offered to repair it at no cost to the member, or;

The contractor previously offered to pay the replacement cost or to replace it in kind.

All estimates provided by the contractor must identify a repair firm willing and able to make the repair within a reasonable time, for the amount stated. The repair firm must be reputable, having a reputation for timely and satisfactory performance. All estimates must be itemized.

If an MCO receives an itemized repair estimate from the contractor before a claim is settled, the MCO must use that estimate provided it is the lowest, and meets the criteria in Paragraph A.6.b, above. If the contractor estimate is the lowest overall estimate and is not used, the MCO must advise the contractor in writing of the reason the lowest overall estimate was not used in determining the contractor’s liability.

If the contractor sends the MCO a lower repair estimate after the recovery demand is made by the MCO, the lower repair estimate must be considered in the recovery rebuttal or appeal process. The lower estimate must prove the repair was unreasonable based on the value of the item before it was damaged.

If a contractor has made an inspection/estimate based upon the DD Form 1840R and the member/employee subsequently updates the notice, the contractor is authorized to make an additional inspection/estimate. The contractor must contact the MCO to determine if a deduction of $75.00 or actual inspection cost (lesser amount) is authorized from the contractor’s liability for performing the second inspection/estimate.

The contractor must ensure qualified repair firms and subcontractors perform the repairs. If requested by the MCO or member/employee, they must provide the name and telephone number of the repair firm doing the work.

Settlement of Loss and Damage Claims:

For loss and/or damage claims, the contractor must pay, deny, or make an offer within 60 days of receipt of a complete, substantiated claim.

The contractor must complete payment to the member/employee within 30 days of receipt of notice the member/employee has accepted a full or partial settlement.

In cases where more than one independent contractor or TSP is responsible for the loss/and or damage, the contractor or TSP receiving a claim from the delivery contractor has a 60 day period for payment, denial or a final written offer. The 60 day period begins upon receipt of the claim from the delivery contractor, not on the date that the delivery contractor originally received the claim.

Partial Settlements:

If the member/employee cannot reach a mutually acceptable settlement directly with the contractor for all or a portion of their claim, they can accept a partial settlement from the contractor on item(s) on which the member/employee and contractor have reached an agreement. If the member/employee elects to accept partial settlement, the contractor may pay the member/employee for item(s) on which an agreement has been reached. The member/employee may transfer any unsettled portion of their claim to an MCO. The MCO may assert a recovery demand on the contractor. The contractor must not be liable for payment on any item(s) already paid to the member/employee if correspondence between the contractor and the member/employee lists the item(s) as “payment is being made” and clearly indicates that prior payment was in full and final satisfaction.

Quick Claim Settlement:

The contractor may establish a quick claim settlement procedure to quickly resolve and pay claims for minor loss and/or damage discovered at the time of delivery. Such procedures should cover payment of less than $1,000.00 total. Payment must be made within 5 days of delivery. The process of settling and paying such claims must be left to the discretion of each contractor. Any small claim settlement agreements can only contain a limited release of liability and must specifically list the item(s) and the damage for which payment is being made. The member/employee must be advised that they may still file claims for later discovered loss and/or damage. A copy of the settlement agreement must be made available to the MCO, on request. If the member/employee receives a “quick” claim settlement and then files an additional claim, the member/employee must indicate they received a quick claim settlement and may not file an additional claim for any item(s) settled through the quick claim process.

Salvage:

To the extent not prohibited by law or agreement, the contractor is entitled to take possession of and sell for salvage any damaged item(s) for which they paid either the depreciated or full, undepreciated replacement cost, or replaced the damaged item(s) with a new item(s).

If the contractor pays the member/employee the depreciated or full undepreciated replacement cost of a lost item(s), and the lost item(s) is subsequently located, the contractor must notify the contracting officer, transportation officer (to) and the member/employee for instructions. The member/employee may decide to either request or decline delivery of the item(s). If the member/employee elects to receive a found item(s), the member/employee must refund any amount paid on those item(s). If the member/employee declines delivery of the item(s), the contractor may retain the item(s) for salvage.

If the contractor locates an item(s) within 60 days of receipt of notice of the loss, and a claim on that item(s) has not yet been paid, then the member/employee must be obligated to accept delivery of the item(s) in lieu of a claim, even if the member/employee has already replaced the item(s). If the contractor locates a lost item(s) more than 60 days after receipt of notice of the loss, but the item(s) has not been replaced, and a claim on the item(s) has not been paid, then the member/employee must be obligated to accept delivery of the item(s) in lieu of a claim. If a lost item(s) is later delivered with damage, the time limits for qualifying for FRV protection and for filing claims on that item(s) must not commence until the delivery of that item(s). Not withstanding the above, any essential item(s), as described in essential items, Paragraph A.14, that have been replaced may be declined by the member/employee before the 60 day period has run. This provision applies only when:

The item has been missing for at least 7 days from the date of delivery and the contractor has been notified pursuant to essential items, Paragraph A.14.

The item is necessary for daily life, such that it must be replaced within 2 business days of notice to contractor.

The item has in fact been replaced.

The contractor must take possession of salvage item(s) at the member/employee’s residence, or other location acceptable to the member/employee, not later than 30 days after receipt of a complete claim from either the member/employee or the MCO. However, in no case must the 30-day period for the contractor to take possession end until after the period allowed for the contractor’s inspections (see inspection by the contractor, Paragraph A.5. The 30-day pickup period can be extended by an agreement between the contractor and the member/employee. If the member/employee refuses to cooperate with the contractor they should contact the Service MCO and request assistance. At any time the member/employee may ask the contractor for permission to dispose of an item. The contractor must provide a response within 2 days (Paragraph A.5).

The contractor may not exercise salvage rights if the depreciated replacement value of all salvageable items totals less than $100.00, or in the case of a single salvageable item, the item has a value of less than $50.00. However, if a shipment has more than one salvageable item and one of the items has a value of $50.00 or more, the contractor may exercise salvage rights even if the total of all salvageable items is $100.00 or less.

The contractor may not exercise salvage rights on any item that is hazardous or dangerous to the health or safety of the member/employee or the member/employee’s family. Such items include, but are not limited to, broken mirrors or glass, spoiled food, moldy mattresses, or other fabric items. Exception: The member/employee must retain antiques, figurines, and crystal with a single item value of $50.00 or more for potential salvage.

If the contractor is unable to exercise salvage rights due to the disposal of an item(s) by the member/employee, the contractor may reduce its liability by 25 percent on any item that has a depreciated replacement value of $50.00 or more. The contractor is entitled to no deduction for salvage on a single item with a depreciated replacement value of less than $50.00 unless the total combined depreciated replacement value of all items that have been disposed of is $100.00 or more.

Claims for $25.00 or Less:

To reduce administrative costs, the Services agree they must not pursue a claim against a contractor for loss and/or damage to HHG or UB transported under this document, if the amount of the claim is $25.00 or less. This provision does not apply to claims submitted directly to the contractor by a member/employee.

Dispute Resolution:

If a member/employee does not accept a settlement offered by the contractor, the member/employee may transfer a claim to the MCO. If the member/employee transfers a claim to the military, the MCO must resolve the member/employee’s claim IAW the Service’s claims regulations. The MCO must then assert a recovery claim against the contractor. The contractor must pay, deny, or make an offer on the recovery claim within 60 days of receipt of the claim, unless an extension is granted.

If the contractor and the MCO cannot reach a mutual settlement on the recovery claim, the Service may collect the amount of its recovery claim by administrative offset from money that is owed to the contractor for transportation services, or from any other payment due the contractor directly from the Government. If payments to the contractor are made by a third party payment system, the contractor agrees that the MCO may direct the party paying the contractor to divert all or part of any payment to the military finance center in order to accomplish offset to pay a Government claim from a prior shipment.

In cases where…