Freight Charges

To: "AO - All Administrative Officers"<distribution>
cc: "Patricia A Powers, Accounting Technician, Reston, VA" <papowers>
Subject: Freight Charges
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Date: Mon, 29 Apr 1996 11:40:59 -0400
From: "Connie F Magaha, Chief, Mgmt Support Section, Reston, VA" <cfmagaha>

The Branch of Materials Management (MMS) will be forwarding a memo with 
more details regarding this subject.

We will forward any information on to you that we receive it.


On Thu, 18 Apr 1996 12:37:20 -0400 
"Alice A Sabatini, Administrative Officer, Reston, VA" said:
> 
> ------- Forwarded Message
> From: "ROBERT E. SPRINGER" <RSPRINGE@wposmtpgw.er.usgs.gov>
> To: "Alice A Sabatini, Administrative Officer, Reston, VA" <aasabati>,
>         "Carole Carter-Pfisterer,  Reston, VA" <ccarter@GCCMAIL.CR.USGS.GOV>,
>         "Gayle A Sisler,  Reston, VA" <gsisler@igsrsparc4.er.usgs.gov>,
>         "John J Lenart,  Reston, VA" <jlenart@nmdserver10.er.usgs.gov>,
>         MPECTOL@wposmtpgw.er.usgs.gov
> Cc: bsimon@wposmtpgw.er.usgs.gov, wgossman@wposmtpgw.er.usgs.gov
> Subject:  Higher GSA freight charges
> 
> This is a heads up on a change in GSA
> freight charges that we just learned about
> through the Department.
> 
> We use GSA's Standard Tender of Service
> program as the rate structure for our
> freight shipments.  GSA has announced, in
> our opinion with inadequate notice to the
> agencies, that it will start assessing a
> surcharge of 4 percent on shipments using
> its tender.  This is part of GSA's migration
> to full-cost recovery or industrial funding,
> where it will for the most part become
> financially self-sufficient (i.e., no
> appropriations).
> 
> We are scoping out the impact and our
> options.  The GSA notice says the surcharge
> will be retroactive to October 1, 1995, but
> we doubt if that will hold up.  The cost may
> be in the range of $40-50,000 annually, but
> we need to confirm this.  We are also
> scoping out what would be required for us to
> establish our own tenders.  Keeping the
> carriers to a benchmark, particularly in
> this period of escalating fuel costs, is a
> chief concern.  We would also be competing
> as a very small fish in unknown waters
> without the buying power and attendant
> leverage that big fish like GSA have.
> 
> We'll keep you apprised of the status of our
> efforts.
> 
> 
> ------- End of Forwarded Message
> 


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