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Appendix 2 - Procedures

 

AP2.1.1. The Defense Security Cooperation Agency (DSCA) is responsible for approving items for inclusion in the transportation cost look-up table. Annually, the DSCA (Business Operations Directorate) disseminates the table to the Department of Defense (DoD) Components. The Defense Finance and Accounting Services (DFAS) Indianapolis is responsible for application of the look-up table rates, when applicable, to billings by the DoD Components for specific items on the look-up table. The DoD Components are responsible for:

AP2.1.1.1. Making recommendations to DSCA relative to items and rates to be included in the table.

AP2.1.1.2. Using approved rates in Letters of Offer and Acceptance (LOAs) prepared for items cited on the look-up table.

AP2.1.1.3. Updating look-up table rates to assure estimated actual DoD costs are reflected.

AP2.1.1.4. Providing information to DFAS Indianapolis relative to the applicable delivery term code (DTC) for each delivery transaction billing processed to DFAS Indianapolis for items on the look-up table. If the priority changes and the actual delivery of materiel does not correspond with the DTC designated in the LOA, a Transportation Bill Code (TBC) indicating the actual method of shipment is entered on the delivery report.

AP2.1.2. Annually (no later than December 10th), the DoD Components provide recommended rates for subsequent fiscal year (effective January 1st) to the DSCA (Business Operations Directorate). The formats in Tables AP2.T1. and AP2.T2. are used to forward recommendations to the DSCA (Business Operations Directorate). The DoD Components must include the cost elements prescribed in DoD 7000.14-R, Volume 15, Chapter 8. DSCA evaluates the data and staffs the revised rates and addition of items to the look-up table. DSCA disseminates the updated table to DFAS Indianapolis and to the applicable DoD Components by January 15th of each year. When a DoD Component determines that an established transportation charge requires adjustment, the recommended revised rate is forwarded to the DSCA (Business Operations Directorate) immediately. The DoD Components use the rates from the look-up table in the development of LOAs that identify transportation costs in item (11) of the LOA. The rates are developed and used as follows.

Table AP2.T1. CONUS Transportation Costs

NSN/ Nomen1 Weight Item M/Ton/Item Standard Price FMS Proc.2Cost Port of Embarkation3 Est. Actual CONUS4 Inland Est. Port Costs

Notes:

  1. Items are those that appear to qualify based on previous data. NSNs must be added.
    Additional major items should be added as appropriate.
  2. Based on most current FMS offers.
  3. Data should be provided for East Coast, West Coast, and Gulf port, if applicable.
  4. Special factors such as security costs must be identified separately.

Table AP2.T2. Overseas Transportation Costs

NSN/ Nomen1 Weight Item M/Ton/Item Standard Price FMS Proc.2Cost Est. Actual Overseas Shipment3, 4 (Surface) Est. Actual Overseas Shipment3, 4 (AMC) Est. Actual Overseas Port Loading

Notes:

  1. Items are those that appear to qualify based on previous data. NSNs must be added.
    Additional major items should be added as appropriate.
  2. Based on most current FMS offers.
  3. For each item two figures must be cited:
    1. Shipments to Europe, Latin America, and Mediterranean Ports
    2. Shipments to Newfoundland, Labrador, Thule, Iceland, South America, Far East, African Ports (other than Mediterranean) and Near East.
  4. Special factors such as security, demurrage, etc., must be identified separately.

AP2.1.2.1. Code 6 - Free on board (FOB) overseas port of discharge. The DoD is responsible for transportation from the continental U.S. (CONUS) point of origin to and including ocean transportation to the overseas port of discharge. The recipient country is responsible for vessel discharge, port handling, and subsequent arrangements and costs. Due to security concerns and ease/simplification of management, DTC 6 is not used by the Air Mobility Command (AMC) or Military Sealift Command (MSC) for shipments.

AP2.1.2.2. Code 8 - FOB aircraft or vessel -- CONUS port of exit. The DoD is responsible for transportation from CONUS point of origin to and including unloading, handling, and storage aboard aircraft or vessel at port of embarkation. The recipient country is responsible for over ocean transportation and subsequent arrangements and costs.

AP2.1.2.3. Code 9 - FOB port of discharge (landed). The DoD is responsible for transportation from CONUS point of origin to and including aircraft or vessel discharge and port handling at overseas port of discharge. The recipient country is responsible for loading on inland overseas carrier equipment and for subsequent arrangements and costs.

AP2.1.2.4. Special transportation requirements (e.g., Special Assignment Airlift Mission flights) continue to be identified in a line item on the LOA and applicable actual charges billed to the customer.