
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 31USC3726]

 
                       TITLE 31--MONEY AND FINANCE
 
                   SUBTITLE III--FINANCIAL MANAGEMENT
 
                           CHAPTER 37--CLAIMS
 
       SUBCHAPTER III--CLAIMS AGAINST THE UNITED STATES GOVERNMENT
 
Sec. 3726. Payment for transportation

    (a)(1) Each agency that receives a bill from a carrier or freight 
forwarder for transporting an individual or property for the United 
States Government shall verify its correctness (to include 
transportation rates, freight classifications, or proper combinations 
thereof), using prepayment audit, prior to payment in accordance with 
the requirements of this section and regulations prescribed by the 
Administrator of General Services.
    (2) The Administrator of General Services may exempt bills, a 
particular mode or modes of transportation, or an agency or subagency 
from a prepayment audit and verification and in lieu thereof require a 
postpayment audit, based on cost effectiveness, public interest, or 
other factors the Administrator considers appropriate.
    (3) Expenses for prepayment audits shall be funded by the agency's 
appropriations used for the transportation services.
    (4) The audit authority provided to agencies by this section is 
subject to oversight by the Administrator.
    (b) The Administrator may conduct pre- or post-payment audits of 
transportation bills of any Federal agency. The number and types of 
bills audited shall be based on the Administrator's judgment.
    (c)(1) The Administrator shall adjudicate transportation claims 
which cannot be resolved by the agency procuring the transportation 
services, or the carrier or freight-forwarder presenting the bill.
    (2) A claim under this section shall be allowed only if it is 
received by the Administrator not later than 3 years (excluding time of 
war) after the later of the following dates:
        (A) The date of accrual of the claim.
        (B) The date payment for the transportation is made.
        (C) The date a refund for an overpayment for the transportation 
    is made.
        (D) The date a deduction under subsection (d) of this section is 
    made.

    (d) Not later than 3 years (excluding time of war) after the time a 
bill is paid, the Government may deduct from an amount subsequently due 
a carrier or freight forwarder an amount paid on the bill that was 
greater than the rate allowed under--
        (1) a lawful tariff under title 49 or on file with the Secretary 
    of Transportation with respect to foreign air transportation (as 
    defined in section 40102(a) of title 49), the Federal Maritime 
    Commission, or a State transportation authority;
        (2) a lawfully quoted rate subject to the jurisdiction of the 
    Surface Transportation Board; or
        (3) sections 10721, 13712, and 15504 of title 49 or an 
    equivalent arrangement or an exemption.

    (e) Expenses of transportation audit postpayment contracts and 
contract administration, and the expenses of all other transportation 
audit and audit-related functions conferred upon the Administrator of 
General Services, shall be financed from overpayments collected from 
carriers on transportation bills paid by the Government and other 
similar type refunds, not to exceed collections. Payment to any 
contractor for audit services shall not exceed 50 percent of the 
overpayment identified by contract audit.
    (f) At least annually, and as determined by the Administrator, after 
making adequate provision for expense of refunds to carriers, 
transportation audit postpayment contracts, contract administration, and 
other expenses authorized in subsection (e), overpayments collected by 
the General Services Administration shall be transferred to 
miscellaneous receipts of the Treasury. A report of receipts, 
disbursements, and transfers (to miscellaneous receipts) pursuant to 
this section shall be made annually in connection with the budget 
estimates to the Director of the Office of Management and Budget and to 
the Congress. This reporting requirement expires December 31, 1998.
    (g) The Administrator may delegate any authority conferred by this 
section to another agency or agencies if the Administrator determines 
that such a delegation would be cost-effective or otherwise in the 
public interest.
    (h) Under regulations the head of an agency prescribes that conform 
with standards the Secretary of the Treasury prescribes, a bill under 
this section may be paid before the transportation is completed 
notwithstanding section 3324 of this title when a carrier or freight 
forwarder issues the usual document for the transportation. Payment for 
transportation ordered but not provided may be recovered by deduction or 
other means.
    (i)(1) A carrier or freight forwarder may request the Administrator 
of General Services to review the action of the Administrator if the 
request is received not later than 6 months (excluding time of war) 
after the Administrator acts or within the time stated in subsection (c) 
of this section, whichever is later.
    (2) This section does not prevent the Comptroller General from 
conducting an audit under chapter 35 of this title.
    (j) The Administrator of General Services may provide transportation 
audit and related technical assistance services, on a reimbursable 
basis, to any other agency. Such reimbursements may be credited to the 
appropriate revolving fund or appropriation from which the expenses were 
incurred.

(Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 976; Pub. L. 98-443, 
Sec. 9(f), Oct. 4, 1984, 98 Stat. 1707; Pub. L. 99-627, Sec. 1, Nov. 7, 
1986, 100 Stat. 3508; Pub. L. 103-123, title VI, Sec. 620A, Oct. 28, 
1993, 107 Stat. 1265; Pub. L. 103-272, Secs. 4(f)(1)(N), 5(i)(2), July 
5, 1994, 108 Stat. 1362, 1375; Pub. L. 103-429, Sec. 7(a)(3)(B), Oct. 
31, 1994, 108 Stat. 4388; Pub. L. 104-88, title III, Sec. 306, Dec. 29, 
1995, 109 Stat. 945; Pub. L. 104-316, title II, Sec. 202(o), Oct. 19, 
1996, 110 Stat. 3844; Pub. L. 105-264, Sec. 3(a)(3), Oct. 19, 1998, 112 
Stat. 2353.)

                                          Historical and Revision Notes
-------------------------------------------------------------------------------
---------------------------------
           Revised Section                   Source (U.S. Code)                
Source (Statutes at Large)
-------------------------------------------------------------------------------
---------------------------------
3726(a)..............................  31:244(a)(1st sentence, last    Sept. 18
, 1940, ch. 722, Sec.  322(a), 54
                                        sentence last proviso).         Stat. 9
55; Aug. 26, 1958, Pub. L. 85-
                                                                        762, Se
c.  2, 72 Stat. 860; Oct. 25,
                                                                        1972, P
ub. L. 92-550, Sec.  1(a), 86
                                                                        Stat. 1
163; Jan. 2, 1975, Pub. L. 93-
                                                                        604, Se
c.  201(1), (2), 88 Stat. 1960.
3726(b)..............................  31:244(a)(2d sentence, last
                                        sentence less last proviso).
3726(c)..............................  31:244(c), (d).                 Sept. 18
, 1940, ch. 722, 54 Stat. 898,
                                                                        Sec.  3
22(c), (d); added Oct. 25, 1972,
                                                                        Pub. L.
 92-550, Sec.  1(b), 86 Stat.
                                                                        1164; J
an. 2, 1975, Pub. L. 93-604, Sec.
                                                                         201(3)
, 88 Stat. 1960.
3726(d)(1)...........................  31:244(b).                      Sept. 18
, 1940, ch. 722, 54 Stat. 898,
                                                                        Sec.  3
22(b); added Jan. 2, 1975, Pub.
                                                                        L. 93-6
04, Sec.  201(3), 88 Stat. 1960.
3726(d)(2)...........................  31:244(a)(3d sentence).
-------------------------------------------------------------------------------
---------------------------------

    In the section, the words ``Administrator of General Services'' are 
substituted for ``General Services Administration, or his designee'' for 
consistency. The word ``freight'' is added for clarity and consistency 
with 49:10101 et seq.
    In subsection (a), before clause (1), the word ``individual'' is 
substituted for ``persons'' for consistency. The words ``or on behalf 
of'' are omitted as unnecessary. The words ``for charges for 
transportation . . . the purview of'' are omitted as surplus. In clause 
(1), the word ``claim'' is substituted for ``cause of action thereon'' 
for consistency. In clauses (2) and (3), the words ``is made'' are 
substituted for ``of charges . . . involved'' and ``subsequent . . . of 
such charges'' to eliminate unnecessary words.
    In subsection (b), before clause (1), the words ``Provided, however, 
That such deductions shall be made'' are omitted because of the 
restatement. The words ``found to be'' are omitted as surplus. The words 
``of any overcharge by any carrier or forwarder'' and ``The term 
`overcharges' shall be deemed to mean . . . those applicable thereto'' 
are omitted because of the restatement. The word ``rate'' is substituted 
for ``charges for transportation services'' and ``rates, fares, and 
charges'' for consistency with title 49. In clause (1), the word 
``authority'' is substituted for ``regulatory agency'' for consistency. 
In clause (2), the words ``established'' and ``contract . . . from 
regulation'' are omitted as surplus.
    In subsection (c), the text of 31:244(d) and the words 
``Government'', ``or his designee'', and ``of the United States'' are 
omitted as unnecessary. The words ``under this section'' are substituted 
for ``for passenger or freight transportation services to be furnished 
the United States by any carrier or forwarder'' to eliminate unnecessary 
words. The word ``transportation'' is substituted for ``services'' for 
consistency. The words ``ticket, receipt, bill of lading, or equivalent 
. . . involved'' and ``as ordered by the United States'' are omitted as 
surplus.
    In subsection (d)(1), the words ``may request'' are substituted for 
``Nothing in subsection (a) of this section hereof shall be deemed to 
prevent . . . from requesting'' to eliminate unnecessary words. The 
words ``of limitation'' are omitted as surplus.
    In subsection (d)(2), the words ``Comptroller General'' are 
substituted for ``General Accounting Office'' for consistency.


                               Amendments

    1998--Subsec. (a). Pub. L. 105-264, Sec. 3(a)(3)(A), amended subsec. 
(a) generally. Prior to amendment, subsec. (a) read as follows: ``A 
carrier or freight forwarder presenting a bill for transporting an 
individual or property for the United States Government may be paid 
before the Administrator of General Services conducts an audit, in 
accordance with regulations that the Administrator shall prescribe. A 
claim under this section shall be allowed only if it is received by the 
Administrator not later than 3 years (excluding time of war) after the 
later of the following dates:
        ``(1) accrual of the claim;
        ``(2) payment for the transportation is made;
        ``(3) refund for an overpayment for the transportation is made; 
    or
        ``(4) a deduction under subsection (b) of this section is 
    made.''
    Subsecs. (b) to (e). Pub. L. 105-264, Sec. 3(a)(3)(B), (C), added 
subsecs. (b) and (c) and redesignated former subsecs. (b) and (c) as (d) 
and (e), respectively. Former subsecs. (d) and (e) redesignated (f) and 
(g), respectively.
    Subsec. (f). Pub. L. 105-264, Sec. 3(a)(3)(B), (D), redesignated 
subsec. (d) as (f), substituted ``subsection (e)'' for ``subsection 
(c)'', and inserted at end ``This reporting requirement expires December 
31, 1998.'' Former subsec. (f) redesignated (h).
    Subsecs. (g), (h). Pub. L. 105-264, Sec. 3(a)(3)(B), redesignated 
subsecs. (e) and (f) as (g) and (h), respectively. Former subsec. (g) 
redesignated (i).
    Subsec. (i). Pub. L. 105-264, Sec. 3(a)(3)(B), redesignated subsec. 
(g) as (i).
    Subsec. (i)(1). Pub. L. 105-264, Sec. 3(a)(3)(E), substituted 
``subsection (c)'' for ``subsection (a)''.
    Subsec. (j). Pub. L. 105-264, Sec. 3(a)(3)(F), added subsec. (j).
    1996--Subsec. (f). Pub. L. 104-316, Sec. 202(o)(1), substituted 
``Treasury prescribes'' for ``Treasury and the Comptroller General 
prescribe jointly''.
    Subsec. (g)(1). Pub. L. 104-316, Sec. 202(o)(2), substituted 
``Administrator of General Services'' for ``Comptroller General''.
    1995--Subsec. (b)(1). Pub. L. 104-88, Sec. 306(1), (2), substituted 
``under title 49 or on file with'' for ``on file with the Interstate 
Commerce Commission,'' and struck out ``or'' after the semicolon at end.
    Subsec. (b)(2). Pub. L. 104-88, Sec. 306(4), added par. (2). Former 
par. (2) redesignated (3).
    Subsec. (b)(3). Pub. L. 104-88, Sec. 306(3), (5), redesignated par. 
(2) as (3) and substituted ``sections 10721, 13712, and 15504'' for 
``sections 10721-10724''.
    1994--Subsec. (b)(1). Pub. L. 103-272, Sec. 5(i)(2), substituted 
``section 40102(a) of title 49'' for ``the Federal Aviation Act of 
1958''.
    Subsec. (d). Pub. L. 103-272, Sec. 4(f)(1)(N), which directed the 
substitution of ``miscellaneous receipts'' for ``miscellaneous 
receipt'', was repealed by Pub. L. 103-429.
    1993--Subsecs. (c) and (d). Pub. L. 103-123 amended subsecs. (c) and 
(d) generally. Prior to amendment, subsecs. (c) and (d) read as follows:
    ``(c) Expenses of transportation audit contracts and contract 
administration shall be financed from overpayments collected from 
carriers on transportation bills paid by the Government and other 
similar type refunds at not to exceed 40 percent of such collections 
annually. Payment to any contractor shall not exceed 50 percent of the 
overpayments identified by any contract audit.
    ``(d) At least annually, and as determined by the Administrator, 
after making adequate provision for expenses of refunds to carriers, 
transportation audit contracts, and contract administration authorized 
in subsection (c), the balance of the overpayments collected by the 
General Services Administration shall be transferred to miscellaneous 
receipt of the Treasury. A report of receipts, disbursements, and 
transfers (to miscellaneous receipts) pursuant to this section shall be 
made annually in connection with the budget estimates to the Director of 
the Office of Management and Budget and to the Congress.''
    1986--Subsec. (a). Pub. L. 99-627, Sec. 1(1), amended first sentence 
generally, substituting ``may be paid before the Administrator of 
General Services conducts an audit, in accordance with regulations that 
the Administrator shall prescribe'' for ``shall be paid before the 
Administrator of General Services conducts an audit''.
    Subsecs. (c) to (g). Pub. L. 99-627, Sec. 1(2), (3), added subsecs. 
(c) to (e) and redesignated former subsecs. (c) and (d) as (f) and (g), 
respectively.
    1984--Subsec. (b)(1). Pub. L. 98-443 substituted ``Secretary of 
Transportation with respect to foreign air transportation (as defined in 
the Federal Aviation Act of 1958)'' for ``Civil Aeronautics Board''.


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-264 effective 18 months after Oct. 19, 
1998, see section 3(b) of Pub. L. 105-264, set out as a note under 
section 3322 of this title.


                    Effective Date of 1995 Amendment

    Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2 of 
Pub. L. 104-88, set out as an Effective Date note under section 701 of 
Title 49, Transportation.


                    Effective Date of 1994 Amendment

    Section 7(a) of Pub. L. 103-429 provided that the amendment made by 
that section is effective July 5, 1994.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-443 effective Jan. 1, 1985, see section 9(v) 
of Pub. L. 98-443, set out as a note under section 5314 of Title 5, 
Government Organization and Employees.


                               Task Force

    Section 2 of Pub. L. 99-627 provided that:
    ``(a) Within 60 days after the date of enactment of this Act [Nov. 
7, 1986], the Administrator of General Services shall establish a task 
force to study and investigate the feasibility, desirability, and 
economy of an integrated, automated system that Federal agencies may use 
in managing the transportation of property for the United States.
    ``(b) The task force established under subsection (a) shall--
        ``(1) be chaired by a representative of the Administrator;
        ``(2) include representatives of the Department of Defense and 
    other Federal agencies significantly involved in the transportation 
    of property for the United States; and
        ``(3) solicit the views of private businesses with expertise in 
    the matters being considered by the task force.
    ``(c) In studying and investigating the integrated, automated 
system, the task force shall consider including in that system such 
elements as automated routing, rating, documentation, payment, and 
auditing.
    ``(d) Each department, agency, and instrumentality of the Federal 
Government shall furnish to the task force, upon its request, such data, 
reports, and other information (not otherwise prohibited by law) as the 
task force deems necessary to carry out its functions under this 
section.
    ``(e) The head of each such department, agency, and instrumentality 
may provide to the task force such services and personnel as the task 
force requests on such basis (reimbursable or otherwise) as may be 
agreed upon between such department, agency, or instrumentality and the 
task force.
    ``(f) The task force shall submit a final report on the results of 
its study and investigation to the Congress not later than July 1, 
1988.''

                  Section Referred to in Other Sections

    This section is referred to in sections 3322, 3528 of this title; 
title 2 sections 142b, 142e, 142f, 142l; title 44 section 308; title 49 
sections 11705, 14705, 15905.
