Question

Define domestic transportation tariff and explain its role in domestic transportation services. Include the balancing of the role of contract services with transportation tariffs.

Answer 1

Domestic transportation tariff is the tariff levied by the Federal government for the movement of a relocated Government employee’s household goods between two points in the US (excluding Hawaii) or a point in US and points in Canada.

Its role in the domestic transportation services is pretty simple. The general services administration Domestic 500A (GSA 500A) or the Domestic transportation tariff clause serves as the principal domestic tariff for transportation of goods and services between two points in US or a point in US and points in Canada in accordance with GSA's Centralized Household Goods Traffic Management Program. This clause serves as the perfect point to refer for finding out tariffs between any two states in the US. It also helps in protection of customer as the tariff is pretty much fixed and known to everyone and therefore, anyone trying to breach the price code can be punished accordingly.

Contract Services provide a perception and cost based price point that needs to be levied for the transportation of government HHG. This helps in renewal of domestic transportation tariff rate on continuous basis, thus being fair to everyone.