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1.06 PWS Attachment G6 Claims.pdf

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Contract Opportunity
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Dec. 15, 2021, 9:26 p.m.
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Defense Transportation Regulation – Part IV 20 August 2019 Personal Property IV-G6-1 ATTACHMENT G6 DIRECT PROCUREMENT METHOD (DPM) CLAIMS AND LIABILITY PROCEDURES A. CLAIMS PROCESS FOR SHIPMENTS 1. Claims Filing: a. 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: (1) Notice that the contractor has made a final offer on the claim or denied it in full. (2) Notification by the United States Transportation Command (USTRANSCOM) that the contractor is in bankruptcy. (3) Notification that the contractor contract is terminated. (4) The contractor’s failure to comply with the catastrophic loss provisions in Paragraph A.13, and as verified by the MCO. (5) The contractor’s failure to comply with essential items provisions in Paragraph A.14, and as verified by the MCO. b. 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. c. 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 Defense Transportation Regulation – Part IV 20 August 2019 Personal Property IV-G6-2 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. d. 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. e. 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. f. 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. 2. Exceptions to Filing Claims Directly with the Contractor: a. 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: (1) No access to a telephone or fax machine. (2) Claims for deceased member/employees (Bluebark) involving surviving family members not familiar with the claims process. (3) Language barriers in the claims filing process. 3. Substantiation of Claims: a. 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 Defense Transportation Regulation – Part IV 20 August 2019 Personal Property IV-G6-3 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). b. 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. c. 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. d. 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 es… Show All