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Responding to ATA’s requests, GSA promised to propose exempting the fuel surcharge from its 4 percent Industry Funding Fee (IFF). However, after more than three months of days and just prior to press time, GSA issued three major contracts where the 4 percent IFF still applies to the FSC. Accordingly, ATA issued a rebuff to GSA for its delay to make good on fulfilling its promise.
Last May, GSA told ATA it would issue a notice of proposed rulemaking (NPRM) by early June 2008 to solicit public comment on whether the 4 percent IFF should continue to be applied to fuel surcharges (FSC). GSA asserts that the 4 percent rate of the IFF is merely sufficient to offset the cost of operating its freight program in the absence of Congressional appropriations, and further, that it is not intended to make a profit but merely to break even. Accordingly, ATA has been arguing that the IFF should not apply to the FSC because GSA does not pay for fuel, and it is therefore not a cost component of GSA’s freight operations. Unfortunately, GSA has procrastinated on this pledge.
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