FAR 47.103-1—General.
Plain-English Summary
FAR 47.103-1 explains the government’s basic rules for handling transportation documentation and transportation payment/audit activities. It points readers to the controlling transportation payment and audit regulations in 41 CFR part 102-118, and for Department of Defense shipments to DoD 4500.9-R, Defense Transportation Regulation, Part II. It also requires every agency to maintain a prepayment audit program under 31 U.S.C. 3726, which means transportation charges must be reviewed before payment in accordance with the governmentwide audit framework. In addition, the section describes how certain original transportation documents—such as paid freight bills/invoices, bills of lading, passenger coupons, and supporting documents—must be forwarded to GSA for postpayment audit, including documents for first-tier subcontractors under cost-reimbursement contracts. Finally, it requires prompt forwarding of original documents when requested by GSA and specifies the contents of the transmittal statement that must accompany each shipment of transportation documents. In practice, this section is about making sure transportation charges are properly documented, audited, and traceable so the government can prevent overpayments, support recovery actions, and maintain a complete audit trail.
Key Rules
Follow transportation audit regulations
The rules for bills of lading, documentation, payment, and audit of transportation services are governed by 41 CFR part 102-118. For DoD shipments, the applicable guidance is DoD 4500.9-R, Defense Transportation Regulation, Part II.
Maintain a prepayment audit program
Each agency must establish a prepayment audit program under 31 U.S.C. 3726. This means transportation charges must be reviewed before payment using the procedures in 41 CFR part 102-118.
Send original documents for postpayment audit
The agency identified in the clause at 52.247-67 must forward original paid freight bills/invoices, bills of lading, passenger coupons, and supporting documents to GSA’s Transportation Audit Division as soon as possible after the end of each month.
Include first-tier subcontractor documents
For cost-reimbursement contracts, the specified agency must include transportation documents for first-tier subcontractors in the postpayment audit package. If including them with the main shipment is not practicable, they may be sent separately.
Provide originals promptly on request
Any original transportation bills or other documents requested by GSA must be forwarded without delay. Before sending them, the specified agency must stamp or write the contracting agency’s name on the face of the bill.
Attach a duplicate transmittal statement
Each shipment of transportation documents must be accompanied by a statement prepared in duplicate. GSA signs and returns the copy to acknowledge receipt, creating a record of what was sent and received.
Include required shipment details
The transmittal statement must identify the specified agency, contract number, contracting office name and address, total number of bills submitted, and either a list of amounts paid or an adding machine tape showing the amounts paid and the contractor’s voucher or check numbers.
Responsibilities
Agency
Establish and maintain a prepayment audit program for transportation charges, and follow the applicable transportation payment and audit regulations in 41 CFR part 102-118 and, for DoD shipments, DoD 4500.9-R.
Specified agency under 52.247-67
Forward original paid transportation documents to GSA after month-end, include first-tier subcontractor documents for cost-reimbursement contracts when required, send requested originals promptly, and ensure the contracting agency name is marked on each bill.
Contracting office
Ensure the contract number and contracting office information are available for the transmittal statement and that transportation documents can be traced to the correct office and contract.
GSA Transportation Audit Division
Receive postpayment audit packages, acknowledge receipt of the transmittal statement copy, and conduct postpayment audit of transportation documents.
Contractor
Provide transportation documentation and payment records that support freight charges and voucher/check references when those documents are part of the audit package or requested by the government.
Practical Implications
Transportation charges are not just paid like ordinary invoices; they are subject to a separate audit regime, so contracting and finance staff need tight document control.
Missing bills of lading, passenger coupons, voucher numbers, or check references can delay audit processing and make it harder to defend or recover transportation payments.
Agencies should have a routine month-end process for assembling and mailing original documents to GSA, including a method for handling first-tier subcontractor records under cost-reimbursement contracts.
If GSA requests originals, the response should be immediate and the documents should be clearly marked with the contracting agency name to avoid misrouting or audit confusion.
A common pitfall is assuming scanned copies are enough; this section specifically requires original documents for postpayment audit unless another rule allows otherwise.
Official Regulatory Text
(a) (1) Regulations and procedures governing the bill of lading, documentation, payment, and audit of transportation services acquired by the United States Government are prescribed in 41 CFR part 102 -118, Transportation Payment and Audit. (2) For DoD shipments, corresponding guidance is in DoD 4500.9-R, Defense Transportation Regulation, Part II. (b) Under 31 U.S.C. 3726 , all agencies are required to establish a prepayment audit program. For details on the establishment of a prepayment audit, see 41 CFR part 102 -118. (c) The agency designated in paragraph (a)(3) of the clause at 52.247-67 shall forward original copies of paid freight bills/invoices, bills of lading, passenger coupons, and supporting documents as soon as possible following the end of the month, in one package for postpayment audit to the General Services Administration, Transportation Audit Division (QMCA), Crystal Plaza 4, Room 300, 2200 Crystal Drive, Arlington, VA 22202. The specified agency shall include the paid freight bills/invoices, bills of lading, passenger coupons, and supporting documents for first-tier subcontractors under a cost-reimbursement contract. If the inclusion of the paid freight bills/invoices, bills of lading, passenger coupons, and supporting documents for any subcontractor in the shipment is not practicable, the documents may be forwarded to GSA in a separate package. (d) Any original transportation bills or other documents requested by GSA shall be forwarded promptly. The specified agency shall ensure that the name of the contracting agency is stamped or written on the face of the bill before sending it to GSA. (e) A statement prepared in duplicate by the specified agency shall accompany each shipment of transportation documents. GSA will acknowledge receipt of the shipment by signing and returning the copy of the statement. The statement shall show- (1) The name and address of the specified agency; (2) The contract number, including any alpha-numeric prefix identifying the contracting office; (3) The name and address of the contracting office; (4) The total number of bills submitted with the statement; and (5) A listing of the respective amounts paid or, in lieu of such listing, an adding machine tape of the amounts paid showing the Contractor’s voucher or check numbers.