SECTION VII. PACKING, CRATING, HANDLING AND TRANSPORTATION COSTS

TM 38-260

(4) To facilitate unloading operations, the skidded equipment shall be placed on dunnage,

spaced to provide a balanced distribution of weight.

e. When items of IPE are of a height exceeding the headroom in the barge, the telescope

cover is left open, adjacent covers are secured, and the open area protected with tarpaulin or

other waterproof material after cushioning the projecting portion of the machine.

SECTION VII. PACKING, CRATING, HANDLING AND TRANSPORTATION COSTS

(PCH&T)

8-28.

Purpose

a. General. Whenever IPE is prepared for storage or shipped from a contractor's plant the

Packing, Crating, Handling and Transportation (PCH&T) costs are normally funded through the

issuance of an amendment to the existing production or facilities contract.

(1) This contract change is issued to the contractor by the Administrative Contracting

Officer (ACO), who also provided the PCH&T instructions along with the shipping instructions

and funding information. PCH&T instructions are prepared by the ACO's contract

administration packaging specialist.

(2) PCH&T costs funded by DGSC do not include funds for any work other than PCH.

b. Other cost factors. Since the DGSC funding for PCH&T does not include funds for

other work, it is essential that there is a clear distinction between strictly PCH&T work and other

work.

(1) Other work includes shutdown cleaning, interim preservation, disassembly,

disconnection, building alterations and restoration, displacement of other equipment to facilitate

the movement of IPE, interruption of contractor production, and other similar activities.

(2) These other costs must be considered to be either a part of the contractor's

maintenance procedures (shutdown preservation) or fundable directly under the production of a

facilities contract.

8-29.

Costs to be Charged to Packaging, Crating, and Handling

a. The costs most commonly assigned to packaging, crating, and handling are listed below:

(1) The cost of material, including cleaning and drying materials, preservatives, wraps,

barrier materials, cushioning materials, containers, labels, tags, tapes, strapping materials,

equipment, lumber, and skids.

(a) In addition to the cost of the materials, additional costs are incurred which include

the cost of procuring, storing, controlling, moving, protecting, and assuring the quality of these

8-48