New DoD contract affects PCS claims process Published Dec. 11, 2007 48th Fighter Wing Legal Office RAF LAKENHEATH, England -- The Department of Defense recently entered into new contracts with the carrier industry called Full Replacement Value. This new way of moving significantly changes how claims are filed and processed and promises major financial benefits to members. FRV doesn't necessarily mean servicemembers will receive all new household goods, but it is a significantly different system that promises big changes in the way servicemembers move in the future. FRV applies to shipments with a pick up date on or after: Oct. 1, 2007 for international shipments (to/from OCONUS), Nov. 1, 2007 for stateside shipments, and March 1 for nontemporary storage (NTS) and direct procurement method (DPM) shipments. What does FRV mean? If an item is lost or destroyed, the carrier should pay to replace it with a like item. Usually they will replace it with a new item, but it could be used. Therefore, instead of being paid the depreciated value of the lost or destroyed item, servicemembers will get paid to replace the actual item. How does the FRV process work? Servicemembers should file their pink forms or DD Form 1840R directly with the carrier within 75 days of delivery to notify them of any damage or loss discovered. If a servicemember wants the base legal office to send their pink forms to the carrier, they must turn the forms in to the legal office within 70 days of delivery. If a servicemember does not turn in their pink forms on time, they may not be able to get paid for their loss or damage. Airmen should remember that their pink forms only serve to put the carrier on notice; they still must file their claim. To receive FRV servicemembers have to file their claim directly with the carrier within nine months from the date of delivery. If a servicemember does not file with the carrier within nine months, they still have two years to file with the Air Force Claims Service Center, but they will not receive FRV. If a servicemember files with the AFCSC, their claim will be processed using standard depreciation and maximum allowable rules will apply. This means that they will likely get significantly less money than they would have if they had filed directly with the carrier within the nine month period. If the servicemember does not file their claim within two years from the date of delivery, their claim will be barred by the statute of limitations. What documentation do servicemembers give the carrier for their claim to be processed? When servicemembers file their claim with the carrier for an item that is damaged, the carrier can request the servicemember get estimates for repair, the carrier can get their own estimates or repair it themselves. Servicemembers should not get repair estimates unless the carrier requests that they do so first; otherwise, the servicemember may not be reimbursed for such costs. Also, servicemembers should ensure they file their claim with the carrier within nine months even though there may be a pending issue concerning obtaining repair estimates. How long does the carrier have to settle a claim? The carrier will pay, deny or make an offer within 60 days of receipt of a complete, substantiated claim. If the servicemember agrees with the way a carrier handles an item, they sign a legal release and take their money for that item. The carrier will pay the servicemember within 30 days of receipt of notice that the servicemember has accepted a full or partial settlement. For every item on which a servicemember does not agree with the carrier's offer, the servicemember can file with the AFCSC. · The AFCSC enter will pay the servicemember appropriate repair or depreciated value and then it will try to collect the FRV from the carrier. · If the AFCSC collects more money from the carrier than the servicemember was paid (this could take up to six months), AFCSC will pay that extra money to the servicemember. For further questions, contact Air Force Claims Service Center 24 hours a day, seven days a week at DSN 312-986-8044 or commercial at 1-877-754-1212.