What does Full Replacement Value mean for your next PCS?

  • Published
  • By Air Force Claims Center
  • Air Force Claims Center
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. Note the new filing deadlines to ensure you file your claim in a timely manner and are made whole for any damage or loss you may have suffered.

The FRV applies to shipments with a pick up date on or after Oct. 1, 2007 for international shipments (to or from overseas locations), Nov. 1, 2007 for domestic shipments within the United States, and Mar. 1, 2008 for non-temporary storage and direct procurement method Shipments.

Once FRV takes effect, you will file your claim directly with the carrier.
If an item is lost or destroyed, the carrier should pay to replace it with a like item (usually the item would be a new item but it could be used). Therefore, instead of being paid the depreciated value of the lost or destroyed item, you'll get paid to replace the actual item. The carrier will still require you to prove its value and quality and will likely want you to provide evidence of what it will cost to replace it.

If the item is damaged, the carrier can request you get estimates for repair, get their own estimates, or repair it themselves. If you file your claim with the carrier within nine months of delivery, do not get repair estimates unless the carrier requests that you do so first; otherwise, you may not be reimbursed such costs. Also, ensure you file your claim with the carrier within nine months even though there may be a pending issue concerning obtaining repair estimates. You don't want to miss the nine-month mark.

You'll still have to file the pink forms (DD Form 1840R) with the carrier to notify it of any damage or loss discovered within 75 days of delivery. If you want the base legal office to send the pink forms to the carrier with the additional damage or loss noted, you must turn the forms in to the legal office within 70 days of delivery. Failure to turn in the pink forms in a timely manner may prevent you from recovering for the additional loss or damage.

You will now have nine months to file your claim directly with the carrier to get FRV. This is a significant change to the rules. However, if you file your claim beyond the nine-month mark and under two-years, you will not get FRV. Your claim will still be adjudicated but standard depreciation and maximum allowable rules will apply. This means that you will likely get significantly less money than you would have if you had filed within the nine-month period! As always, if you don't file your claim within two years, your claim will be barred by the statute of limitations.

The carrier will pay, deny, or make an offer within 60 days of receipt of a complete, substantiated claim. If you agree with the way a carrier handles an item, you sign a legal release for those items and take your money for that item. The carrier will complete payment to you within 30 days of receipt of notice that you have accepted a full or partial settlement.

For every item on which you don't agree with the carrier's offer, you can file with the Air Force Claims Service Center. The Center will pay you appropriate repair or depreciated value and then it will try to collect the FRV from the carrier. If the Center collects more money from the carrier than you were paid (this could take up to 6 months), it will pay that extra money to you.


For questions, call the Air Force Claims Service Center at DSN 986-8044 or toll free at 1-877-754-1212 or the Grand Forks Legal Office at 701-747-3608.