Allegation by Carrier That Setoff Claim by Government Was Unreasonable

A company requested a review of a prior settlement which disallowed its claim for money due which was setoff by the government. The setoff represented the amount collected to satisfy the government's claim for damage against the carrier for a generator damaged during the transport. The damage was acknowledged by the signature of the carrier's driver and was inspected by an agent of the carrier. The company contended that the overhead cost, cost of materials, labor costs, and transportation charges claimed by the agency for repairs were excessive. In the absence of any indication that the computation by the agency was erroneous, there was no basis to question the overhead assessment. Delivery receipt is not conclusive as to the extent of damage and does not prevent proof of damages by other means. Since the carrier did not show that the replacement of the converter was unnecessary, the cost of the converter was properly included in the cost of repair. Furthermore, no basis was found to the contention that the labor component of the damage claim was excessive and unsubstantiated. It was necessary to send the damaged property to the repair facility because the local repair facility did not have the test equipment required to make repairs. The agency's charges for tranportation were constant. However, the agency's computation of the constructive cost was erroneous. The prior settlement will be reopened and the protester will be allowed $85, if otherwise correct, representing the adjustment of the transportation costs.