Request for Reconsideration

A firm requested reconsideration of a decision in which it was held that the firm's bills for freight charges allegedly due for the door-to-door through transportation of two privately owned vehicles (POV) could not be certified for payment, because, contrary to legislation, foreign-flag ships were used for part of the transportation when American containership service was available. The firm contended that the use of American-flag containership would have doubled the cost of the ocean portion of the transportation, and provided documents showing the costs for each segment of transportation for POVs under Government bills of lading from Germany to the employees' homes in the U.S. to support its request. However, legislation provides that economy alone may not be relied on to justify the use of a foreign-flag ship. GAO has held that it would consider an allowance of the through door-to-door transportation charges less the ocean freight on the foreign ship if the carrier submitted evidence of the ocean freight paid. GAO advised the Federal agency that the firm's bills may be certified for payment if otherwise correct. The prior decision was modified accordingly.