Request for Review of GSA Deduction Action

A carrier firm requested a review of the deduction action taken by the General Services Administration (GSA). The record showed that a shipment of freight was tendered to the carrier and then transported under three commercial bills of lading. Upon arrival at the destination, the three bills of lading were converted to a single Government bill of lading. Subsequently, the carrier billed the Government and was paid for the shipment. However, on audit of the payment voucher, GSA determined that an overcharge had taken place and notified the carrier. In response, the carrier refunded part of the overcharge stating that the difference between the amount asked and the amount refunded occurred because GSA had treated in its calculations the total weight of the freight as a single shipment. The carrier asserted that the freight was in reality moved under three freight bills, tendered by the shipper on three separate commercial bills of lading. The carrier thus contended that since the freight was tendered as three separate shipments, it could not later be combined as one shipment to make lower charges. GAO held that although the record indicated that the freight was picked up on different days, the shipper had offered the carrier the entire lot at one time. Thus, the offer of a lot of freight constituted one shipment notwithstanding the inability of the carrier to transport the entire lot at one time or on one day. Neither did the fact that the lot of freight moved on three bills of lading prevent the movement from being considered a single shipment. Accordingly, the action of GSA was appropriate and was sustained.