[Appeal of Disallowance of Carrier's Claim for Refund]

A carrier appealed the Claims Group's settlement which disallowed its claim for an amount the Air Force set off for damage to a member's mobile home. The carrier accepted the home in good order, with minor exceptions, and admitted that the home was involved in an accident in transit. The carrier contended that the Air Force: (1) did not correlate the amount it set off with specific items of damage that the carrier caused; and (2) commingled amounts for normal maintenance and pre-existing damage with the amount it set off. GAO held that: (1) the record established that the home had only minor damage when the carrier accepted it; and (2) the damage incurred while the home was in the carrier's care cost at least twice as much as the Air Force set off. Accordingly, the Claims Group's settlement was sustained.