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B-222189, DEC 5, 1986, OFFICE OF GENERAL COUNSEL

B-222189 Dec 05, 1986
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MILITARY PERSONNEL - RELOCATION - HOUSEHOLD GOODS - SHIPMENT COSTS - RATES - PROPRIETY DIGEST: THE GENERAL ACCOUNTING OFFICE WILL NOT OBJECT TO THE SOLICITATION AND PAYMENT OF RATES FOR THE TRANSPORTATION OF DOMESTIC HOUSEHOLD GOODS BY THE MILITARY TRAFFIC MANAGEMENT COMMAND OR THE GENERAL SERVICES ADMINISTRATION WHETHER THE TRANSPORTATION CHARGES SIMPLY REFLECT INCREASED VALUATION FROM THE CURRENT 60 CENTS PER POUND PER ARTICLE TO $1.25 PER POUND OF NET WEIGHT. OR ARE EXPRESSED AS VALUATION CHARGES. THE LATTER PROPOSAL WAS NOT CONSIDERED TO BE INCONSISTENT WITH THE GOVERNMENT'S SELF-INSURANCE POLICY. WE HAVE CONSIDERED THIS MATTER FURTHER. WE ARE FURNISHING A COPY OF THIS LETTER TO COLONEL MAROTTA.

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B-222189, DEC 5, 1986, OFFICE OF GENERAL COUNSEL

MILITARY PERSONNEL - RELOCATION - HOUSEHOLD GOODS - SHIPMENT COSTS - RATES - PROPRIETY DIGEST: THE GENERAL ACCOUNTING OFFICE WILL NOT OBJECT TO THE SOLICITATION AND PAYMENT OF RATES FOR THE TRANSPORTATION OF DOMESTIC HOUSEHOLD GOODS BY THE MILITARY TRAFFIC MANAGEMENT COMMAND OR THE GENERAL SERVICES ADMINISTRATION WHETHER THE TRANSPORTATION CHARGES SIMPLY REFLECT INCREASED VALUATION FROM THE CURRENT 60 CENTS PER POUND PER ARTICLE TO $1.25 PER POUND OF NET WEIGHT, OR ARE EXPRESSED AS VALUATION CHARGES.

THOMAS M. AUCHINCLOSS, JR., ESQ.:

YOUR LETTER OF OCTOBER 8, 1986, ON BEHALF OF THE HOUSEHOLD GOODS CARRIERS' BUREAU, INC., ASKS FOR REVIEW OF AN INFORMAL OPINION CONTAINED IN A LETTER OF AUGUST 14, 1986, TO COLONEL JOSEPH R. MAROTTA, DIRECTOR OF PERSONAL PROPERTY, HEADQUARTERS, MILITARY TRAFFIC MANAGEMENT COMMAND, FROM ACTING ASSISTANT GENERAL COUNSEL, DAVID F. ENGSTROM, OF OUR OFFICE.

MR. ENGSTROM'S LETTER INDICATED THAT A PROPOSAL TO SOLICIT RATES FOR THE TRANSPORTATION OF DOMESTIC HOUSEHOLD GOODS SHIPMENTS, WHICH WOULD INCLUDE A VALUATION CHARGE FOR A MINIMUM VALUATION OF $1.25 PER POUND TIMES A SHIPMENT'S NET WEIGHT, APPEARED TO BE INCONSISTENT WITH THE GOVERNMENT'S POLICY OF SELF-INSURANCE. THE OPINION DISTINGUISHED BETWEEN SUCH AN ADDITIONAL VALUATION CHARGE AND A PROPOSAL TO SOLICIT TRANSPORTATION RATES WHICH INCLUDE AN INCREASE OF RELEASED VALUE (FROM THE CURRENT 60 CENTS PER POUND PER ARTICLE TO $1.25 PER POUND OF NET WEIGHT). THE LATTER PROPOSAL WAS NOT CONSIDERED TO BE INCONSISTENT WITH THE GOVERNMENT'S SELF-INSURANCE POLICY.

IN VIEW OF CONCERNS SUBSEQUENTLY EXPRESSED BY YOU, ANOTHER CARRIER ORGANIZATION AND MILITARY TRAFFIC MANAGEMENT COMMAND REPRESENTATIVES, WE HAVE CONSIDERED THIS MATTER FURTHER. AS A RESULT, IN A CONFERENCE HELD ON OCTOBER 23, 1986, IN THE GENERAL ACCOUNTING OFFICE, OUR DEPUTY GENERAL COUNSEL, JAMES F. HINCHMAN, ADVISED COLONEL MAROTTA THAT WE WOULD NOT OBJECT TO THE PROPOSED SOLICITATION WHICH WOULD INCLUDE A SEPARATE VALUATION CHARGE.

WE HOPE THAT THIS SATISFIES THE PURPOSE OF YOUR REQUEST. WE ARE FURNISHING A COPY OF THIS LETTER TO COLONEL MAROTTA.

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