B-166167, AUG. 14, 1969

B-166167: Aug 14, 1969

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FREIGHT CHARGE IS FOR TRANSPORTATION OF 15 JET AIRPLANE ENGINES MOUNTED ON AIRPLANE DOLLIES (MOBILE DOLLY CRADLES) FROM MOUNTAIN HOME AIR FORCE BASE. 016.32 WAS COLLECTED BY SETOFF. THE ALLOWABLE CHARGES WERE COMPUTED ON THE BASIS OF A RATE OF $2.22 PER 100 POUNDS. YOUR OUT-OF-POCKET COSTS WOULD HAVE BEEN $2. SINCE THE NET REVENUES PRESENTLY RETAINED BY GARRETT ARE $1. WE ARE TAKING ACTION TO ISSUE A SETTLEMENT CERTIFICATE AUTHORIZING REFUND OF $1.

B-166167, AUG. 14, 1969

TRANSPORTATION - FREIGHT CHARGE - SETTLEMENT CERTIFICATE - REFUND DECISION TO GARRETT FREIGHT LINES, INC., AUTHORIZING ISSUANCE OF SETTLEMENT CERTIFICATE FOR REFUND OF $1,050.83 WITHOUT PREJUDICE TO OUR GENERAL POSITION IN SIMILAR TRANSACTIONS. FREIGHT CHARGE IS FOR TRANSPORTATION OF 15 JET AIRPLANE ENGINES MOUNTED ON AIRPLANE DOLLIES (MOBILE DOLLY CRADLES) FROM MOUNTAIN HOME AIR FORCE BASE, IDAHO, TO MCCLELLAN AIR FORCE BASE, CALIFORNIA IN JANUARY, 1966, AND GAO CONSIDERS GARRETT'S PROPOSAL TO BE REASONABLE IN THE CIRCUMSTANCES.

TO GARRETT FREIGHT LINES, INC.:

PLEASE REFER TO YOUR LETTER OF JULY 1, 1969, RELATIVE TO THE FREIGHT CHARGE FOR THE TRANSPORTATION OF 15 JET AIRPLANE ENGINES MOUNTED ON AIRPLANE DOLLIES (MOBILE DOLLY CRADLES) FROM MOUNTAIN HOME AIR FORCE BASE, IDAHO, TO MCCLELLAN AIR FORCE BASE, CALIFORNIA, IN JANUARY 1966.

OUR OFFICE FOUND THE ALLOWABLE CHARGES ON THIS TRANSPORTATION TO BE $1,215.45. SINCE YOUR COMPANY COLLECTED $4,231.77, AN APPARENT OVERCHARGE OF $3,016.32 WAS COLLECTED BY SETOFF. THE ALLOWABLE CHARGES WERE COMPUTED ON THE BASIS OF A RATE OF $2.22 PER 100 POUNDS.

IN OUR LETTER OF JUNE 10, 1969, TO THE HONORABLE FRANK CHURCH, UNITED STATES SENATE, WE INVITED SUGGESTIONS FOR SOME ALTERNATIVE BASIS OF CHARGES WHICH YOUR COMPANY BELIEVED TO BE REASONABLE FOR SETTLEMENT PURPOSES. YOU INDICATE THAT CONSIDERING THE EIGHT SCHEDULES OPERATING A DIRECT 625 MILES AND EXCLUDING ANY DEADHEAD MILEAGE INVOLVED AT BOTH THE IDAHO AND CALIFORNIA ENDS, YOUR OUT-OF-POCKET COSTS WOULD HAVE BEEN $2,266.28. SINCE THE NET REVENUES PRESENTLY RETAINED BY GARRETT ARE $1,215.45, YOU PROPOSE TO SETTLE THE ISSUE BY ACCEPTING $1,050.83.

WE APPRECIATE YOUR PROPOSAL FOR AN AMICABLE ADJUSTMENT OF THE DISPUTE OVER THE APPLICABLE CHARGES IN THIS INSTANCE. SINCE WE CONSIDER SUCH A PROPOSAL REASONABLE IN THE CIRCUMSTANCES, WE ARE TAKING ACTION TO ISSUE A SETTLEMENT CERTIFICATE AUTHORIZING REFUND OF $1,050.83, WITHOUT PREJUDICE TO OUR GENERAL POSITION IN SIMILAR TRANSACTIONS CONCERNING THE APPLICABLE CHARGES AS HERETOFORE EXPLAINED IN OUR SEVERAL LETTERS ON THE SUBJECT.