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Payment for Services of Carrier Operating Without Authority

B-188229 Sep 14, 1979
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Highlights

A carrier requested reconsideration of a decision concerning the propriety of certifying for payment two vouchers covering freight charges allegedly due on two GAO shipments transported by the carrier from Washington, D.C. to San Francisco, California. GAO held that a carrier which transported goods without operating authority can be paid a quantum meruit based on the usual or going rate of duly authorized carriers for the same service; the two vouchers were paid on that basis. The firm objected to the use of the quantum meruit basis, contending that the charges derived did not provide reasonable conpensation because the recovery was not comparable to the services rendered. GAO did not believe the functions performed by the firm were services performed for the benefit of the shipper for which a carrier operating without authority may be paid on quantum meruit. While it recognized that GAO may be satisfied with the firm's overall service, any benefit to the Government is derived from a competitive superiority between individual carriers performing the same or similar services. Under these circumstances there was no authority for payment of any of the firm's costs which exceeded the going rates of competitive duly authorized carriers on the domestic shipments considered in the decision. The prior decision was affirmed.

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