Request for Review of GSA Audit Action

A firm requested a review of a General Services Administration (GSA) audit action billing it for overcharges. The firm had transported four shipments of household goods, the property of military personnel, within the State of Florida at a time when a weight restriction was in effect. The restriction was a bridge charge. The firm, including this charge in its billing to the Government, contended that the shipments were accepted under rate terms in Tender 1-H, which included the bridge charge. It further contended that if the shipments had been tendered under the Florida tariffs, it would not have accepted them, since it does not offer the same service to the public as it does to the Government. Finally, the firm stated it does not make 90-days-storage-in-transit (SIT) available to the public. GSA based its audit on lower charges under Florida tariffs because the four shipments were intrastate shipments. GAO held that the firm's first argument had no merit, because the existence of the tender did not preclude the applicability of intrastate rates for similar services. Since both the shipper and carrier agreed to the tender, application required the use of the Florida tariffs. The second contention was not held to provide a legal basis for overturning the GSA action. The services offered were obtainable to the public at a higher rate. Thus, it was held that the firm had not offered the Government services which differed substantially from those available to the general public under the intrastate tariffs. GAO held that the contention regarding the 90-day SIT authorized on the Government bills of lading and the 60-day limit in the Florida tariffs was not relevant since there was no evidence that any of the shipments in question remained in storage for more than 60 days. Therefore, the GSA action was held to be correct and was sustained.