[Request for Review of GSA Settlement Action]
B-202596: Sep 7, 1982
- Full Report:
A carrier requested review of a General Services Administration (GSA) settlement action concerning a less-than-truckload (LTL) shipment of pillowcases weighing 1,650 pounds which was shipped under a government bill of lading (GBL). GSA determined that the carrier was overpaid and issued a notice of overcharge for that amount. When the carrier declined to pay the overcharge, GSA deducted that amount from the money due the carrier. GSA and the carrier disagreed over which weight scale applied to the shipment. GSA based its action on the scale for 1,000 pounds on the theory that the weight of the shipment controls. However, the carrier argued that the higher class 100 rate corresponding to the scale LTL applied. It pointed out that the LTL weight scale states that it is subject to any quantity (AQ) classes and that the tariff provides that the classes in the rate table are determined by the National Motor Freight Classification (NMFC). The tables in the tariff contain class rates; thus, their application is based on individual commodity ratings in the NMFC. In its tender, the carrier offered a freight all kinds (FAK) rate which provides a single rate on a mixture of diverse articles. GAO held that, since the tender clearly provided class 100 to be used in selecting the appropriate rate table, there was no intention to refer to the NMFC. Therefore, the AQ class 100 rating provided for the pillowcases in the classification was irrelevant in determining the FAK rate under the tender. Accordingly, the GSA settlement action was sustained.