[GSA Request for Reconsideration of Decision Concerning GSA Use of Rates From Tenders Rejected by MTMC]

The General Services Administration (GSA) requested reconsideration of a decision which held that, in its audit of bills from a common carrier, GSA could not apply rates from tenders that the Military Traffic Management Command (MTMC) rejected as defective. GSA contended that: (1) the GAO determination that MTMC rejection of the proposed tenders resulted in the simultaneous rejection of new rates and cancellation of existing rates was a misinterpretation of the parties' intentions; and (2) the clarification was necessary for its audit work, in view of the MTMC position that MTMC had a legal right to reject and cancel tenders. GAO had found that: (1) the carrier purportedly cancelled the existing tender and substituted new rates simultaneously in the same document; and (2) MTMC legally rejected the tender since it did not comply with its filing procedures. In its reconsideration, GAO held that MTMC rejection of the tender did not cancel existing rates. Accordingly, the rates in the existing tender may be used in determining correct charges on shipments.