Claim for Transportation Charges

The Government paid a shipping company for the transportation of rocket parts. The carrier derived its charges from a tender which required the shipper to load, the consignee to unload, and the shipper to seal the carrier's vehicle. Subsequent to payment, it was discovered that the shipper did not seal the vehicle, and the parties agreed that the tender used was not applicable. The carrier presented a claim for additional charges, and the General Services Administration (GSA) allowed only a portion of these charges. The carrier contended that the tender which the Government used was inapplicable. GAO determined that the use of the tender presented by the carrier would only be appropriate if the products were of such size or weight that special equipment had to be used to load the shipment. The carrier did not show that the rocket parts required the use of special equipment for shipping. GAO found that the GSA tender interpretation applied. Accordingly, the GSA audit action was sustained.