B-216117, FEB 19, 1985, 85-1 CPD 209

B-216117, FEB 19, 1985, 85-1 CPD 209

TRANSPORTATION - HOUSEHOLD EFFECTS - RATES - INDIVIDUAL CARRIERS V. CARRIER RATE BUREAUS DIGEST: IN COMPUTING PAYMENT TO A CARRIER FOR SHIPPING HOUSEHOLD GOODS, THE AGENCY PROPERLY APPLIED RATES IN AN INDUSTRY-WIDE TENDER IN LIEU OF HIGHER RATES IN THE CARRIER'S OWN TENDER, WHERE THE LATTER PROVIDED THAT THE LOWEST AVAILABLE RATES SHOULD APPLY.

TOWNE VAN LINES, INC.:

TOWNE VAN LINES, INC. (TOWNE), REQUESTS THAT OUR OFFICE REVIEW THE AUDIT ACTIONS BY THE GENERAL SERVICES ADMINISTRATION (GSA) WITH RESPECT TO 21 SHIPMENTS FOR HOUSEHOLD GOODS IN INTERSTATE COMMERCE FROM THE NAVAL AIR STATION (NAS), JACKSONVILLE, FLORIDA, TO VARIOUS DESTINATIONS IN THE UNITED STATES.

WE SUSTAIN GSA'S AUDIT ACTIONS.

EACH OF THE 21 SHIPMENTS WAS A "CODE 1" SHIPMENT, WHICH MEANS THAT IT INVOLVED THE DOOR-TO-DOOR MOVEMENT OF HOUSEHOLD EFFECTS BY MOTOR VAN. CODE 2 SHIPMENT INVOLVES MOVEMENT IN CONTAINER SERVICE.) FOR THE SERVICES PERFORMED, TOWNE ORIGINALLY CLAIMED AND WAS PAID, PRIOR TO AUDIT, CHARGES COMPUTED ON THE BASIS OF "SINGLE FACTOR" RATES PUBLISHED IN TOWNE'S OWN GOVERNMENT RATE TENDER 1622. ON AUDIT OF THE PAYMENT VOUCHERS, GSA COMPUTED THE APPLICABLE CHARGES ON THE BASIS OF THE LOWER "SEGMENTED" RATES IN MILITARY RATE TENDER (MRT) 1-M, PUBLISHED BY THE HOUSEHOLD GOODS CARRIERS' BUREAU; THIS COMPUTATION, WHICH TOWNE CONTESTS, RESULTED IN THE RECOVERY OF THE OVERCHARGES BY ADMINISTRATIVE SET-OFF. SINGLE FACTOR RATES ARE INCLUSIVE OF THE SERVICES OF PARKING, LOADING AND UNLOADING, LINEHAUL, UNPACKING, PLACING AT DESTINATION, SERVICING AND UNSERVICING AT DESTINATION, AND TOLLS AND OTHER ACCESSORIAL CHARGES; SEGMENTED RATES ARE RATES SEPARATELY STATED FOR EACH TRANSPORTATION SERVICE.

CARRIERS WHO ARE PARTIES TO MRT 1-M PUBLISH SEGMENTED RATES ON CODE 1 SERVICE BETWEEN ALL POINTS IN THE UNITED STATES OTHER THAN ALASKA AND HAWAII. TOWNE IS A PARTY TO MRT 1-M. WHILE SINGLE FACTOR RATES ON CODE 2 SERVICE ARE ALSO PUBLISHED IN MRT 1-M, TOWNE HAS, INDIVIDUALLY, PUBLISHED IN TENDER 1622 SINGLE FACTOR RATES APPLICABLE TO CODE 1 SERVICE FROM NAS JACKSONVILLE, FLORIDA, TO POINTS IN 17 SPECIFIED STATES AND THE DISTRICT OF COLUMBIA.

TOWNE CONTENDS THAT TENDER 1622 WAS INTENDED TO REPLACE WITH SINGLE FACTOR RATES THE SEGMENTED RATES FOR CODE 1 SERVICE PUBLISHED IN MRT 1 M. GSA ARGUES THAT THERE IS NOTHING IN EITHER MRT 1-M OR TENDER 1622 WHICH PROHIBITS THE APPLICATION OF THE SEGMENTED RATES IN MRT 1-M OR WHICH PROVIDES THAT THE SINGLE FACTOR RATES IN TENDER 1622 WILL TAKE PRECEDENCE. ON THE CONTRARY, GSA POINTS OUT THAT THE "ALTERNATIONS" CLAUSE OF TENDER 1622 EXPRESSLY PROVIDES THAT THE TENDER DOES NOT APPLY WHERE THERE ARE LOWER RATES OTHERWISE APPLICABLE FOR THE SAME SERVICE.

WE AGREE WITH GSA. THERE IS NOTHING IN MRT 1-M THAT LIMITS APPLICATION OF THE SEGMENTED RATES ON SHIPMENTS VIA TOWNE. NEITHER IS THERE ANY PROVISION IN TENDER 1622 STATING THAT THE RATES PUBLISHED IN THAT TENDER WILL APPLY REGARDLESS OF OTHER LOWER RATES. IN FACT,, AS GSA NOTES, TENDER 1622 EXPRESSLY PROVIDES THAT THE TENDER WILL NOT APPLY WHERE THE CHARGES ACCRUING UNDER IT EXCEED CHARGES OTHERWISE APPLICABLE FOR THE SAME SERVICE. THEREFORE, BY THE TERMS OF TENDER 1622 THE LOWER SEGMENTED RATES IN MRT 1-M APPLY IN PREFERENCE TO THE SINGLE FACTOR RATES IN TENDER 1622.

GSA'S AUDIT ACTIONS ARE SUSTAINED.