[Request for Review of GSA Deduction Action To Recover Overcharges]

A motor carrier that performed all the transportation services for a government shipment requested review of a deduction action taken by the General Services Administration (GSA) to recover freight overcharges. The Navy had issued a bill of lading to another carrier at a lower rate. However, while the shipment was in transit, the other carrier merged with the protester, which collected charges based on a higher rate. GSA subsequently deducted the difference in the two rates from monies due the protester. The protester contended that it performed the transportation services and did not adopt the tender in question during the merger. GAO found that: (1) arrangements made by a carrier with other carriers have no legal effect on the mutual obligations of the parties to the contract of carriage; (2) rates applicable on the date that transportation services are performed are binding on the parties; and (3) since the initial carrier's tender was in effect at the time of the shipment, GSA properly applied its rates. Accordingly, the GSA audit determination was sustained.