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[Decision on GSA Deduction Action To Recover Overcharges Collected by Shipping Firm]

B-221663 Oct 10, 1986
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Highlights

GAO reviewed a General Services Administration (GSA) deduction action to recover overcharges from a shipping firm. GAO noted that: (1) one carrier picked up a government shipment and transferred it to the billing carrier; (2) the billing carrier collected payment for the shipment's freight charges based on joint-line rates; (3) GSA determined that single-line rates applied since the first firm was only the pick-up agent for the actual carrier; and (4) GSA recovered the difference between the charges collected and the overcharges. GAO held that GSA was authorized to recover the overcharges since there was evidence that the billing carrier had advised the government to call another carrier to pick up the shipment as its agent. Accordingly, GAO sustained the GSA determination that single-line rates applied.

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