[Review of Air Force Setoff of Carrier Revenue for Transit Damages]

A carrier requested review of an Air Force set-off for transit damages, contending that: (1) it was not liable for any damages, since the damages to some items were indistinguishable from preexisting damages noted on the inventory; (2) the depreciated replacement cost for one item was incorrect; (3) it was not given one item for transport; and (4) it was not properly notified in a timely manner of damages to some items. GAO held that the: (1) carrier was not liable for damages to some items, since the damages could not be distinguished from preexisting damages; (2) Air Force reasonably determined the depreciated replacement cost for one item; (3) carrier did not receive one item for transport; and (4) carrier was timely notified of the damages. Accordingly, the claim was sustained in part and denied in part.