[Request for Review of GSA Determination of Improper Billing]
Highlights
A common carrier requested review of a General Services Administration (GSA) determination that it improperly billed and collected transportation charges for weapons shipments it transported for the Army. GAO noted that, although the Army accepted the carrier's proposed transportation costs after a modification, its return of the initial prices constituted a rejection, and acceptance of the modified proposal was improper. The GSA determination that the carrier overcharged the Army was based on proposed transportation costs which should have been rejected. GAO held that, since the shipment was transported without a price regulation in effect, the carrier was entitled to payment for transportation costs based on normal shipping costs in effect at the time of shipment. Accordingly, GSA should pay the carrier on a quantum meruit basis, unless it determines that there were other applicable costs.