[Request for Decision Concerning GSA Deductions To Recover Overcharges]

A motor carrier requested review of the General Services Administration's (GSA) audit action to recover alleged overcharges for Defense Logistics Agency (DLA) shipments, contending that it: (1) had an informal agreement with DLA to base the charges on actual mileage; and (2) formalized that agreement by issuing a supplement, which the Military Traffic Management Command approved. GAO held that GSA reasonably applied industry mileage guide rates to the carrier's charges, since: (1) there was no legal authority for the modification or agency authority to approve it; and (2) that was the customary arrangement. Accordingly, the audit action was sustained.