[Air Force Offset of Carrier Revenue for Shipment Damage]

A firm requested review of an Air Force offset for shipment damage. GAO held that: (1) the protester initially rejected the offer to compromise a loss/damage claim against it and once it rejected that offer, the Air Force was precluded from relying on it as a basis for settlement; (2) there was sufficient evidence that the freight was damaged while in the carrier's custody; and (3) the Air Force properly calculated the offset. Accordingly, the claims group settlement was affirmed.