_______________________________________________ November 18, 1997 _______________________________________________ GSBCA 13735-RATE In the Matter of TRI-STATE MOTOR TRANSIT CO. Robert D. Norcom, Auditor, Tri-State Motor Transit Co., Joplin, MO, appearing for Claimant. Jeffrey J. Thurston, Director, Office of Transportation Audits, General Services Administration, Washington, DC, appearing for General Services Administration. Col. James F. Quinn, Staff Judge Advocate, Headquarters, Military Traffic Management Command, Department of the Army, Falls Church, VA, appearing for Department of Defense. BORWICK, Board Judge. Tri-State Motor Transit Company (Tri-State) filed a request for review with the General Accounting Office of the General Services Administration s (GSA) denial of claims for reimburse- ment for alleged excess released value on thirty-seven shipments sent by government bills of lading (GBLs).[foot #] 1 GSA denied each claim for the same reason, essentially that the Government had no intention of declaring a released value in excess of the default released value of $20,000 established for the shipped goods by Military Traffic Freight Rules Publication No. 1A (MTFRP 1A) Item 190. For the reasons stated below, we ----------- FOOTNOTE BEGINS --------- [foot #] 1 Congress transferred the review function formerly performed by GAO to the Director of the Office of Management and Budget (OMB) and authorized him to delegate it to any other agency or agencies. Pub. L. No. 104-53, 211, 109 Stat. 514, 535 (1995). The Acting Director of OMB delegated this function to GSA (Delegation, June 28, 1996), and the Acting GSA Administrator redelegated it to this Board (Delegation, July 17, 1996). Later, Congress made permanent the assignment of this duty to the Administrator. Pub. L. No. 104-316, 202(o)(2), 110 Stat. 3826, 3844 (1996). ----------- FOOTNOTE ENDS ----------- conclude that GSA erred in denying the claims. The GBLs (in the order presented by claimant in its appen- dix) and claimed amounts (derived from the settlement certifi- cates) are: C-7,864,651 $65.70 C-7,864,650 65.70 C-7,864,652 65.70 C-7,658,396 8.55 D-0,649,997 213.60 C-7,658,639 4.50 C-1,401,683 84.00 C-7,658,680 4.50 D-1,401,685 114.32 D-1,401,686 84.00 C-7,180,015 83.45 C-8,089,281 125.00 C-1,139,396 73.75 D-0,525,438 30.30 C-2,078,357 38.25 C-2,078,368 60.60 C-1,139,402 42.30 C-1,139,395 73.35 D-0,973,076 99.15 D-0,973,073 99.15 E-2,038,263 40.80 E-2,038,246 40.05 C-9,072,785 166.50 C-7,658,344 4.50 C-7,658,347 4.50 C-7,658,346 4.50 C-7,658,345 4.50 E-2,038,243 75.00 D-1,010,393 59.25 C-7,658,638 4.65 C-7,658,418 281.81 D-1,364,034 73.65 D-0,691,408 37.50 D-1,364,032 72.15 C-0,933,384 64.80 C-9,531,449 30.00 D-1,023,099 45.00 We use the claim for GBL C-7,864,651 as a typical example. Under that GBL, Tri-State carried a motor vehicle/truck, weighing 25,550 pounds, from Tobyhanna Army Depot, Tobyhanna, Pennsylva- nia, to Phoenix, Arizona. The truck was shipped as "freight all kinds," and the GBL contained the following notation: "RVNE [released value not to exceed] $2.50 [per pound]." Tri-State charged the Government $4,479.35, which the Government paid. Then, Tri-State filed a claim for the excess declared value, which it calculated as follows. Tri-State derived the declared value of $63,750 (25,550 (the weight of the truck) x $2.50). The excess declared value above the default released value of $20,000 established by MTFRP 1A) Item 190 was therefore $43,750. Tri-State rounded that amount to $43,800 and applied the rate of $.15/$100 to arrive at an amount due of $65.70 ($43,800/100) x $.15). The Government did not contest the rounding. The Government maintains the released value statements on the GBLs such as "RVNE $2.50 per lb.," do not entitle claimant to payment beyond the FAK rates. Both this Board and the General Accounting Office have considered this "released valuation" issue and have concluded that the Government is wrong. Tri-State Motor Transit Co., GSBCA 13839-RATE, 97-1 BCA 28,953; Tri-State Motor Transit Co., GSBCA 13746-RATE, 97-1 BCA 28,951; Tri-State Motor Transit Co.--Reconsideration, B-254378.2, et al. (July 5, 1995). We follow our earlier decisions. Tri-State is entitled to payment on its claims. __________________________ ANTHONY S. BORWICK Board Judge