Board of Contract Appeals General Services Administration Washington, D.C. 20405 _________________________ July 10, 1998 _________________________ GSBCA 13984-RATE In the Matter of PARK RIDGE TRANSPORT Anthony E. Young, Chicago, IL, appearing for Claimant. Jeffrey J. Thurston, Director, Office of Transportation Audits, General Services Administration, Washington, DC, appearing for General Services Administration. DeGRAFF, Board Judge. In 1993, the General Services Administration (GSA) issued a standard tender of service that set out the terms for the transportation of freight pursuant to GSA's freight traffic management program. A carrier wishing to transport freight for GSA had to submit three items to the agency so that GSA could determine whether the carrier was eligible to provide transportation pursuant to the standard tender of service. First, the carrier had to submit a letter of intent which asked to participate in the standard tender of service general freight traffic management program. In this letter, the carrier was to certify that it would comply with all of the provisions of the standard tender of service, and that it had the operating authority required by all applicable federal, state, and local laws and regulations. Second, the carrier had to submit a certification stating that it was eligible to submit rate tenders for transportation. Third, the carrier had to submit a tender offering. On June 27, 1994, Turner Transportation, Inc. (Turner) submitted to GSA its letter of intent, certification of eligibility, and tender offering. Turner s tender offering identified its tender number as TTNO 1 and stated that Turner was tendering its transportation services to the United States Government, except for the Department of Defense, for shipments originating at the GSA Supply Center in Worth, Illinois. "TTNO" is the standard carrier alpha code (SCAC) that was assigned to Turner by the National Motor Freight Traffic Association, Inc. In the space on the tender offering form where Turner was supposed to state its operating authority, if any, it entered the word "Deregulated." As required by GSA, Turner said that its tender was subject to the terms, conditions, and provisions of the GSA standard tender of service. On July 8, 1994, GSA accepted Turner s tender. On August 4, 1994, GSA sent a letter to Turner stating that GSA had selected Turner as the prime carrier for less than truckload shipments in an area including Illinois, and that Turner would provide pickup and transportation services from the GSA Supply Center in Worth, Illinois. Between May 9 and June 21, 1995, GSA prepared approximately 241 Government bills of lading (GBLs) for shipments originating at the supply center in Worth, Illinois. Each GBL identified Turner in block 1 as the transportation company to which the shipment was tendered, contained Turner's SCAC code in block 2, and listed Turner s tender TTNO 1 as the applicable rate authority in block 20. Block 13 of each GBL stated that shipping charges were to be billed to GSA, and GSA paid Turner for these shipments. In July 1995, Park Ridge Transport, Inc. (Park Ridge) asked GSA for payment for providing the transportation services covered by the GBLs that GSA issued to Turner. Park Ridge said that it negotiated with Turner in May 1995 to provide transportation services to GSA and that it agreed with Turner to provide services at a discount from Park Ridge's tariff rates.[foot #] 1 Park Ridge said that its drivers picked up and transported the shipments that are the subject of the 241 GBLs that GSA issued to Turner, and that its drivers signed GBL block 26a, "Signature of Agent." Park Ridge told GSA that it turned over the original GBLs to Turner, and then billed Turner for its services. When Turner did not pay Park Ridge, it looked to GSA for payment. In response to Park Ridge's requests for payment, GSA said that it had no contract with Park Ridge, and explained that it had paid Turner. GSA also stated that Park Ridge's request for payment was not a "claim" that GSA could consider pursuant to the regulations governing claims relating to transportation services. GSA advised Park Ridge that it might want to pursue Turner for whatever payments Park Ridge believed were due. Park Ridge sued Turner in state court in Illinois for payment of the charges due for the shipments and the court awarded Park Ridge a default judgment for the full amount that it sought. ----------- FOOTNOTE BEGINS --------- [foot #] 1 Park Ridge did not have a written agreement with Turner concerning transportation services. Park Ridge says that its agreement with Turner is set forth in a letter dated May 9, 1995, written from Park Ridge to Turner. The letter says that Park Ridge was "pleased to confirm the discounts" that it discussed with Turner, and that Park Ridge enclosed a list of its discounts for Turner s files. The letter does not mention providing transportation services for GSA. ----------- FOOTNOTE ENDS ----------- Park Ridge asked that we review the action taken by GSA upon its request for payment, and provided us with copies of what it called "original" GBLs in support of its request. Of the documents that Park Ridge provided, four are copies of original GBLs and none of those contains an executed certificate of carrier billing. Most of the remaining "original" GBLs are actually copies of shipping orders. Discussion Each GBL used for the transportation of property states that it is governed by the regulations published in title 41, part 101-41 of the Code of Federal Regulations. The regulations explain that the GBL consists of a set of forms, including the original GBL and the shipping order, among others. 41 CFR 101- 41.302-2 (1995). The shipper gives the original GBL and the shipping order to the carrier's agent at the time the shipment is tendered, and the carrier's agent signs the original GBL to acknowledge receipt of the shipment. 41 CFR 101-41.306(a). The carrier's agent retains the shipping order, and the carrier uses the original GBL as supporting documentation in order to receive payment. 41 CFR 101-41.302-2, 101-41.306(c). The regulations provide that GSA will pay for transportation charges when a voucher, supported by the original, properly certified GBL, is submitted to the agency identified in block 13 of the GBL for payment to "[t]he last carrier or forwarder in privity with the contract of carriage as evidenced by the covering GBL." 41 CFR 101-41.302-2(a)(1), 101-41.302-3(a), 101- 41.310-4(a)(1). With few exceptions not relevant here, a properly certified GBL is one with block 34, "Certificate of Carrier Billing," completed and signed. The original GBL, but not the shipping order, contains this certificate. An executed certificate is required in order for GSA to pay for t r a n s p o r t a t i o n c h a r g e s . 4 1 C F R 101-41.306(c).[foot #] 2 ----------- FOOTNOTE BEGINS --------- [foot #] 2 The regulations explain the steps that a carrier must take in order to receive payment for transportation services when an original GBL is lost or destroyed. 41 CFR 101-41.307. ----------- FOOTNOTE ENDS ----------- The regulations also set out the procedures for GSA's review of claims related to transportation services, and define "claims" as follows: (a) Requests by claimants for amounts not included in the original billing; (b) Requests by claimants for amounts deducted or set off by the Government; (c) Requests by claimants for amounts previously refunded by carriers; or (d) Unpaid original bills requiring direct settlement by GSA, including those subject to doubt regarding the propriety of payment. 41 CFR 101-41.601. The only one of these definitions that could possibly apply to Park Ridge's situation, paragraph (d), authorizes and obligates GSA to spend its time considering the merits of a request for payment only if that request is supported by original GBLs. This threshold requirement is sensible because the controlling regulations, referred to in every GBL, explain that the submission of original GBLs is required in order to receive payment for transportation services.[foot #] 3 Absent unusual circumstances not present here, such as when an original GBL is lost or destroyed, a carrier without original GBLs will not be paid. By requiring a request for payment to be supported by original GBLs, the regulation ensures that GSA will not be compelled to review requests that have no possibility of being paid. GSA properly decided that Park Ridge did not submit a claim, as defined by the regulations, for the services it provided because Park Ridge did not support its request with unpaid original GBLs. Park Ridge did not have unpaid original GBLs because Park Ridge gave the original GBLs to Turner, and GSA paid Turner for the transportation services provided under those GBLs. Thus, Park Ridge did not submit a request for payment that constituted a claim, and the regulations neither authorized nor obligated GSA to consider Park Ridge's request. ----------- FOOTNOTE BEGINS --------- [foot #] 3 This has been the government's rule for nearly 100 years. 14 Comp.Dec. 967, 971 (1907). ----------- FOOTNOTE ENDS ----------- Decision The action taken by GSA concerning Park Ridge's request for payment was correct. ___________________________________ MARTHA H. DeGRAFF Board Judge